Chapter 07 – Cross-Cultural Communication and Negotiation
Chapter 7: Cross-Cultural Communication and Negotiation
Learning Objectives and Chapter Summary
1. DEFINE the term communication, examine some examples of verbal
communication styles, and explain the importance of message interpretation.
Communication is the transfer of meaning from sender to receiver. The key to the
2. ANALYZE the common downward and upward communication flows used in
international communication.
Communicating in the international business context involves both downward and
upward flows. Downward flows convey information from superior to subordinate;
3. EXAMINE the language, perception, and culture of communication, and nonverbal
barriers to effective international communication.
The international arena contains a number of communication barriers. Some of the
most important are language, perception, culture, and nonverbal communication.
Language, particularly in written communications, often loses considerable
improper, often results in communication problems.
4. PRESENT the steps that can be taken to overcome international communication
problems.
A number of steps can be taken to improve communication effectiveness. Some of
the most important include improving feedback, providing language and cultural
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5. DEVELOP approaches to international negotiations that respond to differences in
culture.
Negotiation is the process of bargaining with one or more parties to arrive at a
solution that is acceptable to all. There are two basic types of negotiation:
6. REVIEW different negotiating and bargaining behaviors that may improve effective
negotiations and outcomes.
There are a wide variety of tactics used in international negotiating. These include
location, time limits, buyer-seller relations, verbal behaviors, and nonverbal
The World of International Management: Offshoring Culture and
Communication
1. Summary:
This opening vignette highlights issues that many companies today face as they
take advantage of offshore opportunities. While moving certain operations offshore
can offer companies tremendous savings, it can also create problems as a result of
cultural differences and communications issues. Companies that proactively take
steps to manage these differences and ensure that communication is strong are more
likely to find their offshore operations are successful.
2. Suggested Class Discussion:
1. Why is it so important for companies that choose to offshore certain activities to
carefully consider how cross-border communication will be affected by both
national and organization differences in culture?
2. How should firms that offshore service tasks address cultural gaps and improve
communication between affiliates? How do different communication mediums
such as telephone versus e-mail exacerbate cultural divides?
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3. Related Internet Sites:
BusinessWeek {http://www.businessweek.com/}
A.T. Kearney {http://www.atkearney.com}
Chapter Outline with Lecture Notes and Teaching Tips
The Overall Communication Process
1) Communication is the process of transferring meanings from sender to receiver. On the
surface, this appears to be a fairly straightforward process. On analysis, however, there are
a great many problems in the international arena that can result in the failure to transfer
meanings correctly.
Teaching Tip: There are many companies that help businesses overcome cross-cultural
communications challenges and develop cross-cultural communications strategies. An
example is PROV. Communications, Inc. {http://www.prov.co.jp}. The site contains an
excellent description of the cross-cultural communications solutions that the company
provides.
Teaching Tip: A series of reports on business customs, etiquette, cross-cultural
communication, proper gifts, negotiating tactics, business culture, manners, business
entertainment, and much more on the Internet at {http://www.businessculture.com/}.
Verbal Communication Styles
1) One way of examining the ways in which individuals convey information is by looking at
their communication styles.
2) Context is information that surrounds a communication and helps to convey the message.
a) Indirect and Direct Styles: In high-context cultures, messages are implicit and direct.
In low-context cultures, people often meet only to accomplish objectives.
b) Elaborate and Succinct Styles: There are three degrees of communication
d) Affective and Instrumental Styles: The affective style is characterized by language
which requires the listener to carefully note what is being said and to observe how the
sender is presenting the message. In contrast, the instrumental style is goal-oriented
and focuses on the sender.
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Chapter 07 – Cross-Cultural Communication and Negotiation
Teaching Tip: An interesting article dealing with the cultural dimensions of language is
available at{http://faculty.css.edu/dswenson/web/CULTURE/SURVNOTE.HTM}.
Interpretation of Communications
1) The effectiveness of communication in the international context often is determined by
how closely the sender and receiver have the same meaning for the same message.
Communication Flows
1) Communications flows in international organizations move both up and down.
Downward Communication
1) Downward communication is the transmission of information from superior to
subordinate.
a) The primary purpose of the manager–initiated communication flow is to convey orders
and information.
b) In the international context, downward communication poses special challenges: Less
direct communication in Asian countries, but orders are direct. In some European
countries, downward communication is not only direct but extends beyond business
matters.
c) Suggestions for all types of communication with nonnative speakers:
1. Use the most common words with their most common meanings.
2. Select words that have few alternative meanings.
3. Strictly follow the basic rules of grammar—more so than would be the case with
native speakers.
4. Speak with clear breaks between the words so that it is easier for the person to
follow.
5. Avoid using words that are esoteric or culturally biased such as “he struck out” or
“the whole idea is Mickey Mouse” because these clichés often have no meaning
for the listener.
6. Avoid the use of slang.
7. Do not use words or expressions that require the other person to create a mental
image such as “we were knee deep in the Big Muddy.”
