Final Exam Reader PDF - CCBS

Final Exam TXTBK Final Exam TXTBK Reader ONE DOCUMENT, ONE PLAYLIST Let us share some Final exam information with you. You will be taking part in the CCBS Final Exam, which comprises 40 multiple- choice questions. The exam starts at 18:30 CET and lasts exactly 120 minutes (but not needed at all). Below, I have compiled all the information related to the exam, including the TXTBK chapters which you need to read, plus a PLAYLIST HYPERLINK of the videos you’ll need to watch. Then you’ll find the Lesson-Essentials, selected texts from the presentations. Some questions may come from these. 1 Cross-Cultural Business Skills minor Remote (online) or on-location? We are bound by the same division as already made for the Midterm Exam. This as our department’s Exam Board only allows the online exams to be made by people joining the course from outside of the Netherlands. ▪ Living inside the Netherlands: go to the exam location with computers, this test it is the WFC-building (World Fashion Centre), but for resits you will be invited at the regular campus building at Fraijlemaborg 133. ▪ Living outside the Netherlands: make the exam ONLINE. For your preparation (reading and watching) it doesn’t make much difference, so we therefore choose to share the exam reader now, simply allowing you some extra time to prepare. Fix student card quickly Do you already have you HvA student card arranged? https://www.mijnhvapas.nl/site/surflogin and switch to English, and follow the steps. A regular ID is generally also permitted, but better to save time and prevent stress, by having your stuff done on time. We saw during previous exams that students with only a student-card or only their ID weren’t permitted in the exam room… 2 Final Exam TXTBK YouTube Playlist Just click on the hyperlink [https://www.youtube.com/playlist?list=PLYSH8BaKdeaQ0B1Q2uCCAaDi2j2AB0U6S] which will bring you to the following videos on YouTube; ▪ Final Exam Training (22 min). ▪ China lesson (48 min) ▪ Italy lesson (47 min) ▪ Belgium lesson (61 min) ▪ Japan lesson (52 min) TXTBK pdf reader The Final Exam covers topics related to effective country-specific cross-cultural communication. Furthermore, it assesses your knowledge on applied business skills in a global setting. If you read and study the below chapters sufficiently, you should find it straightforward to pass the exam. 3 Cross-Cultural Business Skills minor Fast Facts SIS-code: 6122FIEXKT| Final Exam Number of questions: 40 Cut score: after Sander’s result analysis, which is conducted on the same night as the exam itself. Maximum score: 40 pt. Probability Score: 17 pt. / 43% Tools: None allowed Duration: 120 minutes Question Order: Random Scoring rule: No points deduction for wrong answer. Test design Toetsmatrijs The exam consists of 40 questions that are to be answered in 120 minutes. The weight accorded to each topic is noted in the column entitled ‘Weight’. The following table offers an outline of the learning goals and specific content covered in the exam. 4 Final Exam TXTBK Exam questions Al the test questions are in the multiple-choice format, of which the majority are presented in the A-B-C-D-format, with one correct answer and three incorrect options. A smaller number of questions are presented in the False True/ format. Below you can see samples of the types of questions you will receive in the exam. Grading scale criteria Although CCBS works with a computer-based exam, we first need to manually double-check all raw scores and percentage scores, in order to decide which questions, require a second review. Furthermore, we need to discuss the so-called cut-off score (cesuur in Dutch), after which we can calculate the results and subsequent grades. This is conducted following the so-called ‘four-eyes-principle’, which involves getting a second opinion. You will need to pass the exam with a minimum score of 5.5 points in order to receive the credits. Do it, do it, do it! Grades will be posted anonymously (by student number) soon after the exam on MS TEAMS (folder: Exam related), and you will receive a notification in the WhatsApp group. 5 Cross-Cultural Business Skills minor Sample question 1: The right answer here is B). To come at this choice you web lecture on leadership. The academic GLOBE project by House et al, researched leadership need to have studied the differences across cultures by polling: A) Almost a thousand managers in Western-Europe. B) Almost 17,000 managers in some 60 countries. C) Almost a thousand managers worldwide. D) None of the above. Sample question 2: The adjacent placed gesture can be considered positively or not, depending on the country. Please choose the one alternative that you consider correct. To come at this choice you need to have read the section Finger-talk of the The right answer here is A). chapter called GESTURES. A) Positive in Germany and Holland, negative in Greece and Southern Italy. B) Positive in Holland and the USA, negative in Malta and France. C) Positive in Japan and Spain, negative in Brazil and France. D) None of the above. Sample question 3: 40% of expat assignments are considered unsuccessful due to the inability right answer here is A) True. mentioned 40%. Hence the of expat and family to adjust to social and business life of a host country. Culture Shock. In fact the amount in reality may be SOURCE: Web lecture on even higher than the A) True B) False 288 That’s it for the samples, God luck with the real exam ! CCBS TXTBK 67. Negotiating internationally Sander Schroevers Globalisation, not to mention the European single market, has strongly influenced the way we work. As a consequence, we find ourselves communicating more and more with people from other countries. This chapter will introduce some of the communication functions that play an essential role in international negotiating. Recent research shows that international managers spend approximately twenty percent of their time on some sort of negotiation activity. Because negotiating is to a large extent communicating, it seems only logical that local differences influence the communication process. Most books on international negotiating seem to depart from the idea that there is one universal way of negotiating. Here I try to describe how adapting the usual negotiating tactics in line with particular cross-cultural differences will most probably improve the results of the negotiation. Potential pitfalls Techniques that work well at home may fail in another country where the expectations of a negotiation party may simply be very different. The usual focus on win-win or win-lose outcomes cannot solve expectations in the fields of:  Behaviours related to eye contact, interruption, intonation etc.  