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Intercultural Communication and Management

Managerial Psychology
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100% found this document useful (1 vote)
349 views29 pages

Intercultural Communication and Management

Managerial Psychology
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Intercultural Communication and

Management

Overview

The Intercultural Communication and Management course tackles one of the key topics of
modern management: how to handle interactions with customers, personnel and organisational
systems from different cultures in the global market. Nowadays, more and more organisations
and companies operate on an international scale; therefore, they cannot underestimate the
influence of cultural variables on consumer purchasing behaviour and on managerial,
professional and communication styles.

Furthermore and ever more frequently, the mergers and acquisitions of companies, joint
ventures and international partnerships result in having to confront different cultural values and
organisational and strategic systems that must be adequately managed, lest this kind of
operation fail. Also, from a specifically operational point of view, cultural diversity has a profound
effect on interpersonal communication modalities; a lack of awareness and competency in these
subjects may give rise to very problematic situations. Today, all this creates the need for
dedicated training in intercultural communication and management.

Objectives

The Intercultural Communication and Management course is aimed at providing you with the
conceptual and operational tools to enable you to function as a manager in an international
environment. On completion of the course, you will be able to:

 understand the meaning of culture and the impact of cultural diversity on business and
management;
 evaluate and interpret cultural diversity by means of the most advanced conceptual models;
 understand and manage the various levels of cultural influence on business (national/regional,
by productive sector, professional, functional and company) and their interactions;
 understand and manage the communication models and styles of the various cultures of the
world;
 understand and manage the impact of cultural influences on the organisation, the company
strategy and customer and personnel relations;
 operate in international teams;
 understand the competencies necessary for international level management, with particular
reference to cultural diversity management.
Target recipients

The Intercultural Communication and Management course is primarily aimed at those who intend
to or already operate professionally in international contexts: managers, entrepreneurs and
professionals. More generally, it is a course that is useful to all those who wish to acquire or
consolidate their competencies in the field of intercultural management, in view of the expected
evolution of their professional life or of their business.

Contents

The meaning of culture


 Culture as a source of competitive advantage/disadvantage
 Recognising one’s own and others’ cultures
 Discovering culture
o Manufacts and behaviours
o Beliefs and values
o Basic assumptions

Culture interpretation models


 Kluckhohn and Strodtbeck
 Hall
 Hofstede
 Trompenaar
 Etc.

Cultural spheres and their interactions


 Cultural influence spheres:
o National/regional
o Productive sector
o Professional
o Functional
o Company
 Ways in which cultural spheres interact and the creation of the competitive advantage

Communication between different cultures


 Barriers and obstacles to intercultural communication
 Communication styles
 International negotiation

Culture and organisation


 Culture and organisational structure
 Culture and processes
 Best practices transfer

Culture and strategy


 The cultural roots of strategy
 Cultural models of strategy
 Strategic implication of culture
 Internationalisation and the role of national culture

Culture and human resources management


 The cultural meaning of human resources management
 The human resources management ‘menu’
 Making human resources management significant through cultures

The international manager


 Competencies for International level management
 The development of cultural competencies
 Personal development strategies for intercultural management
 Suggestions for the management of diversity

The multicultural team


 Why multicultural teams
 Task and process strategies
 Virtual intercultural teams

The global organisation


 The strategic options for the management of cultural diversity
o Ignoring cultural diversity: business is business
o Minimising cultural diversity
o Using cultural diversity and making it valuable
o Less global than what we thought?
o The creation of culturally strategic alliances
o Gaining a competitive advantage through cultural diversity
o Suggestions for the management of cultural diversity

Citizens of the world: entrepreneurial ethics and social responsibility


 Taking care of business
 Why does a company exist?
 The economic sphere and the ethical sphere
 The imperative of globalization
 Ethics and culture
 Strategies for the management of ethical dilemmas
 Citizens of the world: the role of managers and companies
 Towards a global civilisation

Teaching methods

In line with the Rome Business School’s general approach and the best international standards,
the course is designed with the aim of providing excellent training with an emphasis to its
concrete application in the job, professional and company markets.
Therefore, the course involves both mainly one way teaching phases – to accurately transfer the
reference conceptual models – and practical application sessions aimed at developing your
operational and management capabilities.

Your progress in the subjects taught will be tested and consolidated through exercises related
to actual managerial cases.

