270 INTERCULTURAL COMMUNICATION OBJECTIVES OF THE CHAPTER Communication takes on special importance in international management because of the difficulties in conveying meanings between pasties from different cultures. The problems of misinterpretation and error are compounded in the international context. Chapter 10 ‘examines how the communication process in general works, and it looks at the down- wand and upward communication flows that commonly are used in international com= ‘munication. Then, the chapter examines the major barriers to effective international communication and reviews ways of dealing with these communication problems. The specific objectives ofthis chapter are 1. DEFINE the term “communication,” and examine some examples of external and in- ternal communication. 2. REVIEW examples of explicit and implicit communication, and explain the impor- tance of message interpretation 3. ANALYZE the common downward and upward communication flows used in inter- national communication 4. EXAMINE the language, perception, culture, and nonverbal barriers to effective inter national communication 5. PRESENT the steps that can be taken to overcome international communication problems(CHAPTER 10: INTERCULTURAL COMMUNICATION {TOPICS OF CONVERSATION IN SELECT COUNTRIES Country Appropriate Topic Inappropriate Topic usta Cars, sing, muse Money, religion, divorceseparation France Musi, books, sports healer Prices of tems; person's work, income, age Germany Travel abroad, hobbies, soccer, World Wa I, quastions about personal ite International poiies Great Britain History, architecture, gardening Politics, money, prices span History, culture, art \Worté ar i, government palcies that help to exclude foreign competion Mexico Family, socal concerns Poltics, det o inflation problems, border vi ations | ‘Sure LillanH. Chaney and Jenete 5 Marin, inter) Busnes Caremunicaton © 1985, p. 102 ‘epined by pamiaaion cf Prec Hal ine Englewood Cit, Now Josey. ‘Sender Meaning poe Feedback ‘THE OVERALL COMMUNICATION PROCESS Communication is the process of transferring meanings from sender to receiver. On the surface, this appears to be a fairly straightforward process. On analysis, however, there are a great many problems in the international arena that can re- sult in the failure to transfer meanings correctly. One of these is the inability to ef- fectively establish rapport with the other side. For example, many expatriates who ‘ave not been adequately trained will bring up conversation topics that more ex- _--Tienced international managers know should be avoided. Table 10-1 provides a brief list of some of do's and the don’t’s. When an inappropriate topic arises, com munication breakdown likely will result, because the other party interprets the message differently from what was intended." In gaining some insights to this communication process, itis helpful to exam- ine Figure 10-1, As shown, the sender of a message will determine what he or she wants to say and then encode the message to convey his or her meanings. The communiqué then is transmitted using some medium, such as telephone, leter, or face-to-face verbal interaction. Finally, the message is decoded and interpreted by the receiver. If the message is unclear or the receiver feels that a response is re- quired, the process then is reversed: the receiver now becomes the sender, and the sender becomes the receiver. This reverse flow of information is achieved through feedback, which creates a two-way process. In practice, this back-and-forth flow of meanings is used to clarify, elaborate, and monitor actions by one or more ani272 pros: WTERNATIONAL MANAGEMENT: STRATEGY AND FUNCTONS Chat ang munication. Unfortunately, this process often is interrupted by ‘shat i called “noise,” which is the deliberate or nondeliberatedistortce of the communication process. (This so-called “noise problem” is discussed late) External and Internal Communications Prsanizational communication involves both the external and intemal low of in. formation. In international management, this flow becomes particularly impor. Inte ue Parties to messages often are located indifferent geographic areas and/or have been bor and raised in different cultures. This internatorat context ear create communication problems that are quite ditferentérom those facet companies operating within one country ° amples of External Communication One major frm of external communicas wth canes the years ahead will be government attempts to secure agrecmeny IRN other nations regarding international trade. For example the Unied Stree tas been engaged in prolonged discussions with Japan regarding reciprocal na carga behints United States feels that Japan is not opening up for impor is UUBBing behind in doing business with foreign firms, and is exporting gece virtually every comer of the globe. “This perception of the problem greatly influences the way that the US, gov- Emnment communicates with Japan during trade negotiations. There are othe [pretations of international trade strategy, however, and the Japanese have ther cum version. They believe that Americans are overrating the danger to their oma Seay and are failing to see that many ofthe steps being taken by US. busines ‘wiimake the United States a major economic power for the indefinite arene Other external communication is more one-way in that it does not lirectly in- \olve all the parties affected by the message. A good example is the EU's cates feigned to ensure that member firms are not forced out oftheir home makes, toe EU's Competition Directorate recently was empowered to approve mergers fietveen large European firms. This action will help to ensur thet Ue on, Japanese companies do not dominate the European market Another example Aoae anal communication involving the EL isthe recent decision to place a floor on the price of computer chips. The Europeans have complained the sther she es have produced chips and dumped them in Europe at below-cost prices. The result was that European firms were unable to compete, and some nent Eureenitiness. This problem is unlikely to happen inthe future. In recent years, eupbean-made chips are now being protected fom outside competition, a move that encourages foreign firms to establish operations in Europe." Quite obsiovsly an understanding of external communication is critical to effective international management Examples of Internal Communication Although the communication process is the same worldwide, its internal use often is influenced by cultural dkfecrrns How US. managers communicate may be quite different fom hon European or Asian managers do, and these differences are important to recognive, bor evawe Ble. a Harvard research team macle a comparative study of the management of Russian and USS. factories, and they found that Russian managers mete greater “se than U'S. managers of iret, face-to-face communications, US manages ce‘CHAPTER 10: INTERCULTURAL COMMUNICATION more heavily on informal, written communication and the telephone.t On the other hand, a more recent observational study found both Russian and US. man- spend approximately one-third of their time carrying out communication activities. In another study, Pascale investigated communication techniques used by US. and Japanese managers operating both at home and in each other's country. He found that in some ways, the two national groups used similar communication techniques. For example, U.S. managers in the United States made an average of 37 phone calls daily, and U.S. managers in Japan averaged 34 calls a day. Japanese managers in Japan made 35 calls a day, and the Japanese managers in the United States averaged 30 calls daily. Therefore, use of the telephone to convey informa- tion really did not vary between the two groups; however, Pascale did find some important differences. For example, Japanese managers in Japan made much greater use of face-to-face contacts than U‘S. or Japanese managers in the United States. Pascale's study also found greater use of upward and lateral communica- in Japanese-based Japanese firms, but managers in U.S~-based Japanese firms used communication patterns similar to those used in U'S. firms.