Terms for making convincing arguments,  Normal bargaining techniques,  Expectations with regard to seniority,  Ideas about hierarchy or decision-making authority,  Use of time. 289 Cross-Cultural Business Skills minor A recent European study (Elucidate) clearly shows that around forty percent of the international negotiations in a European programme failed because of comparable cross-cultural conflicts. The problem is that most people who need to negotiate internationally have not been schooled in that area. Usually only governments or large multinational corporations have specialists in that field. For most companies, negotiations abroad are carried out by those in middle management positions or by technical specialists. They will probably, therefore, need to improvise, which in terms of risk management can, of course, be a challenge. Unspoken codes There are various ways to express differences. Many of these are unspoken codes, or subtle distinctions. Differences that for foreigners can be hard to distinguish. The point is that we are often taught certain values during our upbringing. Cultural groups such as, for instance, the Germans, Swiss, Scandinavians or Dutch tend to be quite direct in their communication and usually express exactly what is meant. Scientific research has shown that the way in which the Dutch express their thoughts can be quite to-the-point. The problem is that other cultures sometimes may perceive this directness as just plain bluntness. Native English speakers tend to opt for the much more scripted language of request-making. The majority of requests take the form of:  Could you,  Would you,  Would you mind ~ing... Therefore, try to be aware that specific levels of directness appropriate for given situations might differ cross-culturally. And remember that languages such as Dutch or German tend to use more direct-level requests than, for instance, British English. The table below shows selected cultures and their levels of directness in communication. The ranking of the United Kingdom explains the differences described above. 290 CCBS TXTBK Switzerland (German-speaking) Germany Norway United States more explicit Denmark Czech Republic France United Kingdom NEGOTIATING Italy Belgium (Walloon) Brazil More implicit Turkey Morocco India United Arab Emirates Hong Kong China Japan Levels of directness in negotiations, by country The table also makes clear why Americans generally use more direct and explicit communication. And indeed, British English can seem vague at times to people from the cultures positioned higher in the table. But there is a very simple reason for that: vagueness is used to maintain politeness, saving face and thus avoid confrontation. The same applies to friendly small talk, humour and 291 Cross-Cultural Business Skills minor understatement, which are all normally used to soften style. Humour comes in many varieties in Britain, and can often be used for many different situations: humour, self-mockery, criticism, paying a compliment, awkward moments etc. Timing differs When is the right moment to start the negotiating process? Do all cultures follow the same timing pattern as in, for instance, the Netherlands? The answer must be: absolutely not. Even people in neighbouring countries such as Belgium and the Netherlands have different ideas on this. When, for example, would be the right moment to make an offer during a business lunch (dînatoire) in France? The answer here is: probably close to the time a small coffee or desert is being served. It is often felt that starting business any earlier could be too blunt. The overview below shows us which selected trade cultures open their talks immediately and which cultures indulge in more small talk, when starting straight away would be considered less well-mannered; Country Early Half Late China  Czech Republic  Denmark  Emirates  France  Germany  Hong Kong  India  Italy  Japan  Morocco  Netherlands  Turkey  United Kingdom  United States  292 CCBS TXTBK Using interpreters For most of the cultures mentioned below, people will either fall back on speaking English or on using an interpreter. It is of great importance to prepare an interpreter or translator beforehand. This is done at a small pre-meeting by exchanging lists of jargon, key-terms, common abbreviations or, for example, brand names. When negotiating with an interpreter, try to maintain eye-contact with your negotiating counterpart, not with the interpreter. An interesting anecdote about how a senior Russian negotiator obtained an advantage in his negotiations with an American, concerned his use of the interpreter. Despite the fact that the Russian spoke English adequately, he still made use of an interpreter but for an entirely different reason: while the interpreter was translating, the Russian could study the American’s non-verbal communication without hindrance and when the American spoke, the Russian had twice the response time. Different goals Scientist interviewed negotiating teams from, amongst others, countries such as Japan, Brazil and the United States about their expectations for specific negotiations. The analysis showed that culture does indeed influence the expectation of a negotiation. The Japanese for instance were much more focused on the long-term relationship, whilst the Americans were mainly concerned with the short-term deal. The principal goals of the different negotiators also showed significant differences; where the Brazilian chief negotiator was concerned with achieving a respectable negotiation outcome, the Japanese negotiator was mainly focused on market share, and the American on short-term high profit. It is fair to say that some knowledge of specific Asian, Latin or Western expectations will lead to better results. Local negotiation techniques Scientist have studied negotiation techniques in Japan, Brazil and the United States in a combined research of Universities from those same countries. They interviewed various participants and analysed many hours of video recordings. The results showed some remarkable differences; 293 Cross-Cultural Business Skills minor Behaviour tactics SILENT PERIODS (Number of silent periods greater 5,5 2,5 0 than 10 seconds, per 30 minutes) OVERLAPS (Number per 