Intercultural Communication in Business Course length: 26 hours + exam Language: English

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1 Intercultural Communication in Business Course length: 26 hours + exam Language: English Dr. Mária Tajtáková Hamburg University June/July 2006

2 What we will speak about? The content of the course Culture and Cultural Diversity Cultural Dimensions Communicating Effectively Across Cultures Intercultural Learning and Training Managing Intercultural Conflicts Intercultural Business Dialogues Culture and Multicultural Teams Framework for Intercultural Management Intercultural Negotiation Marketing Implications of Cultural Issues

3 The aim of the course To gain awareness, understanding and skills needed to communicate successfully across cultures. How? Theoretical basis Practical exercises Simulations Case studies Own project preparation

4 Related issues Intercultural communication is closely related to international business and marketing. However, its knowledge is applicable in any situation, in which two or more different cultures interact.

5 What is culture? Culture refers to widely shared ideals, values, formation and use of categories, assumptions about life and goal-directed activities that become consciously or subconsciously accepted as right and correct by people who identify themselves as members of a society. (Brislin, 1990)

6 Definitions of culture Culture is the way how a group of people solves problems and reconciles dilemmas. (Schein, E., 1985) People from different cultures not only speak different languages but also inhabit different sensory worlds. (Dr. Edward T. Hall) Culture is the software of the mind. (Hofstede, G., 1994)

7 Geert Hofstede: Three levels of human mental programming Culture Individual Collective Inherited and learned Learned Universal Inherited Source: Hofsteede in CORNES, Alan: Culture from the Inside Out. Travel and Meet Yourself., 2004.

8 Culture - a collective matter Culture is what distinguishes one group of people from another. Culture only manifests itself through a social action that always take place in a changing context. A change in context does not, however, in itself constitute a change in culture, though it puts pressure on culture.

9 National Culture National culture is the name we give to that what distinguishes the people from one country from those of another.

10 Why understanding culture is so important? Ignoring or misunderstanding culture is the factor Nº1 why organisations fail in the foreign markets. TROMPENAARS, Fons and Charles HAMPDEN-TURNER: Riding the Waves of Culture. Understanding Cultural Diversity in Business., 1997.

11 Background With rapid globalisation and high-tech development, many projects are now dispersed across countries. In fact, among multinationals and leading technology companies, projects often collaborate across three or four or five different national sites. (Carmel, 1999)

12 International Cooperation in Business International customers International suppliers International employees EUROPE 83 % 76 % 67 % NORTH AMERICA 57 % 50 % 43 % Source: Intercultural Communication: Diversity in Practice (2003)

13 European firms and the internationalisation European firms have been forced to look outside at other different markets, and to develop a culture of working abroad because of the small size of each domestic market. The large American domestic market explains the more domestic view of American firms in the past.

14 European management and foreign cultures As a result, European firms accept the risk of intercultural management. When doing business abroad, they tend to respect the host country, and when they acquire companies abroad, they have a higher tolerance of that firm s culture. In contrary, American and Japanese firms have a tendency to export their cultural models.

15 Speaking without speaking Content 7% Visual 55% Tonal 38% conflicting communication Source: Mehrabian and Ferris (1967) in Michael Allan: Intercultural Communication: Diversity in Practice (2003)

16 Verbal and Non-Verbal Communication When we communicate face-to-face, we transmit much more that the objective text of our message. As much as 80 per cent of the message is nonverbal, that is, body language and gestures, facial expression, the tone or inflection of our voice, and the context.

17 Dimensions of cultures (Geert Hofstede, 1991) Masculinity versus Femininity Power distance National culture Uncertainty avoidance Individualism versus Collectivism Language of time

18 Polarity of cultural dimensions (Hofstede, 1991) Masculinity/ Femininity Power distance Uncertainty avoidance Are you tough enough or boys don t cry Superiors considers subordinates to be a different kind of people What is new is dangerous Sex roles in society are more fluid Superiors considers subordinates to be people like me What is new is interesting Individualism/ Collectivism Business is done first of all with a determined person Business is done first of all with an organisation Language of time Monochronic Past present future Polychronic

19 Cultural influences on time: starting a meeting Formal introduction. Sit down. Begin. Informal introduction. Coffee. Sit down. Begin. Formal introduction. 10 min. small talk (weather, sports, etc.). Begin. Formal introduction. 15 minutes small talk (politics, scandals, etc.) Begin. Formal introduction. Protocol seating. Green tea min. talk (harmonious pleasantries). Sudden signal from senior Japanese. Begin minutes small talk (football, family) while others arrive. Begin when all are there.

20 Dimensions of cultures (T. Parsons, 1951; Trompenaars & Hampden-Turner,1997) 1. Universalism versus particularism (rules vs. relationships) What is good and right can be defined and always applies. It is necessary to evaluate unique circumstances. 2. Individualism versus communitarianism (group vs. individual) Do people regard themselves primarily as individuals or as part of a group? 3. Neutral versus emotional (range of feelings expressed) Is expressing emotions acceptable? 4. Specific versus diffuse In business a real personal contact is involved instead of specific relationship prescribed by a contract.

21 Dimensions of cultures continuing (T. Parsons, 1951; Trompenaars & Hampden-Turner,1997) 5. Achievement versus ascription Achievement means that you are judged on what you have recently accomplished and on your record. Ascription means that status is attributed to you, by birth, kinship, gender or age, but also by your connections and your education record. 6. Attitudes to time Is more important what have you achieved in the past or what you plan to develop in the future? 7. Attitudes to the environment Nothing is impossible What shall happen will happen

22 Three levels of cross-cultural encounters in organisations: 1. Individual level 2. Team level 3. Organizational level

23 Literature HOFSTEDE, Gert Jan, PEDERSEN, B. Paul and HOFSTEDE, Geert: Exploring Culture. Exercises, stories and Synthetic Cultures. Intercultural Press A Nicholas Braeley Company, STORTI, Craig: The Art of Crossing Cultures. London: Nicholas Brealey Publishing, TROMPENAARS, Fons and Charles HAMPDEN-TURNER: Riding the Waves of Culture. Understanding Cultural Diversity in Business. London: Nicholas Brealey Publishing, CORNES, Alan: Culture from the Inside Out. Travel- and Meet Yourself. Intercultural Press A Nicholas Braeley Company, 2004.

24 Course Work Activity: Preparation for the cross-cultural negotiation in different countries Method: Individual or team work (2-3 persons) Form: oral presentation minutes Structure of the project: 1) Basic information about the country (geography, demography, economic situation, religion, climate) 2) Analysis of the country according to Hofstede s cultural dimensions 3) Negotiation style in the country 4) Do s and Taboo s in communication 5) Suggestions for the negotiation strategy

25 Course Work - continuing Study material (will be provided) MOLE, John.: Mind Your Manners. Managing Business Cultures in the New Global Europe. London: Nicholas Braeley Publishing, Third edition, OLOFSSON, Gwyneth: When in Rome or Rio or Riyadh... Cultural Q&As for Successful Business Behaviour Around the World. Intercultural Press A Nicholas Braeley Company, AXTELL, E. Roger: Gestures. The DO s and TABOOs of Body Language Around the World. Wiley Publishing, Revised and expanded edition, Internet, other sources ( : Let s Make a Deal)

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