Cross-cultural Communication and NegotiationThe Communication ProcessThe Communication ModelTerms in CommunicationContext of Communication (1)Context of Communication (2)Context of Communication (3)Explicit and Implicit CommunicationHow People Use Physical Space to CommunicatePersonal Space in the U.S.The Use of TimeManaging Cross-Cultural NegotiationsStep 1: PlanningStep 1: Planning (2)Step 2: Interpersonal Relationship BuildingStep 3: Exchange Task-related InformationStep 4: PersuasionStep 5: AgreementNegotiating for Mutual Benefit “Getting to Yes”Negotiation TacticsCross-cultural Communicationand NegotiationChapter 7The Communication ProcessCommunication is the process of transferring meaning from sender to receiver.MediumReceiverinterpretationSendermeaningEncoding DecodingFeedbackThe Communication ModelThe Communication ModelEncoding: The sender expresses a meaning in a messageMedium: the means that a sender uses to transmit the messageDecoding: the receiver gets the messageInterpretation: the receiver tries to understand the meaning of the messageFeedback: The receiver responds to the message4Terms in CommunicationIntercultural communication: a member of one culture sends a message to a member of another culture.Attribution: the process in which people look for the explanation of another person’s behavior.Noise: a factor that causes the receiver to misunderstand the sender's messageContext is the information that surrounds a communication and helps to convey the messageLow-context societiesMessage is explicit and the speaker tries to say precisely what is meantDirect style: focus on speaker's statementsSilence may make people uncomfortableFacial expressions and body language may be easy to interpretBusiness meetings are often focused on objectives.Context of Communication (1)High-context societiesBusiness meetings with new contacts focus on relationships first. Business comes later.Indirect style: speaker does not spell out his messageAvoid saying "no"Avoid embarrassing peopleControl facial expressions and body languageContext of Communication (2)Indirect style (2)Messages often are implicit: Listener is expected to de-code verbal and non-verbal cues, such as voice, intonation, timing, body languageSilence is used to understand received messages and decide how to replyContext of Communication (3)Explicit and Implicit CommunicationHigh-context/implicit communication culturesLow-context/explicit communication culturesGermansSwiss GermansScandinaviansNorth AmericansFrenchEnglishItaliansLatin AmericansArabsJapaneseHow People Use Physical Spaceto CommunicateIntimate distance is used for very confidential communicationsPersonal distance is used for talking with family and close friendsSocial distance is used to handle most business transactions in the U. S.Public distance is used when calling across the room or giving a talk to a groupPersonal Space in the U.S.Intimate distance 18”Personal distance 18” to 4’Social distance 4’ to 8’Public distance 8’ to 10’The Use of TimeMonochronic (sequential) time scheduleThings are done in a linear fashion.Manager addresses Issue A first and then moves on to Issue BTime schedules are very important. Time is viewed as something that can be controlled and should be used wiselyPolychronic time schedulesPeople tend to do several things at the same timePeople place higher value on personal involvement than on getting things done on timeSchedules are less important than personal relationshipsManaging Cross-Cultural NegotiationsNegotiation: The process of bargaining with one or more parties to arrive at a solution that is acceptable to allSteps in international business negotiationsPlanning – each company does separatelyInterpersonal relationship buildingExchanging task-related informationPersuasion and bargainingAgreementStep 1: PlanningLearn about the other company that will be involved in the negotiations.Learn about the culture, negotiating behaviors, and business practices of the country in which the other company is located.Determine what your objectives are.Identify possible options for reaching each objective.Step 1: Planning (2)Set negotiating targets or limits. Know what you would like to get and what you must get in order to meet your company’s objectivesSet limits for single-point objectivesDivide issues into short- and long-term considerations and decide how to handle each.Determine the sequence in which to discuss the issues.Step 2:Interpersonal Relationship BuildingIn a high-context culture, relationship building will be a long, important process and will precede discussions of business.Get to know the people on the other side Identify those who are reasonable and those who are not.In a low-context culture, get down to business.Step 3:Exchange Task-related InformationEach group sets forth its position on the critical issuesThese positions often change later in the negotiationsParticipants try to find out what the other party wants to attain and what it is willing to give upStep 4: PersuasionWork toward a final agreementSuccess depends onHow well the parties understand each other’s positionThe ability of each to identify areas of similarity and differencesThe ability to create new optionsThe willingness to work toward a mutually acceptable solutionStep 5: Agreement•Grant concessions and hammer out a final agreementAmerican negotiators usually bargain on one issue at a time.Asian, Russian, and Arab negotiators usually want one big, final agreement and give few concessions until the end.Negotiating for Mutual Benefit“Getting to Yes”Separate the people from the problem. Focus on mutual interests.Generate as many options as you can, but be sure that each option will be a good business deal for your company. Use objective criteria. Stand your ground. Neither side should accept a deal that is worse than its best alternative to a negotiated agreement (BANTA)Negotiation TacticsLocationTime limitsBuyer-seller relationsBargaining behaviorsUse of extreme behaviorsPromises and threats Nonverbal
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