10 minutes) 12,6 10,3 28,6 FACIAL LOOKING (Minutes of gazing per 10 min.) 1,2 3,4 5,6 TOUCHING (Not including handshaking, per 30 min.) 0 0 4,7 The Japanese, for instance, can maintain several seconds of total silence. If a negotiator is not aware of this, he or she may be influenced by such a silence in that they may perceive it to mean something other than intended. In Mediterranean cultures, on the other hand, people can overlap in their conversation, meaning that people can talk simultaneously. The same applies when interrupting people. This is considered rude in North-Western European cultures but in more Southern cultures it is quite normal, and as such, thought of as a form of active listening. The table above also shows us that Brazilian negotiators touch their counterparts much more. The so-called comfort-zone between people in Brazil is also much smaller than, for instance, in Holland. Latin people feel that they want to stand closer to each other, especially when talking about confidential matters. Northern people, however, usually feel uncomfortable with close proximity to others and try to create space, often by stepping back a bit. It can sometimes lead to amusing movement patterns by the participants at international summits. Compromises Making a compromise is considered positive in certain cultures but not in others. For instance, Dutchmen, Belgians or Swedes learn to compromise from a young age, whereas Russians, Spaniards or French, for instance, have developed their skills in other directions. A Spaniard, for example, generally believes that a compromise might damage honour (pundonor). Some knowledge of such cultural 294 CCBS TXTBK differences can help to prepare differently, and probably negotiate with more success. Look me in the eyes As the table above shows, direct eye-contact amounts to only twelve percent of the total time in a country like Japan. Indeed, in Asian cultures continued eye- contact is generally seen as too assertive or emphatic. Many people in the West would not trust someone who avoids at least some kind of eye contact and people in the Middle-East even use much more intense eye contact in negotiations. Strategic negotiating framework Stephen Weiss examined cultural aspects of the international negotiating process. He concluded, after studying many negotiation cases, that for successful outcomes it mattered that negotiators reflected on their own cultural negotiation script as well as on that of the other parties involved. By choosing strategies accordingly, better results were achieved. A choice of negotiation sequences or scripts could be made, depending on the level of knowledge each party has of the other party’s culture. The scale of such awareness will determine which of four possible scripts can be chosen for an optimal international negotiating outcome. The model on the following page shows the four options of the Weiss framework; 295 Cross-Cultural Business Skills minor Image: Weiss framework 296 CCBS TXTBK 68. Cultural Rankings Jaime Offermans and Roy Gerritsen (CCBS alumni) In some ways all human beings are alike, in some ways everybody is a unique individual, and in some ways, everybody is very similar to a certain group of people within a country. The latter similarities would be considered culture as defined in the Oxford Dictionaries (2013): “the ideas, customs, and social behaviour of a particular people or society”. When people from different cultural backgrounds meet, those different beliefs and customs also come together, increasing the risk of potential misunderstandings. The same simple hand gesture can represent something positive in one culture, but be considered very disrespectful in others. With increasing globalization there has been an increase of cultural clashes, over time creating a need for better cultural understanding. To answer these needs different anthropologists and cross-cultural researchers have done a lot of work to develop systems for comparing cultures in one way or another. While there are many, three of them stand out compared to the others in terms of the impact of their work on the field, the Dutch academic author, public speaker and consultant in the field of cross-cultural communication Fons Trompenaars, the American anthropologist Edward T. Hall and the Dutch cross- cultural researcher Geert Hofstede. Fons Trompenaars and Charles Hampden-Turner Fons Trompenaars and Charles Hampden-Turner are the founders of the Trompenaars Hampden-Turner consulting firm which specialises in many corporate issues, among them cross-cultural dilemmas. Fons Trompenaars is a consultant who earned his spot at number 42 in the 2011 “Thinkers50” as one of the most influential management thinkers. He has worked with many of the top Fortune 500 companies and helped them solve their cultural dilemmas. He teamed up with Charles Hampden-Turner, who is a British management philosopher, and together they have turned out to be a powerful combination in 297 Cross-Cultural Business Skills minor the world of international management consultancy. They are responsible for developing a model for measuring cultural aspects based on seven different dimensions, where the first five dimensions are based on Parsons’ five relational orientations, thus based on people’s attitudes towards other persons (how humans deal with each other). The sixth dimension is about people’s attitudes towards time, and the last one is about people’s attitudes towards the environment (Trompenaars and Hampden-Turner, 1997). Universalism versus particularism (rules versus relationship) Trompenaars’ first dimension is about how people judge other people’s behaviour. A universalistic culture is one where people will judge other people’s behaviour based on written or unwritten rules. In a particularistic culture people judge behaviour based on the influence that someone has on a personal level. They are more focused on personal relationships, adapting to the circumstances, and having respect for other people’s needs. In a particularistic society people will value personal influence more than rules or regulations. Imagine yourself being in a meeting where the rules say that eating is not allowed and you haven’t eaten anything all day to the point where sick are feeling sick. In a universalistic society people will have the opinion that you should have eaten before the meeting as the rules say you can’t eat during the meeting, and therefore it is your own fault. In a particularistic society