Quiz #2

People enter into negotiations for a multitude of reasons, but the nature of the goal determines what kind of negotiation will take place. Two types of negotiation:

- distributive negotiation - integrative negotiation

A number of steps can be taken to improve communication effectiveness in the international arena. These include:

- improving feedback systems - providing language and cultural training - increasing flexibility and cooperation.

A number of common communication barriers are relevant to international management. The more important barriers involve:

- language barriers - perceptual barriers - the impact of culture - nonverbal communication

A number of specific tactics are used in international negotiation. The following discussion examines some of the most common:

- location - time limits - buyer seller relations

Several basic steps can be used to manage the negotiation process. Regardless of the issues of personalities of the parties involved, this process steps are:

- planning - interpersonal relationship building - exchanging task related information - persuasion - agreement Once again as in all areas of communication, to negotiate effectively in the international arena it is necessary to understand how cultural differences between the parties affect the process.

My managers enter a negotiation with the intent to win and are not open to flexible compromises, that can result in a stalemate. On going discussion with little progress can't increase tensions between the two groups and create an impasse where groups become more frustrated and aggressive and no agreement can be reached. Ultimately too much focus on the plan with little concern for the viewpoint of the other group can lead to missed opportunities. It is important to keep objectives in mind and at the forefront, but it should not be a substitute for constructive discussions. Five general principles to help avoid such disasters:

- separate the people from the problem - focus on interests rather than positions - generate a variety of options before settling on an agreement - insist that the agreement be based on objective criteria - stand your ground

Perception

A person's view of reality

Polychronic time schedule

A time schedule in which people tend to do several things at the same time and place higher value on personal involvement than on getting things done on time

Monochromic time schedule

A time schedule in which things are done in a linear fashion

promises, threats, and other behaviors

Another approach to bargaining is the use of promises, threats, rewards, self disclosures, and other behaviors that are designed to influence other party. These behaviors often are greatly influenced by the culture. The Japanese also rely heavily on recommendations and commitment period the Brazilians used a discussion of rewards, commands, and self disclosure more than Americans and the Japanese. The Brazilians also say know a great deal more and make first offers that have higher level profits than those of the others. Americans tend to operate between these two groups, although they do make less use of commands than either of their opponents and make first offers that have lower profit levels than their opponents.

nonverbal communication

Another major source of communication and perception problems is nonverbal communication which is the transfer of meaning through means such as body language and use of physical space. The general categories that are especially important to communication in international management are: - kinesics - proxemics - chronemics - chromatics

Integrative negotiations

Bargaining that involves cooperation between two groups to integrate interests, create value, and invest in the agreement

Distributive negotiations

Bargaining that occurs when two parties with opposing goals compete over a set value

Negotiation

Bargaining with one or more parties for the purpose of arriving at a solution acceptable to all

providing language and cultural training

Besides improving feedback systems another way to make communication more effective in the international arena is through language training period many host country managers cannot communicate well with their counterparts at headquarters. Because English has become the international language of business, those who are not native speakers of English should learn the language well enough that face to face conversations, video conferencing, and email are possible. If the language of the Home Office is not English this other language also should be learned. As a US manager working for a Japanese MNC recently set, the official international language of the company is English. However whenever the Home Office people show up, they tend to cluster together with their countrymen and speak Japanese. That is why I am trying to learn Japanese. Let's face it. They say all you need to know is English but if you really want to know what's going on you have to talk their language. Written communication also is extremely important in achieving effectiveness. As noted earlier when report, letters, and email messages are translated from one language to another, preventing a loss of meaning is difficult. Moreover if the communications are not written properly, they may not be given the attention they deserve. The reader will allow poor grammar and syntax to influence his or her interpretation and subsequent actions. If readers cannot communicate in the language of those who will be receiving their comments or questions about the report, their messages also must be translated and likely will further lose meaning. Therefore the process can continue on and on, each party failing to achieve full communications with the other. However recent advancements in translation technology are helping prevent this negative feedback cycle. In the near future technology aided translation applications like Google Translate, will likely be capable of providing both written and verbal translations that are more accurate than even those provided by bilingual interpreters. Although this technology will not replace some of the benefits gained through language training, it will ease many of the difficulties noted earlier. It is very difficult to communicate effectively with someone from another culture unless at least one party has some understanding of the others culture. Otherwise communication likely will breakdown. This is particularly important for multinational companies that have operations throughout the world. Although there always are important differences between countries and even between subcultures of the same country, firms that operate in South America find that the cultures of these countries have certain commonality's. These common factors also apply to Spain and Portugal. Therefore a basic understanding of Latin cultures can prove to be useful throughout a large region of the world. The same is true of Anglo cultures, where norms and values tend to be somewhat similar from one country to another. When a multinational has operations in South America, Europe, and Asia, however multicultural training becomes necessary. 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. Failure to do so can result in continuous communication breakdown. Many corporations are investing in programs to help train their executives in international communication. Such training has become more common since it began in the 1970s as many Americans returned from the peace core with increased awareness of cultural differences. And this training is not limited to those who travel themselves but is increasingly important for employees who frequently interact with individuals from other cultures in their workplace or in their communication. Whether a multinational or a startup business out of a garage, everybody is global these days. In today's economy there is no room for failure. Companies have to understand the culture they are working in from day one.

the impact of culture

Besides language and perception, another major barrier to communication is culture. Culture can affect communication in a number of ways one of which is through the impact of cultural values. One expert on Middle Eastern countries notes that people there do not relate to and communicate with each other in a loose, general way as do those in the United states. Relationships are more intense and binding in the Middle East, and a wide variety of work related values influence what people in the Middle East will and will not do. The North American society, the generally professed prevalent pattern is one of non class consciousness, as far as work is concerned. Students for example make extra pocket money by taking all sorts of part time jobs, manual and otherwise, regardless of the socioeconomic stratum to which the individual belongs. The attitude is uninhibited. In the Middle East, the over ruling obsession is how the money is made in via what kind of job. These types of values indirectly and in many cases directly, affect communication between people from different cultures. For example one would communicate differently with a rich college student from the United states than with one from Saudi Arabia. Similarly when negotiating with managers from other cultures, knowing the way to handle the deal requires an understanding of cultural values. Another cultural value is the way that people use time period in the United states, people believe that time is an asset and is not to be wasted. This is an idea that has limited meaning in other cultures. Various values are reinforced and reflected in proverbs that Americans are taught from an early age. Cultural differences can cause misinterpretations both and how others see expatriate managers and in how the latter see themselves. For example, US managers doing business in Austria often misinterpret the fact that local business people always address them in formal terms. They may view this as a meaning that they are not friends or are not liked, but in fact this formal behavior is the way Austrians always conduct business. The informal, first name approach used in the United states is not the style of the Austrians. Culture even affects day-to-day corporate communications. For example, when sending messages to international clients, American managers have to keep in mind that there are many things that are uniquely American and that overseas managers may not be aware of them. As an example, daylight savings time is known to all Americans but many Asian managers have no idea what the term means. Similarly, it is common for American managers to address memos to their international office without realizing that the managers who work in this office regard the American location as the international one. The following are other suggestions that can be of value to American managers who are engaged in international communications: - be careful not to use generalized statements about benefits, compensation, pay cycles, Holidays, or policies in your worldwide communications. Work hours, vacation accrual, general business practices, and human resource issues vary widely from country to country. - Because most of the world uses the metric system, be sure to include converted weights an measures and all internal and external communications. - Keep in mind that even in English speaking countries, where it may have different meanings. Not everyone knows what is meant by counter clockwise or quite good. - Remember that letter head and paper size is different worldwide. The eight and a half by 11 inch page is a US standard but most countries use an A4 which is 8 1/2 by 11 and a half 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 the US$. Many Americans also have difficulty interpreting the effect of national values on work behavior. For example why do French and German workers drink alcoholic beverages at lunch time? Why are many European workers unwilling to work the night shift? Why do overseas affiliates contribute to the support of the employees work council or donate money to the support of kindergarten teachers and local schools? These types of actions are viewed by some people as wasteful but those who know the culture of these countries realize that such actions promote the long run good of the company. It is the outsider who is misinterpreting why these culturally specific actions are happening and as such misperceptions can become a barrier to effective communication.