* Were there any perceived differences in the quality of decision making among the various groups ‘of managers? Pascale found none. Each group gave itself a high score on decision quality; however, the Japanese-based Japanese firms perceived the quality of de- cision implementation as higher than that of the other three groups? Explicit and Implicit Communications Besicles the external and internal distinetion, another major difference in the come munication process is that some countries use very explicit (exact and precise) communiques and others a highly implicit (not plainly expressed or implied) ap- proach. In the United States, for example, managers are taught to say exactly what they mean. Objectives often are set forth in quantitative terms, and the date for their accomplishment is firmly established (e.g,, “all overtime will be eliminated by July 1 of this year”). Figure 10-2 shows that in other countries, such as Japan, countries in Latin Ametica, and Arab nations, managers often use a more implicit approach. For example, Ouchi makes the point in his best-selling book Theory Z that implicit communication isa key feature of decision making in Japan, He notes th apanese managers are intentionally ambiguous when it comes to assigning responsibility for tasks, and foreigners who come to Japan to do business often are frustrated by their inability to figure out who is responsible for making the final decision. Ouchi describes it this way: ‘Americans expect others to behave just as we do. Many are the unhappy and frustrated American businessmen or lawyers returning from Japan with the complaint that, “If only they would tell me who is really in charge, we could make some progress.” The complaint displays a lack of understanding that, in Japan, no one individual cartes re- sponsibility for a particular turf. Rather, a group or team of employees assumes joint re- sponsibility fora set of tasks. While we wonder a their comfortableness in not knowing, Who is responsible for what, they know quite clearly that each of them is completely rex sponsible for all tasks, and they share that responsibility jointly. Obviously, this ap- proach sometimes lets things “fall through the cracks” because everyone may think that someone else has a task under control. When working well, however, this approach leads to a naturally participative decision making and problem solving process" 273Impl | ‘communication Seapeitavians Gortfans a Explicit Swiss Gorman communication Scure: Asap fom Martin Rosch, "Conmusicaos: Focal Pon ol Cur,” Management Itreton Ae vol 27, 8 1987p BD Used wih puma of communication is carried so far in Japan that the courts have re- 18 to allow spectators, including members of the press, to take notes uring a trial unless given express permission by the judge. Only recently has the Japanese Supreme Court ruled that explicit note-taking is permissible. The case was resolved only after a long appeal process through the courts was conducted by a non-Japanese lawyer!” Interpretation of Communications The effectiveness of communication in the international context typically is deter= mined by how closely the sender andl receiver have the same meaning for the same message." If this meaning is different, effective communication will not occu. A {good example was the US. firm that wanted to increase worker output among its Japanese personnel. This firm put an individual incentive plan into effect, whereby Workers would be given extra pay based on their work output. The plan, which had worked well in the United States, was a total flop. The Japanese were accus- tomed to working in groups and to being rewarded as a group” In another case, @ U'S. firm offered a bonus to anyone who would provide suggestions that resulted inincreasex! productivity The Japanese workers rejected this idea, because they fet that no one working alone is responsible for increased! productivity It is always a sroup effort. When the company changed the system and began rewarding group Productivity, it was successful in gaining support for the program,'* ‘Another example has been provided by Adler, who points out that people do- ing business in a foreign culture often misinterpret the meaning of messages. AS@2 eee (CHAPTER 10: INTERCULTURAL COMMUNICATION 275 pIALOGUE BETWEEN A U.S. PLANNER AND HIS COMPANY'S JAPANESE CEO avi ur profit picture vit be outstanding this year. Te strategic plan is oad, Shintaro, We've focused on squeezing as much margin as possible out of each product. intr: That’ good. 'm ely daghtes. Bu here is one smal thing, How wil te stand in tems ofthe budget Imposed on us by Tokyo? av: We wil achieve romarkable efficiencies through work farce reductions and etter co-ordination. | expect us to be 30 percent under budget intro: Oh, wel that is good. But what wil Tokyo say? avic: don" understand. They wil love us. shintare:Parhaps. Bul we may be sending the wrang signals. Tokyo may think we ae cutng qualty jut to grab market share, ‘which we wil lose later to a Korean competitor that put more into production. vidi thought our goal was to increase market share Shintaro: tis one goa, and an important one in a growth market, However, Mr. Full our chairman, is very traitional person. ‘To hm a budget isnot jst a lmiting constant t embodies social thinking, too. We spend funds in response to our Values about what our company should be doing in society to full ts destiy. David: don't understand, What is our destiny? Shintaro: We must continue ta be seen as a strong company creating quality products inthe wor. Sometimes our spending re- fects our vision, Cav: Thi is mumbo-jumbo, We are in business to make money. Shintaro: Up to point, of cours, But we ae realy n business to serve society Tourba Adapted Jom J. Sulvan, “Japanese Managarent Phiosophies From the Vacuous fo the Srila.” Caffr Managomant Ro ion, Wnt 982, 9. 7 result, they arrive at erroneous conclusions. She relates the following story of a Canadian doing business in the Middle East. The Canadian was surprised when his meeting with a high-ranking official was not held in a closed office and was constantly interrupted. Using the Canadian-based cultural assumptions that (a) important people have large private offices with secretaries to monitor the flow of people into the office, and (b)im- ortant business lakes precedence over less important business and is therefore not in~ ‘rupted, the Canadian interprets the . . open office and constant interruptions 10 ‘mean that the official is neither as high ranking noras interested in conducting the busi ress at hand as he had previously thought.” ‘The Canadian’s interpretation of the office environment led him to lose interest in working in the Middle East. Table 10-2 provides another example, illustrating how the views of a Japanese CEO and a US. planner can differ regarding the pur- pose of the business. COMMUNICATION FLOWS Communication flows in international organizations, such as the one described earlier at IBM, move both down and up. However, as Figure 10-3 humorously, but in many ways accurately, portrays, there are some unique differences in organiza~ tions around