people will feel for you and will consider it fine for you to eat something during this meeting since it affects you this much. In business, both universalistic and particularistic differences are also very present. Contracts by definition favour the universalistic thinker since they are full of rules and regulations. In contrast, a contract can come off as very distrusting to a very particularistic person; they can feel that your wanting a signed contract means you think one party will try to cheat on the other party. So if you come from a universalistic background and are trying to finalise business agreements with particularistic people, it might not be the best idea to bring your lawyers and heavy contracts to sign and expect that way to close the final deal. Another big difference regards the timing of things: particularistic people will more likely than not withdraw from situations where they feel hurried. When dealing with particularistic people you do not want to set heavy deadlines. Instead, you want to take your time to make them feel comfortable. 298 CCBS TXTBK This also means that when it comes to time perception if you compare particularistic versus universalistic societies, the universalistic societies will most likely show signs of a monochronic time perception to use Hall’s term, and particularistic societies will probably show signs of a more polychronic time perception. Individualism versus communitarianism (the individual or the group) In this dimension, individualism is an aspect of a culture where personal achievements and freedom are respected and people are expected to take care of themselves, as opposed to communitarian cultures where the group you belong to is more important than the individual and your loyalty to the group provides a safety net where you are taken care of. It is basically about how people within a culture perceive themselves, either as an individual or as part of a group. This dimension is basically the same as Hofstede’s “individualism versus collectivism”, the only real difference being that it seems as if Hofstede looks at how the culture tends to be from the outsider’s point of view, and Trompenaars looks at how the people in that culture perceive themselves. Neutral versus affective (neutral versus emotional) This dimension ranks cultures based on how accepted it is that people express emotions in public. In a neutral culture rational reasoning comes before emotions when deciding or taking action, and expressing emotions tends to be less accepted, thus people will be less apt to express what they think or feel. On the other hand, there are affective cultures where expressing emotion is very accepted and often even encouraged. The use of emotions to communicate in these cultures is a big part of their everyday life. Whether people are more neutral or more affective in the way they are used to dealing with each other is something that affects business meetings a lot. Affective people will be looking for emotional connections much more in these settings than neutral people, and when they get no emotional response from them they might consider this as disinterest. This also works the other way around where emotionally neutral people might consider a heavy positive emotional response from the other ones as a sign that they have already agreed to the proposal, while in reality this may not be the case. Also for neutral people, 299 Cross-Cultural Business Skills minor a calm and collected posture will be more respected, while the affective people are very used to honest emotional displays and often will be using more physical contact, which in return can make the neutral people feel very uncomfortable. When dealing with the other side of the spectrum in a business context, know what to expect and try to move as close as you comfortably can towards the other party’s customs, as this will cause less friction and will greatly benefit the chances that your business meetings will be successful. Specific versus diffuse Whether a specific culture is considered specific or diffuse depends on how deeply the members of a culture get involved with each other on an emotional level. Consider multiple layers into how deeply you can be involved with somebody, from knowing who the other one is (acquaintance) to being a close and personal friend. In very specific cultures, the layer reached in the relationship between two people will be very specific to the goal or task at hand. There won’t be an emotional connection unless the goal of the relationship between the two people requires this, whereas in a diffuse culture multiple layers of the level of engagement with one another will be reached whenever two people get involved with each other. For business this often means that people in a specific culture will only get involved in the layer that is necessary for business and the business can easily only involved mere technical facts and economic aspects. In a diffuse culture, on the other hand, there is a need for personal relationships between the individuals doing business before any kind of cooperation can be established. Where specific cultures will expect productivity and profitability to come from technical aspects, diffuse cultures will expect success to come from a good personal relationship between business partners. This means that when dealing with people from specific-oriented cultures, a successful strategy will be to focus on the technical aspects and profitability expectations, and when dealing with diffuse-oriented people, that would be to establish a good personal relationship with them first. 