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Jun 24

Cross Cultural Communication: The Magic of a Smile

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector No Comments »

In the international business world the first face-to-face meeting with business counterparts can significantly influence the success of the relationship, negotiation or contract. Many people underestimate the impact of first impressions which can either unite or alienate people forever.

Psychologists studying the phenomenon of ‘first impressions’ suggest that if the person wants to be accepted and trusted by his or her peers, all verbal and non-verbal messages should complement each other. Practically, this means that none of the sent signals should go into conflict with another signal sent at the same time.

© istockphoto.com/ Yuri Arcus

For example, a British person saying ‘yes’ while rubbing their head and raising their eyebrows may not give the message of ‘yes’ to the other person but rather a message of ‘I’m saying yes but I’m not really sure’. While the person receiving the message understands something different than what the sender intended, the sender does not often realise that the receiver hasn’t understood their message in the first place.

Examples of where people use conflicting verbal and non-verbal signals increases significantly in intercultural interactions. This is primarily because a non-verbal signal such as gestures or facial expressions in one culture can often mean something completely different in another, frequently resulting in misunderstandings and confusion.

Smiles are something that can easily be misinterpreted by people from different cultures. Smiling in North America is usually a sign of happiness and confidence as well as an effort to build rapport. In Russia, people often smile when they are happy or when something really funny takes place but you may find they do not smile quite as much as their counterparts in North America. Meanwhile, in many Asian cultures, smiling is often a signal that they are embarrassed or uncomfortable.

Take the example of an American manager who was once visiting some business counterparts in China to celebrate the opening of a new factory. The Chinese wanted to be sure everything was perfectly organised to really impress their new manager so they booked the American manager in a nice hotel and organised lots of social events in the evening. The morning after the first evening, the American manager woke to find no hot water in the hotel. He went down to the reception to complain but was greeted with a smile. He was already frustrated about the situation and felt even more frustrated by the smiling response from the receptionist. He later mentioned the situation to his Chinese counterparts in frustration and they too, smiled in return, and gave a small apology. This situation did not significantly hurt the visit or relationship, but it did leave the American manager feeling very confused about their reaction.

This is an example where a simple smile was completely misinterpreted. The North American may have thought the Chinese receptionist was smiling as they thought the situation was funny but the Chinese receptionist most likely felt uncomfortable and did not have a solution for the situation so was therefore trying to prevent loss of face.

This is a very basis example of where a simple smile can easily be misinterpreted and change the perception people have of each other. This kind of communication breakdown can be more effectively anticipated and understood by taking part in a cross cultural training course such as Doing Business in China. Intercultural Training China programmes such as this can help business people understand Chinese values such as face as well as the different communication styles and non-verbal gestures such as smiling to ensure they correctly interpret and understand any interactions with their Chinese counterparts. By accentuating the differences between cultures, intercultural training can help anyone doing business internationally pay more attention to the details and suggest strategies to overcome any possible cross cultural miscommunication.

© Communicaid Group Ltd. 2010

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May 26

Seeing Eye-to-eye across Cultures

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector 1 Comment »

Face-to-face meetings have a tremendous importance in the global business world. It is during these occasions that important matters are discussed and contracts are signed. Face-to-face encounters can sometimes be difficult to handle, however, especially when meeting people from different cultures where the risks of intercultural misunderstanding can jeopardise business opportunities.

One benefit of meeting international counterparts face-to-face is the ability to communicate directly without relying on virtual communication that can result in misunderstandings and confusion. While direct communication is channelled mainly by words and sentences, the major part of our message is delivered through our body language.

© istockphoto.com/ Neustockimages

Let’s take the example of how we look at people during a conversation. In most western cultures, looking at someone in the eyes when talking is regarded as a sign of respect and truthfulness while the lack or absence of eye contact is perceived negatively as shyness or lack of attention. This perception is not shared by everyone however.