Course options

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 Intercultural Communication in the Global Workplace

Intercultural Communication in the Global


Workplace
By Bisk

The Importance of Intercultural Communication


With the increased globalization of workplace settings across most industries, today’s
managers need a more precise understanding of intercultural communication in
an effective management strategy. It is important that managers proactively engage in
communication skills assessment and make necessary adjustments in order to address
the current needs of today’s increasingly diverse workforce. When assessing intercultural
communication, it is important to have a plan in place and keep these points in mind:

1. Know Your Team:

While getting to know as many cultures as possible is a noble endeavor, in reality


managers are strapped for time like everyone else. If your functional outsourcing group is
diverse, or you have recently hired a new group of employees, or your company is
reaching out to more overseas investors, then you have a great opportunity to develop
more effective intercultural communication skills that will be most applicable to your team
as an integrated part of your diversity training initiatives.

A consultant certified with significant coursework in intercultural communication can lead a


productive discussion group with managers to elucidate key elements of intercultural
communication that can improve employee/client relations and contribute positively to
work productivity. Understanding topics such as: international nuances regarding the
concept of personal space in business interactions; the connotation of punctuality in
meetings and planned interactions; and different perspectives on maintaining eye contact,
can help managers create a more conducive and welcoming work environment.
Among the more technical skills a manager with intercultural communications can offer his
or her team is an understanding of the fundamental focus of various cultures on the written
word (content) versus the manner and delivery of those words (context). Understanding
some of these basic principles can provide strong insight into selecting the most effective
methods of communicating with and managing your business interactions. Even if you do
not get it right all the time, employees and business partners will appreciate your
willingness to meet him or her on common ground, and this motivates all parts of your
team to work cohesively reaching for the highest potential.

2. Do Your Homework:

Just as in any group, there are differences among individuals, and understanding general
distinctions within a cultural group is important. Do your homework without singling out
individuals. One major area is religious beliefs. After honing their own intercultural skills,
managers should be able to lead effective training sessions to explain nuances of several
cultural beliefs that may impact work related situations. If a team member’s religion
requires prayer during the day, remember not to schedule essential meetings at that time;
this will convey the message that the team member is important. Allowing flexibility around
holy days when possible builds an appreciation of management. Gender balance in groups
is important to those who discourage single women from being alone with men. Creating a
workplace where there is not just a tolerance of difference, but an embracing of it can go a
long way to productive business relationships.

Other cultural considerations that could be helped with greater intercultural communication
skills include: gender differences, generational differences, and socio-economic
differences. Of course, these components overlap other cultural considerations, so a
manager with intercultural training from a reputable university also generally has an
ongoing network of peers who can act as mentors as intercultural communication
challenges arise.

3. The Platinum Rule:

Most current diversity training programs include the tenet that it is no longer good enough
to use the golden rule when dealing with other people in the way you want to be treated. In
today’s global workplaces, it is incumbent upon managers to step up their managerial skills
to what has been coined as the “Platinum Rule.” Managers who want to remain
competitive in the global marketplace and who want to lead effective teams working with
heightened synergy know that they must exercise an understanding of how the other
person wants to be treated in a business setting. Taking the time to get to know the
individuals in your group requires a more robust set of managerial soft skills, and effective
ways to implement those skills without making an individual feel singled out.

In Conclusion:

An effective intercultural communication program, such as Notre Dame’s Advanced


Specialized Certificate in Intercultural Management, should provide a diverse set of skills
that are easily applicable to a manager’s unique situation and setting. Skilled professionals
who are leaders in their field can provide not only the knowledge, but the personal
experience to make the concepts come alive. Instruction with self-assessment allows the
individual to tailor the program toward the skills necessary for personal success. Having
access to an ongoing library of materials and peer networking for long term success and
development are also key features of a quality intercultural communication program for
managers striving for excellence in today’s increasingly diverse global workplace.

See Frequently Asked Questions for online requirements, accreditation, class schedule
and more.


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Intercultural
communication in
global business
inShare

CONFERENCE PAPER Team Building , Resource Management 3 March 2008


Dzenowagis, Anastasia
How to cite this article:
Dzenowagis, A. (2008). Intercultural communication in global business. Paper presented at PMI®
Global Congress 2008—Asia Pacific, Sydney, New South Wales, Australia. Newtown
Square, PA: Project Management Institute.

Abstract
Once separated by vast oceans, our world's population is now more
mobile and connected than ever in its history. Multi-national companies
expanded to the ends of the earth and a transparent worldwide labour
pool is no longer a distant vision on the horizon. Despite these waves of
global change, world events demonstrate we can still fail to understand
and be understood in intercultural communication.
As project managers it is inevitable we will be managing teams of people
globally, springing from many diverse cultures, incorporating different
languages, backgrounds, world views, beliefs, values, lifestyles, customs
and working habits. We believe that deep down all people are the same—
but there are important differences. The more dissimilar two cultures are,
the greater the degree of influence culture has on intercultural
communication. Historically, we think of culture as a source of conflict.
But can it be a source of synergy?
Since the 1980s, corporate diversity programs emphasized tolerance, but
in the new intercultural workplace, we need to do more. We need to use
our cultural differences to create a competitive advantage for our projects
and companies. For the project managers of the future, it will not be the
technical management that will be our greatest challenge but the
intercultural communication skills we must truly master to become
effective global project managers.
Culture is a pattern for living. It is complex and abstract. It is the dominant
shaping force on an individual. As the fish in the water is unaware of the
water, we are unaware of the cultural rules that dictate our own patterns
of interaction. Cross-cultural understanding then requires that the rules of
culture be made explicit. Learn frameworks for understanding cultures,
and yourself.