300 CCBS TXTBK Achievement versus ascription This dimension describes how status is assigned within a culture: do people acquire status by means of their achievements or by ascription? The big difference is that in cultures where status is achieved, status is assigned from their having done something, while in cultures where status is ascribed, it is assigned based on their being someone or something. A practical example for this is that in an ascription-oriented culture, you can have a higher status based on age, class, gender or the like, while in an achievement-oriented culture, status will be given based on experience and achievement. In business this means that people will value different aspects about someone when deciding his or her level of authority. Business people used to an ascription-oriented culture will value the older person’s opinion more compared to the person with a better track record of results, while for businesspeople from an achievement-oriented culture the exact opposite will be true. Sequential time versus synchronous time Where the previous five dimensions were oriented towards personal relationships, this dimension is about how people in a certain culture manage time. In a sequential-oriented culture, people will view time as a natural sequence of events that follow each other. They will work towards a schedule to reach a certain goal step by step. In cultures with a synchronous-time orientation, people view events in time as being interrelated. Each event has a past, present and future that are all interrelated to each other. In a synchronous-time orientated culture, people can work towards a goal by being able to work on different aspects parallel to each other at the same time. The sequential-time orientation from is very similar to Hall’s monochronic time-orientation, and the synchronous-time orientation is very similar to Hall’s polychronic time-orientation. Internal control versus outer control This last dimension is about how people relate to their environment. It basically means that on one side there is internal control, where people perceive the environment as something that can be controlled, and the end result is much more in their own hands. With outer control, on the other hand, people perceive 301 Cross-Cultural Business Skills minor the end result to be due to the circumstances beyond their control. People from internal-control-oriented cultures will lean more towards feeling they are in control of their own destiny, whereas people from outer-control-oriented cultures will feel like their future is determined by circumstances. In business, internal control cultures will adopt a more dominant attitude towards the environment: the focus will be on their own business and they will be uncomfortable with the idea that things are out of their control. Outer-control- oriented business cultures will be oriented much more towards the outer world, the other party, the customer, the potential business partner. They will be much more flexible and willing to compromise to keep the peace, and will be very comfortable with a changing environment if they perceive this to be natural. Edward T. Hall’s key cultural factors In the field of anthropology and cross-cultural research, Edward Twitch Hall Jr. (16 May 1914 – 20 July 2009) was known for developing the concepts of “high- context” and “low-context” and “monochronic” and “polychronic” to describe cultures (Hall, 1976). Hall’s work has influenced many researchers after him and he is generally considered to be one of the founders of the field of cross-cultural research. Hall started as a professor teaching at different universities, but the real start of Hall’s intercultural work started in World War II when he served in the US Army in Europe and the Philippines. Later on Hall worked for the US government teaching intercultural skills. It is important to note that Hall did not provide us with any information as to where specific cultures rank on in terms of his concepts, but he did provide those theoretical factors to help compare cultures. Other people after Hall have continued to use his system to rank specific cultures. High context versus low context This cultural factor is about communication between members of a culture. It can be looked at as a measurement from being very direct (low context) to being more indirect (high context) when communicating. In a high-context culture the words and body language used can have a much bigger or different message attached to them, whereas in a low-context culture the words used are generally 302 CCBS TXTBK very similar to the message meant to be given. This also means that in a high- context culture the impact of a single word can be much more significant than in a low-context culture. Knowing where a country ranks on the spectrum of high context versus low context cultures can be very helpful when attending a business meeting with potential partners from that country’s culture. When you know that the people you are about to meet come from a high-context culture, you can prepare yourself by knowing what to expect and how to communicate with them. When for example an American businessman (the US is considered low context) attends a Japanese business meeting (Japan is considered high context), the American would be wise not to be too direct when communicating, because this can be considered very rude by a Japanese person. The American would also need to know the specifics in terms of what the Japanese counterparts say or do not say, and what they generally mean when they say certain things. Basically, what it boils down to is when you communicate with people from a high-context culture, you need to figure out what the underlying message is when they say certain things, while at the same time knowing what the perceived message for them could be if you yourself use certain words. Monochronic time versus polychronic time Monochronic and polychronic are terms used to describe how people in a certain culture use and perceive time. A monochronic orientation is a very organised, step by step approach to time management, where everything is done according to a schedule and done one thing at the time. On the other hand, in the polychronic orientation, time management and the specifics are much less formal. More things can be done at the same time and dealing with time is much more dynamic and fluid. People from polychronic societies place much more value in personal relationships as opposed to getting the job done, which is much more indicative of the monochronic orientation towards time. The specific time orientation of a culture is very important for business meetings in the sense that if you are from a monochronic culture like Germany, you will generally expect a business meeting to start more or less exactly on time, but when meeting with people from a polychronic cultural background, for example Mexicans, you can expect people not to be there at the exact time. When you know these things 303 Cross-Cultural Business Skills minor before you meet with people from a different background, you can set your expectations to a realistic level so you will not be surprised. Geert Hofstede’s theory of cultural dimensions Geert Hofstede, born in 1928, is a well-known Dutch cross-cultural researcher. He is considered the founder of comparative intercultural research, and