the world, 2 Gogh 1859 bythe Regents ofthe Urner af Calflora, Repeal by parison ofthe agents.276 pasts: TERNATIONAL MANAGEMENT STRATEGY AND FUNCTIONS COMMUNICATION EPIGRAMS SS , iteratonal organizations. An sir i a poem or ine of verse hat sw OF eaiee nature The folowing orarizaton designs are eigrans that show how eommuneaton occurs nae ours ln examining them, remember that each contains consierabe exaggeration and ee butalsa some dagres of tut, | There area number of aiferent ‘organization chars" at have been constructed to depict ] In America, everyane thinks he or she has a communication pipeline direct tothe op Ameria | Theo are so many peopl in China hat organizations ae monolithic sruelures characterized by 9pious levels of bureaucracy. Al iniormaton flows through channels Ching aa | Downward Communication Doconzvard communication is the transmission of information from manager to subordinate, The primary purpose of the manager initiated communication flow {sto convey orders and information. Managers use this channel to let their people know what is to be done and how well they are doing, The channel facilitates the flow of information to those who need it for operational purposes In Asian countries, as noted earlier, downward communication is less direct than in the United States. Orders tend to be implicit in nature. Conversely, in some European countries, downward communication is not only direct but extends be- yond business matters. For example, one early study surveyed 299 US. and French managers regarding the nature of downward communication and the managerial authority they perceived themselves as having, This study found that US. managers basically used downward communication for work-related mat- ters, A follow-up study investigated matters that US. and French managers felt were within the purview of their authority." The major differences involved work-related and nonwork-related activities: U.S. managers felt that it was within their authority to communicate or attempt to influence their people's social be- havior only if t occurred on the job or it directly affected their work. For example, US. managers felt that it was proper to look into matters such as how much an _———(CHAPTER 10: INTERCULTURAL COMMUNICATION 277 ee] | a1 the United Nations everyone is aranges ina ce 80 that no ones mare powertl than anyone | (se. Those direct in ont or Behind others are piosophicaly aligned, and hose nearby frm | pattal an international bloc. United Nations i In France some people in the hierarchy are not inked to anyone, indicating haw haphazard the stuctue can be ‘Source. Adaptec tam Simcha Ronen, Conpurave and Mutinaona Management New York: Wy, 1988) fp, S219, ne epigrams in tn ware dared fant varaty al sauces, cary ober M Wares fe Used tarot ae! Oinon esearch rtravnal MOM, Ol Jacob Rast of Norway's PM Systeme nd sronjmous managers individual drinks at lunch, whether the person uses profanity in the workplace, and how active the individual is in recruiting others to join the company. The French managers were not as supportive of these activities. The researcher con- clu that “the Americans find it as difficult [as] or more difficult than the French {to accept the legitimacy of managerial authority in areas unrelated to work.""® Upward Communication Upward communication isthe transfer of information from subordinate to spe- rior The primary purpose of this subordinate-initiated upward communication is to provide feedback, ask questions, or obiain assistance from higherlevel man- agement. In recent years, there has been a call for and a concerted effort to pro- mote more upward communication in the United States. In other countries, such as in Japan, Hong Kong, and Singapore, upward commvinication has long been a fact of life, Managers in these countries have extensively used suggestion systems and quality circles to get employee input and always are availabe to listen to theit people's concerns. For example, here are some observations from the approach the Japanese firm Matsushita uses in cealing with employee suggestions:278 PaAT3. INTERNATIONAL MANAGEMENT: STRATEGY AND FUNCTIONS MATSUSHITA'S PHILOSOPHY Basic Business Principles Joc apa rnponsties a indus to ose ogres, promote the general a. {are of society, and to devote ourselves tothe futher development of wotd caters Employees Creed Erte ant development canbe reed only though the combined atlas and eo-operation Sreacn member o he Company, Each of us, theo, shall Keep ths idea eonstarty nee 135 we devote ourslves to the continuous improvernent of our Company ‘The Seven Spiritual Values 1. National service through industry 2, Faimess 3. Harmony and co-operation 4. Struggle for betterment 5. Courtesy ana humility 6. Adjustmant and assimlation 7. Gratitude _Sourea: lear Taner Pi Books, 18) 278 ai anc Anthony. Aths, The Ato Japanese Management New Yor Warmer Matshita views employee recommendations as instrumental to making improve: puts on the shop floor and inthe marketplace It believes] thata great many litle pes Ple, paying attention each day to how to improve thee jobs, can accomplish more haa ‘whole headquarters full of production engineers and planners Frise and positive teinforcement are an important part of the Matsushita philoso- Phy... Approximately 90 percent of... suggestions receive rewards; most only a ew dh, Jars bet month, ut the messages einforeet constantly: “Think about your jb; develop Yourself and help us improve the company." The best suggestions receive company wie "ecognition and can ear substantial monetary rewards. Each year, many specal awards ae also given, inchiding presidential prizes and various divisional honors This company has used the same approach wherever it has established plants wworldide, and the approach has proved very successful. The company has all it employees begin the day by reciting its basic principles, beliefs, and values, which are summarized in Table 10-3, to reinforce in all employees the reason for the com. Pany’s existence and to provide a form of spiritual fabric to energize and sustain them, All employees see themselves as important members of a successful team, and they are willing to do whatever is necessary to ensure the success of the group, Oluiside these Asian countries, upward communication is not as popular. For example, in South America, many managers believe that employees should follow orders and not ask a lot of questions. German managers also make much less use of this form of communication. In most cases, however, evidence shows that em. Ployees prefer to have downward comanication at least supplemented by Up- ‘ward channels. Unfortunately, such upivard communication does not always oc cur because of a number of communication barriers, eeHolland Gemary Denmark Spain France Belgium (Flemish) Belgium (French) gal eriain MULTILINGUALISM IN THE EU CLASSROOM HAPTER 10. INTERCULTURAL COMMUNICATION 279) Percentage of punils in general secondary ‘education learning English, French, or German 38 a foraign 96 85 53 23 = 8 58 10 03 = 2 9 2 1 6 3 3 25 oa 59 20 Ireland 69 24 ‘Source Eo, 1985, COMMUNICATION BARRIERS A number of common communication barriers are relevant to international man- agement. The more im bal communication, Language Barriers Knowledge of the home ters of the MNC) is imp portant include language, perception, culture, and nonver. country’s language (the language used at the headquar- ‘ortant for personnel placed in a foreign assignment. If mgr abers do not understand the language thats used at headquarters, they likely Will make a wide assortment of e English as the common languag "rors."” Additionally, many MNCs now prescribe ¢ for internal communication, so that managers Steps Sty convey information to their counterparts in other geographically dispersed locales." Despite such progress, however, language training continues to Jag in many areas, although in an increasing number of European countries, more and more young People are becoming multilingual.” Table 10-4 shows the . Percentage of European students who are studying the major languages More recently, written commu because poor writing is proving t inication has been getting increased attention, 'o be a greater barrier than poor talking. For ex imple Hildebrandt has found that among US. subsidiaries studied in Germany, Janguage was a major problem when subsidiaries were sending written comm. nications to the home office. The process often involved elaborate procedures {Ssociated with translating and reworking the report. Typical steps included: (1) holding a staff conference to determine what was to be included in the written message; (2) writing the initial draft in German; (3) rewriting the draft in German;280 Parra: IvTERNATIONAL MANAGEMENT STRATEGY AND FUNCTIONS {2 tansatng the material into English; ) consulting with bilingual a my, bers regarding the translation; and (6 rewriting the English draft series of nae tonal times until the paper was judged tobe acceptable or transmission Thee san managers admitted that they felt uncomvortable with writing, beeause ge command of written English was poor. As Hildebrand noted: Al Geman managers commanding oa English tated that tee grammatical comp, lence wasnt suc hon fo produce a wtenEnglsh pu oop wag when profesional slr rom outside the company rewrote he Gere fe ta German mile managers were unable to vey whee the ep ape substntve intent o incl editorial alterations.” Problems associated with the translation of information from one language to another have been made even clearer by Schermethorn, who conducted fess, ‘among 153 Hong Kong Chinese bilinguals who were enrolled in an undergradat ate management course at a major Hong Kong university. The students wer given two scenarios written in either English or Chinese. One scenario inwolved's ‘manager who was providing information or assistance toa subordinate; the other involved a manager who was providing some form of personal support or prac for a subordinate. The research used the following procedures: {Al careful translation and back-translation method was followed to create the Chinese language versions ofthe research instruments, Two bilingual Hong, Kong Chinese, both highly fluent in English and having expertise in the field of management, shared reley in the process. Each fist translated one scenario and the evaluation questions into Ch nese, Next they translated each other's Chinese versions back into English, and dis. cussed ancl resolved translation differences in group consultation with the author Fi nally, a Hong Kong professor read and interpreted the translations correctly asa inal check of equivalency." The participants were asked to answver eight evaluation questions about these scenarios. A significant difference between the two sets of responses was found Those who were queried in Chinese gave different answers from those who were ‘queried in English. This led Schermerhorn to conclude that language plays a key role in conveying information between cultures, and that in cross-cultural mane agement research, bilingual individuals should not be queried in their second lan- ‘guage. Cultural Barriers Closely related to the language barriers are cultural barriers. For example, re search by Sims and Guice compared 214 letters of inquiry written by native and nonnative speakers of English to test the assumption that cultural factors affect business communication. Among other things, the researchers found that nonna tive speakers used exaggerated politeness, provided unnecessary professional and personal information, and made inappropriate requests of the other part) Commenting on the results and implications of their study, the researchers note that their investigation indlcates thatthe deviations from standard U.S. business communication practices We" not specific to one of more nationalities. The deviations didnot cur among spec" Yonalities but were spread throughout the sample of nonnative leters used for the(CHAPTER 10: INTERCULTURAL COMMUNICATION 284 study. Therefore, we can speculate that US. native speakers of English might have sim sda difficulties in international settings. In other words, a significant number of native speakers in the US, might deviate from the standant business communication practices of other cultures. Therelore, these native speakers need specific training in the business «communication practices of the major cultures ofthe world so they ean communicate sucessfully and acceptably with readers in those cultures.= Research by Scott and Green has extended these findings, showing that even in English-speaking countries, there are different approaches to writing letters. In the United States, for example, it is common practice when constructing a bad-news letter to start out “with a pleasant, relevant, neutral, and transitional buffer state. ment; give the reasons for the unfavorable news before presenting the bad news; present 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 alter. natives that build goodwill.” In Great Britain, however, itis common to start out by referring to the situation, discussing the reasons for the bad news, conveying *'s bad news (often quite bluntly), and concluding with an apology or statement - regret (Something that is frowned on by business-letter experts in the United States) designed to Keep the reader’s goodwill. Here is an example: Lord Hanson has asked me to reply to your letter and questionnaire of February 12 which we received today. ‘As you may imagine, we receive numerous requests to complete questionnaires or to participate ina survey, andl this poses problems for us. You will appreciate that the time: it woitld take to complete these requests would represent a full-time job, so we decided some while ago to decline such requests unless there was some obvious benefit to Hanson PLC and our stockholders. As Iam sure you will understand, our prime te. sponsibility is to look after our stockholders’ interest, "apologize that this will not have been the response that you were hoping for, but { wish you success with your research study. US. MNC managers would seldom, if ever, send this type of letter; it would be viewed as blunt and tactless. However, the indirect approach that Americans use ‘would be viewed by their British counterparts as overly indirect and obviously i= sincere, Perceptual Barriers Perception is a person’s view of reality. How people see reality can vary and will influence their judgment and decision making. One example involves Japanese stockbrokers who recently have perceived that the chances of improving their ca- reer are better with U‘S. firms, 50 they have changed jobs. Another involves Hong Kong hoteliers who have begun buying US. properties, because they have the perception that if they can offer the same top-quality hotel service as back home, they can dominate their US. markets2* US. and Russian negotiators now are working to create a sweeping trade agreement that could be worth billions of dollars to the participants; the two sides perceive such a pact as a major break- through for East-West ventures.” These are all examples of how perceptions can Play an important role in international management. Unfortunately, mispercep- tions also can become a barrier to effective communication. For example, when| a 282 Pars: INTERNATIONAL