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Review CH 5
1. Define the four basic predispositions MNCs
have toward their international operations.
2. In what way are parochialism and
simplification barriers to effective crosscultural management? In each case, give an
example.
3. Many MNCs would like to do business
overseas in the same way that they do
business domestically. Do research findings
show that any approaches that work well in
the U.S. also work well in other cultures?
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Chapter 6 – Cont.
CH 6- CONTINUE
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Organizational Cultures in MNCs
• Shaped by numerous factors including
cultural preferences of leaders and
employees
• Some MNCs have subsidiaries that
(aside from logo and reporting
procedures) wouldn’t be easily
recognizable as belonging to same MNC
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Organizational Culture in MNCs
•
Four steps in integration of organizational
cultures resulting from international
expansion via mergers/acquisitions:
1. Two groups establish purpose, goals, and focus
of merger
2. Develop mechanisms to identify most important
structures and manager roles
3. Determine who has authority over resources
4. Identify expectations of all involved participates
and facilitate communication between
departments and individuals
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Four Cultural Types
7-5
Four Cultural Types
1. Family Culture: Strong emphasis on
hierarchy and orientation to persons
Power oriented, headed by leader regarded
as caring parent
Management takes care of employees,
ensures they’re treated well, and have
continued employment
Catalyze and multiply energies of personnel
or end up supporting leader who is
ineffective and drains energy and loyalties
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Four Cultural Types
2. Eiffel Tower:
Strong emphasis on hierarchy and
orientation to task
Jobs well defined; coordination from top
Culture narrow at top; broad at base
Relationships specific and status remains
with job
Few off-the-job relationships between
manager and employee
Formal hierarchy is impersonal and efficient
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Four Cultural Types
3. Guided Missile:
Strong emphasis on equality in workplace
and in task
Culture oriented to work
Work undertaken by teams or project
groups
All team members equal
Treat each other with respect
Egalitarian and task-driven organizational
culture
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Four Cultural Types
4. Incubator Culture:
Strong emphasis on equality and personal
orientation
Organization as incubator for selfexpression and self-fulfillment
Little formal structure
Participants confirm, criticize, develop, find
resources for, or help complete
development of innovative product or
service
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National Patterns
of Corporate Culture
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Managing Multiculturalism and
Diversity
• Both domestically and internationally,
organizations lead workforces with a
variety of cultures consisting of largely
diverse populations:
– Women and Men
– Young and Old
– Black, White, Latin, Asian, Arab, Indian
– Many others.
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Phases of Multicultural Development
7-12
Locations of Cross-Cultural
Interaction
7-13
Types of Multiculturalism
• Domestic Multiculturalism
– Multicultural and diverse workforce
operating in MNC home country
– Group Multiculturalism
• Homogenous groups
• Token groups
• Bicultural groups
• Multicultural groups
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Potential Problems
Associated with Diversity
• Perceptual problems
– When cultural diverse groups come together, often
bring preconceived, erroneous stereotypes with
them
• Inaccurate biases
• Inaccurate communication
• Attitudinal problems
– May cause lack of cohesion resulting in unit’s
inability to take concerted action or be productive
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Advantages of Diversity
•
•
•
•
•
Enhance creativity
Lead to better decisions
More effective/productive results
Prevent groupthink
Can facilitate highly effective teams
under right conditions
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Managing Multicultural Teams
• Select team members for task-related abilities,
not solely based on ethnicity
• Team members must recognize and prepare
to deal with their differences
• Team leader must help identify/define overall
goal
• Mutual respect among members is critical
• Managers must give team positive feedback
on process and output
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Review CH -6
1. In which of the four types of organizational
cultures – family, Eiffel Tower, guided missile,
incubator – would most people in U.S. feel
comfortable?
2. Most MNCs need not enter foreign markets
to face challenges of dealing with
multiculturalism. Do you agree or disagree?
3. What are some problems to be overcome
when using multiculturally diverse teams?
4. What are some basic guidelines for helping
make diverse teams more effective?