in any case a pioneer in the field. Hofstede developed a theory of cultural dimensions, which was the first more elaborate system to compare and rank different quantifiable cultural aspects. Hofstede’s theory is still widely used either as a basis of cross-cultural comparison or as an influence and inspiration for other theories. His system originally started with four dimensions, later on two more dimensions were added, the last one as recently as 2010. Hofstede originally graduated with a technical engineering degree, but later on received his PhD (cum laude) in social psychology. The foundation of his cross-cultural work was laid when he worked at IBM where he gathered an enormous amount of information on people’s behaviour in large companies all around the world. It was when he took a sabbatical from his work at IBM that he finally had the time to actually conduct some research based on that information. This ultimately led to him publishing his theory in 1980 in his book called Culture’s Consequences. His ideas were further developed in Cultures and Organizations: Software of the Mind (Hofstede, Hofstede and Minkov, 2010). Power distance This dimension explains how people in a culture accept the way power is distributed in society, from the bottom up. This means that it measures how the people lower in the hierarchy accept and expect how unequally the power is divided. In cultures with a large power distance, everybody has their own place in the hierarchy and there is obedience towards authority. On the other hand the cultures with a smaller power distance expect much more equality in the distribution of power and don’t always settle for or verbally agree with what somebody tells them to do, even if that person is in a much higher position. When people from significantly different power-distance backgrounds meet, it can cause friction. It is generally not accepted in a high-power-distance society 304 CCBS TXTBK that you as a floor manager for example should have direct contact with the CEO of another company when trying to do business. Basically roughly knowing how a culture scores on power distance can help you in deciding who to approach from your position, or sometimes, if you want to get something done, who from your company should approach them in order to be successful. Individualism versus collectivism A highly individualistic culture is explained to be one where people are seen as individuals and expected to take care of only themselves and their immediate family. Decisions are made based on individual wants and needs. In an individualistic culture people tend to think in terms of “I”, in contrast to a collectivistic culture where it would be in terms of “we” and where people are born as a part of a family or extended family. Within these collectivistic families, members will always be protected by their family and unconditional loyalty is expected of them. Members of a collectivistic culture base their well-being and achievements on external factors like meeting the expectations that are set by the group they belong to. Group loyalty and coherence are the biggest parameter for collectivistic cultures. When doing business with collectivistic cultures, you should never expect a single individual to be able to make any real final decisions. Usually people from collectivistic cultures will need the approval of the group before any changes can be made. Generally when attending a meeting with people from a collectivistic culture, you can expect to meet with a higher number of people, and rarely if ever with a single individual. Masculinity versus femininity The masculinity dimension that Hofstede has proposed measures the level of assertiveness compared to that of modesty. It is called masculinity versus femininity because modesty is considered more of a feminine value and assertive more of a masculine value. Research has shown that women’s values are actually very similar from one society to another, making the comparison of a whole society more of a comparison between the men’s values from one society to another. Meaning in a feminine society the men’s values will be much closer to the women’s values, and thus the society as a whole will be much more modest. In a masculine society the gap between the men’s values and the women’s 305 Cross-Cultural Business Skills minor values will be bigger, making society as a whole more assertive. So what Hofstede did was to measure assertiveness and modesty and conceptualise those as an equation of average masculine values compared to average feminine values of a society. The smaller the difference, the more modest the society will be. But what is really happening is that they are basically only looking at the men in a society and at how modest or assertive their combined values are. A masculine society is likely to be more competitive, materialistic and focused on recognition and accomplishments, while a feminine society will be very modest and caring. When doing business with a very feminine society you ideally want to be more modest even in business. This means not overselling your product or service, as this will likely come off as arrogance. When dealing with a very masculine society, you would actually do want to do precisely that. Basically on one side of the spectrum praising yourself can be the way to go, and on the other side this can only push your potential business partners away. If you know which side to lean to, you know which strategy is more likely to be successful. Uncertainty avoidance This dimension measures how tolerant a society is towards uncertainty and to what extent the society is programmed to avoid situations with high uncertainty. In a society with high-uncertainty avoidance among their members, life will be very structured and there will be very strict laws and religion. Since members of a high-uncertainty avoidance society will be used to living under these structured conditions, they will generally be much less comfortable with uncertainty, unstructured situations and adjusting to changes. On the other side societies with low scores for uncertainty avoidance will be programmed to be much more dynamic, risk taking, and will prefer as few rules and regulations as possible. There is also a big difference in emotional expression, where people in high- uncertainty avoidance societies will be much more emotional in general, and people in societies scoring lower will be expected to not express themselves in an emotional manner. When