Managing culture in Brazil

Brazil is considered a Latin American country, but it is important to highlight this nation because some characteristics make it markedly different to manage as compared to other Latin American countries. Brazil was originally colonized by Portugal and it remained affiliated with its parent country until 1865. Even though today Brazil is extremely multicultural, the country still demonstrates many attributes derived from its Portuguese heritage, including its official language. For example, the Brazilian economy was once completely centrally controlled, like those of many other Latin American countries, yet was motivated by such Portuguese influences as flexibility, tolerance, and commercialism. This may be a significant reason behind its successful economic emergence. Brazilian business people tend to have a relaxed work ethic, often respecting those who inherit wealth and have strong familial roots over those seeking entrepreneurial opportunities. They view time in a very relaxed manner so punctuality is not a strong suit in this country. Overall, the people are very good natured and tend to avoid confrontation, yet they seek out risky endeavors. In Brazil, physical contact is acceptable as a form of communication. Brazilian business people attend to stand very close to others when having a conversation and attach the persons back, arm, or elbow as a greeting or sign of respect. Additionally, face to face interaction is preferred as a way to communicate, so avoid a simply emailing or calling. Do not be surprised if business meetings begin anywhere from 10 to 30 minutes after the scheduled time because Brazilian culture tends not to be governed by the Clock. Appearance can be very important to Brazilian culture, as it will reflect both you and your company. When conducting business, men should wear conservative dark suits, shirts, and ties. Hello woman should dress nicely but avoid too conservative or formal attire. Brazilian managers often wonder for example, if Americans make so much money, why do they dress as if they were poor? Patience is key when managing business in Brazil. Many processes, including negotiations, are longer and more drawn out than in other cultures. Expressing frustration or impatience and attempting to speed up procedures may lose the deal. The slow processes and relaxed atmosphere do not imply that it is acceptable to be ill prepared. Presentations should be informative and expressive, and consistency is important period it is common for Brazilian business people to bring a lot of people to attend negotiations, mostly to observe and learn. Subsequent meetings may include members of higher management, requiring a rehashing of information.

Haptics

Communicating through the use of bodily contact

Intimate distance

Distance between people that is used for very confidential communications

increasing flexibility and cooperation.

Effective international communications require increased flexibility and cooperation by all parties period to improve understanding and cooperation, each party must be prepared to give a little. A company with operations across Europe, the Americas, and Australia, provides some good tips to maintaining cooperation when working on international teams: - acknowledge cultural differences and make them open for discussion. - Communicate frequently and regularly. - Ensure that all members of the team have appropriate opportunities to participate. - Reinforce structure and be aware of power perception. - Define core team values and establish trust. - Promote and support diversity initiatives. - Increase awareness of resources available to help with personal and work issues.

stand your ground

Every discussion will have some imbalance of power, but there is something negotiators can do to defend themselves. It may be tempting to create a bottom line or lowest possible set of options that one will accept, but it does not necessarily accomplish the objective. When negotiators make a definite decision before engaging in discussion, they may soon find out that the terms never even surfaced. That is not to say that their bottom line is below even the lowest offer but instead that without working with the other negotiators, they cannot accurately predict the proposals that will be devised. So what should the weaker opponent do? The reason two parties are involved in a negotiation is that they both want a situation that will leave them better off than before. Therefore no matter how long negotiations drag on neither side should agree to terms that will leave it worse off than its best alternative to a negotiated agreement, or BATNA. Clearly defining and understanding the BATNA will make it easier to know when it is time to leave a negotiation and empower that side. An even better scenario would be if the negotiator learned of the other sides BATNA. Developing your BATNA thus not only enables you to determine what is a minimally acceptable agreement, it will probably raise that minimum. Even the most prepared manager can walk into a battle zone. At times, negotiators will encounter rigid, irritable, caustic, and selfish opponents. Hey positional approach to bargaining can cause tension but the other side can opt for a principled angle. This entails a calm demeanor and a focus on the issues. Instead of counterattacking, redirect the conversation to the problem and do not take any outbursts as personal attacks. Inquire about the reasoning and try to take any negative statements as constructive. If no common ground is reached, a neutral third party can come in to assess the desires of each side and compose an initial proposal. Each group has the right to suggest alternative approaches but the third party person has the last word and what the true final draft is. If the parties decided is still unacceptable then it is time to walk away from negotiations.

buyer seller relations

How should buyers and sellers act? As noted earlier the Americans believe in being objective and trading favors. When the negotiations are over, Americans walk away with what they have received from the other party, and they expect the other party to do the same. This is not the way negotiators and many other countries think however. The Japanese for example believe that the buyers should get most of what they want. On the other hand they also believe that the seller should be taken care of through reciprocal favors. The buyer must ensure that the seller has not been picked clean. For example when many Japanese firms first started doing business with large US firms, they were unaware of US negotiating tactics. As a result, the Japanese thought the Americans were taking advantage of them, while the Americans believed they were driving a good, hard bargain. The Brazilians are quite different from both the Americans and the Japanese. Researchers have found that Brazilians do better when they are more deceptive and self interested and their opponents more open and honest than they are. Brazilians also tend to make fewer promises and commitments than their opponents, and they are much more prone to say no. However Brazilians are more likely to make initial concessions. Overall Brazilians are more like Americans than Japanese and that they try to maximize their advantage but they are unlike Americans and that they do not feel obligated to be open and forthright in their approach. Whether they are buyer or seller, they want to come out on top.

insist that the agreement be based on objective criteria

In cases where there are no common interests, avoid attention by looking for objective options. Legitimate, practical criteria could be formed by using reliable third party data such as legal precedent. If both parties would accept being bound to certain terms, then chances are these suggestions were derived from objective criteria. The key is to emphasize the communal nature of the process. Inquire about why the other group chose its particular ideas. It will help you both see the other side and give you a springboard from which you can argue your views, which can be very persuasive. Overall, effective negotiations will result from being flexible but not forwarding to external pressures. The preceding principles are just general guidelines to abide by to try and reach a mutual agreement. The approaches will be more effective if the group adhering to the outline is the one with more power.

Social distance

In communicating, the distance used to handle most business transactions

Public distance

In communicating, the distance used when calling across the room or giving a talk to a group

Personal distance

In communicating, the physical distance used for talking with family and close friends

Context

Information that surrounds a communication and helps convey the message

nonverbal communication: kinesics

It is the study of communication through body movement and facial expression. Primary areas of concern include eye contact, posture, and gestures. For example when one communicates verbally with someone in the United states, it is good manners to look the other person in the eye. This area of communicating through the use of eye contact and gaze is known as Oculesics. In some areas of the world Oculesics is an important consideration because of what people should not do, such as stare at others or maintain continuous eye contact because it is considered impolite to do these things. Another area is posture, which can also cause problems. For example when Americans are engaged in prolonged negotiations or meetings, it is not uncommon for them to relax and put their feet up on a chair or desk but this is insulting behavior in the Middle East. Gestures are also widely used and take many forms. For example Canadians shake hands, Japanese bow, and middle easterners of the same sex kiss on the cheek. Communicating through the use of bodily contact is known as haptics, and it is a widely used form of nonverbal communication. Sometimes gestures present problems for expatriate managers because these behaviors have different meanings depending on the country. For example, in the United states, putting the thumb and index finger together to form an O is designed for OK. In Japan, this is this sign for money; In southern France the gesture means zero or worthless; And in Brazil it is regarded as a vulgar or obscene sign. In France and Belgium, snapping the fingers of both hands is considered vulgar; In Brazil this gesture is used to indicate that something has been done for a long time. In Britain, The V for victory sign is given with the palm facing out; if the palm is facing in this roughly means shove it; in non British countries the gesture means two of something and often is used when placing an order at a restaurant. Many foreign students attending school in the United states have trouble communicating because they are unable to interpret some of the most common and nonverbal gestures. Hey survey group of 44 Jamaican, Venezuelan, Columbian, Peruvian, Thai, Indian, and Japanese students at two major universities were given pictures of 20 universal cultural gestures and each was asked to describe the nonverbal gestures illustrated. In 56% of the choices, the respondents either gave an interpretation that was markedly different from that of Americans or reported that the nonverbal gesture had no meaning in their culture. These findings help reinforce the need to teach expatriates about local nonverbal communication.