Introduction
Intercultural Communication in Global Business presents foundational
concepts for communicating between cultures and a framework for
understanding any culture, including your own. Understanding and
applying the concepts presented here will help you to enhance your
intercultural competence, critical to success as a global project manager
in our borderless world.

Areas of Focus and Approach

The topic of intercultural communication is understandably a broad topic.


With the globalisation of business, there has been an increasing interest
in intercultural communication. Unfortunately, much of the interest is not
in the scientific body of knowledge related to intercultural communications
but instead is focused on learning cultural tips and etiquette for particular
countries. While there is value in understanding the customs of specific
cultures, it is more efficient and effective to establish a baseline
understanding of intercultural communication, which can then be applied
in a variety of cultures.
Our approach is first to understand and determine the need for
knowledge—in other words, to understand the underlying problem in the
environment facing the global project manager. The next step is to
establish a common vocabulary and concepts from which to discuss the
topic of intercultural communication. The final step is to establish a model,
or approach, which can be applied to intercultural communication
regardless of situation, culture or country.

Our Learning Objectives

The key learning objectives for the global project manager are as follows:

 To understand the elements of culture and intercultural


communication that impact your business interactions and
ultimately your success as a global project manager.
 To learn how to apply a model to understand any culture,
including your own.
 To enhance your skills in the dimensions of intercultural
competence.

The Impact on the Global Business Environment

To understand the need to learn more about intercultural communication,


we need to examine the impact of intercultural communication on the
global business environment and its implications for success or failure for
the global enterprise. However, the impact of intercultural communication
on global business has seldom, if ever, been successfully measured.
Unsuccessful joint ventures, marketing gaffes due to inaccurate
translations and failed forays into new markets are rarely attributed solely
to ineffective cultural understanding and communications. It is unrealistic
to expect that a single aspect of a global business environment could be
isolated and measured to any degree of accuracy. For this to happen,
research and business case history would need to intersect in a
systematic manner, using a pre-determined scorecard.

Applicability to the Global Project Manager

Much of the expansion within the global business environment takes the
form of projects, for example, an acquisition, an outsourcing of a product
or service, or the testing of a new market. After the initial project, the
outcome of the project may be the permanent implementation of the
product, service, organisation or new market into the enterprise's ongoing
operations. These initial temporary endeavours—i.e., projects—are most
often managed by project managers, referred to here as global project
managers.
For the global project manager, the importance of the ability to
successfully interact with others outside his/her own culture is critical to
the overall success of the project. The project manager achieves results
by coordinating the efforts of others within a team structure. The team
structure that the project manager crystallizes becomes its own culture,
with a common identity. For the global project manager, the team typically
comprises individuals representing different national cultures. Intercultural
competence then becomes a key competency for the global project
manager and can be directly assessed using a variety of assessment
tools.

The Borderless World and its Impact on Diversity in


Global Business
World Events and Intercultural Communication

Current world events lead us to believe that our collective ability to


communicate interculturally is insufficient. Sadly, with warfare still a
modern reality, we cannot underestimate the importance of understanding
and communicating with cultures different from our own. The greater the
(psychological) distance between two cultures, the more difficultly there
will be in intercultural understanding. Will it in fact be the impact of
successful global enterprises that contribute to economic development,
bringing increased prosperity and subsequently cultural understanding?

Influences and Trends on Global Business

Changes in even the past –25 years have surprisingly accelerated global
business. The impact of the Internet on business, political, and social
factors is significant. Changes in immigration patterns, such as the
workforce mobility within the EU, impact on more than national levels.
While telecommunications advances have contributed to the transparency
of a global workforce, the trend towards outsourcing to lower-cost
countries have created new international organizational structures within
business enterprises.
Moving from Corporate Diversity Programs to Intercultural
Communication

It is important to understand that the topic of intercultural communication


differs from the corporate diversity initiatives begun in the 1980s. Many of
these initiatives are still in place today within major corporations. The
purpose of diversity initiatives is related to inclusion of different groups,
such as those not represented by the majority culture. While there is a
general understanding that diversity brings favourable business results, it
is not focused on actively involving divergent cultures for competitive
advantage, which we will discuss here.