MANAGEMENT STRATEGY AND FUNCTIONS the Clinton administration recently decided to allow Taiwan President Lee Teng. fui to visit the United States, the Chinese (PRC) government perceived this oe threatening gesture and took actions of its own.” Besides conducting dangereus svar games very near Talvan’s border asa warning not to become too beld ns est for recognition asa sovereign nation, the PRC also snubbed US. car man facturers and gave a much-coveted, St billion contract to Mercedes-Benz of Gan many." The following sections provide examples of such perception barrier sy the international arena. Advertising Messages One way that perception can prove to bea problem in in ternational management communication is when one person uses words that ae Inisinterpreted by the other. Many firms have found to their dismay that a fllere to understand home-county perceptions can result in disastrous advertising pro. grams. Here are two examples: Ford. introduced alow cost truck, the “Fiera,” into some Spanish-speaking countries, Unfortunately, the name meant “ugly old woman’ in Spanish. Needless to say, the name did not encourage sales. Font also experienced slow sales when it introdteet s top-of-the-line automobile, the “Comet,” in Mexico under the name “Caliente.” The Puzzling low sales were finally understood when Ford discovered that “caliente” te slang for a street walker.” (One laundry detergent company certainly wishes now that it had contacted a few locals before it initiated its promotional campaign in the Middle East. All ofthe company’s ad vertisements pictured soiled clothes on the left, its box of soap in the middle. and dasy clothes on the right, But, because in that area ofthe world people tend to read from the ‘ight tothe lft many potential customers interpreted the message to indicate the soap actually soiled the clothes." View of Others Perception influences communication when it deals with how individuals “See” others. A good example is provided by the perception of for cigners who reside in the United States, Most Americans soe themeelves as oe. tremely friendly, outgoing, and kind, and they believe that others also see them in this way. At the same time, many are not aware of what negative impressions they sive to others. “International Management in Action: Foreign Perceptions” pro. Vides some insights into both of these assumptions and helps to illustrate thee portance of communication in the international arena, Another example of how the perceptions of others affect communication occurs in the way that some intemational managers perceive their subordinates, Por e<. ample, a study examined the perceptions that German and US, managers had of the qualifications of their peers, managers, and subordinates in Europe and Latin ‘America. The findings showed that both the German andl U.S. respondents per- ceived thetr subordinates to be less qualified than their peers. However although the Germans perceived their managers to have more managerial ability than thei peers, the Americans felt that their South American peers in many instances had ‘equal or better qualifications than their own managers. Quite obviously, this pet= ception will affect how U.S, expatriates communicate with their South American peers as well as how the expatriates communicate with their bosses Another study found that Western managers have more favorable atitudes ward women as managers than Asian or Saudi managers do.” This perception 0O- Wiously affects the way these managers interact with their female counterpartsINTERNATIONAL MANAGEMENT IN AC" (CHAPTER 10; IVTERCULTURAL COMMUNICATION 283, Foreign Perceptions How do people from overseas view Americans? One way of answering this question is by looking st how foreign calege students studying in the United States perceive ther hosts A recent research study reported the resus of 183 inter. wiews that were conducted by U.S. students with foreign students from over 60 countia. The largest number of for. ‘in students (16) came from Mexico, The next thee largest .gr0ups, consisting of 10 students each, came fram France, Germany, and India. in most cases (80) there were & of ‘ewer students per country, so there was na chance that any | one group was able to dramatically intuence the overall ro sponses of the 183 participants, One area the foreign stu. nts were asked to describe was theic general impressions ofthe United States. The mest commonly cited positive comments were these: Frequency Descxption of response Friendly people—easy to get to know Bs Freedoms—-open and free country a Job availabilty, career 2 ‘opportunities; snvepreneurship Living conditions (housing, stores, 25 | easy packing, clothes); economy Ecveationuniverstes 24 Food 15 ‘Modern technology 1“ Entertainment; actives: partes 18 Beauttul women " ‘The most commonly cited negative responses were these: Frequency Description of response Weak amily structure (fami are 20 fot close less family activites, lack of respect for elders, high divorce rate, ete} ‘Too money-conscious anc 2 rmateraistic | Ethnocentric people—arrogant, 10 snobbish, indivdualste,eetish Prejudice agains international 18 people Drugs and alcohol 13 High crime level: violence 2 Poor educational system—not " "igorous; disrespect of teachers Fudeness| 10 \What makes these findings parioularty important is that they ifered substantially trom what the U.S. students bes lieved ther foreign counterparts would say. Commenting on the resuits, one US. student noted, "Now | am more aware ‘ofthe problems and dificult situations intemational people hhave when they come tothe United Stats." Another sid, "The assigrment made me Visualize how | would feo nan ‘other country and how | would want ta be Weated." Drawing together the overall results, the director ofthe projet re- Ported thatthe most unexpected and suprising reaction ex Pressed by many students was “learing that international ‘Beople percoive the United States aifererly than ve pore Celve curselves.” If collage students often extremly sen. tie tothe world around ther, have perception problems, ‘one can only wonder how much greater this problem must be for adult, expatriate managers, whe may Be more san their ways, The same is true in the case of many Japanese managers, who according to one recent survey still regard women as superfluous tothe effective running of thes organizations and generally continue to treat women citizens The Impact of Culture as second-class corporate Besices language and perception, another major barrier to communication is cul- ture, a topic that w s given detailed attention in Chapter 4, Culture can affect com- ‘munication in a number of ways, and one way is through the impact of cultural Cultural Values One expert on Midclle Eastern countries notes that people there do not relate to and communicate with each other in ral way as those284 anra: INTERNATIONAL MANAGEMENT: STRATEGY AND FUNCTIONS U.S, PROVERSS REPRESENTING CULTURAL VALUES - Proverb Cultural valve A penny saved ea penny eamed Totnes Times menay Tine tetiness Dent ery over sit ik Practicaty Waste not. want not Frogalty Ent to bed, eaty ors, makes one ely, wealthy, and wise Ditigence: work ethic ASttoh in time saves rine Tieliness of action Hat fest you dont succeed, ty try agin Prsstonce: werk thc Toke care cf today, and tomorrov il ake care of set Preparation fr ftue $2.9; Orawn fom Nancy Ace, teratna Dimensions of Organizational Btavio; 2nd ce. Gono WE Kent Pubiating, 1399) pp. 75-60, 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 Mid, dle East will and will not do, In North American society, the generally professed prevalent pattern is one of nonclass- Sonsclousnes, as far as work is concerned. Students, for example, make extn pockel money by taking all sorts of part-time jobs—manual and otherwise-—regardless of the Socioeconomic stratum to whieh the individual belongs, The attitude is uninhibited. In the Middle East, the overruling obsession is how the money is made and 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 {Another example i the way that people use time.