In many Arabic and Asian cultures, for instance, looking directly into someone’s eyes can be seen as disrespectful or challenging and should therefore be avoided, especially during important meetings. A French team leader and Chinese executive may experience difficulties when communicating face-to-face because of their different expectations and interpretations of eye contact. The French team leader will likely make efforts to look at the Chinese executive to build trust and establish credibility. Meanwhile, the Chinese executive may expect more indirect eye contact as this shows respect to more senior individuals. The different interpretations of eye contact can end up damaging the relationship and create misunderstanding.

This kind of cultural misunderstanding can be common without intercultural training. By participating in one of Communicaid’s Intercultural Training courses, you can increase your understanding of when and how eye contact is appropriate or not, reducing the potential for miscommunication and negative perceptions. Communicaid’s Living and Working in France or Doing Business in China cross cultural awareness training courses can help you and your organisation to gain a better understanding of your international counterparts and help you to face the challenges rising from cross cultural situations.

© Communicaid Group Ltd. 2010

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Apr 28

Intercultural Business Etiquette: Knowing When to Socialise and When to Get Down to Business

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector 1 Comment »

As more and more people work in the global marketplace, the challenges of working across cultures are being increasingly recognised. How to lead successful global negotiations, how to communicate effectively with international counterparts and how to lead across cultures have become key concerns for international businesses.

While it is extremely important to understand the above business elements of working effectively across cultures, we cannot forget about the social aspect of international business. The ability to socialise in an intercultural environment is crucial to the success of many international business endeavours, particularly in cultures where relationships are essential.

© istockphoto.com/webphotographeer

Socialising as a professional activity might sound pretty simple to anyone with experience of doing business. However in many cultures, the first step of finding the right time or place to socialise can already be an issue if you are not familiar with the culture. In some cultures, for example, you might be expected to build relationships with your counterparts in the professional environment while in other cultures you might be expected to spend some time outside of work socialising in order to build trust.

For instance, when doing business in Panama or living and working in Saudi Arabia, you will often find that your counterparts do not make a clear distinction between their professional and personal relationships. You may hear conversations vary from business to personal or you might receive an invitation from a colleague to attend a family event, which you should kindly accept. On the contrary, when doing business in Germany or Belgium you might find that your counterparts prefer to keep their private sphere separate from their professional environment. Conversation rarely touches on any personal issues and most people will go their separate ways at the end of the day.

The impact of socialising on business negotiations can be quite significant in some cultures. Even though your Belgian counterparts might restrict your relations to the professional sphere, they will still appreciate getting to know you before discussing any business negotiation. When doing business in China, you will often be expected to spend time outside of work socialising with your Chinese counterparts to build trust and a relationship before discussing business. This is particularly true if you are doing business in China as they will want to show you an immense amount of hospitality as their guest.

No matter where you are doing business, it’s important to understand when, where and how to socialise with your international counterparts. Cross cultural awareness training can help give you an understanding of what topics are appropriate, how to greet people or when to socialise with your international counterparts. Programmes such as Intercultural Training Japan or Cross Cultural Training India will give you the knowledge and skills you need to make the right impression, avoid embarrassing faux-pas and take advantage of valuable opportunities to build trust with your international counterparts.

© Communicaid Group Ltd. 2010

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Mar 16

China: Business Goldmine or Cultural Minefield?

Cross Cultural Training, Culture, Culture training for Business & Management, Culture training for Human Resources No Comments »

Ever since details of Marco Polo’s adventures in Medieval China began to reach Western shores, China’s image grew in the imagination of early Europeans as a land of riches and opportunities awaiting whoever was courageous enough to make the long journey there.

Now, in the twentieth century, things are not too different. Since the communist regime in China opened the country’s borders to trade, Western companies have gone to great lengths to establish business ties there.

Results, however, have been mixed, and what was often idealised as a goldmine revealed itself to be a cultural minefield. While there are of course a number of cases where Western businesses have performed successfully in China,  there are others where organisations have encountered many challenges doing business in China, ranging from logistical to linguistic or cultural.

© istockphoto.com/Tigress

When China first opened its economy to international trade and business in the 1980s, much of the debate in the West centred on the most effective way of gaining a stronghold in what was a new and unknown market. The majority of international companies doing business in China opted for Joint Ventures (JVs) with Chinese counterparts which ended in mixed results.

