Bus7049 Cross Cultural Management : Assessment Answers

Answer:

Aims and Objective of Cross Cultural Communication and Negotiation

The primary role of cross cultural communication is to enable smooth flow of international business negotiations. Understanding the difference of communication in diverse atmosphere will make business cooperation and negotiation more peaceful and effective. It is also important in promoting cross-cultural transactions using modern technology such as obtaining raw materials from other locations and culture. It also enhances cultural self-awareness.

When planning on doing business in another country it is important to be acquainted of the culture and not just the business negotiation process which brings the two or more countries together, as knowing very little about the culture of the business can reduce the chances of business negotiation in the long run. With little knowledge, there are chances of offensive instances which might diminish chances of any further business negotiation.

However, learning the basics about other culture and communication language of different countries is important. It is necessary for the basic level of engagement such appropriate greetings and physical contact, which can be a tricky in inter-cultural settings.

Introduction:

The role of cross culture communication and negotiation between Sub-Saharan Africa and China.

Culture

Culture has so many interesting definition and explanation. Culture can be defined as ‘Culture is the collective programming of the mind which distinguishes the members of one group or category of people from another’ (Hofstede 1994: 5).

the set of attitudes, values, beliefs, and behaviours shared by a group of people, but different for each individual, communicated from one generation to the next’ (Matsumoto 1996: 16).

The culture is passed down from one generation to another; it is also constantly changing because each generation adds one or two things of its own which changes the culture which is passed on next generation.

Communication

Communication is a two-way process which occurs between individuals, groups, organizations, social classes, nations and countries. In this process, information, feelings, ideas and news are exchanged. Communication cannot deliver its key function of exchange if the receiver does not listen and comprehend the message that is being passed on and it cannot be completed without a feedback.

Businesses cannot function well without communication between different levels, departments, employees and other business entities.

The various steps in standard communication are as follows:

• The sender has an idea
• The sender encodes the idea
• The sender transmits the message
• The receiver gets the message
• The receiver decodes the message
• The receiver sends feedback

Verbal Communication: This can also be known as spoken communication which is 'face to face' type of communication. However, non-verbal communication is the use of body language, eye contract, gestures and tone of voice.

Written Communication This includes letters, e-mails and books.

Intrapersonal Communication In this form of communication, people process silently within themselves i.e., both the sender and the receiver is same person who share thoughts and actions silently.

Interpersonal Communication This is the sending and receiving of messages between two individuals.

Small Group Communication In this is a type of communication, two or more people interact, for example group meetings.

 Public Communication This form of communication takes place when one person addresses a large group of people such as election campaigns.

Intercultural Communication This occurs when a message produced in one culture should be possessed in another.

High-Context and Low-Context Communication

In the low-context communication, the aim of communication is clear and the communication takes place straight to the point. The people do not use subtle hints or indirect messages but are quite frank about their viewpoint. On the other hand, high-context communication involves use of indirect messages. It is rather slow process in which people get to the point with facial expression, tone of voice and gestures before the information can be passed on. In China, people commonly use high-context communication. The people in this culture find direct communication offensive and ill-mannered.

Although high-context and low-context communication exists in every culture, the cultures vary in the degree of context considered essential in different discourses of business communication. High- context culture is where people are more involved with each other and messages flow freely, while in low-context culture people have low involvement with one another. Therefore, the people in low-context culture have issues in comprehending indirect messages.

Negotiation  

Negotiation can be defined as ‘a process through which parties move from their initially divergent positions to a point where agreement may be reached with approaches of compromise, bargaining, threat, emotion and logical reasoning’’ (Steele and Beasor, 1999: 8).

Influence of Culture on Business Negotiation 

Language: In order for the business negotiations to be effective, it is important that the parties involved speak same language, as it will ease the process of understanding. With globalization, world has become global village, wherein business organizations are doing businesses across borders between people of various nationalities. In the present context, the English language is most commonly used to communicate between people of different cultures.  However, the major challenge in using English is that sometimes words spoken do not convey the actual message. The negotiator may wish to pass the message if he or she is not fluent in English language; however, the cultural issues may resurface later in negotiation or business operations. Due to this reason, professional negotiators and translators are required during multi-cultural business negotiations who can convey the exact meaning of the talks.