™ Inthe United States, people petieve that time is an asset and is not to be wasted, which isan idea that often has limited meaning in other cultures. Various values are reinforced and reflected through the use of proverbs that Americans are taught from an early age, These Proverbs help to guide people's behavior” Table 10-5 lists some examples, Misinterpretation Cultural differences can cause misinterpretations both in hhow others see expatriate managers and in how the latter see themselves, For ex. ample, U.S. managers doing business in Austria often misinterpret the fact that Io cal businesspeople always address them in formal terms. They may view this a8 meaning that they are not friends or are not liked, but infact, this formalism is the way that Austrians always conduet business. The informal, first-name approach used in the United States is not the style of the Austrians, Many Americans also have difficulty interpreting the effect of national values on work behavior. For example, why do French and German workers drink alco. bolic beverages at lunch time? Why are many European workers unwilling #0 ‘work the night shift? Why do overseas affiliates contribute to the support of theCHAPTER 10; INTERCULTURAL COMMUNICATION 285, [Ee ? a0 es COMMON FORMS OF NONVERBAL COMMUNICATION 1 Hand gestures, both intended and sel-crected(avtstie), such asthe nervaus rubbing of hands Facial expressions, such as smiles, owns, and yawns Posture and stance CGtothing and hairstyles far being more tke clothes than ke ski, both subject to the fashion ofthe day) Interpersonal cistance (proxemics) Eye contact and dtecton of gaze, partculaly in “istering behavior" "Artifacts" and nonverbal symbols, such as lapel ins, walking sticks, and jewelry Pralarguage (though often in language, just as often treated as part af nonverbal behavier—speech rate, pitch, infections volume) 8. Taste incucing symbolism of food andthe communication function of chatting over cofee or tea, and oalgratftation such a8 smoking or gum chewing 1° Sosmatcs: emporary-—powder; permanenttatloos rime symbolism: whats eo late or too early to telephone or visita friend, oF too long orto short to make foc ainner ‘speech or stay 1. Timing and pauses within varzal behavior Soure Ms internation is ound n J. . Condon and FS. Yous An introduction to tweutural Cammuncabon tndanapola, Ws Babee Mea 175) pp 125-128 employees’ work’ council or donate money to the support of kindergarten teach- ers in local schools? These types of actions are viewed by some people as waste- ful, but to those who know the culture of these countries, 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 such misperceptions can become a barrier to effective communication Nonverbal Communication Another major reason for perception problems is accounted for by nonverbal comt= munication, which is the transfer of meaning through means such as body lan- 8 and use of physical space. Table 10-6 summarizes a number of dimensions of wonverbal communication. The general categories that are especially important ‘o communication in international management are kinesics and proxemics. Kinesics Kinesics is the study of communication through body movement and facial expression. Primary areas of concern include eye contact, posture, and ges- tures, For example, when one communicates verbally with someone in the United States, itis good manners to look the other person in the eye. In some areas of the world, however, itis considered impolite to do this. Similarly, 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. Here is just such an example from a classroom situation. Im the midst of a discussion of poem in the sophomore class of the English Department, the professor, who was British, took up the argument, started to explain the subtlcties of the poem, and was carried away by the situation, He leaned back in his chain, put his286 ranra INTERNATIONAL MANAGEMENT: STRATEGY AND FUNCTIONS feet upon the desk, an! went on with the explanation. The class was futiows, Before the end ofthe day, a demonstration by the University’s full stent body had taken place Petitions were submitted to the deans ofthe various faculties, The next day the sitns bon even made the newspaper headlines. The consequences of the act that was inno cently done, might seem ridiculous, fanny; bailing, comprehensible, or even inerudi. ble toa stranger. Yet, to the native, the students behavine was logical and in context. The students and their supporters were outraged because of the implications of the breach tf the native behavioral pattern In the Middle East, itis extremely insulting to have ty Sit facing two soles of the shoes of somebody." Gestures also can be troublesome, because some have different meanings depending on the country. For example, in the United States, putting the thurs and index finger together to form an “O” is the sign for “okay.” In Japan, this ig the sign for money; in southern France, the gesture means “zero” of “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 out; if the palm is in, this roughly ‘means “shove it"; in non-British countries, the gesture means lo of something and often is used when placing an order at a restaurant.” Gilbson, Hodgetts, and Blackwell found that many foreign students attending school in the United States have trouble communicating, because they are unable to interpret some of the most common nonverbal gestures." A survey group of 4 Jamaican, Venezuelan, Colombian, Peruvian, Thai, Indian, and Japanese students at thvo major universi- ties were given pictures of 20 universal cultural gestures, and each was asked to describe the nonverbal gestures illustrated. [n 36 percent of the choices the re- spondents either gave an interpretation that was markedly different from that of Americans or reported that the nonverbal gesture had no meaning in their cul ture, These findings help to reinforce the need to teach expatriates about local nonverbal communication, Proxemics Proxemics 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 (see Figure 10-4.) Intimate distance is used for very confidential communications. Personal distance is used for talking with family and close friends. Social distance is used to handle most business transactions. Publie distance is used when calling across the room or giv- ing a talk to a group. ‘One major problem for Americans communicating with those from the Middle East or South America is that the intimate or personal distance zones are 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 why the other is standing s0 lose: the latter cannot understand why the American is being so reserved and standing so fat away. The result is a breakdown in commenication. Office layout is another good example of proxemics. In the United States, the more important the manager, the larger the office, and often a secretary screens visitors and keeps away those whom the manager does not wish to se In Japan, most managers do not have large offices, and even if they do, they(CHAPTER 10: INTERCULTURAL COMMUNICATION 287 PERSONAL SPACE CATEGORIES FOR THOSE IN THE UNITED STATES Tale Oince 1 Personal Distance | [ secalDeunce | uote Distance \ 104 Source: Adapted rom FchardM. Hedges and Donal Kura, Management 2nd ed San