Understanding Intercultural Communication


Intercultural Communication in the Communication Process

The Link between Culture and Communication

The link between culture and communication is important to understand


because it is through the influence of culture that people learn to
communicate. Children learn to communicate in the same way others in
their national culture do, not just in language but also in meaning. Culture
cannot be isolated from the communication process, because it impacts
both the communicator and the receiver of the message.
There are many different definitions and basic concepts in the field of
cultural study that are referenced in the body of knowledge. For example,
culture is referred to as an onion or as the impact of gravity upon an
individual or likened to the experience of a fish in water. The focus of this
paper is to introduce and share some of the most significant concepts,
including culture as a private world, culture as a pattern for living, culture
as mental programming, culture as a shared mindset and the concept of
world view.

The Layers of Culture

In a model of culture that is simple to understand, there are three layers


represented in a circular ring:
 The outer layer - explicit products
 The middle layer - norms and values
 The core - Implicit – basic assumptions about existence
(Trompenaars, 1994, p. 24).
In this model, the explicit culture is what can first be observed about a
culture—for example the language, the food, the way people live, how the
cities appear. It is probably because it is the most obvious that much of
the literature related to cultural interaction focuses on this immediate
layer. Prejudices mostly start on this symbolic and observable level
(Trompenaars, 1994, p. 24). In the middle layer, norms refer to what a
group (culture) treats as right and wrong, such as written laws. This is in
contrast to values that are the definition of good and bad. Values help
individuals to make choices. Implicit culture, or basic assumptions about
existence, is not visible and is therefore the most difficult to identify and
understand.

Culture as a Private World

While our concept of culture tends to gravitate towards the idea of a


group, or in business a team, it is important to also understand that for
each individual, culture is a private world. The world each person creates
for him/herself is a distinctive world, not the same world others occupy
(Samovar, 1991, p. 26). Individuals assign meaning to events and
experiences based upon their own values and arrive at their own
conclusions. It is these biases which constitute what has been called the
“assumptive world of the individual” (Samovar & Porter, 1991, p. 26). This
refers to the world inside each person's head, a symbolic world, which is
the only world he/she knows. While some definitions of culture require the
presence of two persons to create a culture, in this definition, each
individual has his/her own unique culture, not fully accessible to others.

Culture as a Pattern for Living

Another important definition of culture is that culture is an all-


encompassing form or pattern for living including perception, verbal
processes and nonverbal processes (Samovar & Porter, 1991, p. 14).
Another way of understanding culture and its influence on intercultural
communication is that culture influences patterns of thought. In fact, one
of the definitions of culture is that it is a group's common response to
solving problems. In concrete terms for the global project manager, this
means that he/she will need to understand that many patterns of thought
exist and learn to accommodate them or leverage them for problem
solving.

The Concept of Mental Programs and Mindsets

In terms of organizational behaviour, culture can unknowingly influence


individuals through mental programming and mindsets. Culture is a
shared system of meanings that dictate what we pay attention to, how we
act and what we value, organizing meanings into mental programs
(Trompenaars, 1994, p. 14). Within communication, and in organizations,
how people behave is an enactment of their mental programs. This
approach is described as phenomenological, which means that the way
people perceive phenomena around them is coherent, orderly and makes
sense to them (Trompenaars, 1994, p. 14).
Another classic term in this field includes the concept of “mindsets”—set
ways of perceiving, reasoning and viewing the world that govern how
events are evaluated and how decisions are made (Fisher, 1997, p. 2).
(NOTE TO AUTHOR: PLEASE COMPARE THIS DATE TO THE ONE
LISTED IN REFERENCES.)

The Concept of World View

One of the most important concepts in the field is the concept of


worldview. Worldview deals with a culture's orientation toward such
philosophical issues as God, humanity, nature, the universe and the
concept of being (Samovar & Porter, 1991, p. 16). Worldview issues are
timeless and represent the most fundamental basis of a culture (Samovar
& Porter, 1991, p. 16). The reason that the concept of worldview is so
significant is that it influences beliefs, values, norms, attitudes, uses of
time and many other aspects of culture. Individuals in a culture are not
necessarily aware of their own worldview, because it is so deeply
imbedded, and there can be a tendency to assume that others view the
world as he/she does.
Learning and Applying Frameworks to Understand
Cultures
Models for Understanding Cultures

There have been a number of models developed to facilitate the analysis,


characterization and understanding of cultures. While there is a significant
amount of research available, none of the experts exactly agree, and
some of them dispute each other's conclusions. For this reason it is
important for the global project manager to understand the foundations
and select a model that is most useful to his/her own needs and business
environment. Significant researchers and writers in this area of study
include E.C. Stewart and J.M. Bennett, Clyde Kluckhohn and F.
Strodtbeck, Edward T. Hall, Geert Hofstede, Charles Hampden-Turner
and Fons Trompenaars. Brief explanations of two models of interest for
the global project manager are introduced here.