Interpreters and translators: As per the above discussion, the use of interpreters and translators is important during the business negotiation processes across different cultures. The business organizations involved in business transactions and negotiation process should ensure that interpreters and translators are experienced and have vast knowledge of the languages being spoken during negotiation. It means that they must be fluent in multiple languages. For example, in a business negotiation between a Ghanaian firm and a Chinese firm, it will be necessary for the interpreters to be fluent in both languages. If this is not the case, the words and the statements spoke by both the parties will be mistaken in their sense and cause confusion in the negotiation process. It is because the interpreter must be able to understand Chinese to be able to translate to the Ghanaian and vice versa. It is also advisable that the interpreter or the translator have an idea of the nature of the business which will be conducted prior to the negotiations, as it will ensure clarity in the way they pass their message. The body language and speech of interpreters must be synonymous with the message to avoid any form of misunderstanding or feeling of disrespect. The negotiator must also be acquainted with the body language and gestures in different cultures so that any gesture does not offend the personnel of both the parties.

In the cross-cultural settings, humour can also be used to ease the tension and advance the process of negotiation. It can also be used to douse tensions which may arise during business negotiations. However, when dealing with people from different cultures, it is important for managers to be careful with their choice of humour. The situations or jokes which might be humorous to an African person may not be as appealing or funny to a Chinese individual. The humour talks have more chances to offend another person. Sometimes, humour may be viewed as insulting.  While humour may be important, it is also necessary for negotiators to have some knowledge of the culture of the other parties involved to understand what events can be offending to the people of different other cultures.

The Face in most cross-cultural negotiation is often respected. In a country like China ‘face’ refers to a person’s image and status which may bring loyalty, trust, reputation and obligation. In Chinese culture, the face of the person is highly respected and the people avoid instances in which they insult other people. The Chinese are sensitive to ‘face’ because of their value of long-term relationship. They also negotiate across border with a different mind-set; therefore, separating business and personal life is often important to them.

Listening skills: It is very important during the negotiation across cultures. The facial expressions and gestures also matter as they are important in showing what you understand in a meeting. In the cross-cultural setting, the people need to be more conscious regarding what the other party is saying in order to completely grasp the meaning in the conversation. Silence in an international negotiation process could mean different things. The body language and movement sometimes helps with negotiation.

Training is necessary for managers when it comes to negotiating across different cultures. The managers should be knowledgeable about the other culture in which they are venturing. If same is not the case, the companies should make efforts to train their process so that h business negotiations and operations are conducted smoothly. The training should involve different attitudes, values and assumptions of the culture which will be encountered in the negotiation process. It is important to emphasize the understanding different cultural perceptions because people tend to view the world in our own standards and prejudices.

Time is another factor in the culture difference. Different attitude towards time can cultural tensions between different people. To some culture timing is very important. The people in these cultures are punctual and keep up to their schedules. However, in Africa carelessness and arriving late at schedule is not considered wrong. The adage ‘African time’ means meetings can be set at a fixed time but it would not be unusual for people to attend late.

The efficiency in the cross cultural communication enables smooth flow of international business negotiations. Understanding the difference in different cultures can make working in different cultures more peaceful in effective manner. Modern technology has reduced the distances between countries and increase the process of international business transactions. The companies do business with each other to exploit the profits from the differences in the geographical locations and attain cost efficiency.

The existence of sub-Saharan Africa and China business is important for both nations’ economy, as well as improving the lives of staffs and communities both expatriate staff and managers. The lack of cross culture understanding in managers operating in Africa, in African government official and business owners may cause problems n effective cross-cultural communication.