Dege, CA ‘ut Brace Jovanouen, 100), spend a great deal of time out of it and with the employees. Thus, the Japanese have no trouble communicating directly with their superiors. A Japanese man- ager’s staying in his office would be viewed as a sign of distrust or anger toward the group. Another way that office proxemics can affect communication is that in many European companies, there is no wall between the space allocated to the senior level manager and that of the subordinates, Everyone works in the same large room. These working conditions often are disconcerting to Americans, who tend to prefer more privacy." ACHIEVING COMMUNICATION EFFECTIVENESS A number of steps can be taken to improve communication effectiveness in the in- ternational arena. These include providing feedback systems, providing language and cultural training, and increasing flexibility and co-operation Improve Feedback Systems One of the most important ways of improving communication effectiveness in the international context isto open up feedback systems. Such feedback is particularly important between parent companies and their affiliates. There are two basic types of feedback systems: personal (eg., meetings and telephone conversations) and impersonal (eg, reports, budgets, and plans). Both of these systems help af- fliates to keep their home office aware of progress and, in turn, help the home of: fice to monitor and control affiliate performance as well as set goals and stan dards At present, there seem to be varying degrees of feedback between the home offices of MNCs and their affiliates. For example, one study evaluated the communication feedback between subsidiaries and home offices of 63 MNCs| a ~ 288 PART: IVTERNATIONAL MANAGEMENT: STRATEGY ANO FUNCTIONS headquartered in Europe, Japan, and North America.* A marked difference was found between the way that US, companies communicated with their gute sidiaries and the way that European and Japanese firms did. Over one-half ofthe US. subsidiaries responded that they received monthly feedback from their ne, ports, in contrast to less than 10 percent of the European and Japanese sub. Sidiaries, In addition, the Americans were much more incited to hold regulay management meetings on a regional or worldwide basis. Seventy-five percent of the US. companies had annual meetings for their affiliate top managers, coms pared with less than 50 percent for the Europeans and Japanese. These findings ‘ay help to explain why many international subsidiaries and afliates are not op. erating as efficiently as they should. The units may not have sufficient contact with the home office. They do not seem to be getting continuous assistance and feedback that are critical to effective communication, Based on his research among U.S. and German managers in Europe, Hilde- brandt echoes such conclusions about the need for improved feedback systems, Some of his specific recommendations include holding more face-to-face meetings between parent and staff personnel and assigning someone as a liaison between the two groups Provide Language Training Besices improving feedback systems, another way to make communication more effective in the international arena is through language training, Many host- country managers cannot communicate well with their counterparts at headquar- ters. Because English has become the international language of business, those who are not native speakers of English should learn the language well enough so that face-to-face and telephone conversations 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 told one of the authors, “The off- cial international language of this company is English. However, whenever the home office people show up they tend to cluster together with their countrymen and speak Japanese. That's why I'm trying to learn Japanese. Let's face it. They say all you need to know is English, but if you want to really know what's going on yout have to talk their language.” Written communication also is extremely important in achieving effectiveness. As noted earlier, when reports and letters are translated from one language to another, preventing a loss of meaning is virtually impossible. 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. Moreover, if readers cannot commusi- cate 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 lose fur- ther meaning, Therefore, the process can continue on and on, each party failing to achieve full communication with the other. Hildebrandt has described the prob- lems in this two-way process when an employee in a foreign subsidiary writes a report and then sends it to his or her boss for forwarding to the home office: ‘The general manager or vice president cannot be asked to be an editor, Yet they often send statements along, knowingly, which are poorly written, grammatically imperfect.(CHABTER 10; INTERCULTURAL COMMUNICATION or generally unclear: The time pressures do not permit otherwise. Predictably, questions Issued from the States to the subsidiary and the complicated bilingual process now goes in reverse, ultimately reaching the original ... staff member, who receives the English questions retranslated.!* Language training would help to alleviate such complicated communication problems, Provide Cultural Training Itis very difficult to communicate effectively with someone from another culture unless at least one party has some understanding of the other's culture. Other- communication likely will break down. This is particularly important for multinational companies that have operations throughout the world. Although, there always are important differences between countries, and even between sub- multures of the same country, firms that operate in South America find that the cul= _2es of these countries have certain commonalities. 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. The side- bar “Communicating in Europe” provides some specific examples of cultural dif- ferences, As Chapter 4 pointed out, itis erroneous to generalize about an “international” culture, because the various nations and regions of the globe are too different. Training must be conducted on a region- or country-specific basis, Failure to do so can result in continuous communication breakdown, Increase Flexibility and Co-operation Effective international communications require increased flexibility and co- operation by all parties. To improve understanding and co-operation, each party must be prepared to give a little. Take the case of International Computers 1", a mainframe computer firm that does a great deal of business in Japan. ‘aus firm urges its people to strive for successful collaboration in their inter~ national partnerships and ventures. To drive home the point of flexibility and co-operation, the company gives all its people who are involved in a joint part nership with an overseas firm a list of “dos” that are designed to make the arrangement work. These guidelines, listed in Table 10-7, are designed to ensure the requisite amount of flexibility and co-operation in intercompany interaction and negotiation. At the heart of this process is effective communication. As put by Kenichi Ohmae We must recognize and accept the inescapable subtleties and difficulties of intercom- pany relationships. This is the essential starting point. Then we must focus not on con traetual or equity-related issues but on the quality of the people at the interface between Organizations. Finally, we must understand that success requires frequent, rapport- building meetings by at least three organizational levels: top management, staf, and line management at the working level: 289290 paars aE eee INTERNATIONAL MANAGEMENT: STRATEGY AND FUNCTIONS —— Communicating in Europe In Europe, many countries are within easy commuting distance of their neighbors, so an expatriate who does business in France on Monday may be in Germany on Tuesday, Great Britain on Wednesday, Italy on Thursday, and Spain on Friday. Each country has its own etiquette regarding how to greet others and conduct oneself dur. ing social and business meetings. The following sections examine some of the things that expatriate managers need to know to communicate effectively, France When one is meeting with businesspeople in France, promptness is expected, although tardiness of 5 to 10 minutes is not considered a major gaffe. The French prefer to shake hands when introduced, and its correct to address them by title plus last name. When the meet- ing is over, a handshake again is proper manners, French executives try to keep their personal and pro- fessional lives separate. As a result, most business enter- taining is done at restaurants or country clubs. When sits are given to business associates, they should appeal to intellectual or aesthetic pursuits as opposed to being something that one’s company produces for sale on the ‘world market. In conversational discussions, topics such as politics and money should be avoided. Also, humor should be used carefully during business meetings, Germany German executives like to be greeted by User ttle, and one should never refer to someone on a firstname basis unless invited to do so. Business ap- pointments should be made well in advanee, and pune: tality is important. Like the French, the Germans often entertain clients outside their house, so.an invitation to a German manager's home is a special privilege and al ‘ways should be followed with » thank-you note. Addi tionally as isthe case in France, one should avoid using humor during business meetings. Great Britain In Britain, itis eommon to shake hands oon the first meeting, and frst names are always used in introductions. Unlike the custom in France and Ger many, itis common practice in Britain to arrive a litle late for business and social occasions, and invitations to British homes are more likely than in some other Euro- pean cultures. A typical gift for the host is flowers o chocolates. During business meetings, suits and ties are common dress; however, striped ties should be avoided if they ap- pear to be a copy of those worn by altumnt of British uni- versities and schools or by members of military or social clubs. Additionally, during social gatherings it is a good idea not to discuss politics, religion, or gossip about the monarchy unless the British person brings the topic up first, Italy In traditional companies, executives are re. ferred to by ttle plus last name. It is common to shake hands when being introduced, and ifthe individual is a university graduate, the professional title dotore should be used Business appointments should be made sell in ade vance, although punctuality is not essential. In most cases, business is done at the office, and when someone is invited to a restaurant, this invitation is usually done to socialize and not to continue business discussions. If an expatriate is invited to an Italian home, itis common to bring a gift for the host, such as a botle of wine or a box of chocolates. During the dinner conversation, there isa wide varity of acceptable topics, including business, family matters, and soccer Spain It is common to use first names when i ducing ot talking to people in Spain, and close friends typically greet each other with an embrace. Appoint ments should be made in advance, but punctuality is not essential If one is invited to the home of a Spanish executive, flowers or chacolates for the hast are acceptable gifts. If the invitation includes dinner, any business discussions should be delayed until ater coffe is served. During the social gathering, some topics that should be avoided in- clude religion, family, and work. Additionally, humor rarely is used during formal occasions ——— eeEE ChapTen 10; INTERCULTURAL COMMUNICATION 291 ee Ps Le INTERNATIONAL COMPUTER LTD’'S GUIDELINES FOR SUCCESSFUL COLLABORATION +. Tea the collaboration asa personal commitment. I's people that make partnerships Work 2. Anticipate tha it wil take up managernent time. I you cant spare t 5. Mutual respect and trust ar essential. you don trust the people you are negotiating with, forget +t emember that both partners must get something out of I (money, eventually). Mutual benef is vital. THs wil probably mean {u've got to give something up. Recognize this fom the outset. rake ure you tie up a tight egal contract. Dor't put off resolving unpleasant or contentious issues unt "ater." Ones signed, Ntever the contact should be put away, I YOU refer tt, something is wong withthe relationship, jm, don’ stat it «6, Recognize that ding the course ofa colaboraton, circumstances and markets change, Recognize your partner's problems ‘and be foxible Make sure you and your partner have mutual expectains ofthe collaboration ancl ime scale, One happy and one un happy partner a formula for faire. 1 10 know your opposite numbers otal loves socal. Friends take longer to fll ut ‘Appreciate that cuturs-both geographic and corprais—are diferent, Dont expect a parne 10 actor spond ident to you. Find out the rue reason for apaticular response, 10, Recogrize your partner’ interests and independence. Guan f the arrangement is tacticalin your eyes, rake sure you have corporate approval, Your tactical actity may be a Key exes in an overal etrategicjgsaw puzzle. With corporate commitment the partnership, you can act with the positive ax thority needed in these ralationsips. 12, Celebrate achievement together. t's shared elation, and you'l have earned it “Jouca Tis nenaton found Keri Obras, “The Global Lagi a Saag ances," Havard Busnes Review Mar Ao 1989.8 149, ‘SUMMARY OF KEY POINTS 1. Communication isthe transfer of meaning from sender to receiver. This process can in \olve both the external and internal flow of information as well as explicitand implicit information. ‘The key to the effectiveness of communication is how accurately the re ceiver interprets the intended meaning, Communicating in the international context involves both dovnward and upward flows, Downward flows convey information from superior to subordinate; these flows vary considerably from country to country: For example, the downward system of oF- ‘Inizational communication is much more prevalent in France than in Japan. Upward Zammuinication conveys information from subordinate to superior. In the United States nd Japan, the upward system is more common than in South America or some Exro- pean countries. 3, The international arena contains a number of communication barriers, Some of the most important are language, perception, culture, and nonverbal communication Language, particulary in itten communications, often loses considerable meaning during inter- pretation, Perception and culture can result in people's seeing and interpreting things Eifferently, and as.a result, communication can break down. Nonverbal communication Such ns body language, facial expressions, and use of physical space often varies from Country to country and, if improper, often results in communication problems. 44. A number of steps can be taken to improve communication effectiveness. Some of the ost important include improving Feedback, providing language and cultural training, dnd encouraging flexibility and co-operation. These steps can be particularly helpful in vercoming communication barriers in the international context and can lead to more ef fective international management.