Cultural Dimensions by Geert Hofstede

Geert Hofstede is one of the most important and prolific authors on the
subject of national cultures. Hofstede's studies identified and validated
five independent dimensions of national culture differences:

 Power distance (PDI)


 Individualism (IDV)
 Masculinity (MAS)
 Uncertainty avoidance (UAI)
 Long-term versus short-term orientation (LTO) (Hofstede, 2007a).
Controversially, Hofstede also statistically correlated the country scores
on the five dimensions with data about the countries. For example,
Hofstede correlated Individualism (IDV) with the national wealth of Per
Capita Gross National Product.
The Cultural Orientations Model

Another model, which is more general and perhaps easier to understand,


is the Cultural Orientations Model. It has 10 dimensions:

 Environment: How individuals view and relate to the people,


objects and issues in their sphere of influence
 Time: How individuals perceive the nature of time and its use
 Action: How individuals view actions and interactions
 Communication: How individuals express themselves
 Space: How individuals demarcate their physical and
psychological space
 Power: How individuals view differential power relationships
 Individualism: How individuals define their identity
 Competitiveness: How individuals are motivated
 Structure: How individuals approach change, risk, ambiguity and
uncertainty
 Thinking: How individuals conceptualize (Walker, 2003, p. 57).

The Cultures in the World vs. the Cultures in Business

For the purpose of this paper, we will distinguish between national


cultures (cultures in the world) and organizational cultures, or business
cultures. There is even another cultural level in business, often referred to
as functional or departmental cultures, such as marketing. Just as the
experts in the field may not agree on a model for understanding national
cultures, there is even less agreement in the application of cultural
models to business cultures. This could be because business cultural
models are constantly evolving as businesses themselves evolve.
Another reason could be because business cultures cross national
boundaries. What is most important for the global project manager to
understand is that a company is itself a culture; however, the company (or
organizational culture) will have different meanings to individuals based
on their national culture(s). In addition, the actual company culture may
be difficult to identify because it may differ from the documented company
values. Documented company values typically reflect the idealized
culture, rather than the actual operating culture, for decision-making.
According to Hofstede (2007b), his five dimensions of national cultures,
which are based on values, are not suitable for comparing organizations
within the same country. Hofstede (2007b) considers these two different
fields of study, with national cultures belonging to anthropology and
organizational cultures to sociology. Hofstede (2007b), in fact, creates a
new approach for organizational cultural differences along six
dimensions:

 Process-oriented versus results-oriented


 Job-oriented versus employee-oriented
 Professional versus parochial
 Open systems versus closed systems
 Tightly controlled versus loosely controlled
 Pragmatic versus normative.

Practical Application of Models in Global Business—


Individual Level

It is the opinion of this author that the application of intercultural


communications concepts and processes can be applied at two levels, a
macro level and a micro level. The macro level is the incorporation of
intercultural understanding into large business processes such as buying,
selling, negotiating, entering new markets, opening new facilities,
acquiring companies, etc. The macro level is discussed in more detail
further in this paper in the context of using culture as a source of
competitive advantage.
On a micro, or individual level, intercultural communication concepts are
especially relevant to the global project manager. While once again the
experts disagree, we can learn from the variety of conceptual
understandings, processes and tools they expound upon. There are four
myths in cultural orientations in communication that are valuable to
understand:

 Myth: We're Really All the Same: Although we share a common


human nature and need for survival, due to culture, individuals
have fundamentally different ways of perceiving themselves, the
world and their actions within it.
 Myth: I Just Need to Be Myself in Order to Really
Connect: Although having good intentions can assist, simply
retaining your own sense of identity does not guarantee success
in intercultural understanding or communications.
 Myth: I Have to Adopt the Practices of the Other Culture in Order
to Succeed: Individuals will need to adapt to other cultures'
practices rather than necessarily adopt them and change their
own fundamental perspective.
 Myth: It's Really All about Personality: Aspects of an individual's
personality, such as whether or not an individual is an introvert or
extrovert, can be attributed different meanings in different
cultures. Therefore, personality alone does not guarantee
success in intercultural interactions (Walker, 2003, p. 203).

Communication Process

A key to success is awareness of the intercultural communication


process. While global project managers understand the simple process of
communications (sender, message, receiver, feedback), the process
when two communicators are from different cultures can be more
problematic. Potential barriers to effective communication in the
intercultural communication process include the following:

 Cultural frames: Using the window through which an individual


defines him/herself, others and the world
 Ethnocentrism: Evaluating another culture according to our own
 False attributions: Attributing our own meanings to behaviours in
other cultures, which may not be correct
 Stereotypes: Using generalizations that do not allow for
exceptions
 Etiquette and nonverbal behaviours: Understanding the
meanings of gestures, facial expressions and body positions
requiring specific knowledge of a culture
 Other elements: Including time and place, topic, status and
power, and style
 Language: Knowing this can be a barrier even if individuals
speak the same language (Walker, 2003, p. 207).