The growing partnership between Sub-Saharan Africa and China

China’s remarkable growth has created an opportunity which has the potential to boost the development in African counties. In 2008, trade between Africa and China got as much as $100 billion and the foreign direct investment flow in Africa was amounted to $5.4 billion. China’s loans and concessional support has financed an extensive variety of development projects in Africa. China is also gaining important benefits from the relationship with Africa through accessing of raw materials; increasing markets for exports manufacturers, founding investment relationships would generate high profit with time and political influence. Moreover, the leadership in African governments are focused to strengthen domestic policies, governance and complement regions to improve the continent’s negotiating position in China to ensure that the China-Africa relationship contributes to sustainable growth and poverty reduction (Schiere, 2011: 1).

Increasing the living standards and industrialization has enlarged the consumption of energy and raw materials in China, which has increased its demand for import of oil and minerals in parts of Africa. China’s trade with African economies soared causing it to reach almost 10 percent of Africa’s trade in 2008 (Schiere, 2011: 1).

Chinese outward foreign direct investment is supported by government’s ‘’Going global strategy’’, which supports Chinese endeavours in becoming worldwide multinational by providing delicate credits and support to foreign investment project, particularly in developing markets. Chinese investments in foreign counties are frequently accepted by enterprises with popular possession by central, local or civil governments (Schiere, 2011. Pg. 1). The business organizations and the government have high trust on the Chinese investment companies. The expansion of Chinese marketable activities in Africa has directed a shift in public policy from a slight emphasis on exchange and investment relations to a wide variety of advance negotiation and investment process.

The Unbalanced Exchange between Sub Saharan Africa and China

China’s expanding trade and investment association with Africa does not profit all the sectors or countries equivalently. For example, about 70 percent of Africa’s exports to China go from Angola, South Africa while exports to China from Angola, South Africa and Sudan are strongly dominated with raw materials such as oil, copper, cobalt and cotton. It shows that the major trade partners of China in African subcontinent are Angola and South Africa. In addition to it, about 60 % of imports from manufactures are mostly destined to South Africa, Egypt, Nigeria, Algeria and Morocco. However, other African economies have inadequate trade association with China. Chinese outward foreign direct investment to Africa confirms a similar form of attention with about 50 percent flowing to the mining sectors and only to the resource-rich countries (Nigeria, South Africa and Sudan). The trade and investment association between China and Africa is unbalanced, in the sense that some parts of Africa are less important to China than other trading partners (Schiere, 2011: 2).

China’s impact on African trade

The impact of China on African Trade differs at different countries giving to the various size, economic structures, quality of governance and institutions in African economies. China’s impact is possibly highest on resource rich economies as China’s demand for raw materials is also satisfied with trade in these countries. However, it is less on other African economies. One approach to measure impact on African economy is to measure the costs and benefits of China’s trade within African countries is to associate each country’s comparative advantage. Countries that export mainly oil trade with China are Angola, Gabon and Sudan. They benefit from Chinese high demand without opposite competition from exports in the global markets. Furthermore, other African countries that exports manufacture other products such as tobacco products (Benin), refined oil products (Algeria, Egypt and Kenya), manufactured wood products (Cameroon) and processed food (Mauritius). They face Chinese competition in the global market but little demand from China. (Schiere, 2011. Pg. 3)

Greet Hofstede dimensions within Sub-Saharan Africa and China

Power distance: It deals with the problem of human inequality. Uncertainty avoidance deals with the fact that the future is unknown. Individualism relates with the combination of individuals into primary group. Masculinity deals with the differences in emotional parts between men and women. Long term orientation deals with the focus of people for the past, present and future. Indulgence relates with satisfaction and the basic desire to enjoy life. Each country has been placed with other countries through a score of respectively dimension.