The different experiences of Western companies doing business in China shows success and failure factors vary greatly, from purely technical reasons such as low quality and uncompetitive products, to serious cultural misunderstandings as to how to work with Chinese colleagues and potential Chinese partners.

Maytag’s case in particular is one example of Western-style management gone wrong. Once the third largest manufacturer of large home appliances in the US and a company that prided itself on the use of modern management methods, Maytag entered the Chinese market through a JV with the Rongshida Group.

This had developed from a small, collectively owned enterprise and had a corporate ethic of ‘harmonious business’, so when Maytag decided to launch a restructuring programme in the face of increasing competition by other Western companies, the relationship between the JV partners eventually collapsed leading Maytag to eventually withdraw from China.

However dynamic and increasingly modern, China remains a heavily traditional society where relations – whether in business or in everyday life – are heavily dependant on a system of ‘face’ and ‘guanxi’, a term which can be translated as “relationships” or “connection”. A principle that binds friends and associates in relationships promoting trust and cooperation, ‘guanxi’ commits a friend to do what he can for another friend when called upon and violating this implies a loss of face and reputation.

Despite the many challenges of doing business in China, many companies have discovered ways of not only dealing with Chinese cultural differences but harnessing them to create very successful business ventures and opportunities in China. One of the most effective is to pre-empt any issues related to business practices and customs by providing international staff and management with cross cultural training programmes such as Communicaid’s Doing Business in China.

Maytag Case Study Source: China & World Economy (67-79, Vol. 12, No. 5, 2004)

© Communicaid Group Ltd. 2010

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Mar 10

Challenges of Doing Business in China

Cross Cultural Training, Culture, Culture training for Business & Management, Culture training for Human Resources No Comments »

© istockphoto.com/ Izabela Habur

China’s booming economy, one of the largest in the world, is a magnet for foreign business investment. According to the China National Tourist Office (CNTO), China is a multi-racial country with over 56 ethnic groups. In the long course of its development, all the nationalities have joined in the effort to create the great culture that China represents.

The earth’s most populous and third largest country is often thought of as synonymous with ceremony, etiquette, ancient history and culture. International organisations will find a wealth of benefits to doing business in China however there are a few cultural challenges that must be taken into account to avoid misunderstandings, conflict and substantial direct and indirect costs to the organisation.

Cross-cultural training programmes for business and management such as Doing Business in China increase an organisation’s awareness and understanding of any potential cultural stumbling blocks to ensure that all involved create strategies for drawing benefits from these differences. The following are six of the key cultural concepts international organisations face when setting up or doing business in China.

Rules and Etiquette – Many aspects of Chinese society still strongly adhere to rules of etiquette. Elements of Chineses business etiquette code include rituals of gift giving and receiving (“songli”), accepted practices with regards to personal space and rules regarding dealing with older people or people in important positions. Various conventions also exist with regards to body language. For example, it is considered rude to point with just one finger and therefore Chinese people tend to indicate with an open hand.

Mianzi – When doing business in China, it is important to pay attention to the protection of “mianzi” or “face”. Face is entwined with personal pride and forms the basis of an individual’s social status and reputation. Damaging face through overt confrontation or criticism threatens the foundation of Chinese hierarchy and can be disastrous for business relationships in China.

Hierarchy – The strong influence of Confucianism is still evident in many Chinese attitudes and actions. The Confucian philosophy emphasises the importance of responsibility to one’s community, harmony and deference to authority. This is evident, for example, in China’s hierarchical system which tends to link respect, responsibility and authority to age, status and gender. When doing business in China, greet another person with a slight bow or a nod of the head and a firm handshake. Dress tends to be quite formal in the workplace, with men usually wearing a suit and tie and women in dress suits. When addressing other people, the last name should be used preceded by “Mr.,” “Mrs” or another relevant title.

© istockphoto.com/hfng

Communication Style – Differences in ways of communicating can often be a source of misunderstanding. As a result, international organisations doing business in China are sometimes left confused and struggle to achieve their business objectives if they don’t possess the required information. Chinese have a preference for indirect, high context communication. In other words, Chinese people often imply and infer rather than verbalise directly. Chinese also place a high importance on the impact of body language, relationships, emotion and other non-verbal communication. Conflict is best dealt with in private and indirectly. Equally, it would be wise to note that smiling is not necessarily a sign of happiness but can also result from worry or embarrassment.