you are dealing with people from high-uncertainty- avoidance cultures, in order to keep them feeling comfortable you will want to be very structured in your approach. If you are very clear in scheduling appointments with them, and respect those appointments, they will feel much more at ease with you. Do not expect people from high-uncertainty-avoidance 306 CCBS TXTBK societies to be very flexible. They are not the ones where it is alright to cancel a day before and ask if it is alright to reschedule, because although it may be accepted and alright, it will cause them to feel much more uncomfortable with you. Take more time to consider something before you agree with it, as agreeing today and coming back on the matter in one week because you have changed your mind will affect these people much more than it would people from a low- uncertainty-avoidance culture. While obviously it is never a good idea in any business relationship to agree on something and then change your mind later, the effect on the business relationship will be much more significant with people from high-uncertainty-avoidance societies. Long-term orientation versus short-term orientation Hofstede added this fifth dimension his theory in 1991. In this dimension, the members of long-term oriented societies are oriented towards future rewards, adapting to changes, and persistence, while members of short-term oriented societies are focused more on the past and the present. The latter will highly value tradition, integrity, national pride and social obligations towards society and their family. Being a short- or long-term oriented society also translates into business. Naturally long-term oriented societies seem more fit for successful business because of their orientation towards the future and achieving goals, while in short-term oriented societies the focus lies more on the past and the present. It is always recommended to keep in mind what the nature is of the people you are about to do business with. If they are short-term oriented, you will want to respect their traditions, integrity and national pride. Indulgence versus restraint In Hofstede’s last dimension, indulgence shows how freely a society can satisfy its members’ personal needs which relate to enjoying life. In a restrained society the satisfaction of personal needs is suppressed, controlled and regulated by social customs. This dimension has relatively little influence on doing business itself, but it can have a big influence on the ways used to establish a personal relationship with people from societies at one end of the spectrum or the other. 307 Cross-Cultural Business Skills minor 69. Defining Culture Fons Trompenaars & Peter Woolliams When we are living and working in another culture, we are usually very aware of obvious differences in dress, food, and basic behaviours. Much more important for effective integration are differences at a deeper, implicit level, which we are less likely to be aware of. Analyzing the structure of culture The culture of any society around the world can be compared to an onion. It has layers, which can be peeled off. Three distinct layers can be distinguished:  the outer layer  the middle layer  the inner layer. The outer layer contains those elements that people primarily associate with culture: the visual reality of behaviour, clothes, food, language, architecture, and so on. Wherever they are, they will readily recognize differences from what they are familiar with at home. This is the level of explicit culture. The middle layer refers to the norms and values that a community holds: what is considered right and wrong (norms), or good and bad (values). Norms are often external: each society superimposes them on its members, reinforced by measure of social control. Values tend to be more internal than norms, and most societies do not have many means of controlling their enforcement. Values and norms structure the way people in a particular culture behave. But they are not visible, despite their influence on what happens at the observable surface, in the outer layer of culture. The inner layer is the deepest: the level of implicit culture. Understanding the core of the culture onion is the key to working successfully with other cultures. The core consists of basic assumptions, series of rules, and methods 308 CCBS TXTBK that a society has developed to deal with the regular problems that it faces. These methods of problem-solving have become so basic that, like breathing, people no longer think about how they do it. For an outsider, these basic assumptions can be very difficult to recognize. Understanding the different meanings On arrival in your foreign destination to begin your professional assignment, you will immediately be aware of differences arising from the outer and the middle layers of culture. The importance of the inner layer of culture is that different cultures may give a different meaning to the same thing. You are likely to find differences in the following areas, among others:  the status accorded to older people  the relationship between men and women  the respect given to the law (and even simple rules)  the degree to which your working relationship is or becomes more  personal. It is very important that you do not make the mistake of assuming that cultural differences are just about such visible elements as clothes, food, and houses. You may embarrass yourself, or your host, because you give different meaning to the same things. If you have some understanding of these differences, and learn how to cope with them, your whole experience of working in a different culture can be enhanced and made much more effective – and enjoyable. Understanding the basic assumptions Every culture has developed its own set of basic assumptions, which can be categorized into different dimensions. In dealing with universal human problems, each cultural dimension can be seen as a continuum: at one end there is a basic value, which contrasts with the value at the other end. The continuum will cover every possible combination between the two contrasting basic values. All cultures need to deal with the challenge of these extreme choices. They face a continuous series of dilemmas, because by itself each alternative is either unsatisfactory or insufficient. In business, for example, do we go only for the short term or the long term? For stability or change? For market-led or 309 Cross-Cultural Business Skills minor technology-led products? For rewarding