Behaviour in Meetings and Negotiations in China

The Chinese incline toward gatherings to be formal, although dressing is generally agreeable. The senior man must be demonstrated incredible regard and consideration constantly, even though he participates little in meetings; vice chairman or deputy are often the decision makers. Meetings are mainly for information gathering; intellect choices are done somewhere else. Politeness is always observed. The Chinese people avoid conflicts and insulting others. The loss of face is considered extremely disagreeable. The Chinese occasionally say no and send their message indirectly. A collective spirit is common in Chinese culture; no one says "l," only ''we'’. In collectivist culture, responsibility for choices is avoided in numerous gatherings. Power is not passed downward from the leaders. Choices have a long-term overview. Negotiation in China are vital social occasions during which one encourages connections and chooses if the people on the opposite side of the table are reasonable partners for the long run. They consider equipped however generally unpractised in business relations. They negotiate well-ordered in an unhurried way. They like to open procedures with a talk of general standards of shared interest. Deal oriented Americans and numerous Europeans agree to perform specific tasks over an agreed period while, the Chinese looking past the arrangement, establish shared trust over the long run. They are cautions and patient. You should coordinate their patience and strength; otherwise, opportunities will be lost. After they have chosen who, what, when and how is ideal, they are extremely reliable. They know the size of their market which is used for pricing strategy. (Lewis, 2006. Pg. 493)

Manners in China

The Chinese are basically extremely inviting individuals who extend generous hospitality and politeness both to Asians and "barbarians." Sit-down meals are the standards, normally lasting around two hours and ending when the host stands up. On these occasions, the foreigners ought to try every of the delicacies before you by your host, without leaving any dish empty. Following the protocol is agreeable choice. The Chinese gulp and make a wide range of noise when eating; they may like to smoke at the table. You are probably not going to shame yourself unless you are particularly foulmouthed with chopsticks, handle food with fingers or request paying the bill before your host has hand the opportunity to do as such.

It is often important to decide to conduct business meetings beforehand maybe a couple weeks ahead with officials and just a day or so with business people and associates. It is important that the other person turn up on time. Individual Chinese regularly arrive 15 minutes early and say they can complete the business before the meeting is booked to start, so as not to sit around idly. You need not to be so punctuality to these lengths yet ought not be late. (Lewis, 2006: 494).

The present-day China

Asians are planned to be world leaders in industrial, economic and development in this century. China, with its huge population and land range, it will be the prevailing power across the globe. Japan will likewise be a notable player; however, China has 10 times Japan's population and 25 times its territory region. Stunning advancement and development in China shows its immense potential. The West would be wise to begin building up important and durable links and connections now. The investment in the country, if it is long term, may well be remarkable. China is embarking on the greatest economic advancement in world history. Estimates demonstrate that the normal GDP per capita in China will rise exponentially. The country with a GDP of US$20 trillion a year will be the world's greatest maker, producer and potentially driving exporter. Alongside the Indian subcontinent, it will likewise be the world's biggest consumer (Lewis, 2006: 495).

Behaviour in Meetings and Negotiations (Sub-Saharan Africa)

At the point of holding meetings with Africans, there are some certain rules in African convention. Africans come to meetings wearing a neat, clean, normally smart way (more formal in East and Southern Africa than West Africa).  It is used for revealing earnestness and giving confirmation of reliability. Business cards are vital (as in Japan) and ought to show every one of your capabilities and rank. This early phase of becoming acquainted with your African partners is a trust-building process, as well as one of making corresponding commitments that will serve as a reason for a smooth development of relations and a usual methodology in meetings to initiate. In rare chances, that there is dialect or other communication issues, middle people ought to be utilized. As in Asia, go-betweens can be exceptionally profitable in Africa for encouraging, apologizing and (when required) complaining. Africans do not hold entirely to motivation.  The essential business points are talked about during the entire meeting. At the point when certain things are important, they might be returned to ordinary, regardless of the motivation (Lewis, 2006: 572).

A satisfying feature of going to meetings with Africans is that they rush to ensure that they have become friends Westerners. They may make concessions out of sheer tolerance, and you ought to respond immediately. Three important focuses to recall are (1) equality, (2) soft sell and (3) no rush. Africans will regularly endeavour to assure if it's not too much trouble however there are maybe a couple of issues where they might be hindered in meeting regarding your necessities or standards. It is worrying for them to discipline individuals from their own tribe, and they will be required to show favouritism to their own tribe individuals in matters of promotion. Advancement in Africa is frequently considering age (as in Japan) or ethnic consideration. (Lewis, 2006, pg.572)