7-18
chapter seven
Cross-Cultural Communication
and Negotiation
McGraw-Hill/Irwin
Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Cross-Cultural Communication and Negotiation
Six Chapter Objectives:
1.
2.
3.
4.
5.
6.
DEFINE communication; examine examples of verbal
communication style; explain importance of message
interpretation
ANALYZE common downward and upward communication
flows of international communication
EXAMINE language, perception, culture of communication;
nonverbal barriers to effective international communication
PRESENT steps to overcome international communication
problems
DEVELOP approaches to international negotiations that
respond to differences in culture
REVIEW negotiating and bargaining behaviors that can
improve negotiations and outcomes
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Overall Communication Process
• Communication: The process of
transferring meanings from sender to
receiver.
• On surface appears straightforward
• However, a great many problems can
result in failure to transfer meanings
correctly
7-21
Verbal Communication Styles
• Context is information that surrounds a
communication and helps convey the
message
• Context plays a key role in explaining many
communication differences
• Messages often highly coded and implicit in
high-context society (e.g., Japan, many Arab
countries)
• Messages often explicit and speaker says
precisely what s/he means in low context
society (e.g., U.S. and Canada)
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Explicit and Implicit Communication
7-23
Major Characteristics of
Verbal Styles
7-24
Major Characteristics of
Verbal Styles
7-25
Verbal Communication Styles
• Indirect and Direct Styles
– High-context cultures: messages implicit
and indirect; voice intonation, timing, facial
expressions play important roles in
conveying information
– Low-context cultures: people often meet
only to accomplish objectives; tend to be
direct and focused in communications
7-26
Verbal Communication Styles
• Elaborate and Succinct Styles
– Three degrees of communication quantity—elaborating,
exacting, succinct
– Elaborating style most popular in high- context cultures with
moderate degree of uncertainty avoidance
– Exacting style focuses on precision and use of right amount
of words to convey message; more common in low-context,
low-uncertainty-avoidance cultures
– Succinct style more common in high-context cultures with
considerable uncertainty avoidance where people say few
words and allow understatements, pauses, and silence to
convey meaning.
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Verbal Communication Styles
• Contextual and Personal Styles
– Contextual style focuses on speaker and
relationship of parties; often associated with
high power distance, collective, high-context
cultures
– Personal style focuses on speaker and
reduction of barriers between parties; more
popular in low-power-distance,
individualistic, low-context cultures
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Verbal Communication Styles
• Affective and Instrumental Styles
– Affective style common in collective, high-context
cultures; characterized by language requiring
listener to note what is said/observe how message
is presented; meaning often nonverbal; requires
receiver to use intuitive skills to decipher message
– Instrumental style: goal oriented, focuses on
sender who clearly lets other know what s/he
wants other to know; more commonly found in
individualistic, low-context cultures
7-29
Verbal Styles Used in
10 Select Countries
7-30
Communication Flows
• Downward Communication
– Transmission of information from manager
to subordinate
– Primary purpose of manager-initiated
communication is to convey
orders/information
– Managers use this channel for instructions
and performance feedback
– Channel facilitates flow of information to
those who need it for operational purposes
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Upward Communication
– From subordinate to superior
– Purposes: provide feedback, ask questions,
obtain assistance
– In recent years a call for more upward
communication in U.S.
– In Japan, Hong Kong, Singapore upward
communication has long been fact of life
– Outside Asian countries, upward
communication not as popular
7-32
Communication Epigrams
7-33
Suggestions for Communication
1.
2.
3.
4.
5.
6.
7.
Use most common words with most common meanings
Select words with few alternative meanings
Strictly follow rules of grammar
Speak with clear breaks between words
Avoid using esoteric or culturally biased words
Avoid use of slang
Don’t use words or expressions requiring listener to
form mental images
8. Mimic cultural flavor of non-native speaker’s language
9. Paraphrase and repeat basic ideas continually
10. At end, test how well other understand by asking
him/her to paraphrase
7-34
Communication Barriers
• Language barriers
• Cultural barriers
– Be careful not to use generalized statements about
benefits, compensation, pay cycles, holidays,
policies in worldwide communication
– Most of world uses metric system so include
converted weights and measures in all
communications
– Even in English-speaking countries, words may
have different meanings.