The Role of the Global Project Manager

In global business, the challenges of the role of the global project


manager cannot be minimized. First, the global project manager is
implementing new initiatives, which result in changes in the sphere of the
business environment. This is essentially a change management project,
which can be more challenging than simply maintaining existing
operations. Second, the global project manager will often not be in a line
management role, that is, an established organizational framework or
hierarchy, since the nature of projects are temporary. This can make it
difficult for the global project manager to have the appropriate authority,
given some of the cultural dimensions previously discussed. Third, due to
the temporary nature of projects, the global project manager may not
have the long–term, established relationships within a subsidiary
necessary in a particular country. It can even be argued that the concept
or understanding of the role of the project manager will have different
meanings according to national culture. These are just a few of the
challenges the global project manager faces within the context of
intercultural communications.

Using Culture as Source of Competitive Advantage


Culture as a Source of Synergy or Conflict?

Culture is referred to as the soft side of business. When individuals set up


companies, they build them according to concepts and structures they are
familiar with. However, employees will interpret the (company)
organization in a way that is familiar to them. This interpretation then will
vary according to the employee's culture. Since organizations need
individuals to carry out the organization's mission and vision,
organizations are successful only to the extent that the collection of
individuals, together, synergistically achieve the organization's objectives.
If culture is understood to mean the way a group of individuals together
solve problems in order to survive, then the culture of the company
indeed would significantly influence the success of the overall enterprise.
It could therefore be a source of competitive advantage (or disadvantage)
how the various cultures within an organization are structured, managed
and rewarded to achieve the organization's objectives.

Impact on the P&L: The Cost of Intercultural Conflict

When we look at business failures, such as an unsuccessful product


launch in a new country, the reasons for failure are complex and not
necessarily publicized. Unsuccessful mergers and acquisitions are
perhaps the most evident examples of cultural clashes that resulted in a
negative impact to a company's profit and loss statement. Not easily
measurable are events like the cost of a home country officer who is
unsuccessful in a host country office. Problematic implementations of
global ERP systems in some companies have not been a failure of
technology but rather of management of the cultural change necessary to
adapt to uniform business procedures.

The Challenge: Using Cultural Differences to Create a


Competitive Advantage

In any consideration of a company's success, it is the bottom line, or the


impact on the profit and loss, that is the final measuring stick. However,
the impact of successful management or integration of disparate cultures
within an overall enterprise is not able to be isolated numerically. It may
not even be able to be discussed openly in a corporate environment. If we
look at the business process areas contributing to global business within
an enterprise, we can identify a significant list:

 The success of global projects and initiatives


 Success of mergers and acquisitions
 Opening plants/facilities in a new country
 Expanding products and services into new markets
 Developing marketing campaigns in new countries
 Performance measurement and reward systems
 Employee retention
 Understanding and defining the meaning of branding within a
country
 Defining and comparing successful strategies for global
growth/expansion.
For businesses to be successful on a global scale, innovation of products
and services will not be sufficient. Innovation in the understanding and
use of cultures and successful intercultural communication practices will
be the ultimate competitive advantage in the global environment.

References
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This material has been reproduced with the permission of the copyright owner.
Unauthorized reproduction of this material is strictly prohibited. For permission to
reproduce this material, please contact PMI or any listed author.

© 2008, Anastasia Dzenowagis


Originally published as a part of 2008 PMI Global Congress Proceedings
– Sydney, Australia
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Intercultural communication in the workplace and the
role of communication in an organization
UDC 811
Publication date: 02.09.2016
International Journal of Professional Science №2-2016

Intercultural communication in the workplace


and the role of communication in an
organization
S.E. Kegeyan
Sochi State University, Sochi
[email protected]
Abstract: Effective communication in the workplace plays an important part in
organizational development on the whole. Communication is the process of sharing
information between two or more people. Now this is just the basic definition of
communication, and we know that the process is not just confined to information sharing.
Rather, it is a mode of sharing thoughts, feelings, expressions, and many other things too.
Communication is an art. For some people it comes naturally, while the others are too
nervous when it comes to communicating. Communication is necessary in all walks of life,
professional or personal, so to master it, one needs to practice this art, and this comes with
knowledge and experience.
Keywords: effective communication, workplace, intercultural communication,
subordinates, interaction, understanding, relationships

