Cross-cultural Communication (Day-1)

1. Cross-cultural Communication(Day-1) Prof. Djamaludin Ancok, Ph.D Teaching Material at University of Innsbruck

2. Why we learn cross-cultural Communication? • Globalization, where the boundaries between countries have been less solid, the interaction of people from one country to other is enhanced. • So many multi-national corporations whose employees and managements consists of people of from different cultures. • Composition of population in a country such as USA for examples consists of many different ethnic groups (European, African, Mexican, Chinese, Indian, Pakistanis, and Arab) • Information Technology such as internet, and cellular phone has been widely used for global communications, and change the economic theme into digital economy.

3. US Workforce Demographics Source Kreitner & Knicki, 2004

4. Multinational Corporations • Ford Motor Company • Produced in China & Europe and other countries • Sell the car in more than 50 countries world- wide • Engines comes to Kansas City from Cleveland, (USA), Chihuahua (Mexico) and Cologne (Germany), Sweden, Spain, and Britain. • Air conditioning comes from France • Volvo (Sweden national pride) owned partly by Ford. • Mazda (Japanese Car) partly owned by Chrysler (USA).

5. Knowledge Digitalization Virtualization Molecularization Integration / Internetworking Disintermediation Convergence Innovation Prosumption Immediacy Globalization Discordance The Impact of IT on EconomyNew Economic Themes Source: Don Tapscott, The Digital Economy,1996:

6. New Economic Theme (1) Knowledge Economy. There is a shift from brawn to brain. Knowledge becomes an important element of product. The gap between consumers and producers blurs. Organization Knowledge and work becomes the basis of value, revenue, and profit. Knowledge is added throughout value chain. Culture Impact: People of different background should work together and shared their knowledge

7. New Economic Theme (2) Digitalization Economy Human communication, delivery of government programs, execution of health care, business transactions, exchange of funds, etc, become based on ones and zeros. Organization Internal communication shifts from analog (memos, reports, meeting, telephone calls, whiteboard drawings, blue prints, models, photog- graphs, designs, graphic arts, etc) to digital. Culture Impact: Frequent misunderstanding and misperception about the written information.

8. New Economic Theme (3) Virtualization Economy Physical things can become virtual, changing the metabolism of the economy, the types of institutions and relationships possible, and the nature of economic activity itself. Organization Virtual corporations, teams, stockyards, government agencies, jobs, etc . Culture Impact The interaction of people from different countries, different Cultures that may lead to communication disconnect.

9. New Economic Theme (4) Molecularization Economy Replacement of the mass media, mass production, monolithic government, by molecular media, production, governance, etc Organization End of command-and-control hierarchy, shifting to team-based, molecular structures. Individual employees and work groups are empowered or break free act and to create value Culture Impacts Not all culture can accept this type of organization, In a paternalistic culture people wait for guidance from the boss.

10. New Economic Theme (5) Integration/Internetworking Economy The new economy is a networked economy with deep, rich inter- connections within and between organizations and institutions. Wealth creation, commerce, and social existence are based on an ubiquitous public infostructure. Organization The new enterprise is an interworked enterprise. Achievable in the past only through monolithic hierarchies, the new technology now enables integration of modular, independent, organizational components - an integrated network services Culture Impact Miscommunication in doing business may be at stake if People do not understand their overseas partner culture.

11. New Economic Theme (6) Disintermediation Economy Elimination of intermediaries in economic activity including agents, brokers, wholesalers, some retailers, broadcasters, record companies, and anything that stands between producers and consumers. Organization Elimination of middle managers, internal agents, brokers, or anyone else who act as boosters for the signals that pass for communications in the preknowledge organization. Culture Impacts In the paternalistic culture, where people needs more directions from their super-ordinate, this may cause confusion.