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Dangers of using slang
7-36
Communication Barriers
(continued)
• Cultural barriers (continued)
– Letterhead and paper sizes differ worldwide
– Dollars aren’t unique to U.S. Also Australian,
Bermudian, Canadian, Hong Kong,
Taiwanese, and New Zealand dollars.
Clarify which dollar.
7-37
Perceptual Barriers
• Perception: a person’s view of reality
• Advertising Messages: countless
advertising blunders when words are
misinterpreted by others
• How others see us: May be different than
we think
7-38
Common Forms of
Nonverbal Communication
7-39
Nonverbal Communication
• Nonverbal communication
– Transfer of meaning through means such as body
language and use of physical space
– Chromatics
• Use of color to communicate messages
– Kinesics
• Study of communication through body
movement and facial expression
– Eye contact
– Posture
– Gestures
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7-41
Nonverbal Communication
• Proxemics
– Study of way people use physical space to convey
messages
• Intimate distance used for very confidential
communications
• Personal distance used for talking with
family/close friends
• Social distance used to handle most business
transactions
• Public distance used when calling across room
or giving talk to group
7-42
Personal Space in U.S.
7-43
Territory
• Primary territory: this refers to an area that is
associated with someone who has exclusive
use of it. For example, a house that others
cannot enter without the owner’s permission.
• Secondary territory: unlike the previous type,
there is no “right” to occupancy, but people
may still feel some degree of ownership of a
particular space. For example, someone may
sit in the same seat on train every day and feel
aggrieved if someone else sits there.
7-44
Territory
• Public territory: this refers to an area that is available
to all, but only for a set period, such as a parking
space or a seat in a library. Although people have
only a limited claim over that space, they often
exceed that claim. For example, it was found that
people take longer to leave a parking space when
someone is waiting to take that space.
• Interaction territory: this is space created by others
when they are interacting. For example, when a
group is talking to each other on a footpath, others
will walk around the group rather than disturb it.
7-45
Haptics
• Haptics is the study of touching as nonverbal
communication. Touches that can be defined as
communication include:
– handshakes, holding hands, kissing (cheek, lips, hand), back
slapping, high fives, a pat on the shoulder, and brushing an arm.
– Touching of oneself during communication may include licking,
picking, holding, and scratching.
•
These behaviors are referred to as "adaptor" and may
send messages that reveal the intentions or feelings of a
communicator. The meaning conveyed from touch is
highly dependent upon the context of the situation, the
relationship between communicators, and the manner of
touch.
7-46
Nonverbal Communication
• Chronemics: the way time is used in a
culture.
• two types:
– Monochronic time schedule: things done in
linear fashion
– Polychronic time schedule: people do
several things at same time and place
higher value on personal involvement than
on getting things done on time
7-47
Monochronic Time
• A monochronic time system means that
things are done one at a time and time is
segmented into precise, small units.
Under this system time is scheduled,
arranged and managed.
7-48
Monochronic Time
• The United States is considered a
monochronic society.
• This perception of time is learned and
rooted in the Industrial Revolution,
where "factory life required the labor
force to be on hand and in place at
an appointed hour" (Guerrero, DeVito
& Hecht, 1999, p. 238).
7-49
Monochronic Time
• For Americans, time is a precious resource not to be
wasted or taken lightly.
• "We buy time, save time, spend time and make time.
Our time can be broken down into years, months, days,
hours, minutes, seconds and even milliseconds. We use
time to structure both our daily lives and events that we
are planning for the future. We have schedules that we
must follow: appointments that we must go to at a
certain time, classes that start and end at certain times,
work schedules that start and end at certain times, and
even our favorite TV shows, that start and end at a
certain time.”