language barriers

Knowledge have the home countries language or the language used at the headquarters of the MNSC, 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. Additionally now many MNC's prescribe English as the common language for internal communication, so that managers can more easily convey information to their counterparts in other geographically dispersed locales. Despite such progress however, language training continues to lag in many areas, including the United states, where less than 8% of college students study a foreign language. However, in an increasing number of European countries, more and more young people are becoming multilingual. Language education is a good beginning but it is also important to realize that the ability to speak the language used at MNC headquarters is often not enough to ensure that the personnel are capable of doing the work. Stout has noted that many MMC's worldwide place a great deal of attention on an applicant's ability to speak English without considering if the person has other necessary skills such as the ability to interact well with others and the technical knowledge demanded by the job. Additionally in interviewing people for jobs, he has noted that many interviewers failed to take into account the applicant's culture. As a result interviewers misinterpret behaviors such as quiet NIS or shyness and use them to conclude that the applicant is not sufficiently confident or self assured. Still another problem is that non native speakers may know the language but not be fully fluent so they end up asking questions or making statements that convey the wrong message. After studying Japanese for only one year, start began interviewing candidates in their local language and made a number of mistakes. Written communication has been getting increased attention because poor writing is proving to be a greater barrier than poor talking. The process often involved elaborate procedures associated with translating and reworking the report. Typical steps included: - holding a staff conference to determine what was to be included in the written message - writing the initial draft in German - rewriting the draft in German - translating the material into English - consulting with bilingual staff members regarding the translation - rewriting the English draft a series of additional times until the message was judged to be acceptable for a transmission The German managers debited that they felt uncomfortable with writing because their command of written English was poor. It is important to note however that recent advancements in technology are helping eliminate many of these language barriers. Applications like Google Translate and I translate are already able to provide intelligent speech translation in real time period unlike translation methods of the past, which focused on translating individual words, these applications provide highly accurate translations by evaluating entire phrases and sentences. Users of these applications can speak directly into their smartphones in their native language and with the click of a button, instantly received both audible and written translations into just about any language. Face to face communication between speakers of different languages without an interpreter is now possible through this technology. Geographic distance poses challenge for international managers but so do cultural and institutional distance. Research has conceptualized and measured cross national differences primarily in terms of Dyadic cultural distance, that is comparing the distance from one culture to another. Some however have suggested that distance is a multidimensional construct that includes economic, financial, political, administrative, cultural, demographic, knowledge, and global connectedness as well as geographic distance and cannot be summarized in one score. Nowhere does such cultural distance show up more vividly than in challenges to accurate communications. As one dimension of such distance, cultural barriers have significant ramifications for international communications. Researchers noted that their investigation indicated that the deviations from standard U.S. business communication practices were not specific to one or more nationalities. The deviations did not occur among specific nationalities for spread throughout the sample of non native letters used for the study. Therefore we can speculate that US native speakers of English might have similar difficulties in international settings. In other words, a significant number of native speakers in the US might deviate from the standard business communication practices of other cultures. Therefore these native speakers need specific training and the business communication practices of the major cultures of the world so that they can communicate successfully and acceptably with readers in those cultures. Even in English speaking countries, there are different approaches to writing letters. In the United states for example it is common practice when constructing hey bad News Letter to start out with a pleasant, relevant, neutral, and transitional buffer statement; Give the reasons for the unfavorable news before presenting the bad news; Presents the refusal in a positive manner; Imply the bad news Whenever possible; Explain how the refusal is in the reader's best interest; And suggest positive alternatives that build goodwill. In Great Britain, however it is common to start out by refering to the situation, discussing the reasons for the bad news, conveying the bad news often quite bluntly, and concluding with an apology or a statement of regret something that is frowned on by business letter experts in the United states, designed to keep the readers goodwill. USMNC managers would seldom if ever send this type of letter; It would be viewed as blunt and tactless. However the indirect approach the Americans used would be viewed by their British counterparts as overly indirect and obviously insincere. On the other hand when compared to Asians, many American writers are far more blunt and direct. American writers use a direct organizational pattern intended to state the main idea or problem first before sharing explanatory details that clearly related to the stated problem. In contrast, this standard Korean pattern was indirect intended to delay the reader's discovery of the main point. This led the researchers to conclude that the US generated letter might be regarded as rude by Asian readers while American readers might regard the letter from Korean writer as vague, emotional, and accusatory.

generate a variety of options before settling on an agreement

Managers may feel pressure to come to an agreement quickly for many reasons especially if they hail from my country that puts a value on time period if negotiations are with a group that does not consider time constraints there may be temptation to have only a few choices to narrow the focus and expedite decisions. It turns out though that it is better for everyone to have a large number of options in case some proposals proved to be unsatisfactory. How do groups go about forming these proposals? First they can meet to brainstorm and formulate creative solutions through a sort of invention process. This includes shifting thought focus among us stating the problem, analyzing the issue, pondering general approaches, and strategizing the actions. After creating the proposals, the groups can begin evaluating the options and discuss improvements were necessary. Try to avoid the win lose approach by accentuating the points of parity. When groups do not see eye to eye, find options that can work with both viewpoints by looking for items that are of low cost to you and high benefits them and vice versa. By offering proposals that the other side will agree to, you can pinpoint the decision makers and tailor future suggestions towards them. Be sure to support the validity of your proposal but not to the point of being overbearing.

Managing culture in France

Many in the United states believe that it is more difficult to get along with the French than with other Europeans. This feeling probably reflects in the French culture, which is markedly different from that in the United states. In France, once social class is very important and these classes include the aristocracy, the upper bourgeois, the upper middle bourgeois, the middle, the lower middle, and the lower. Social interactions are affected by class stereotypes, and during their lifetime, most French people do not encounter much change in social status. Additionally the French are very status conscious and they like to provide science of their status, such as knowledge of literature and the arts; A well designed, tastefully decorated house; And a high level of education. In the workplace, many French people are not motivated by competition or the desire to emulate fellow workers. They often are accused of not having as intense a work ethic As for example Americans or Asians. Many French workers frown on overtime and statistics show that on average they have the longest vacations in the world, four to five weeks annually. On the other hand, few would disagree that they work extremely hard in their regularly scheduled time and have a reputation for high productivity. Part of this reputation results from the French tradition of Craftsmanship. Part of it also is accounted for by a large percentage of the workforce being employed in small, independent businesses, but there is widespread respect for a job well done. In general, French employees do not derive much motivation from professional accomplishment. Rather, they believe that quality of life is what really matters. As a result, they attach a great deal of importance to leisure time, and many are unwilling to sacrifice the enjoyment of life for dedication to work. Most French organizations tend to be highly centralized and have rigid structures. As a result, it usually takes longer to carry out decisions. Because this arrangement is quite different from the more decentralized, flat and organizations in the United states, both middle and lower level US expatriate managers who work in French subsidiaries often find bureaucratic red tape a source of considerable frustration. There also are marked differences at the upper levels of management. In French companies, top managers have far more authority than their US counterparts, and they are less accountable for their actions. While top level US executives must continually defend their decisions to the CEO or board of directors, French executives are challenged only if the company has poor performance. As a result, those who have studied French management find that French executives take a more authentic approach.

improving feedback systems

One of the most important ways of improving communication effectiveness in the international context is to open up feedback systems. Feedback is particularly important between parent companies and their affiliates. There are two basic types of feedback systems: - personal= face to face meetings, video conferencing, telephone conversations, and personalized email - impersonal= report, budgets, and plans both systems help affiliates keep their Home Office aware of progress and in turn help the Home Office monitor and control affiliate performance as well as set goals and standards. At present there seem to be varying degrees of feedback between the home offices of MNC's and their affiliates. For example one study evaluated the communication feedback between subsidiaries and home offices of 63 MNC is headquartered in Europe, Japan, and North America. A marked difference was found between the way the US companies communicated with their subsidiaries and the way the European and Japanese firms did. Over 1/2 of the US subsidiaries responded that they received monthly feedback from their parent companies, in contrast to less than 10% for the subsidiaries of the European and Japanese firms. In addition, the Americans were much more inclined to hold regular management meetings on a regional or worldwide basis. 75% of the US companies had annual meetings for their affiliate top managers, compared with less than 50% for the Europeans and Japanese. Please findings may help explain why many international subsidiaries and affiliates are not operating as efficiently as they should. The units may not have sufficient contact with the Home Office. They do not seem to be getting the continuous assistance and feedback that are critical to effective communication.

