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PowerPoint slides by R. Dennis Middlemist, Professor of Management, Colorado State University

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Chapter
Cross-Cultural Communication
and Negotiation
The specific objectives of this chapter are:
1. DEFINE the term communication, examine some
examples of verbal communication styles, and explain the
importance of message interpretation.
2. ANALYZE the common downward and upward
communication flows used in international communication.
3. EXAMINE the language, perception, and culture of
communication, and nonverbal barriers to effective
international communications.
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Chapter
Cross-Cultural Communication
and Negotiation
The specific objectives of this chapter are:
4. PRESENT the steps that can be taken to overcome
international communication problems.
5. 5. DEVELOP approaches to international negotiations that
respond to differences in culture.
6. REVIEW different negotiating and bargaining behaviors
that may improve negotiations and outcomes.
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Communication Process and

Verbal Communication Styles
 Communication
 The process of transferring meanings from sender to receiver
 Verbal communication styles
 Contextis information that surrounds a communication and
helps convey the message
 Messages are often highly coded and implicit in high-context
societies, such as Japan and many Arab countries
 The message is explicit and the speaker says precisely what
he or she means in low-context societies such as the United
States and Canada
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Explicit and Implicit Communication

High-context/implicit Japanese
communication
cultures Arabs
Latin Americans
Italians
English
French
North Americans
Scandinavians
Germans Low-context/explicit
communication
Swiss Germans cultures

Adapted from Figure 7–1: Explicit/Implicit Communication: An International Comparison

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Phases of Multicultural Development

Table 7–1
Major Characteristics of Verbal Styles
Cultures in Which
Major Interaction Focus Characteristic It
Verbal Style Variation and Content Is Found
Indirect vs. Indirect Implicit messages Collective, high context
direct Direct Explicit messages Individualistic, low context

Succinct vs. Elaborate High quantity of Moderate uncertainty

elaborate talk avoidance, high context
Exacting Moderate amount Low uncertainty avoidance,
of talk low context
Succinct Low amount of talk High uncertainty
avoidance, high context

Adapted from Table 7–1: Major Characteristics of Verbal Styles

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Phases of Multicultural Development

Table 7–1
Major Characteristics of Verbal Styles
Cultures in Which
Major Interaction Focus Characteristic It
Verbal Style Variation and Content Is Found
Contextual vs. Contextual Focus is on the High power distance,
personal speaker and role collective, high context
relationships
Personal Focus is on the Low power distance,
speaker and personal individualistic, low context
relationships
Affective vs. Affective Language is process Collective, high context
instrumental oriented and receiver
focused
Instrumental Language is goal Individualistic, low context
oriented and sender
focused

Adapted from Table 7–1: Major Characteristics of Verbal Styles

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Communication Process and

Verbal Communication Styles
Verbal communication styles (continued)
 Indirect and direct styles
 In high-context cultures, messages are implicit and indirect
 Voice intonation, timing, and facial expressions play important
roles in conveying information
 In low-context cultures, people often meet only to accomplish
objectives and tend to be direct and focused in their
communications
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Communication Process and

Verbal Communication Styles
Verbal communication styles (continued)
 Elaborate and succinct styles
 Three degrees of communication quantity— elaborate,
exacting, and succinct.
 The elaborating style is more popular in high-context cultures
that have a moderate degree of uncertainty avoidance
 The exacting style focuses on precision and the use of the right
amount of words to convey the message and is more common
in low-context, low-uncertainty-avoidance cultures
 The succinct style is more common in high-context cultures
with considerable uncertainty avoidance where people tend to
say few words and allow understatements, pauses, and silence
to convey meaning.
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Communication Process and

Verbal Communication Styles
Verbal communication styles (continued)
 Contextual and personal styles
 Contextual style is one that focuses on the speaker
and relationship of the parties
 Contextual style is often associated with high-
powerdistance, collective, high-context cultures
 Personal style focuses on the speaker and the
reduction of barriers between the parties
 Personal style is more popular in low-power-distance,
individualistic, low-context cultures
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Communication Process and