12. New Economic Theme (7) Convergence Economy Convergence of key economic sectors-computing, communications, and content Organization Convergence of organizational structures responsible for the tech- nologies of computing, communications, and content. Culture impacts People needs to be prepared for multi-tasks

13. New Economic Theme (8) Innovation Economy Innovation is the key driver of economic activity and business success. Rather than traditional drivers of success such as access to raw materials, productivity, scale, and the cost of labor, human imagination becomes the main source of values. Organization Innovation is the key driver of successful products, marketing strategies, management approaches, organizational changes. Old rules and approaches fail quickly. The only sustainable advantage is organizational learning Culture Impacts For a high power distance culture, the innovation would be inhibited by seniority and waiting for the leader’s direction.

14. New Economic Theme (9) Prosumption Economy The gap between consumers and producers blurs in a number of ways. For example, consumers become involved in the actual production process as their knowledge, information, and ideas become part of the product specification process. Human collaboration on the Net becomes a part of the international repository of knowledge. Organization Consumers of information and technology become producers. Human collaboration on the Net becomes part of the corporate multimedia information resource. Users become designers, creating new software applications themselves. Many responsibilities for technology purchasing and implementation are dispersed. Culture Impacts In a collectivistic culture the intermingled of producers and customers would be easy since people see them selves as a part of wider community. For the individualistic culture The sharing ideas between consumers and producers needs more time to develop.

15. New Economic Theme (10) Immediacy Economy The new economy is a real-time economy. Commerce becomes electronic as business transactions and communications occur at the speed of light rather than of the post office. Organization The new enterprise is a -real-time enterprise- continuously and immediately adjusting to changing business conditions. Product life cycles shorter. Culture Impacts In the culture where the value of time as a economic resource is less appreciated, then the real time business may become a problem.

16. New Economic Theme (11) Globalization Economy Knowledge knows no boundaries. As knowledge becomes the key resource, there is only a world economy, even though the individual organization operates in a national, regional, or local setting. New economic and political regions and structures (such as the AFTA, NAFTA) are leading to a decline in the importance of the nation-state and increasing the interdependencies among countries. Organization The new enterprise enables time and space independence; it redefines time and space for its employees and stakeholders. Work can be performed from a variety of locations, including employees’ homes. The network becomes a resipotary for the time-independent communications. Networks of business clusters cooperate globally to achieve business objectives. Culture Impacts It is a must to understand other cultures if we want to succeed in doing business.

17. New Economic Theme (12) Discordance Economy Massive social contradictions are arising. New, highly paid employment versus the inappropriateskills of laid-off workers. Gulfs are growing between haves and haves- nots, knowers and know-nots, those with access to the I-Way and those without it. Organization Profound organizational contradictions are rising. For example, employees are told to “work hard, create the corporation’s value, identify with the team and the enterprise. Culture Impacts The company operation should care about the need of poor peoples in the location where the company operates (corporate social responsibility)

18. Source: Lane, H.W & DiStefano, J.J. International Management Behavior Boston: PWS-KENT Publishing Co. 1992.

19. Source: Verner, I & Bremer, L Intercultural Communication in the Global Workplace, New York: McGraw-Hiill , 2005

20. Model of Cultural Assumptionand Organizational Structure Source: Hoecklin, L. Managing Cultural Differences. New York: Addison-Wesley Coy. 1995

21. Barriers to Cross-Cultural Communication • Culture-- “All human beings are captives of their culture” • Perception—The value & inhibitors of “stereotypes” • Experience—variations in life experiences inhibit communication e.g. housing, religion, education system, eating habits, foods, …

22. Cross-Cultural Communication Differences • Language Usage • Verbal Communication Styles • Nonverbal Communication

23. Culture misunderstanding may create a high cost • Two similar things may have a marked different meanings: • A case of Christmas crackers made in China, where the put a picture of Panda with a swastika symbol and sell the product in Canada. • A case of name card in between Australian and Balinese business. • To avoid this problems: • We should learn the culture of customers, business partners, employees, and local government.