The importance of intercultural communication in the workplace cannot, and should not
be undermined. It plays an important role in the functioning of an organization and affects
the final output too. Though cross-cultural interaction is not new and has existed for ages,
with the advent of globalization, the world has come close together. It is not surprising then
that people have to travel to different parts of the world as a part of their job and have to
adapt to that new environment. However, adaptation is not always easy, and a little support
from colleagues goes a long way in easing the process of ‘fitting in’ for the immigrant
employee. This article explains to you the importance of intercultural communication in
the workplace. [1].
Important factors.
Intercultural communication mainly relates to issues pertaining to speech and culture of
those belonging to an environment or land different from their own. It is obvious that a
person who grows up in China is going to have a different culture than someone born and
brought up in the United States. Even people from the United Kingdom find it difficult to
adapt to the United States and vice versa, though these are seemingly similar countries and
even speak the same language.
In the work environment, these cultures affect the behavior and values of the employees.
How they respond to superiors, to colleagues and to subordinates, are all determined by
the culture they have been bred in. Their attitude towards and their comprehension about
their surroundings is also different. Their pattern of communication is varied and their
concept of formality and informality is different. For instance, several organizations
address their bosses on a first name basis in the West. However, in other countries such as
India, it is considered informal, so every superior is addressed as either ‘Sir’ and ‘Ma’am’. It
is when a person has to work in a country other than his own and is exposed to these
changes, that he experiences a ‘culture shock’. Culture shock is defined as the anxiety and
disorientation experienced when a person is made to operate in an unknown culture. In
such cases, programs that advocate intercultural communication and encourage healthy
communication among employees belonging to various cultures, are required to help each
other adjust easily. This is extremely important because the environment impacts the
efficiency of employees, local or immigrant. The only way you can get the best out of them
is to give them a positive environment that they can embrace and move on. [4].
How to aid intercultural communication in the workplace.
Miscommunication due to cultural barriers can be avoided and the process of adjustment
for an immigrant employee can be eased if the organization makes an effort to make him
feel welcome. Remember, he may already be having a tough time dealing with learning the
language, or just adapting to such drastic changes. Anything that the organization can do to
at least have his problems in the workplace sorted is helpful.
Maintaining a positive attitude.
Before conducting an interaction with employees belonging to another culture, a little
introspection is required. The employees of the dominant culture in the workplace need to
identify their own attitude towards other cultures, and how this attitude is going to affect
overall communication with those belonging to other cultures. This thought process is
normally affected by certain prejudices and stereotypes, which have to be kept aside while
interacting with immigrant employees and their abilities should be assessed at an
individual level. Furthermore, taking for granted that all norms belonging to the dominant
culture are understood is wrong. There has to be an effort in understanding the nuances of
the immigrant employees culture. All this can be done only by maintaining a positive
attitude. [5].
Understanding diversity.
It is important that employees of the dominant culture are educated about other cultures
so that they are able to accept and understand the concept of diversity in the workplace.
Just assuming that owning to citizenship of a particular country one becomes British or
American is not acceptable. Any person carries his values, ethics and his culture wherever
he goes. If he is making an effort to understand the difference and accept cultural diversity
in the workplace, so should the organization.
Encouraging individual interaction.
Apart from educating employees, personal interaction with the immigrant employee to
understand the nuances of his culture and explain the nuances of yours also makes a
difference. A generalized study is never adequate or as effective as a one-to-one interaction.
Furthermore, a person who is new to a culture, may fear interaction with other employees.
It is the job of the organization to draw them out of their shell and genuinely include and
accept them as part of the organization.
Conducting induction programs.
The first phase after recruitment includes an induction program for employees. If these are
held keeping immigrant employees in mind, it is going to ease the process for both, the
organization and the employee. In this induction program, the organizational culture can
be explained and the policies of the organization can be made clear. Even the office jargon
is a part of daily functioning in the organization and should thus be explained to the
immigrant employee. For instance, local employees know that the weekend comprises a
Saturday and Sunday. However, for those belonging to the Middle East, the weekend
comprises Friday and Saturday, and in fact, Sunday is the first working day. Such minor
details should be made clear to the employee. [2].
Discourage racism and discrimination.
Lastly, the best way to promote healthy intercultural communication is to discourage
racism and discrimination by strongly advocating a non-racist policy. This will prevent any
embarrassing situations that can lead to serious problems, among colleagues. While
personal attitudes cannot be altered, workplace communication can be positive only if such
rules are implemented.
Implementing the above-mentioned steps are sure to bring about the much required
healthy intercultural communication in the workplace. Remember that all these will not
only enhance the reputation of the organization and the country in the eyes of the
immigrant employee, but he will embrace it willingly and give the job his best input. [3].
There is no denying the importance of communication in the workplace, considering the
fact that, in an organization, people belonging to different social and professional
backgrounds come together to work for the same goals. Effective communication amongst
