This document discusses various aspects of cross-cultural communication and business. It defines culture and cross-culture business, noting that differences in values, viewpoints, and practices must be navigated. Frameworks for analyzing cultural dimensions are presented, including Hofstede's model of power distance, individualism, uncertainty avoidance, and more. Hall's concepts of high-context vs low-context cultures and perception of time are also summarized. Challenges like direct vs indirect communication styles, language barriers, and differing views of hierarchy are outlined. The importance of understanding both verbal and non-verbal cultural communication is stressed.

1. Cross Cultural Communication
and Negotiation
Module-4

2. Culture
• Culture is that complex whole which includes
knowledge, belief, art, morals, law, customs
and other capabilities and habits acquired by
man as a member of society”
• Sir E. B. Tylor, British anthropologist

3. Cross Culture & Cross Culture
Business
• Cross culture is a “A business environment where
participants from different countries or regions
interact, bringing different values, viewpoints and
business practices”
• Cross culture is a vital issue in international
business, as the success of international trade
depends upon the smooth interaction of
employees from different cultures and regions.
• Some of the considerations in cross-cultural
business include concerns about the differences
that are caused by culture, beliefs, law, and
language.

4. Corporate Culture“Consists of a set of symbols,
ceremonies, and myths that communicate the
underlying values and beliefs of that
organization to its employees.” – Ouichi
Corporate communications are defined as the
products of communication, be they memos,
letters, reports, websites, e-mails, speeches or
new releases. In the aggregate of these
messages is what a company sends to it
constituencies, whether internal or external.

5. Basic features of corporate culture are:
• Employees are at once the consequence,
creators, and carriers of culture
• Cultural values are reflected in a variety of
ways (overt & subtle)
• Culture changes but it does so slowly
• Cultural values are necessarily few, because
values inevitably conflict

6. Importance of Cross Cultural Business
Environment
1. Business opportunities in global market
2. Technological advancements
3. Job opportunities
4. Diverse work force
5. Sharing of views and ideas
6. Productivity and efficiency
7. Team work
8. Effective leadership
9. Strategic planning

7. Challenges of Multi-linguistic Business
Environment
1. Cultural Differences:
Culture differences occur according to region,
religion, gender, generation and class of
people who are working in the organization.
Multi-cultural organizations need to focus on
dealing with people who speak different
languages and live by their own customs and
values.

8. 2. Communication:
People with different cultures will have different
communication and working styles.
Lack of proper communication can lead to
misunderstanding of work. This will affect in
quality of the work.
Co-ordination should be done according to the
time zone of the particular place.

9. 3. Mode of Learning:
Culture will affect the way people learn. People
with different cultural backgrounds, will have
different patterns of learning.
Also different intellectual abilities of people will
enhance and affect their learning experience.

10. Cross cultural Communication
• Cross-cultural communication is a field of study
that looks at how people from
differing cultural backgrounds communicate, in
similar and different ways among themselves, and
how they make an effort to communicate across
cultures.
• Translating meanings into words and behaviours
that is, into symbols—and back again into meanings
is based on a person’s cultural background and is
not the same for each person.
• The greater the difference in background between
senders and receivers, the greater the difference in
meanings attached to particular words and
behaviours.

11. • Cross-cultural communication occurs when a
person from one culture sends a message to a
person from another culture.
• Cross-cultural miscommunication occurs when
the person from the second culture does not
receive the sender’s intended message.
• The greater the differences between the sender’s
and the receiver’s cultures, the greater the
chance for cross-cultural miscommunication.

12. • Cross-cultural communication has become
strategically important to companies due to
the growth of global business, technology and
the Internet.
• Understanding cross-cultural communication
is important for any company that has a
diverse workforce or plans on conducting
global business. This type of communication
involves an understanding of how people from
different cultures speak, communicate and
perceive the world around them.

13. Definition
• Cross cultural communication is defined by
Gotland University as “a process of exchanging,
negotiating, and mediating one's cultural
differences through language, non-verbal
gestures, and space relationships.”
• Lustig and Koester defined it as “the presence of
at least two individuals who are culturally
different from each other on such important
attributes as their value orientations, preferred
communication codes, role expectations, and
perceived rules of social relationship.”

14. • Cross-cultural communication in an
organization deals with understanding
different business customs, beliefs and
communication strategies.
• Language differences, high-context vs. low-
context cultures, nonverbal differences, and
power distance are major factors that can
affect cross-cultural communication.