perception barriers

Perception is a person's view of reality. How people see reality can vary and will influence their judgment and decision making. Japanese stock brokers who perceived that the chances of improving their career will be better with US firms have changed jobs. Hong Kong hotel years bought US properties because they had the perception that if they could offer the same top quality hotel services back home, they could dominate the US markets. Unfortunately misperceptions can become a barrier to effective communication and thus decision-making. One way that perception can be a problem in international management communication is the very basic misunderstandings caused when one side uses words or symbols that simply are misinterpreted by others. Many firms have found to their dismay that a failure to understand home country perceptions can result in disastrous advertising programs. There have been countless other such advertising blunders. Some speak to the political context such as when Mercedes-Benz introduced its grand sports Tourer or Mercedes GST, in Canada. Canadians were not very impressed because in Canada the GST is it shorthand for the goods and services tax period other times the advertising is simply offensive. Bacardi for example advertise the fruity drink Pavian in Germany believing that it was Tre chic. Pavian to the German population however meant Biboon. Needless to say sales did not exceed expectations. Managers must be very careful when they translate messages. As mentioned some common phrases in one country will not mean the same thing in others. Evidently from the many examples, errors and translation occur frequently, but MNC's can still come out on top with care and persistence, always remembering that perception may create new reality. Perception influences how individuals see others. Hey good example is provided by these perception of foreigners who reside in the United states by Americans in the perception of Americans by the rest of the world. Most Americans see themselves as extremely friendly, outgoing, and kind, and they believe that others also see them in this way. At the same time many are not aware of the negative impressions they give to others. This has become especially salient in light of the Americans reaction to the September 11, 2001, terror attacks and their involvement in the wars in Iraq and Afghanistan, which have at times shaking the worldview of the United states. He becomes a trying exercise to sort through truth and error in such circumstances. An example in the business world where perception is all important and misperception may abound is the way in which people act, or should act, when initially meeting others. Perceptions of others may play a major role in the context of international management and the effects of the ways that international managers perceive their subordinates and their peers. For example, a study examined the perceptions that German and US managers had of the qualifications of their peers those on the same level and status, managers, subordinates in Europe and Latin America. The findings showed that both the German and the US respondents perceived their subordinates to be less qualified than their peers. However although the Germans perceive their managers to have more managerial ability than their peers, the Americans felt that their South American peers and many instances had qualifications equal to or better than the qualifications of their own managers. Quite obviously, these perceptions will affect how German and US expatriates communicate with their South American and other peers and subordinates, as well as how the expatriates communicate with their bosses. Another study I've found that western managers have more favorable attitudes towards woman's managers Dan do Asian or Saudi managers. Japanese managers, according to one survey also still regard women as superfluous to the effective running of their organizations and generally continue to not treat women as equals. Such perceptions obviously affect the way these managers interact and communicate with their female counterparts.

Oculesics

The area of communication that deals with conveying messages through the use of eye contact and gaze

focus on interests rather than positions

The position one side takes can be expressed through a simple outline but still does not provide the most useful information. Focusing on interests gives one insight into the motivation behind why a particular position was chosen. Digging deeper into the situation by both recognizing your own interests and becoming more familiar with others interests will put all active partners in a better position to defend their proposal. Simply stating this model works and it is the best option may not have much leverage. Discussing your motivation such as I believe our collaboration will enhance customer satisfaction, which is why I took on this project, will help others see the why and not just the what. Hearing the incentive behind the project will make both sides more sympathetic and may keep things consistent. Be sure to consider the other side but maintain focus on your own concerns.

Simplification

The process of exhibiting the same orientation towards different cultural groups

Communication

The process of transferring meanings from sender to receiver

Kinesics

The study of communication through body movement and facial expression

Proxemics

The study of the way people use physical space to convey messages

Upward communication

The transfer of meaning from subordinate to superior

Nonverbal communication

The transfer of meaning through means such as body language and the use of physical space

Downward communication

The transmission of information from manager to subordinate

Chromatics

The use of color to communicate messages

Chronemics

The way in which time is used in a culture

integrative negotiations

This involves cooperation between the two groups to integrate interests, create value, and invest in the agreement. Both groups work towards maximizing benefits for both sides and distributing those benefits period this method is sometimes called the win-win scenario, which does not mean that everyone receives exactly what he or she wishes for but instead that the compromise allows both sides to keep what is most important and still gain on the deal. The relationship in this instance tends to be more long-term since both sides take time to get to know the other side and what motivates them. The focus is on the group, reaching for a best case outcome where everyone benefits period this is the most useful tactic when dealing with business negotiation and so the discussion below assumes the integrative approach.

nonverbal communication: proxemics

This is the study of the way that people use physical space to convey messages. For example in the United states, there are four distances people use in communicating on a face to face basis: - Intimate distance= this is used for very confidential communications. - personal distance= This is used for talking with family and close friends. - social distance= This is used to handle most business transactions. - public distance= This is used when calling across the room or giving a talk to a group. One major problem for Americans communicating with people from the Middle East or South America is that the intimate or personal distance zone is violated. Americans often tend to be moving away in interpersonal communication with their Middle Eastern or Latin counterparts, while the latter are trying to physically close the gap. The American cannot understand while the other is standing so close; The latter cannot understand why the American is being so reserved and standing so far away. The result is a breakdown in communication. Office layout is another good example. In the United states, the more important the manager, the larger the office, and often an assistant screens visitors and keeps away those whom the manager does not wish to see. In Japan, most managers do not have large offices and even if they do, I spend a great deal of time out of the office and with the employees. Thus the Japanese have no trouble communicating directly with their superiors. A Japanese manager staying in his or her office would be viewed as a sign of distrust or anger towards the group. Another way that office proxemics can affect communication is that in many European companies, no wall separates the space allocated to the senior level manager from that of the subordinates. Everyone works in the same large room period these working conditions often are disconcerting to Americans, who tend to prefer more privacy.

nonverbal communication: chromatics

This is the use of color to communicate messages. Every society uses this but in different ways. Colors that mean one thing in the United states may mean something entirely different elsewhere, such as in Asia. For example in the United states it is common to wear black when in mourning, while in some locations in India people wear white when they are in mourning. In Hong Kong, red is used to signify happiness or luck and traditional bridal dresses are red; in the United states it is common for the bride to wear white. In many Asian countries, shampoos are dark in color because users want these soap to be the same color as their hair and believe that if it were a light color, it would remove color from their hair. In the United states, shampoos tend to be light in color because people see this as a sign of cleanliness and hygiene. In Chile, a gift of yellow roses conveys the message I do not like you, but in the United states it says quite the opposite. Knowing the importance and specifics of chromatics in a culture can be very helpful because among other things, such knowledge can help you avoid embarrassing situations.

nonverbal communication: chronemics

This refers to the way in which time is used in a culture. When examined in terms of extremes, there are two types of time schedules: - monochronic time schedule= this is one in which things are done in a linear fashion. A manager will address issue A first and then move on to issue B. In individualistic cultures such as the United states, Great Britain, Canada, and Australia, as well as many of the cultures in northern Europe, managers adhere to the monochronic time schedules. Societies time schedules are very important and time is viewed as something that can be controlled and should be used wisely. - polychronic time schedule= This is in sharp contrast to monochronic time schedules. This is characterized by people tending to do several things at the same time and placing higher value on personal involvement than on getting things done on time period and these cultures, schedules are subordinated to personal relationships. Regions of the world where polychronic time schedules are common include Latin America and the Middle East. When doing business in countries that adhere to monochronic time schedules, it is important to be on time for meetings. Additionally these meetings typically end at the appointed time so that participants can be on time for their next meeting. When doing business in countries that adhere to polychronic time schedules, it is common to find business meetings starting late and finishing late.

Persuasion

This step of negotiations is considered by many to be the most important period no side wants to give away more than it has to but each knows that without giving some concessions it is unlikely to reach a final agreement. The success of the persuasion step often depends on: - how well the parties understand each others position - the ability of each to identify areas of similarity and difference - the ability to create new options - the willingness to work towards a solution that allows all parties to walk away feeling they have achieved their objectives

time limits

Time limits are an important negotiation tactic when one party is under a time constraint. This is particularly true when this party has agreed to meet at the home site of the other party. For example US negotiators who go to London to discuss a joint venture with a British firm often will have a scheduled return flight. Once their hosts find out how long these and individuals intended to stay, the British can plan their strategy accordingly. The real negotiations are unlikely to begin until close to the time that the Americans must leave. The British know that their guests will be anxious to strike some type of deal before returning home so the Americans are at a disadvantage. Time limits can be used tactically even if the negotiators meet at a neutral site. For example most Americans like to be home with their families for Thanksgiving, Christmas, and the new year holiday. Negotiations held right before these dates put Americans at a disadvantage because other party knows when the Americans would like to leave.