7-50
Monochronic Cultures
•
•
•
•
•
Germany
Canada
Switzerland
United States
Scandinavia
7-51
Polychronic Time
• A polychronic time system is a system
where several things can be done at
once, and a more fluid approach is taken
to scheduling time. Unlike Americans
and most northern and western
European cultures, Latin American and
Arabic cultures use the polychronic
system of time.
7-52
Polychronic Time
• These cultures are much less focused on the
preciseness of accounting for each and every
moment.
• Raymond Cohen notes polychronic cultures are
deeply steeped in tradition rather than in tasks -- a
clear difference from their monochronic counterparts.
Cohen notes that "Traditional societies have all the
time in the world.
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Polychronic Time
• The arbitrary divisions of the clock face have little
saliency in cultures grounded in the cycle of the
seasons, the invariant pattern of rural life, and the
calendar of religious festivities" (Cohen, 1997, p. 34).
• The culture is more focused on relationships, rather than
watching the clock. They have no problem being “late”
for an event if they are with family or friends, because
the relationship is what really matters.
• Polychronic cultures have a much less formal perception
of time. They are not ruled by precise calendars and
schedules.
• Cultures that use the polychronic time system often
schedule multiple appointments simultaneously so
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keeping on schedule is an impossibility.”
Polychronic Cultures
•
•
•
•
Saudi Arabia
Egypt
Mexico
Philippines
7-55
Chronemics
• Time can also be used as an indicator
of status.
• For example, the boss in most companies
can interrupt progress to hold an
impromptu meeting during the middle of
the work day, yet the average worker
would have to make an appointment to
see the boss.
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Chronemics
• The way different cultures perceive time can
influence communication as well.
• For example, most Americans will schedule a
meeting for a specific time such as 2:15 p.m.,
and expect all involved parties to be punctual at
the specified time.
• In many cultures in Central America and South
America, however, they may set a time to meet
"sometime in the afternoon" and on many
occasions the schedule is broken, changed or
deadline unmet.
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Communication Effectiveness
•
•
•
•
Improve feedback systems
Language training
Cultural training
Flexibility and cooperation
7-58
Negotiating Styles
7-59
Managing Cross Cultural Negotiations
• Negotiation: Process of bargaining with
one more parties at arrive at solution
acceptable to all
• Two types of negotiation:
– Distributive when two parties with opposing
goals compete over set value
– Integrative when two groups integrate
interests, create value, invest in the
agreement (win-win scenario)
7-60
Negotiation Types and Characteristics
7-61
Steps of the Negotiation Process:
1.
2.
3.
4.
5.
Planning
Interpersonal relationship building
Exchange of task related information
Persuasion
Agreement
7-62
Cultural Differences
Affecting Negotiations
1.
2.
3.
4.
5.
6.
Don’t identify counterpart’s home culture too quickly; common
cues such as accent may be unreliable.
Beware of Western bias toward “doing”. Ways of being, feeling,
thinking, talking can shape relationships more powerfully than
doing.
Counteract tendency to formulate simple, consistent, stable
images.
Don’t assume all aspects of culture are equally significant.
Recognize norms for interactions involving outsiders may differ
from those for interactions between compatriots.
Don’t overestimate familiarity with counterpart’s culture.
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Negotiation Tactics
•
•
•
•
Location
Time limits
Buyer-seller relationship
Bargaining behaviors
– Use of extreme behaviors
– Promises, threats and other behaviors
– Nonverbal behaviors
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Review and Discuss
1.
2.
3.
4.
5.
How does explicit communication differ from implicit
communication?
“He was laughing like hell.” “Don’t worry: It’s a piece
of cake.” What are these expressions and what
communication complications might they present?
How is nonverbal communication a barrier to
effective communication?
Kinesics or proxemics? Which nonverbal
communication barrier would be greatest for a U.S.
company going abroad for the first time?
What might a U.S. based negotiator need to know
about Japanese bargaining behaviors to strike a
best possible deal?
7-65