15. Factors of Culture Affects on
Communication
1. Language
2. Values
3. Norms
4. Attitudes
5. Perception
6. Beliefs
7. Behaviour

16. Types of Communication Challenges
in Multicultural Organizations
1. Direct versus indirect communication.
2. Trouble with accents and fluency.
3. Different attitudes toward hierarchy and
authority.
4. Conflicting norms for decision making

17. 1. Direct versus Indirect Communication
• Communication style in Western cultures are
direct and the meaning is seemingly obvious.
Other cultures tend to be more discrete (distinct)
in the way they present their message. As a
result, communication between a Westerner and
a non-Westerner can result in confusion within
the workplace.
• This can occur during face-to-face interactions
and when communication is virtual. Needless to
say, how employees of diverse cultures respond
to one another is a major determining factor
towards the cohesiveness of an organization.

18. 2. Trouble with Accents and Fluency
• A more obvious challenge within an
organizationally diverse workplace is the
language barrier among employees, including
accents and fluency.
• Although English is the standard language
internationally for business, many non-English
speakers can feel unnoticed and
unappreciated in the workplace because they
have difficulty conveying what they want to
say in their non-native language.

19. • Employees who may be subject matter
experts, may take a backseat to contributing
to the team because of their inability to get a
message across in their second language. This
can sometimes cause frustration and
interpersonal conflict.
• They may become less engaged and motivated
as a team player, and become an obstecle to
the collaborative learning process as a whole.
• An organization can be negatively affected
and fail to see an increase in their return on
investment.

20. 3. Different Attitudes toward Hierarchy and
Authority
In any organization, teamwork is essential to
success and profitability. However, in some
cultures, employees are treated as different
based on their rank within the organization.
Diversity training in the workplace should
account for negotiation tactics among
different cultures. For example, multicultural
employees have different ways of presenting
an idea to the manager or CEO

21. • In some organizations, employees must
present to higher-level team members and up
the corporate ladder before reaching the
executive level.
• Other organizations have relatively flat
hierarchical structures where employees and
leaders work as a unified team.
• A lack of cultural awareness can result in a
disconnected workforce and leave some
employees feeling left out and unrecognized.

22. 4. Conflicting Norms for Decision Making
• It is not surprising that individual cultures have
their own way of reaching an agreement and
coming to an executive decision.
• Cultures differ on how long the decision making
process takes, what steps must be in place before
and how much effort should be put in.
• Unlike other cultures that tend to withhold
information until they have performed analyses
and comparisons before reaching a decision.
• Eg: Americans tend to be very quick at deciding,
according to the Harvard Business Review article.

23. Dimensions of Cross Cultural
communication
• Frameworks and cultural dimensions most
applicable to cross-cultural communication in
business. They are;
I. Hofsted’s cultural dimensions model
II. Hall & Hall’s cultural value orientations
III. Language: verbal and non-verbal

24. I. Hofstede’s cultural dimensions
• Geert Hofstede is a Dutch social psychologist
and anthropologist who has studied the
interactions between cultures.
• The theory is based on the idea that value can
be placed upon six cultural dimensions;
• These are power (equality versus inequality),
collectivism (versus individualism), uncertainty
avoidance (versus uncertainty tolerance),
masculinity (versus femininity), temporal
orientation, and indulgence (versus restraint).

25. • Hofstede gathered most of his data on world
cultural values through surveys conducted by
IBM, a US-based technology and consulting
firm.

26. 1.Power Distance:
• This dimension expresses the degree to which
the less powerful members of an organisation
accept and expect that power is distributed
unequally.
• It measures the degree to which a culture
believes how institutional and organizational
power should be distributes and whether the
decisions of the power holders should be
accepted or challenged.

27. 2. Individualism vs. Collectivism:
• This dimension focuses on the questions
about whether people prefer a close knit
network of people or prefer to be left alone
to fend for themselves.
• Hofstede’s Collectivism verses Individualism‘
dimension relates to the degree to which
people in a culture prefer to act as members
of a group or as individuals. It also reflects
whether the group‘s interests are most
important or the individual person‘s interest.

28. • In organizations in strong individualistic
cultures, employees who perform
inadequately get dismissed and employees
who perform well get bonuses.
• Collectivistic companies employ not only an
individual but also a person; belonging to a
group.
• It is not unusual that the person is a relative of
the manager or of one of the employees.