Verbal Communication Styles
Verbal communication styles (continued)
 Affective and instrumental styles
 Affective style is common in collective, high-context cultures
and is characterized by language that requires the listener to
note what is said and to observe how the message is presented
 The meaning is often nonverbal and requires the receiver to use
his or her intuitive skills to decipher the message
 Instrumental style is goal oriented and focuses on the sender
who clearly lets the other party know what he or she wants the
other party to know.
 The instrumental style is more commonly found in
individualistic, low-context cultures
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Summary of Verbal Styles

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Communication Flows
 Downward communication
 Transmission of information from manager to subordinate
 Primary purpose of manager-initiated communication is to
convey orders and information
 Managers use this channel for instructions and performance
feedback
 The channel facilitates the flow of information to those who
need it for operational purposes
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Communication Epigrams

Adapted from Figure 7–2: Communication Epigrams

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Matsushita’s Philosophy
Table 7–3
Matsushita’s Philosophy
Basic Business Principles
To recognize our responsibilities as industrialists, to foster progress, to
promote the general welfare of society, and to devote ourselves to the
further development of world culture.
Employees Creed
Progress and development can be realized only through the combined
efforts and cooperation of each member of the Company. Each of us,
therefore, shall keep this idea constantly in mind as we devote ourselves
to the continuous improvement of our Company.

Adapted from Table 7–3: Matsushita’s Philosophy

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Matsushita’s Philosophy
Table 7–3
Matsushita’s Philosophy
The Seven Spiritual Values
1. National service through industry
2. Fairness
3. Harmony and cooperation
4. Struggle for betterment
5. Courtesy and humility
6. Adjustment and assimilation
7. Gratitude

Adapted from Table 7–3: Matsushita’s Philosophy

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Communication Barriers
 Language barriers
 Cultural barriers
 Suggestions that can be of value to American managers who are
engaged in international communications include:
 Be careful not to use generalized statements about benefits,
compensation, pay cycles, holidays, or policies in your worldwide
communications.
 Since most of the world uses the metric system, be sure to 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.”
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Communication Barriers
 Language barriers
 Cultural barriers
 Suggestions that can be of value to American managers who are
engaged in international communications include:
 Remember that letterhead and paper sizes differ worldwide. The
81⁄2 by 11-inch page is a U.S. standard, but most countries use an
A4 (81⁄4 111⁄2-inch) size for their letterhead, with envelopes to
match.
 Dollars are not unique to the United States. There are Australian,
Bermudian, Canadian, Hong Kong, Taiwanese, and New Zealand
dollars, among others. So when referring to American dollars, it is
important to use “US$.”
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Nonverbal Communication
 Nonverbal communication
 The transfer of meaning through means such as body
language and use of physical space
 Kinesics
 The study of communication through body movement and
facial expression
 Eye contact
 Posture
 Gestures
 Chromatics
 The use of color to communicate messages
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Nonverbal Communication
 Proxemics
 The study of the way that people use physical space to
convey messages
 Intimate distance is used for very confidential communications
 Personal distance is used for talking with family and close
friends
 Social distance is used to handle most business transactions
 Public distance is used when calling across the room or giving
a talk to a group
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Personal Space in the U.S.

Intimate distance 18”

Personal distance 18” to 4’
Social distance 4’ to 8’
Public distance 8’ to 10’

Adapted from Figure 7–3: Personal Space Categories for Those in the United States
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Nonverbal Communication
 Chronemics
 Monochronic time schedule
 Things are done in a linear fashion.
 Manager addresses Issue A first and then moves on to Issue B
 Time schedules are very important and time is viewed as
something that can be controlled and should be used wisely
 Polychronic time schedules
 People tend to do several things at the same time
 People place higher value on personal involvement than on
getting things done on time
 Schedules are subordinated to personal relationships
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Achieving Communication
Effectiveness
 Improve feedback systems
 Twobasic types of feedback systems between
home office and affiliates
 Personal (e.g., face-to-face meetings, telephone
conversations and personalized e-mail)
 Impersonal (e.g., reports, budgets, and plans)
 Language training
 Cultural training
 Flexibility and cooperation
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Flexibility Cooperation: Intercompany