In international negotiations, participants tend to Orient their approach and interests around their home culture and their group's needs and aspirations. This is natural yet to negotiate effectively, it is important to have a sound understanding of the other side's culture and position to better emphasize and understand what they are about. The cultural aspects managers should consider include communication patterns, time orientation, and social behaviors. A number of useful steps can help in this process of understanding. One negotiation expert recommends the following:

do not identify the counterparts home culture too quickly., cues such as name, physical appearance, language, accent, and location may be unreliable. The counterpart probably belongs to more than one culture. Beware of the western bias towards doing. In Arab, Asian, and Latin groups, ways of being such as comportment and smell, feeling, thinking, and talking can shape relationships more powerfully than doing. Try to counteract the tendency to formulate simple, consistent, stable images. Do not assume that all aspects of the culture are equally significant. In Japan, consulting all relevant parties to a decision is more important than a presenting a gift. Recognize that norms for interactions involving outsiders may differ from those for interactions between compatriots. Do not overestimate your familiarity with your counterparts culture. An American studying Japanese wrote New Year's wishes to Japanese Contacts in basic Japanese characters but omitted 1 character. As a result the message became "dead man, congratulations".

Drawing on the work of Hofstede, it is possible to link cultural clusters and compensation strategies. Each cluster requires a different approach to formulating an effective compensation strategy:

in Pacific Rim countries, incentive plans should be group based. In high masculinity cultures such as Japan, Hong Kong, Malaysia, the Philippines, and Singapore, high salaries should be paid to senior level managers. In EU nations such as France, Spain, Italy, and Belgium, compensation strategies should be similar. In the last two nations of Italy and Belgium, significantly higher salaries should be paid to local senior level managers because of the high masculinity index. In Portugal and Greece, both of which have a low individualism index, profit sharing plans would be more effective than individual incentive plans, while in Denmark, the Netherlands, and Germany, personal incentive plans would be highly useful because of the high individualism in these cultures. In the United Kingdom, Ireland, and the United states, managers value their individualism and are motivated by the opportunity for earnings, recognition, advancement, and a challenge. Compensation plans should reflect these needs.

Managing culture in India

in recent years, India has begun to attract the attention of large MNC's. Unsaturated consumer markets, coupled with cheap labor and production locations, have helped make India a desirable market for global firms. The government continues to play an important role in this process, although recently many of the bureaucratic restrictions have been lifted as India works to attract foreign investment and raise its economic growth rate . In addition, although most Indian business people speak English, many of their values and beliefs are markedly different from those in the West. Thus understanding Indian culture is critical to successfully doing business in India. Shaking hands with male business associates is almost always an acceptable practice period U.S. business people in India are considered equals, however, and the universal method of greeting and equal is depressed one spams together in front of the chest and say namaste, which means greetings to you. Therefore, if a handshake appears to be improper, it always is safe to use namaste. For western business people in India, lightweight and light colored business casual attire or, in more formal situations, business formal attire is the norm. Indian business people on the other hand, often wear local address. In many cases this includes a dhoti (a single piece of white cloth about 5 yards long and three feet wide) that is passed around the waist up to half its length and then the other half is drawn between the lakes and tucked at the waist. Long shirts are worn on the upper part of the body. In some locales, such as Punjab, Sikhs will wear Turbans and well to do Hindus sometimes will wear long coats like the Rajas. This coat, known as a sherwani, is the dress recognized by the government for official and ceremonial wear. Foreign business people are not expected to dress like locals, and in fact many Indian business people will dress like Europeans. Therefore it is unnecessary to adopt local dress codes. Finally it is important to remember that Indians are very tolerant of outsiders and understand that many are unfamiliar with local customs and procedures. Therefore, there is no need to make a phony attempt to conform to Indian cultural traditions. Making an effort to be polite and courteous is sufficient.

exchanging task related information

in this part of the negotiation process each group sets forth its position on the critical issues. These positions often will change later in the negotiations. At this point the participants are trying to find out what the other party wants to attain and what it is willing to give up.

distributive negotiations

occurs when two parties with opposing goals compete over a set value. Consider a person who passes a street vendor and sees an item he likes but considers the price, or set value, a bit steep. The goal of the buyer is to procure the item at the lowest price, getting more value for his money, while the goal of the seller is to collect as much as possible to maximize profits. Both are trying to get the best deal but what translates into a gain by one side is usually experienced as a lost by the other, otherwise known as a win lose situation. The relationship is focused on the individual and based on a short term interaction. More often than not the people involved are not friends or at least their personal relationship is put aside in the matter. Information also plays an important role because you do not want to expose too much and be vulnerable to counterattack. Research has shown that first offers in a negotiation can be good predictors of outcomes, which is why it is important to have a strong initial offer. This does not imply that overly greedy or aggressive behavior is acceptable; This could be off putting to the other negotiator, causing him or her to walk away. In addition to limiting the amount of information you disclose, it can be advantageous to know a little about the other side.

separate the people from the problem

often when managers spend 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. In order to preserve the personal relationship and gain a clear perspective on the issue it is important to distinguish the problem from the individual. When dealing with people, 1 barrier to complete understanding is the negotiating parties perspectives. Negotiators should try to put themselves in the others shoes. Avoid blame, and keep the atmosphere positive by attempting to alter proposals to better translate the objectives. The more inclusive the process, the more willing everyone will be to find a solution that is mutually beneficial. Emotional factors arise as well. Negotiators often experience some level of an emotional reaction during the process, but it is not seen by the other side. Recognize your own emotions and be open to hearing and accepting emotional concerns of the other party. Do not respond in a defensive manner or give in to intense impulses. Ignoring the intangible attention is not recommended; Try to alleviate the situation through sympathetic gestures such as apologies. Good communication is imperative to reaching an agreement. Talk to each other instead of just rehashing grandiose aspects of the proposal. Listen to responses and avoid passively sitting there while formulating a response. When appropriate summarize the key points by vocalizing your interpretation to the other side to ensure correct evaluation of intentions. Overall do not wait for issues to arise and react to them, instead go into discussion with these guidelines already employed.

planning

planning starts with the negotiators identifying the objectives they would like to attain. Then they explore the possible options for reaching these objectives. Research shows that the greater the number of options the greater the chances for successful negotiations. Well this appears to be an obvious statement, research also reveals that may negotiators do not alter their strategy when negotiating across cultures. Next consideration is given to areas of common ground between the parties. Other major areas include: - the setting of limits on single point objectives such as deciding to pay no more than 10 million U.S. dollars for the factory and three million U.S. dollars for the land - dividing issues into short and long term considerations and deciding how to handle each - determining the sequence in which to discuss the various issues

Use of extreme behaviors

some negotiators begin by making extreme offers or requests. Chinese and Arabic business people frequently use this approach. Other negotiators however begin with an initial position that is close to the one they are seeking. This tactic is often seen with Americans and Swedes. Is 1 approach anymore effective than the other? Research shows that extreme positions tend to produce better results. Some of the reasons relates to the fact that an extreme bargaining position: - shows the other party that the bargainer will not be exploited - Extends the negotiation and gives the bargainer a better opportunity to gain information on the opponent - allows more room for concessions - modifies the opponents beliefs about the bargainers preferences - shows the opponent that the bargainer is willing to play the game according to the usual norms - let's the bargainer gain more than would probably be possible if a less extreme initial position had been taken. Although the use of extreme position bargaining is considered to be UN American, many US firms have used it successfully against foreign competitors.