29. 3. Masculinity Vs. Femininity:.
• Masculine cultures stress earnings, recognition
and challenge whereas feminine cultures stress
good working relationship, cooperation and
employment security.
• Masculine and feminine cultures create different
management types. In a masculine organization
the manager is decisive and makes most
decisions single handed.
• Opposite is true in feminine cultures where this
autocrat leadership is frowned upon. In feminine
cultures there is a preference for making
decisions in a group and the manager is less
visible.

30. 4. Uncertainty Avoidance:
This dimension expresses the degree to which the
member of the organization feels uncomfortable
with uncertainty. In cultures know for high
uncertainty avoidance, people feel comfortable in
structured and known situations.
Employees in weak uncertainty avoidance cultures
do not feel as threatened by unpredictable
situations. They accept risks to a greater extent
and they adapt easier to changeable situations.
Instead employees in weak uncertainty
unavoidance cultures seems to have an
emotional fear of formal rules and laws.

31. 5. Long-term vs. Short-term Orientation:
Long-term orientation versus Short-term‖
dimension deals with the time aspect and
cultures‘ attitudes towards the past, present
and the future.
In long-term cultures family companies are
common. The working environment has a
stable hierarchy which makes it easier for new
companies to set up business in the country.
This can affect the entrepreneur market
negatively, since the people do not stress
initiative and risk taking in these cultures.

32. • In Short-term companies, the employees
focus on the last month, quarter or last year‘s
result. Their control systems are based on this
short period and their managers are being
judged by the last year‘s results.
• In long-term companies employees aim for
future goals and these are often set 5- 10
years ahead.

33. 6. Indulgence versus Restraint
• Indulgence(Luxuary) –society that allows
relatively free gratification (fulfilment) of basic
and natural human drives related to enjoying
life and having fun.
• Restraint-society that suppresses gratification
of needs and regulates it by means of strict
social norms.

34. II. Hall & Hall’s cultural value orientations
The following are the cultural value orientations:
1. Perception of time: time focus and time
orientation.
2. Communication: high-context and low-
context.
These dimensions can serve as a framework to
understanding some cultural differences
managers may face in business context, for
instance, when dealing with partners across
borders or managing an international team.

35. 1. Time perception
• Different cultures have different perceptions
of time according to their traditions, history
and lifestyle. Hall and Hall (1990) analysed
variances in perception of timing among
culture systems and developed two types of
time systems: monochronic and polychronic.
• “Polychronicity has traditionally been defined
as a form of behaviour wherein a person
engages in two or more activities during the
same block of time, while monochronicity
occurs when a person engages in one activity
at a time.

36. • Due to the fact that different perception of time
can lead to cultural misunderstandings and
conflicts in international business, one should
realize the dissimilarity between the two time
systems along with its effect on professional
communication
• For example, some countries which are
commonly described as having polychronic
cultures, consider that deadlines stretchable,
schedules flexible, and daily routines
unstructured.
• On the other hand, in monochronic cultures,
there is a tendency to follow firm deadlines,
structured schedules and use of strict control
systems.

37. 2. High-context vs. Low context communication
• Hall laid emphasis on the connection between
communication and national culture. He says that
it is essential to know the culture of a country to
productively communicate with a person from
another country.
• He divides cultures into two groups; High and
Low context cultures.
• The concept of high- and low-context
culture relates to how an employee's thoughts,
opinions, feelings, and upbringing affect how
they act within a given culture.

38. • North America and Western Europe are generally
considered to have low-context cultures. This
means that businesses in these places have
direct, individualistic employees who tend to
base decisions on facts. This type of
businessperson wants specifics noted in contracts
and may have issues with trust.
• Low context implies that a lot of information is
exchanged explicitly (clearly) through the
message itself and rarely is anything implicit or
hidden. (precise with spoken or written)
• People in low context cultures such as the UK
tend to have short-term relationships, follow
rules and standards closely and are generally very
task-oriented.