8. Mimic the cultural flavor of the nonnative speaker’s language, for example, by
using more flowery communication with Spanish-speaking listeners than with
Germans.
9. Continually paraphrase and repeat the basic ideas.
10. At the end, test how well the other person understands by asking the individual to
paraphrase what has been said.
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Chapter 07 – Cross-Cultural Communication and Negotiation
Upward Communication
1) Upward communication is the transfer of information from subordinate to superior.
a) The primary purpose of this subordinate-initiated upward communication is to provide
feedback, ask questions, or obtain assistance from higher–level management.
b) Upward communication does not always occur because of a number of
communication barriers.
Communication Barriers
1) The most important communication barriers for international management include
language, perception, culture, and nonverbal communication.
Language Barriers
1) Knowledge of the home country’s language (the language used at the headquarters of the
MNC) is important for personnel placed in a foreign assignment. If managers do not
understand the language that is used at headquarters, they likely will make a wide
assortment of errors.
a) Language education is a good beginning, but it is often not enough to ensure that the
personnel are capable of doing the work.
b) Written communication has been getting increased attention, because poor writing is
proving to be a greater barrier than poor talking.
2) Cultural Barriers in Language: Cultural barriers have significant ramifications for
international communications. Even in countries where the same language is spoken,
cultural barriers exist. For example, Americans use a very different style to write letters
than managers from Great Britain do. Written communications in the U.S. sometimes
appear to be rude in Asian countries.
Perceptual Barriers
1) Perception is a person’s view of reality. How people see reality can vary and will influence
their judgment and decision-making.
a) Advertising Messages: One way that perception can prove to be a problem in
international management communication is evident when one person uses words or
symbols that are misinterpreted by the other. A failure to understand home-country
perceptions can result in disastrous advertising programs.
b) View of Others: Perception influences communication when it deals with how
individuals “see” others. Most Americans, for example, believe others see them in the
same way they see themselves.
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Chapter 07 – Cross-Cultural Communication and Negotiation
The Impact of Culture
1) The Impact of Culture: Besides language and perception, another major barrier to
communication is culture, a topic that was given detailed attention in Chapter 4. Culture
can affect communication in a number of ways, and one way is through the impact of
cultural values.
a) Cultural values vary from country to country.
i) Examples: U.S. nonclass-consciousness, as in college students from all economic
groups taking similar part-time jobs to make pocket money; U.S. belief that time is
an asset not to be wasted has limited meaning in some other ountires.
ii) Various values are reinforced and reflected in proverbs that Americans are taught
from an early age. These proverbs help to guide people’s behavior.
b) Misinterpretation: Cultural differences can cause misinterpretations both in how
others see expatriate managers and how the latter see them.
i) Americans are more informal than many others when conducting business, using
first names, for example.
ii) Suggestions:
• Be careful not to use generalized statements. Work hours, vacation accrual,
general business practices, and human resource issues vary widely from
country to country.
• Since most of the world uses the metric system, include converted weights and
measures in all internal and external communications.
• Keep in mind that even in English-speaking countries, words may have
different meanings. Not everyone knows what is meant by “counterclockwise,”
or “quite good.”
• Remember that letterhead and paper sizes differ worldwide. The 81/2 x 11 inch
page is a U.S. standard, but most countries use an A4 (81/4 x 111/2 inch) size for
their letterhead, with envelopes to match.
• Dollars are not unique to the United States. When referring to American
dollars, it is important to use “US$.”
Nonverbal Communication
1) Nonverbal communication refers to the transfer of meaning through means such as body
language and the use of physical space. Table 7–6 in the text summarizes a number of
dimensions of nonverbal communication.
a) Kinesics
i) Kinesics is the study of communication through body movement and facial
expressions, primarily eye contact, posture, and gestures.
ii) Oculesics refers to the area of communication that deals with conveying messages
through the use of eye contact and gaze, such as looking someone in the eye.
iii) Haptics involves communicating through the use of bodily contact. More than half
the time, gestures that are assumed by Americans to be universal are
misinterpreted.
b) Proxemics
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Chapter 07 – Cross-Cultural Communication and Negotiation
i) Proxemics is the study of the way people use physical space to convey messages.
ii) Americans use 4 distances to communicate face-to-face:
Social distance is the distance used to handle most business transactions.
Public distance is the distance used when calling across the room or giving a
talk to a group.
c) Chronemics
i) Chronemics is the way in which time is used in culture.
ii) Monochronic time schedule is a time schedule in which things are done in a linear
fashion.
iii) Polychronic time schedule is a time schedule in which people tend to do several
ii) Knowing the importance and the specifics of chromatics in a culture can be very
helpful; such knowledge can help you avoid embarrassing situations.
Achieving Communication Effectiveness
1) Companies can improve the effectiveness of communication by improving feedback
systems, providing language and cultural training, and increasing flexibility and
cooperation.
