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Communicating and Negotiating Across Cultures

Communicating and Negotiating Across Cultures. Presenter: Richard R. Gesteland Global Management LLC. Business Culture: A set of expectations and assumptions about how to do business. . Two Iron Rules of International Business: .

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Communicating and Negotiating Across Cultures

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  1. Communicating and Negotiating Across Cultures Presenter: Richard R. Gesteland Global Management LLC

  2. Business Culture: A set of expectations and assumptions about how to do business.

  3. Two Iron Rules of International Business: • The business visitor is expected to understand the local culture. • The seller is expected to understand and adapt to the buyer’s culture.

  4. But there are over 6900 cultures in today’s global marketplace…

  5. Patterns of Cross-Cultural Communication and Negotiating Behavior

  6. First: How to avoid stereotyping when we compare business cultures? • Stereotypes are lazy ways of describing people. • So we will refer to culturaltendencies when we compare international business behavior.

  7. Cross-Cultural Communication and Negotiating Behavior: 5 Key Variables • Deal-Focus vs Relationship-Focus • Direct vs Indirect Communication • Informal vs Formal Business Behavior • MonochronicvsPolychronic Time • Reserved vs Expressive Communication

  8. Comparing Deal-Focused and Relationship-Focused Business Behavior

  9. Deal-Focused Business Cultures: • United States • Nordic countries, Netherlands, Germany, Britain, Canada • Australia/New Zealand

  10. Moderately Deal-Focused Cultures: • France, Belgium, Southern Europe • Central Europe, Eastern Europe, Russia • Hong Kong and Singapore

  11. Relationship-Focused Cultures: • Asia (except Hong Kong and Singapore) • Middle-East, Africa • Latin America • (= most of the world!)

  12. Making direct initial contact often works. Face-to-face meetings less frequent. Usually use direct language. Indirect initial contact is expected. More face-to-face meetings expected. Often use indirect language. D-F Behavior:R-F Behavior:

  13. Communication and Context: • Relationship-oriented people often use indirect (high-context) language. • Deal-oriented people tend to use direct (low-context) language.

  14. Direct and Indirect Language: • RF people tend to use indirect language to avoid giving offence or loss of face. • RF people tend to avoid saying ‘no’ to bosses or customers. • DF people tend to use direct language, are often confused by indirect language.

  15. Comparing Egalitarian and Hierarchical Business Behavior

  16. Nordic countries North America Australia, New Zealand Great Britain Most of Continental Europe Asia, Africa, Latin America, Middle East Egalitarian: More Hierarchical:

  17. Informal behavior. Status differences tend to be small. Protocol rituals are simpler. Formal behavior. Status differences tend to be larger. Protocol rituals are more elaborate. Egalitarian: Hierarchical:

  18. Comparing Monochronic and Polychronic Business Behavior

  19. Monochronic Business Cultures: • Germans and German-Swiss (very monochronic) • Northern Europeans, North Americans • Czech Republic, Hungary • Japan

  20. Moderately Polychronic Cultures • Most of Central Europe • China, Singapore • Chile, Southern Brazil

  21. Polychronic Business Cultures: • Southern and Eastern Europe • Most of Latin America • South and Southeast Asia, Middle East, most of Africa (very polychronic)

  22. Punctuality is expected. Meetings usually follow an agenda. It is rude to interrupt meetings. People are less punctual. Meetings may not follow an agenda. Meetings are often interrupted. Monochronic:Polychronic:

  23. Comparing Reserved and Expressive Communication Behavior

  24. Emotionally Reserved Cultures: • Northern Europe, Britain • East and Southeast Asia (very reserved)

  25. Moderately/Variably Expressive: • North America, Australia, New Zealand • Central and Eastern Europe • South Asia, parts of Africa

  26. Very Expressive Cultures: • Southern Europe • Middle East, Mediterranean region • Latin America

  27. Reserved and Expressive Nonverbal Communication – Four Key Elements: • Interpersonal distance • Eye contact • Touch behavior • Gestures

  28. Interpersonal Distance: • Close: Middle East, Latin America, Southern Europe. • Variable: North America, East and Central Europe, South Asia, Australia/NZ • Distant: Northern Europe, East Asia

  29. Eye Contact: • Intense: Middle East, Southern Europe, Latin America • Moderate: Northern Europe, North America, East-Central Europe. • Indirect: East and Southeast Asia

  30. Touch Behavior: • High Contact: Middle East, France, Southern Europe, Latin America. • Moderate: Central/Eastern Europe, North America. • Low Contact: Northern Europe. • Very Low: East and Southeast Asia.

  31. Ambiguous Gestures: • Use of left hand • Showing sole of shoe • ‘Thumbs up’ sign • ‘Peace’ sign • ‘A-OK’ sign • Pointing/beckoning with index finger.

  32. Communicating and NegotiatingAcross Cultures Richard R. Gesteland Global Management LLC

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