39. • High context implies that a lot of unspoken information is
implicitly transferred during communication. (unspecified,
more with body language))
• People in a high context culture such as Saudi Arabia tend
to place a larger importance on long-term relationships and
loyalty and have fewer rules and structure implemented.
High-context cultures: messages implicit and indirect; voice
intonation, timing, facial expressions play important roles in
conveying information
• Low-context cultures: people often meet only to accomplish
objectives; tend to be direct and focused in
communications

40. Context is information that surrounds a
communication and helps convey the message
Context plays a key role in explaining many
communication differences
• Messages often highly coded and implicit in
high-context society (e.g., Japan, many
Arab countries)
• Messages often explicit and speaker says
precisely what s/he means in low context
society (e.g., U.S. and Canada)

41. III. Language: verbal and non-verbal
Language differences remain a major obstacle in
cross- cultural communication process.
Language can become a barrier to
communication in cases where an individual
has difficulty in understanding other party’s
language, fails to understand other’s body
language or uses poor or faulty translations.

42. • “Cross-cultural communication requires not
only knowledge of another language but also
familiarity with non-verbal behaviour and
cultural practices, values, and customs.
• Extending beyond an understanding of the
words, it is the ability to understand hidden
meanings, motivations and intentions.

43. • Non-verbal communication (Body language)
Non-verbal communication, although not
directly dependent on use of language, is
crucial to one’s understanding of
communicated message. It can include touch,
glance, eye contact, proximity, gestures, facial
expressions and posture.
• We often use non-verbal expressions to
strengthen a verbal message. People from
certain cultures may consider some non-
verbal communication methods that are
acceptable in other culture offensive.

44. • For example, “nodding the head up and down
is a gesture that communicates a different
message in different parts of the world. In
North America, it means “I agree”. In the
Middle East, nodding the head down means “I
agree” and up means “I disagree”. In a
conversation among Japanese, it often simply
means “I am listening” .
• Understanding and respect of non-verbal
communication signs of different culture may
secure or spoil a potential or existing business
relationship.

45. Common cross-cultural issues in
business
The common cross-cultural issues for those
entrepreneurs developing relationships with
individuals or businesses from different cultural
backgrounds:
• Not being proactive and adapting to different cultural
business expectations. It’s all too easy to get off on the
wrong foot and become reactive.
• Not understanding how formality, hierarchy and timing
can affect business. These things have a tremendous
impact on negotiations and decision-making.
• Being perceived as too aggressive or even impatient in
business approach. Business often takes longer with
different cultures and countries, so plan accordingly.

46. • Many cultures are more team-focused or “we”
oriented. This can really impact in business
style and marketing material. Also, avoid being
egocentric or “I” oriented.
• A big issue is unintentionally offending
someone with your body language. This can
be very difficult to recover from.

47. Results of Poor Cross Cultural
Communication
Stage 1
•Misunderstanding
•Lack of co-operation
Stage 2
•Hostile work environment
•High employee turnover
•Poor productivity
Stage 3
•Loss of customers
•Declining revenue

48. Various keys for successful cross-
cultural communications
There are five keys to successful cross-cultural
communications for business organisations :
• Be proactive. Start by focusing on creating trustful
partnerships, not on the business at hand.
• Use some cultural rapport. Adapt your marketing material
and business approach as needed.
• Organize productive interactions that ensure a “win-win”
for all parties.
• Develop strategies for relationships and business cycles
based on appropriate levels of formality, business hierarchy
and timing.
• Learn the “do’s and don’ts” of the country and cultures
with which you’re partnering. In short, be well prepared.

49. Tips for Effective Cross Cultural
Communication
• Know yourself, your culture and your audience
• Be open to new ideas and appreciate cultural
differences
• Build trust through interactions
• Avoid using difficult idioms
• Pay attention to body language
• Be a learner
• Slow down and speak clearly
• Listen actively without interrupting the other
party

50. • Avoid misunderstandings and
misinterpretations
• Show respect for each other
• Observe but don’t interpret according to your
own culture –don’t form stereotypes
• Don’t assume you understand non-verbal
signals
• Understand your own stereotypes and learn
about other cultures with openness
• Don’t take behavior personally even if it’s
insulting in your culture

51. Initiatives of Business organization to
overcome the problems in cross
cultural communication
1. Run meetings to expose the employees to
other cultures.
Introducing employees who will be working
together in a non-threatening environment
enables a good working relationship long term.
Learning about another culture's language, rules
and norms for acceptable behavior helps
prepare your employees to deal with situations
as they arise. Changing preconceptions can lead
to more conducive working relationships.