Interaction and Negotiation
Table 7–7
Negotiation Styles from a Cross-Cultural Perspective

Adapted from Table 7–7: Negotiation Styles from a Cross-Cultural Perspective

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Flexibility Cooperation: Intercompany

Interaction and Negotiation
Table 7–7
Negotiation Styles from a Cross-Cultural Perspective

Adapted from Table 7–7: Negotiation Styles from a Cross-Cultural Perspective

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Managing Cross-Cultural Negotiations

Negotiation: The process of bargaining with one or more
parties to arrive at a solution that is acceptable to all

1. identify the objectives negotiators would like

Planning
Planning to attain and explore the possible options for
reaching these objectives
2. Set limits on single-point objectives
3. Divide issues into short- and long-term
considerations and decide how to handle each
4. Determine the sequence in which to discuss
the various issues
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Managing Cross-Cultural Negotiations

Negotiation: The process of bargaining with one or more
parties to arrive at a solution that is acceptable to all

• Get to know the people on the other side

Planning
Planning
• “Feeling out” period is characterized by the
desire to identify those who are reasonable
and those who are not

Impersonal
Impersonal
Relationship
RelationshipBuilding
Building
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Managing Cross-Cultural Negotiations

Negotiation: The process of bargaining with one or more
parties to arrive at a solution that is acceptable to all

• Each group sets forth its position on the

Planning
Planning critical issues
• These positions often change later in the
negotiations

Impersonal • Participants try to find out what the other party

Impersonal
Relationship
RelationshipBuilding
Building
wants to attain and what it is willing to give up

Exchanging
ExchangingTask-
Task-
Related
RelatedInformation
Information
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Managing Cross-Cultural Negotiations

Negotiation: The process of bargaining with one or more
parties to arrive at a solution that is acceptable to all

• Success of the persuasion step depends on

Planning
Planning • How well the parties understand each other’s
position
• The ability of each to identify areas of similarity
and differences
Impersonal
Impersonal • The ability to create new options
Relationship
RelationshipBuilding
Building
• The willingness to work toward a mutually
acceptable solution

Exchanging
ExchangingTask-
Task- Persuasion
Persuasion
Related
RelatedInformation
Information
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Managing Cross-Cultural Negotiations

Negotiation: The process of bargaining with one or more
parties to arrive at a solution that is acceptable to all

• Grant concessions and hammer out a final

Planning
Planning agreement
• This phase may be carried out piecemeal, and
concessions and agreements may be made
on issues one at a time.
Impersonal
Impersonal
Relationship
RelationshipBuilding
Building

Exchanging
ExchangingTask-
Task- Persuasion
Persuasion Agreement
Agreement
Related
RelatedInformation
Information
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Cultural Differences Affecting

Negotiations
1. Do not identify the counterpart’s home culture too quickly. Common
cues (e.g., name, physical appearance, language, accent, location)
may be unreliable.
2. Beware of the Western bias toward “doing.” Ways of being (e.g.,
comportment, smell), feeling, thinking, and talking can shape
relationships more powerfully than doing.
3. Counteract the tendency to formulate simple, consistent, stable
images.
4. Do not assume that all aspects of the culture are equally significant.
5. Recognize that norms for interactions involving outsiders may differ
from those for interactions between compatriots.
6. Do not overestimate your familiarity with your counterpart’s culture.
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Negotiation Tactics
 Location
 Time limits
 Buyer-seller relations
 Bargaining behaviors
 Use of extreme behaviors
 Promises, threats and other behaviors
 Nonverbal behaviors
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Effective Negotiation Characteristics

Adapted from Table 7-10: Culture-Specific Characteristics Needed by International Managers for Effective Negotiations
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Effective Negotiation Characteristics

Adapted from Table 7-10: Culture-Specific Characteristics Needed by International Managers for Effective Negotiations