Managing culture in China:

the People's Republic of China or China for short, has had a long tradition of isolation. In 1979, Deng Xiaoping open this country to the world. Although his bloody 1989 putdown of protesters in Tiananmen Square was a definite set back for progress, China is rapidly trying to close the gap between itself and economically advanced nations and to establish itself as a power in the world economy. China is actively trading in world markets, is a member of the WTO, and is a major trading partner of the United states. Despite this global presence, many US and European multinationals still find that doing business in China can be a long, grueling process. Foreign firms still find it difficult to make a profit in China . One primary reason is that western based MNC's do not appreciate the important role and impact of Chinese culture. Experienced executives report that the primary criterion for doing business in China is technical competence. For example in the case of MNC's selling machinery, Chinese business people tend to want to know exactly how the machine works, what its capabilities are, and how repairs and maintenance must be handled. Sellers must be prepared to answer these questions in precise detail. This is why successful multinationals send only seasoned engineers and technical people to China. They know that the questions to be answered will require both knowledge and experience, and young, fresh out of school engineers will not be able to answer them. A major cultural difference between China and many Western countries is the issue of time period Chinese culture tends to value punctuality, so it is important that those who do business with them arrive on time period during meetings, such as those held when negotiating a contract, Chinese business people may ask many questions and nod their assent at the answers. This nodding usually means that they understand or are being polite to; It seldom means that they like what they are hearing and want to enter into a contract. For this reason, when dealing with Chinese business people, one must keep in mind that patience is critically important. Chinese business people will make a decision in their phone good time, and it is common for outside business people to make several trips to China before a deal is finally concluded. Moreover, not only are there numerous meetings, but sometimes these are unilaterally cancelled at the last minute and rescheduled. This often tries the patience of outsiders and is inconvenient in terms of rearranging travel plans and other problems. Another important dimension of Chinese culture is guanxi, which means good connections. In turn these connections can result in such things as lower costs for doing business. Yet guanxi goes beyond just lower costs. A 2017 study found that guanxi networking offered a number of potential benefits, including greater trust and increased business success. In practice, guanxi resembles nepotism, where individuals in authority make decisions on the basis of family ties or social connections rather than objective and ices. Additionally, outsiders doing business in China must be aware that Chinese people typically argue that they have the guanxi to get a job done, when in reality they may or may not have the necessary connections. When conducting business in China, one must realize that Chinese are a collective society in which people pride themselves on being members of a group. Chinese people are very proud of their collective economic accomplishments and want to share these feelings with outsiders. This is in sharp contrast to the situation in the United States and other Western countries, where individualism is highly prized. For this reason, one must never single out a Chinese employee and praise him or her for a particular quality, such as intelligence or kindness, because doing so may embarrass the individual in the presence of his or her peers. It is equally important to avoid using self centered conversation, such as the excessive use of the word I, because it appears that the speaker is trying to single him or herself out for special consideration. In negotiations, reciprocity is important period if Chinese partners give concessions, they expect some in return. Additionally it is common to find them slowing down negotiations to take advantage a westerners desire to conclude arrangements as quickly as possible. The objective of this tactic is to extract further concessions. Another common strategy used by Chinese business people is to pressure the other party during final arrangements by suggesting that this counterpart has broken the spirit of friendship in which the business relationship originally was established. Again, through this strategy, the Chinese partners Trying to gain additional concessions. Because negotiating can involve a loss of face, it is common to find Chinese business people carrying out the whole process through intermediaries. This allows them to convey their ideas without fear of embarrassment. During negotiations, it is also important not to show excessive emotion of any kind. Anger or frustration for example is viewed as antisocial and unseemly. Negotiations should be viewed with a long term perspective. Those who will do best or the ones who realize they are investing in a long term relationship. While these are the traditional behaviors of Chinese business people, the transitioning economy has also caused a shift in business culture, which has affected working professionals' private lives. Performance, which was once based on effort, is now being evaluated from the angle of results as the country continues to maintain its flourishing profits. While traditional Chinese culture focused on family first, financial and material well being has become a top priority. This performance orientation has increased stress and contributed to growing incidents of burnout, depression, substance abuse, and other ailments. Some U.S. companies have attempted to curb these psychological ailments by offering counseling; however this service is not as readily accepted by Chinese culture. Instead of bringing attention to the counseling aspect, firms instead promote workplace harmony and personal well being services. This suggests that while some aspects of Chinese culture are changing, international managers must recognize the foundational culture of the country and try to deal with such issues according to local beliefs.

Managing culture in Russia

the Russian economy has experienced severe problems and the risks of doing business there cannot be overstated. Recent tensions between the governments of Russia and the G7 nations, resulting from Russian intervention in Syria, the annexation of Crimea, and attempted interference in foreign elections, have made business dealings even more complicated. At the same time however, by following certain guidelines Amen sis can't begin to type the potential opportunities. When conducting business in Russia, it is important to build personal relationships with partners. Business laws and contracts do not mean as much in Russia as they do in the West. When there are contract disputes, there is little protection for the aggrieved party because of the time and effort needed to legally enforce the agreement. Detailed contracts can be hammered out later on; And the beginning, all that counts is friendship. Local consultants can be valuable. Because of the rules of businesses have changed so much in recent years, it pays to have a local Russian consultant working with the company. Russian expatriates often are not up to date on what is going on and quite often are not trusted by local business people who have stayed in the country. So the consultant should be someone who has been in Russia all the time and understands the local business climate. Ethical behavior in Europe and the United states is not always the same as in Russia. For example, it is traditional in Russia to give gifts to those with whom one wants to transact business, an approach that may be regarded as bribery in the United states. In recent years, large companies such as IKEA have faced repercussions in their home markets due to bribery allegations from their business conduct in Russia. When conducting business in Russia, business people should be careful about compromising or settling things too quickly, as this is often seen as a sign of weakness. Because of the history of complexity during the Soviet Union days, Russians today tend to be suspicious of anything that is conceded easily. If agreements are not reached after a while, a preferred tactic on their part is to display patients and then wait it out. However, they will abandon this approach if the other side shows great patience because they will realize that their negotiating tactic is useless. Conducting business in Russia requires careful consideration of cultural factors, and it often takes a lot longer than initially anticipated. However, the benefits may be worse the wait. And when everything is completed, there is a final cultural tradition that should be observed: fix and reinforce the final agreement with a nice dinner together and an invitation to the Russians to visit your country and see your facilities.

agreement

the final phase of negotiations is the granting of concessions and hammering out of a final agreement. Sometimes this phase is carried out piecemeal and concessions and agreements are made on issues one at a time period this is the way negotiators from the United states like to operate. As each issue is resolved, it is removed from the bargaining table and interest is focused on the next period Asians and Russians on the other hand tend to negotiate a final agreement on everything and few concessions are given until the end.

Managing culture in Arab countries

the intense media attention given to the Syrian civil war, the Iraq war, terrorist actions, and other continuing conflicts in the middle East have perhaps revealed to everyone that Arab cultures are distinctly different from Anglo cultures. Europeans and Americans often find it extremely hard to do business in Arab countries, and a number of Arab cultural characteristics can be cited for this difficulty. One such characteristic is the Arab view of time period in the United states, it is common to use the cliché time as money. In Arab countries, a favorable expression is Bukra Insha Allah, which means tomorrow if God wills, an expression that explains the fatalistic approach to the time common to many Arab cultures. As a result, if Arab business people commit themselves to a date in the future and failed to show up, they may feel no guilt or concern because they believe they have no control over time in the 1st place. When conducting business in an Arab country, it is important to understand that culture generally holds that destiny depends more on the will of a Supreme being than on the behavior of individuals. A higher power dictates the outcome of important events, so individual action is of little consequence. Also important is that in the culture of many Arab countries, social status is largely determined by family position and connections, not necessarily by accomplishments. This view helps explain why some middle easterners take great satisfaction in appearing to be helpless. This approach is quite different from that in the United states where they strong tend to be compensated and rewarded. For example, if a person were ill, he or she would be relieved of responsibility until he or she had regained full health. In the interim, the rest of the group would go on without the sick person and he or she could lose power. In Arab countries, initial meetings typically are used to get to know the other party. Business related discussions may not occur until the third or fourth meeting. Also, in contrast to the common perception among many western business people who have never been to an Arab country, it is not necessary to bring the other party a gift. If this is done, however, it should be a modest gift. A good example is a novelty or souvenir item from the visitors home country. Also, Arab business people tend to attach a great deal of importance to status and rank. When meeting with damn, one should pay difference to the senior person first period it also is important never to criticize or berate anyone publicly. This causes the individual to lose face and the same is true for the person who makes these comments. Mutual respect is required at all times.

interpersonal relationship building

the second phase of the negotiation process involves getting to know the people on the other side. This feeling out. Is characterized by the desire to identify those who are reasonable and those who are not. In many cultures, this includes dinners, receptions, and other formalities. In contrast to negotiators in many other countries, those in the United states often give little attention to this face; they want to move past the small talk and get down to business immediately which often is an ineffective approach. Even if business is not directly being discussed, the interpersonal relationship building that is occurring through these ceremonies and receptions helps lay the groundwork for a successful negotiation

location

where should negotiations take place? If the matter is very important, most businesses will choose a neutral site. For example US firms negotiating with Asian companies will meet in Hawaii and South American companies negotiating with European firms will be halfway, in NYC. A number of benefits are derived from using a neutral site. One is that each party has limited access to its Home Office for receiving a great deal of negotiating information and advice and thus gaining an advantage over the other. A second is that the cost of staying at the site often is quite high so both sides have an incentive to conclude their negotiations as quickly as possible. Of course, if one side enjoys the facilities and would like to stay as long as possible, the negotiations might drag on. A third is that most negotiators do not like to return home with nothing to show for their efforts, so they are motivated to reach some type of agreement.