52. 2. Conduct activities to demonstrate how
dependent all are on language.
For example, dedicate a day to being silent.
Have each employee develop a contract
stating what they hope to learn, how long
they will remain silent (what exceptions can
be made) and how they plan to cope without
speaking all day. After experiencing a day with
limited communication, participants can
typically relate to being in a foreign
environment more easily.

53. 3. Provide workshops, tips and techniques for
communicating effectively in cross-cultural work
environments.
• People act according to the values of their own
culture. Others from another culture might
interpret behavior differently. Practicing such
strategies as active listening (paraphrasing what is
said to ensure understanding can be achieved)
and using multiple forms of communication, such
as written, audio and visual, can enhance
employee involvement in assuring that conflicts
do not arise because of cultural
misunderstandings due to lack of awareness.

54. 4. Coach employees to mediate conflicts related to
cultural misunderstandings.
• Provide opportunities for employees to respond to
situations from viewpoints different than their own.
Divide a group of people into pairs to conduct role-
playing exercises that allow participants to
acknowledge culture difference exist. Encourage each
pair to think about a conflict they have experienced
recently due to cultural differences. Have each
participant describe what they might find offensive or
unusual. Let each participant suggest how the problem
would be handled in their own culture. Together, have
the participants develop a resolution to the problem.
Have each pair report to the larger group on their
experiences.

55. Cultural Differences in Etiquettes
• Every culture is different, and has different
styles of etiquette (manners). Every day deals
are lost through misunderstandings, even
between relatively similar cultures.
• These misunderstandings do not have to be
huge to have an effect on your business – a
poor first impression could leave your
prospective partner or customer with a bad
feeling. The major cultural difference in
etiquettes are;

56. 1. Clothing
• Wearing the appropriate clothing makes a good
first impression and sets the tone for how you
will be seen. If you work in an industry in which
casual dress is the norm, make sure it is also the
norm in the country and company you are
visiting.
• For example, men tend not to wear suit jackets
and ties in Colombia and the Middle East, but are
still expected to be dressed smartly. Women may
also need to think about the appropriate skirt
length, makeup, jewelry and heel height. When in
doubt, it is always best to dress conservatively,
and in dark colors.

57. 2. Conversation
• Communicating in a foreign country can be difficult.
Often you may find that your business colleague speaks
English -- but if they speak imperfectly, you will need to
remember not to correct them as that might be seen
as impolite.
• You should also determine what makes an appropriate
topic of conversation in the country you are visiting.
• For example, in Japan, people do not tend to talk
about money, and in Switzerland personal questions
are usually not appreciated among mere
acquaintances. It is a good idea, however, to learn a bit
about the history of the country or place you are
visiting and to be prepared with a few questions about
local culture to use as a conversation starter.

58. 3. Greetings
• Many countries have their own style of greeting, and
there is nothing more off-putting than try to kiss
someone who is only expecting a handshake, or
holding out your hand pointlessly while the other
person bows.
• In many countries, it is also polite to give small gifts
when meeting someone. Make sure you find out the
local custom and avoid giving an overly expensive gift
that the other person will feel the need to reciprocate.
• In many Southeast Asian cultures, business cards are
usually exchanged and no one is taken seriously who
does not have a business card. The cards must also be
treated with respect, and not shoved immediately into
a pocket.

59. 4. Forms of Address
• While people in the U.S. tend to call colleagues
by their first name in all but the most formal
situations, this would be considered rude in many
other cultures. When you first meet someone,
listen carefully to how they are introduced to you
and then use that form of address.
• When in doubt, use a person's title and last
name until they invite you to use their first
name. Also keep in mind that in some cultures,
people with academic degrees expect to be
addressed by this qualification, as in “Professor”
Smith. In some cultures, people with a Ph.D., or
doctorate, expect to be addressed as “Doctor
Smith”.

60. 5. Time And Space
• In some cultures, it is not expected that people will be
on time. If your colleague or customer is late for a
meeting, it is best to take a relaxed view. People from
different cultures also have different ideas about
personal space. Standing close or touching another
person may be considered appropriate. However, this
may not apply to those of the other sex.
• For example, in the Middle East, men often hug each
other and hold hands, but do not touch women they
are not related too, and the same is true of women. In
Mexico, it is OK to give a friendly pat on the back, but
in China you should never touch the other person.
While in Thailand and India, handshakes are fine, but
you should never touch a person's head.