24. Irritability, moodiness Fluctuating appetite Reduced sex drive Disrupted sleep Homesickness Spending time alone Avoiding the locals Reading all day Boredom, low energy Confusion, anxiety Negativity, alienation Depression Physical illness Stereotyping Signs of Culture Shock

25. Two Type of cultures • On Stage Culture: • Behaviors and rituals that people show when they meet other people (such as shake hand, bowing, kissing, the distance while talking). • Back Stage Culture: • The reasons behind a particular behavior. This is a belief about something, for example. If you don’t give a business-card in a business meeting (because you forget to bring one) while your partner gives his or her card to you, it may mean different thing. It can be insulted for a particular culture (e.g. Balinese).

26. Culture defined • There are hundreds of definitions of culture. One of those: • Culture is the coherent, learned, shared view of a group of people about life’s concerns that ranks what is important, furnishes attitudes abut what things are appropriate, and dictates behavior. Iris Varner & Linda Beamer: Intercultural Communication In the Global Workplace, New Yor: McGraw-Hill, 2005, p.5

27. Culture Defined • Tylor E. (1871). That complex whole which includes knowledge, beliefs, art, morals, laws, customs and any other capabilities and habits acquired by man as a member of society. • Herskovits M.J. (1948). The man-made part of the human environment. Kroeber A.L. and Kluckhohn C. (1952). Transmitted patterns of values, ideas and other symbolic systems that shape behaviour. • van Maanen J. and Schein E.H. (1979). Values, beliefs and expectations that members come to share. • Schwartz M.C. and Jordon D.K (1980). Pattern of beliefs and expectations shared by members that produce norms shaping behaviour. Source: Hoecklin, L. Managing Cultural Differences. New York: Addison-Wesley Coy. 1995

28. Culture Defined • Hofstede G.H. (1980). The collective programming of the mind which distinguishes the members of one human group from another. • Louis M. R. (1983). Three aspects: (1) some content (meaning and interpretation) (2) peculiar to (3) a group. • Hall E. T. and Hall M.R. (1987). Primarily a system for creating, sending, storing and processing information. • Harris PR. and Moran R. T. (1987). A distinctly human capacity for adapting to circumstances and transmitting this coping skill and knowledge to subsequent generations. • Becker and Geer (1970). Set of common understandings expressed in language. Source: Hoecklin, L. Managing Cultural Differences. New York: Addison-Wesley Coy. 1995

29. Culture is coherent • Coherent means compact & complete. There are meanings of every culture expression. To exchange a business-card in a business meeting means you respects your business partner. If you forget to bring yours and do not give in return, your partner may be insulted.

30. Culture is learned • We are not born with Culture. We learn from others (parent & community). • Nobody will be locked in one culture, if they interact with other culture, they will learn new culture. • Learning other culture is one factor among others that lead to success in doing business.

31. Culture is the view of a Group of People • Member of a society learn the culture from their grandparents, parents, teachers, spiritual leaders, peers and representatives of legal, political and educational institutions. So they share what they learn, and they share the expression of culture (symbol, language, other artifacts) and they see them as valid • A Sultan of Brunei shopped in one wealthy store in UK, and paid with a credit card. When he made a purchase he was asked to show his ID Card, since he did not bring ID Card, he showed the currency of Brunei where his picture is there. Up to here

32. Three Things Culture Does • What Culture does • Culture Ranks What is Important • Culture Furnishes Attitude • Culture Dictates How to Behave • What Culture is not • Right or wrong • Inherited • About individual behavior

33. Trompenarr, 1995

34. Culture is Perceived as Stereotype • Though a culture has similarities among nations, but people mostly focus their attention to the extreme differences. • Stereotyping is using extreme, exaggerated forms of behavior. • Stereotype is a very limited view of the average behavior in a certain environment. • A behavior of a person from a particular group, society, or nations tend to be generalized to all members of the group, society or nation.

35. Source: Hoecklin, L. Managing Cultural Differences. New York: Addison-Wesley Coy. 1995