employees has many benefits for the company.
Creates job satisfaction.
Organizations which encourage an open and easy correspondence between seniors and
subordinates, face lesser employee turnover. If the work environment is friendly where the
subordinates are encouraged to communicate their ideas to their managers regarding
work-related issues, and their feedback is given due consideration, it motivates the
employees to work better and makes them feel valued in the organization. Thus, effective
communication in the workplace helps in building loyalty and trust which eventually
attributes to greater job satisfaction. [
Lesser conflicts.
Open communication in the workplace can help prevent and resolve many conflicts. For
example, if two employees have a disagreement over some issue, and instead of resolving
it and arriving at a solution, they end up taking the whole thing personally. If it continues
for a very long period, it may lead to work-related problems wherein they might even
refuse to talk or work together in the future. Such issues can be nipped in the bud if the
managers act as a mediator and let the two warring employees put across their thoughts
and opinions to each other through open and clear communication. When a conflict is
resolved through mutual discussions, the employees develop respect for each other, and
this can lead to personal and professional growth.
Increases productivity.
Effective communication at work is the most important issue for the success and failure of
an organization. Every organization has a set of clearly defined goals, objectives and vision.
The manager should be able to clearly explain to his employees these goals and ensure that
all his team members are working towards the same objective. He also needs to
communicate to his employees their job responsibilities and duties, ways and protocol of
doing work as well as the results which are expected of them. If the manager is clear in his
communication, the subordinates will know exactly what the organization wants and thus,
will be able to deliver the same to the best of their abilities. Thus, the importance of
communication skills can be judged from the fact that it leads to better deliverance of work,
increasing workplace productivity. [2].
Better work future.
We all know that communication is a two-way process, and being vocal and communicative
leads to a better work future. All employees and managers in an organization should
communicate clearly, openly and honestly. Managers should establish a congenial working
relationship with their employees, so that the employees don’t hesitate to approach them
for resolving any work-related issues that may arise in the organization. Thus, by
establishing a good rapport with your subordinates and co-workers, you not only boost
their morale but also increase their work efficiency, leading to enhanced productivity. In
addition, employees too, should be given an opportunity to provide feedback to the
management. This will help the management orient their policies and programs to suit the
needs of their employees. Thus, building a good working relationship between employees
and managers can go a long way in securing a better work future for the organization. [5].
Formation of relationships.
Open communication, whether between the employees and managers or between the
management and employees, leads to the formation of better personal and professional
relationships. This makes the employees feel genuinely cared and valued for, and they are
more likely to remain loyal to the company. This creates a friendly environment and
promotes a better working relationship which is conducive to the employees.
Proper utilization of resources.
If an organization faces problems, crisis and conflicts due to miscommunication between
the employees, it causes unnecessary delays in the daily work. This leads to wastage of
resources and lowers the overall work productivity. So an environment of good
communication is a must for any organization to better utilize its resources and increase
productivity.
The importance of communication in the workplace can be summed up in two words,
«work satisfaction». If the employees are satisfied working in an organization, there is no
denying the fact that the future of that organization is absolutely secure. All organizations
today should create an environment wherein problems, plans, issues, opinions, thoughts
and ideas pertaining to work, are discussed and handled in a professional, proficient
manner through positive and effective communication. Communication, like all human
behavior, is governed unconsciously by deep cultural values, and preferences for particular
value sets produce distinctive communication patterns. In today’s multicultural work
environment, it is increasingly important to understand the implicit values that affect our
own and our workers’ communication styles and to be able to address differences openly
and check for clarity and comprehension in order to enhance our collaboration, our success,
and our relationships. To work in the global environment, we have to develop
communication as a conscious skill. [1].
Managing cross-cultural communication in multicultural
construction project teams: The case of Kenya and UK
Author links open overlay panelE.G.OchiengaA.D.F.Priceb

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Abstract
The increasing global nature of construction projects has highlighted the
importance of multiculturalism and the new challenges it brings to project
execution. However, there has, as yet, been no empirical work that
quantifies explicitly the extent to which communication determines the
success of multicultural projects. This paper explores the ability of project
managers in Kenya and the UK in communicating effectively on
multicultural projects. The study examines the cultural factors that
influence communication and explores how communication can be made
effective in multicultural project environments. Using data from 20
interviews in Kenya (10) and UK (10), the results show that
communications within multicultural project environments can be effective
when project managers demonstrate an awareness of cultural variation.
Participants further highlighted that, one of the critical components of
building multicultural project teams is the creation and development of
effective cross cultural collectivism, trust, communication and empathy in
leadership. The study underscores an urgent need for future research to
investigate effective guidelines or strategies for effective collectivism and
communication in multicultural project teams.

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