Guanxi – meaning “relationships” or “connection” is a fundamental aspect of Chinese culture. Guanxi translates to a principle that binds friends and associates in relationships, promoting trust and cooperation, committing a friend to do what he can for another friend when called upon. To violate guanzi is to risk losing face and reputation (or that of another’s) and honouring it has been the main way of accomplishing every day tasks in China for centuries.

Communism– China is governed by a communist party which pervades into many aspects of life, including the economy and religion. The country is officially atheist. Topics such as politics and religion are best avoided in conversation when doing business in China until you have become well acquainted with your colleagues.

Recognising the cultural differences which exist when doing business in China is only the first step. International organisations must also understand the reasons behind these cultural challenges of doing business in China to develop strategies for maximum effectiveness. A Doing Business in China cross cultural training programme will help you turn challenges into benefits and maximise the potential of doing business in China. Moreover, it will contribute towards the development of an interculturally competent workforce, a huge advantage in today’s fiercely competitive global world.

© Communicaid Group Ltd. 2010

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Mar 05

Cross Cultural Preferences: Individual or Group?

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector No Comments »

Have you ever considered why in some cultures it’s best to praise a team for their efforts rather than an individual?  Or why connections and networks are more important when doing business than individual achievement?  Or in education, have you noticed that in some cultures children are encouraged to participate and show individual creativity while in others the expectation is for children to recite lessons as a group?  There are many differences like these that can often be explained by a predominant tendency in a culture to place more importance on individuals or groups.

This distinction is often referred to as individualism and collectivism, the degree to which a society reinforces individual or group achievement and interpersonal relationships.  This concept, one of Geert Hofstede’s five cultural dimensions, helps explain many cross-cultural attitudes, behaviours and communication styles.

Societies which emphasise collectivism are those where people’s main concern is their in-group or community rather than their individuality.  Extended families and networks where everyone takes responsibility for fellow members of their group are typical of collective cultures such as China, Mexico and Greece.

Individualism refers to describe societies that are characterised by the importance of individuality and individual rights. In individualistic cultures such as the US or Germany, the self and immediate family come first while social bonds tend to be loosely tied.

Below is a table which summarises the key differences between the cross-cultural preference for individual or group.

Collectivism Individualism
‘We’ conscious ‘I’ conscious
Group comes first Self and immediate family come first
Focus on tradition and precedent Focus on growth and progress
Collaborative Competitive
Success and position are ascribed Individual achievement earned and rewarded

Understanding whether a culture places more emphasis on the individual or the group will help you maximise doing business in that country. These concepts are covered on cross-cultural training programmes such as Communicating Effectively across Cultures as well as cross cultural training for business and management programmes such as Doing Business in India.

© Communicaid Group Ltd. 2010

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Mar 01

Benefits of Doing Business in China

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector No Comments »

©istockphoto.com/Hsing-Wen Hsu

©istockphoto.com/Hsing-Wen Hsu

China’s role as a global economic leader is by now consolidated, having radically changed its economy from a predominantly agricultural one that was generally closed to international trade, to a market oriented one with dynamic banking and private sectors, China is now top of the list of countries for whoever wants to expand and invest internationally.

In 2008, foreign direct investment in China rose to 108 billion US dollars making the country’s economy the largest in the world second only to the US. With a labour market both large in size and high in quality, and a government so committed to international development that it has recently singled out key sectors for tailored government support, doing business in China should be high on the agenda of any company across the world.

While China’s first push was based on the export of highly competitively priced goods, its growth in recent years has turned it into a major importer of western products. Coupled with the size of its population and the rise of the Chinese middle class, this offers any international company doing business in China access to one of the world’s most important markets for an immense variety of services and goods.