Globalization imperative

A belief that one worldwide approach to doing business is the key to both efficiency and effectiveness

global leadership and organizational behavior effectiveness (GLOBE)

A multi country study and evaluation of cultural attributes and leadership behaviors among more than 17,000 managers from 951 organizations in 62 countries

Ethnocentric predisposition

A nationalistic philosophy of management whereby the values and interests of the parent company guide strategic decisions

Polycentric predisposition

A philosophy of management whereby strategic decisions are tailored to suit the cultures of the countries where the MNC operates

Geocentric disposition

A philosophy of management whereby the company tries to integrate a global systems approach to decision making

Regiocentric disposition

A philosophy of management whereby the firm tries to blend its own interests with those of its subsidiaries on a regional basis

the four original dimensions that Hofstede examined were:

- power distance - uncertainty avoidance - individualism - masculinity - time orientation

The globalization versus national responsiveness challenge is even more acute when marketers sell toothpaste as a cosmetic product in Spain increased busy cavity fighter in the Netherlands in United States. Soap manufacturers market their product as a cosmetic item in Spain but as a functional commodity in Germany. Moreover, the way in which the marketing message is delivered also is important. For example:

Germans want advertising that is factual and rational; They fear being manipulated by the hidden persuader. The typical German spot features the standard family of two parents two children and grandmother the French avoid reasoning or logic. Their advertising is predominantly emotional, dramatic, and symbolic. Spots are viewed as cultural events, art for the sake of money, and are reviewed as if they were literature for films. The British value laughter above all else. The typical broad, self deprecating British commercial amuses by mocking both the advertiser and the consumer.

Trompenaars' HAIRL system of appraisal, is an acronym for:

Helicopter. The capacity to take a broad view from above Analysis. The ability to evaluate situations logically and completely Imagination. The ability to be creative and think outside the box Reality. The ability to use information realistically Leadership. The ability to effectively galvanized and inspire personnel.

Guanxi

In Chinese, it means "good connections"

Most MNC's have a cultural strategic predisposition towards doing things in a particular way. Four distinct predispositions have been identified:

ethnocentric predisposition - a company with this predisposition allows the values and interests of the parent company to guide strategic decisions. Polycentric predisposition - Firms with this predisposition make strategic decisions tailored to suit the cultures of the countries where the MNC operates. regiocentric predisposition - This leads a firm to try to blend its own interests with those of its subsidiaries on a regional basis. geocentric predisposition - A company with this predisposition tries to integrate a global systems approach to decision making.

Hofstede's individualism

individualism is the tendency of people to look after themselves and their immediate family only. Hofstede Measured this cultural difference on a bipolar continuum, with individualism at one end and collectivism at the other period collectivism is the tendency of people to belong to groups or collectives and to look after each other and exchange for loyalty. Like the effects of the other cultural dimensions, the effects of individualism and collectivism can be measured in a number of ways. Hofstede Found that wealthy countries have higher individualism scores and poorer countries higher collectivism scores. The United States, Canada, Australia, France, and the United Kingdom, among others, have high individualism and high GNP. Conversely, China, Mexico, and a number of South American countries have low individualism in high collectivism and low GNP. Countries with high individualism also tend to have greater support for the Protestant work ethic, greater individual initiative, and promotions based on market value. Countries with low individualism tend to have less support for the Protestant work ethic, less individual initiative, and promotions based on seniority.

Most scholars of culture would agree on the following characteristics of culture:

learned. - Culture is not inherited or biologically based; It is acquired by learning and experience shared. - People as members of a group, an organization, or a society share culture; It is not specific to single individuals Transgenerational. - culture is cumulative, passed down from one generation to the next symbolic. - Culture is based on the human capacity to symbolize, or use one thing to represent another. Patterned. - Culture has structure and is integrated; A change in one part will bring changes in another adaptive. - Culture is based on the human capacity to change, or adapt, as opposed to the more genetically driven adaptive process of animals

A good example is provided by examining the effects of the US environment on the cultural values of Japanese managers working for Japanese firms in the United States. Researchers, focusing attention on such key organizational values as lifetime employment, formal authority, group orientation, seniority, and paternalism found that:

lifetime employment is widely accepted in Japanese culture, but these stateside Japanese managers did not believe that unconditional tenure in one organization was of major importance. They did believe, however, that job security was important. Formal authority, obedience, and conformance to hierarchic position are very important in Japan, but these stateside managers do not perceive obedience and conformity to be very important an rejected the idea that one should not question a superior. However, they did support the concept of formal authority. Group orientation, cooperation, conformity, and compromise are important organizational values in Japan. These stateside managers supported these values but also believed it was important to be an individual, thus maintaining a balance between a group and a personal orientation. In Japan, organizational personnel often are rewarded based on seniority, not merit. Support for this value was directly influenced by the length of time that Japanese managers had been in the United States. The longer they had been there, the lower their support for this value. Paternalism, often measured by a manager's involvement in both personal and off the job problems of subordinates, is very important in Japan. Stateside Japanese managers disagreed, and this resistance was positively associated with the number of years they had been in the United States.

Hofstede's time orientation

originally called Confucian work dynamism, Time orientation is defined by Hofstede as dealing with society search for virtue. Long-term oriented societies tend to focus on the future. They have the ability to adapt their traditions when conditions change, have a tendency to save and invest for the future, and focus on achieving long term results. Short term oriented cultures focus more on the past and present than on the future. These societies have a deep respect for tradition, focusing on achieving quick results, and do not tend to say for the future. Hofstede's Original time orientation research included only 20 three countries, leading to some criticism. However in 2010, the research was expanded to include 90 three countries. Asian cultures primarily exhibit long term orientation. Countries with a high long-term orientation index include China, Japan, and Indonesia. In these cultures, individuals are persistent, thrifty with their money, and highly adaptable to unexpected circumstances. Relationships tend to be ordered by status, which can affect the way that situations are handled. Additionally, people in long-term oriented cultures are more likely to believe that there are multiple truths to issues that arise rather than just one absolute answer.

communitarianism

people regard themselves as part of a group

Hofstede's power distance

power distance is the extent to which less powerful members of institutions and organizations accept that power is distributed unequally. Countries in which people blindly obey the orders of their superiors have high power distance. In many societies, lower level employees tend to follow orders as a matter of procedure. In societies with high power distance, however, strict obedience is found even at the upper level; Examples include Mexico, South Korea, and India. The effect of this dimension can be measured in a number of ways. For example, organizations in low power distance countries generally are decentralized and have flatter organization structures. These organizations also have a smaller proportion of supervisory personnel, and the lower strata of the workforce often consists of highly qualified people. By contrast, organizations in high power distance countries tend to be centralized and have tall organization structures. Organizations and high power distance countries have a large proportion of supervisory personnel and the people at the lower levels of the structure often have low job qualifications. This latter structure encourages and promotes inequality between people at different levels.

These Malaysian cultural characteristics are markedly different from those of low context cultures such as the United states, which possess the following characteristics:

relationships between individuals are relatively short and duration and in general, deep personal involvement with others is not valued greatly. Messages are explicit and individuals are taught from a very early age to say exactly what they mean. Authority is diffused throughout the bureaucratic system and personal responsibility is hard to pin down. Agreements tend to be in writing rather than spoken. Insiders and outsiders are not readily distinguished and the latter are encouraged to join the inner circle.

For example, the difference between the cultures in Malaysia and the United states. Malaysia has what can be called a high context culture, which possesses characteristics such as the following:

relationships between people are relatively long lasting and individuals feel deep personal involvement with each other. Communication often is implicit, and individuals are taught from an early age to interpret these messages accurately. People in authority are personally responsible for the actions of their subordinates and this place is a premium on loyalty to both superiors and subordinates. Agreements tend to be spoken rather than written. Insiders and outsiders are easily distinguishable, and outsiders typically do not gain entrance to the inner group.

Other HRM differences can be found in areas such as wages, compensation, pay equity, and maternity leave. Here are some representative examples:

the concept of an hourly wage plays a minor role in Mexico. Labor law requires that employees receive a daily rate that is paid 365 days a year. In Austria and Finland, employees are legally entitled to be given 25 days of paid vacation. In the United states, vacation time is not legally mandated. California, NJM, Massachusetts, and Oregon in the United states have legislative pay equity between male and female intensive jobs, although other states have not. In Japan, compensation levels are determined by using the objective factors of age, length of service, and educational background rather than skill, ability, and performance. Performance does not count until an employee reaches age 45. In the United Kingdom, employees are allowed up to 52 weeks of maternity leave, and employers must provide a partial pay for 39 of those weeks. In 87% of large Swedish companies, the head of human resources is on the board of directors.