Improve Feedback Systems
1) One of the most important ways of improving communication effectiveness in the
international context is to open up feedback systems.
2) There are two basic types of feedback systems: personal (e.g., face-to-face meetings,
to be getting continuous assistance and feedback that are critical to effective
communication.
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Chapter 07 – Cross-Cultural Communication and Negotiation
Provide Language Training
1) Besides improving feedback systems, another way to make communication more effective
in the international arena is through language training.
a) Those who are not native speakers of English should learn the language well enough
so that face-to-face and telephone conversations and e-mail are possible.
b) If the language of the home office is not English, this other language also should be
learned.
c) Written communication also is extremely important in achieving effectiveness.
Provide Cultural Training
1) It is very difficult to communicate effectively with someone from another culture unless at
least one party has some understanding of the other’s culture. Otherwise, communication
likely will break down.
2) It is erroneous to generalize about an “international” culture, because the various nations
and regions of the globe are so different. Training must be conducted on a regional or
country-specific basis.
Teaching Tip: Many businesses provide cultural training for companies that do business
overseas. An example is a firm called Across Cultures. The firm’s website provides a nice
illustration of the services that cultural training firms provide. Three items are offered: the
book Cultural Intelligence, the Peterson Cultural Style Indicator (PCSI), and cultural
presentations/consulting services. Across Cultures’ website is available at
{http://www.AcrossCultures.net/}.
Increase Flexibility and Cooperation
1) Effective international communications require increased flexibility and cooperation by all
parties. To improve understanding and cooperation, each party must be prepared to give a
little.
2) Essential starting point: Recognize and accept the inescapable subtleties and difficulties of
intercompany relationships. Then focus on the quality of the people at the interface
between organizations. Finally, require frequent, rapport-building meetings by at least
three organizational levels: top management, staff, and line management at the working
level.
Teaching Tip: The site “Your Japanese Guest” provides an excellent example of the
communications challenges that arise in international business. The site, which is
available at {http://fly.hiwaay.net/%7Eeueda/japguest.htm}, focuses specifically on the
challenges of effective American-Japanese communications.
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Chapter 07 – Cross-Cultural Communication and Negotiation
Managing Cross-Cultural Negotiations
1) Negotiation is the process of bargaining with one or more parties for the purpose of
arriving at a solution that is acceptable to all. Negotiation often follows assessing political
environments and is a natural approach to conflict management.
Types of Negotiation
1) People enter into negotiations for a multitude of reasons, but the nature of the goal
determines what kind of negotiation will take place.
a) Distributive negotiations refers to bargaining that occurs when two parties with
opposing goals compete over a set value.
b) Integrative negotiations involves cooperation between two groups to integrate
interests, create value, and invest in the agreement.
The Negotiation Process
1) Several steps are used to manage the negotiation process.
a) Planning: Planning starts with the negotiators identifying those objectives they would
like to attain. Then, they explore the possible options for reaching these objectives.
b) Impersonal Relationship Building: The second phase of the negotiation process
to work toward a solution that allows all parties to walk away feeling they have
achieved their objectives.
e) Agreement: The final phase of negotiations is the granting of concessions and
hammering out a final agreement; sometimes it is carried out piecemeal.
Cultural Differences Affecting Negotiations
1) Effective negotiation requires a sound understanding of the other side’s culture.
2) Some recommendations (see also Trompenaars and Hampden-Turner: Chapter 4):
a) Do not identify the counterpart’s home culture too quickly.
b) Beware of the Western bias toward “doing.”
c) Try to counteract the tendency to formulate simple, consistent, stable images.
3) Before beginning any negotiations, negotiators should review the negotiating style of the
other parties. Be as informed as possible and thus avoid trouble before it occurs.
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Chapter 07 – Cross-Cultural Communication and Negotiation
Negotiation Tactics
1) Specific tactics are used in international negotiations.
a) Location: Where should negotiations take place? If the matter is very important, most
approaches.
Negotiating for Mutual Benefit
1) Separating the People from the Problem: Often, when a manager spends so much time
getting to know the issue, many become personally involved. Therefore, responses to a
particular position can be interpreted as a personal affront.
a) Take the other’s perspective; avoid blame and stay positive; aim for win-win.
b) Recognize and accept emotions and tension; avoid defensiveness.
familiar with others’ interests will put all active partners in a better position to defend their
proposal.
3) Generating Options: Managers may feel pressured to come to an agreement quickly for
many reasons, especially if they hail from a country that puts a value on time.
a) Better to have many options
b) Form proposals: brainstorm, state problem analyze issue, ponder approaches, stategize
actions, evaluate options, discuss necessary improvements.
c) Offer proposals agreeable to other side; pinpoint their decision makers and tailor
suggestions to them; support your proposal.
4) Using Objective Criteria: In cases where there are no common interests, avoid tension
by looking for objective options. Use legitimate, practical criteria; emphasize communal
nature of process; be flexible, within reason.
5) Standing Ground: Every discussion will have some imbalance of power, but there is
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