At first glance doing business in China might appear difficult due to cultural differences. However, these should not be seen as obstacles as they can often be turned into a competitive advantage. For example, Chinese society is generally considered a very traditional one, where interactions are governed by status, and fostering good relationships with the right people is key to success. At the same time, the Chinese are, like many westerners, goal driven, striving to be successful in everything they do.

By approaching negotiations or other dealings with a similar objective of achieving the best for both parties, a shared sense of commitment is reached which will result in success in the short and long-term, as well as in the likely establishment of a long-lasting business relationship. Once your business has established strong ties with Chinese counterparts, their commitment and drive to expand internationally will open new avenues that go well beyond China’s borders.

Chinese people have a very high work ethic and look to succeed by developing a wide array of professional skills. As a result, those doing business in China will nearly always be dealing with highly committed and competent individuals who are keen to excel not just for their personal gain, but also for the larger aims of their company. This, combined with the high level of organisation and discipline within Chinese companies, makes doing business in China not only profitable, but also highly rewarding.

© istockphoto.com/Gabrielle Chan

© istockphoto.com/Gabrielle Chan

As mentioned above, by doing business in China international companies gain access to a large pool of highly educated and talented employees. According to the BBC, China’s higher education system is now the largest in the world, both in terms of overall enrolment and in the number of P hDs awarded. This home grown labour market ensures that anyone doing business in China will be dealing with the best and brightest in a wide array of disciplines, many of a very technical nature. China’s commitment to education makes it a very attractive place for organisations doing business in overseas markets.

Harnessing these benefits when doing business in China is only possible if international organisations have the skills and know-how necessary to navigate the many geographic, linguistic, religious and cultural differences present in Chinese culture. International organisations employing people in China or working with Chinese nationals on a regular basis should run a series of cross-cultural training programmes such as Doing Business in China to ensure they develop the level of intercultural competence they need to successfully deal with the many cultural differences in Chinese business.

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Feb 12

Cross-Cultural Communication Styles: High and Low Context

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector No Comments »

The concepts of high context and low context refer to how people communicate in different cultures.  Differences can be derived from the extent to which meaning is transmitted through actual words used or implied by the context.

High context implies that a lot of unspoken information is implicitly transferred during communication.  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.

Low context implies that a lot of information is exchanged explicitly through the message itself and rarely is anything implicit or hidden.  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.

Understanding whether your international colleagues are high context or low context will help you to adapt your communication style and build stronger relationships with them.  These concepts are covered during cross-cultural training programmes such as Communicating across Cultures and Managing International Teams.  Cultural awareness training which focuses on one or more specific cultures like Doing Business in India or Living and Working in China will also address these concepts.

When doing business in a high context culture such as Mexico, Japan or the Middle East, you might encounter the following:

  • Misunderstanding when exchanging information
  • Impression of a lack of information
  • Large amount of information is provided in a non-verbal manner, e.g. gestures, pauses, facial expressions
  • Emphasis on long term relationships and loyalty
  • ‘Unwritten’ rules that are taken for granted but can easily be missed by strangers
  • Shorter contracts since less information is required

When doing business in a low context culture such as Germany, Switzerland or the US, on the other hand, you might find the following:

  • All meaning is explicitly provided in the message itself
  • Extensive background information and explanations are provided verbally to avoid misunderstandings
  • People tend to have short-term relationships
  • People follow rules and standards closely
  • Contracts tend to be longer and very detailed

High and low context cultures usually correspond with polychronic and monochronic cultures respectively.  The table below shows some general preferences of people from high context and low context cultures.

High Context Low Context
Indirect and implicit messages Direct, simple and clear messages
Polycrhonic Monochronic
High use of non-verbal communication Low use of non-verbal communication
Low reliance on written communication High reliance on written communication
Use intuition and feelings to make decisions Rely on facts and evidence for decisions
Long-term relationships Short-term relationships
Relationships are more important than schedules Schedules are more important than relationships
Strong distinction between in-group and out-group Flexible and open

Participating in a cross-cultural training programme such as Doing Business with India and Doing Business in the UK, you will gain a comprehensive understanding of the high or low context preferences in the country or countries where you are working and the impact these preferences have on doing business with them.

© Communicaid Group Ltd. 2010

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