The need for Africans to share  their gains with their extended family implies that they are occasionally ready to accomplish significant reserve funds or store up capital in the Western or Asian way. A propensity toward consumption as opposed to sparing gets from this commitment to share. Westerners ought to see periodic rich utilization just like because of African societal conditions as opposed to individual shortcoming. Finally, when Africans appear to be poor at long term planning, you should recollect that survival is the primary thought, and it is basically a short-term suggestion. Remember that the memories of ancestors—their words and deeds—won't just impact African behaviour at meetings, however Africans rationally think of them as present at business discussions, straddling the past and the immediate future. You will be extraordinarily helped in this regard if you are aware of the history of the tribe concerned. Culture changes gradually, so reference to past customs will control you to forecast their behaviour in meetings (Lewis, 2016: 573).

More established men are generally quiet and settled on the clear majority of the choices. In the present-day economy, Africans keep on showing traditional knowledge, yet inexperience of new economy variables is frequently a disable. The objective of negotiation is only "win-win." Bargaining and dealing is a part of the transaction procedure. Skilful people are highly respected. Offers must originate from the purchaser, so that the dealer does not lose confront. Negotiations are frequently directed in a folksy or chatty way. Meetings can regularly be noisy, however not forceful. Westerners are relied upon to lead meetings at which they are available or if nothing else to make huge commitments. Witnesses are regularly assembled into conferences or meetings to see and hear agreements reached. Customary law (which existed in Africa much sooner than Islamic or Western law) is regularly connected (Lewis, 2016: 573).

Manners in Sub-Saharan Africa

Society behaviour incorporate formal welcome (with excitement)— shaking hands, touching arms and so on. Shoes are typically removed before entering a home. Africans eat their huge dinner at night; men are normally fed first. Africans who are welcome to supper frequently bring companions along. Eating and drinking occur typically, when relationship-building is general. Privacy has small importance in Africa; you are not left alone in particular, as you may get isolated! Gifts may include alcohol (not for Muslims), flowers, sweet and things, for example, T-shirts with logos, baseball tops or food in rural areas. One must take presents for children and to the boss or headman! Beer is a popular drink in all parts of Africa aside from the stricter Muslim group or countries. Africans get intoxicated, as do Americans and Europeans, however too much intoxication is frowned upon (Lewis, 2006: 574).

Conclusion:

Thus, understanding a different culture is more vital than ever. If putting into consideration that individuals from the same economic, political and cultural background have issues communicating with each other, imagine the challenges and difficulties an individual from a different culture faces when attempting to communicate. Confusion would always be a part of culture when two different countries are in a form of business negotiation. Moreover, China is a source of profitable exchanging partner, with a wellspring of venture financing, and a serious increase on improving partnership with Africa. China is putting enormous framework in helping to enhance intensity in Africa. For China, Africa is not just a source of important commodities necessary to expand the domestic economy, but also a future investment destination for labour intensive manufacturing, given that wages in manufacturing grows faster in China than Africa (Schiere, 2011: 9).

Recommendations:  

African countries should grow coordination along with getting aid and investment from China. It will prompt a straight improvement in association. Enhanced technology exchange would benefit a large number of African countries. Moreover, the technology exchange will also increase the coordination among the countries in the African subcontinent.

The cost containment can be achieved by the strategic coordination between China and Africa. It can be achieved when the commercial centres in Africa recognize assembling items in China and offer better exchange access to the Chinese markets.  The African companies can also establish strategic alliance with the Chinese business organizations so that they can benefit from the business knowledge of the Chinese companies. However, the major concern in the Chinese and the African collaboration is issues arising due to misunderstanding in communication. It is a major challenge in the cross-cultural communication between different countries. Due to misunderstanding, stress can be developed between both the business parties. The business organizations may find difficulty in understanding the intent and meaning of the message. In the cross-cultural communication, issues may arise due to misunderstanding of gestures and body language. It is important that the business managers study the major differences in the gestures and spoken language so any offensive occurrence is avoided in the organization. The interpreters and translators hired need to be experienced in languages so that they can interpret and send the message clearly.

It is recommended that the African students are provided chance to study in China so that they better understand the cultural differences between the both countries (Schiere, 2011:10).

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