A number of factors are moving companies to facilitate the development of unique strategies for different cultures, including:

the diversity of worldwide industry standards such as those in broadcasting, where television sets must be manufactured on a country by country basis hey continual demand by local customers for differentiated products, as in the case of consumer goods that must meet local tastes. The importance of being an insider, as in the case of customers who prefer to buy local. The difficulty of managing global organizations, as in the case of some local subsidiaries that want more decentralization and others that want less. They need to allow subsidiaries to use their own abilities and talents and not be restrained by headquarters, as in the case of local units that know how to customize products for their market and generate high returns on investment with limited production output.

power distance

the extent to which less powerful members of institutions and organizations accept that power is distributed unequally

uncertainty avoidance

the extent to which people feel threatened by ambiguous situations and have created beliefs and institutions that try to avoid these

individualism

the political philosophy that people should be free to pursue economic and political endeavors without constraint; the tendency of people to look after themselves and their immediate family only

collectivism

the political philosophy that views the needs and goals of society as a whole as more important than individual desires; The tendency of people to belong to groups, or collectives, and to look after each other in exchange for loyalty

particularism

they believe that circumstances dictate how ideas and practices should be applied and that something cannot be done the same everywhere

Phase one of the GLOBE project identified 9 cultural dimensions:

uncertainty avoidance is defined as the extent to which members of an organization or society strive to avoid uncertainty by reliance on social norms, rituals, and bureaucratic practices to alleviate the unpredictability of future events power distance is defined as the degree to which members of an organization or a society expect and agree that power should be unequally shared collectivism I: societal collectivism refers to the degree to which organizational and societal institutional practices encourage and reward collective distribution of resources and collective action. Collectivism II: In Group collectivism refers to the degree to which individuals express pride, loyalty, and cohesiveness in their organizations or families. Gender egalitarianism is defined as the extent to which an organization or a society minimizes gender role differences and gender discrimination assertiveness is defined as the degree to which individuals in organizations or societies are assertive, confrontational, and aggressive in social relationships. Future orientation is defined as the degree to which individuals in organizations or societies engage in future oriented behaviors such as planning, investing in the future, and delaying gratification. Performance orientation refers to the extent to which an organization or a society encourages and rewards group members for performance improvement and excellence. Humane orientation Is defined as the degree to which individuals and organizations or societies encourage and reward individuals for being fair, altruistic, friendly, generous, caring, and kind to others.

Hofstede's uncertainty avoidance

uncertainty avoidance is the extent to which people feel threatened by ambiguous situations and have created beliefs and institutions that try to avoid these. Countries populated with people who do not like uncertainty tend to have a high need for security and a strong belief in experts and their knowledge; Examples include Germany, Japan, and Spain. Cultures with low uncertainty avoidance have people who are more willing to accept that risks are associated with the unknown and that life must go on in spite of this. Examples include Denmark and Great Britain. The effect of this dimension can be measured in a number of ways. Countries with high uncertainty avoidance cultures have a great deal of structuring of organizational activities, more written rules, less risk taking by managers, lower labor turnover, and less ambitious employees low uncertainty avoidance societies have organization settings with less structuring of activities, fewer written rules, more risk taking by managers, higher labor turnover, and more ambitious employees. The organization encourages personnel to use their own initiative and assume responsibility for their actions

universalism

we believe that ideas and practices can be applied everywhere in the world without modification

Hofstede's masculinity

Masculinity is defined by Hofstede as a situation in which the dominant values in society are success, money, and things He measured this dimension on a continuum ranging from masculinity to femininity. Country the same stereotypes and connotations, femininity is the term used to describe a situation in which the dominant values in society are caring for others and the quality of life. Countries with a high masculinity index such as the Germanic countries, place great importance on earnings, recognition, advancement, and challenge. Individuals are encouraged to be independent decision makers and achievement is defined in terms of recognition and wealth. The workplace is often characterized by high job stress and many managers believe that their employees dislike work and must be kept under some degree of control. The school system is geared towards encouraging high performance. Young men expected to have careers and those who do not often view themselves as failures. Historically, fewer women held higher level jobs although this is changing. The school system is geared towards encouraging high performance. Countries with a low masculinity index such as Norway, tend to place great importance on cooperation, a friendly atmosphere, and employment security. Individuals are encouraged to be group decision makers and achievement is defined in terms of layman contacts and the living environment. The workplace tends to be characterized by low stress, and managers give their employees more credit for being responsible and allow them more freedom. Culturally, this group prefers small scale enterprises, and they place greater importance on conservation of the environment. The school system is designed to teach social adaptation. Some young men and women want careers; Others do not. Many women hold higher level jobs and do not find it necessary to be assertive.

Parochialism

The tendency to view the world through one's own eyes and perspectives

femininity

a cultural characteristic in which the dominant values in society are caring for others and the quality of life

masculinity

a cultural characteristic in which the dominant values in society are success, money, and things

emotional culture

a culture in which emotions are expressed openly and naturally

neutral culture

a culture in which emotions are held in check

specific culture

a culture in which individuals have a large public space they readily share with others and a small private space they guard closely and share with only close friends and associates

achievement culture

a culture in which people are accorded status based on how well they perform their functions

diffuse culture

a culture in which public space and private space are similar in size and individuals guard their public space carefully because entry into public space affords entry into private space as well

ascription culture

a culture in which status is attributed based on who or what a person is

culture

acquired knowledge that people used to interpret experience and generate social behavior. This knowledge forms values, creates attitudes, and influences behavior

The GLOBE project set out to answer many fundamental questions about cultural variables shaping leadership and organizational processes. The meta goal of the GLOBE was to develop an empirically based theory to describe, understand, and predict the impact of specific cultural variables on leadership and organizational processes and the effectiveness of these processes. Overall, GLOBE hopes to provide a global standard guideline that allows managers to focus on local specialization. Specific objectives include answering these fundamental questions:

are there leader behaviors, attributes, and organizational practices that are universally accepted and effective across cultures? Are their leader behaviors, attributes, and organizational practices that are accepted and effective and only some cultures? How do attributes of societal and organizational cultures affect the kinds of leader behaviors and organizational practices that are accepted and effective? What is the effect of violating cultural norms that are relevant to leadership and organizational practices? What is the relative standing of each of the cultures studied on each of the 9 core dimensions of culture? Candy universal and culture specific aspects of leader behaviors, attributes, and organizational practices be explained in terms of an underlying theory that accounts for systematic differences across cultures?

In another cross cultural study, this time using a large Korean sample, the Co author and his colleagues analyzed whether demographic and situational factors identified in the US faced literature had the same antecedent influence on the commitment of Korean employees. As in the US studies, Korean employees position in the hierarchy, tenure in their current position, and age all related to organizational commitment. Other similarities with US firms include the following:

as organizational size increased, commitment declined As structure became more employee focused, commitment increased the more positive the perceptions of organizational climate, the greater the employee commitment.

values

basic convictions that people have regarding what is right and wrong, good and bad, and important and unimportant

In overall terms, the cultural impact on international management is reflected by basic beliefs and behaviors. Here are some specific examples where culture of a society can directly affect management approaches:

centralized versus decentralized decision-making. In some societies, top managers make all the important organizational decisions. And others, these decisions are diffused throughout the enterprise, and middle and lower level managers actively participate in, and make, key decisions. Safety versus risk. In some societies, organizational decision makers are risk averse and have great difficulty with conditions of uncertainty. In others, risk taking is encouraged and decision making under uncertainty is common. Individual versus group rewards. In some countries, personnel who do outstanding work are given individual rewards in the form of bonuses commissions. And others, cultural norms require group rewards, and individual rewards are found on informal versus formal procedures. In some societies, much is accomplished through informal means. In others, formal procedures are set forth and followed rigidly high versus low organizational loyalty. In some societies, people identify very strongly with their organization or employer. And others, people identify with their occupational group, such as engineer or mechanic. Cooperation versus competition. Some societies encourage cooperation between their people. Others encourage competition between their people. Short term versus long term horizons. some cultures focus most heavily on short-term horizons, such as short range goals of profit and efficiency. Others are more interested in long range goals, such as market share and technological development. Stability versus innovation. The culture of some countries encourages stability and resistance to change period the culture of others puts high value on innovation and change.