individuals or teams? Transnational organizations respond to these dilemmas in different ways, according to how they stand on each separate dimension derived from their cultural heritage. Seven cultural dimensions can be distinguished, as follows. Universalistic versus Particularistic People in universalistic cultures share the belief that general rules, codes, values, and standards take precedence over particular needs and claims of friends and relations. In such a society, the rules apply equally to the whole “universe” of members. Any exception weakens the rule. For example, the rule that you should bear truthful witness in a court of law, or give an honest account of an accident to an insurance company before it pays out, is more important here than particular ties of friendship or family obligations. This does not mean that, in universalistic cultures, particular ties are completely unimportant. But the universal truth –that is, the law – is considered logically more significant than these relationships. The United States is a notable example of a universalistic culture, which explains the high number of lawyers per head of population. Conversely, particularistic cultures see the ideal culture in terms of human friendship, extraordinary achievements and situations, and in a network of intimate relationships. The “spirit of the law” is deemed more important than the “letter of the law”. Obviously, there are rules and laws in particularistic cultures, but these merely codify how people relate to each other. Rules are needed, if only so that people can make exceptions to them for particular cases, but generally individuals need to be able to count on the support of their friends. South America and parts of Africa are examples of cultures where, typically, relationships between friends and family members are deemed more important than the letter of the law. 310 CCBS TXTBK Individualistic versus Communitarian In predominantly individualistic cultures, people place the individual before the community. The pace is set by individual happiness, welfare, and fulfilment. People are expected to decide matters largely on their own, and to take care primarily of themselves and their immediate family. The quality of life for all members of society is seen as directly dependent on opportunities for individual freedom and development. The community is judged by the extent to which it serves the interest of individual members. The United Kingdom and, to a greater extent, the United States, are examples of cultures that encourage the individual. Pay and performance systems in organizations are often based on this. At the other end of the continuum, a predominantly communitarian culture places the community before the individual. It is the responsibility of the individual to act in ways that serve society. By doing so, individual needs will be taken care of naturally. The quality of life for the individual is seen as directly dependent on the degree to which he or she takes care of fellow members, even at the cost of individual freedom. People are judged by the extent to which they serve the interest of the community. For example, in both China and Japan, working in a team and contributing to the group or society have a higher priority than individual performance. Specific versus diffuse People from specific cultures start with the elements, the specifics. First they analyse them separately, and then they put them back together again. In specific cultures, the whole is the sum of its parts. Each person’s life is divided into many components: as a newcomer, you can enter only one component at a time. Interactions between people are highly purposeful and well defined. The public part of specific individuals’ make-up is much larger than their private space. People are easily accepted into the public area, but it is very difficult to get into the private space, since each area in which two people encounter each other is considered separate from the other, a specific case. Individuals within a culture that is specifically oriented tend to concentrate on hard facts, standards, measures, contracts. In specific cultures (such as the United States or Australia) business can be done without individuals having to form a relationship first. People from cultures that are diffusely oriented start with the whole and see 311 Cross-Cultural Business Skills minor each element in perspective to the total. All elements are related to each other. These relationships are more important than each separate element; so the whole is more than just the sum of its elements. Diffuse individuals have a large private space and a small public one. Newcomers are not easily accepted into either. But once they have been accepted, they are admitted into all layers of the individual’s life. A friend is a friend in all respects: at work, in sports, in domestic life, and so on. The various roles that someone might play in your life are not separated. Diffuse cultures cherish such qualities as style, demeanour, empathy, trust, and understanding. In diffuse cultures such as in the Gulf countries, you have to develop a relationship first before you can do business. A high level of involvement is required as a precursor. Affective versus neutral In an affective culture, people do not object to a display of emotions. It is not considered necessary to hide moods and feelings and to keep them bottled up. Affective cultures may interpret the less explicit signals of a neutral culture as less important. They may be ignored or even go unnoticed. For example, Italian and French cultures display their emotions – expressed, some would say, particularly in flamboyant driving! But this cultural bias is also revealed in their beautiful car designs and haute couture. In a neutral culture, people are taught that it is incorrect to show one’s feelings overtly. This does not mean they do not have feelings; it just means that the degree to which feelings may show is limited. They accept and are aware of feelings, but are in control of them. Neutral cultures may think the louder signals of an affective culture too excited, and over-emotional. In neutral cultures, showing too much emotion may erode your power to interest people. For example, it may be difficult to tell what business partners in Japan are thinking, as they are likely to exhibit little body language. 312 CCBS TXTBK Achieved versus ascribed Achieved status is a reflection of what an individual does and has accomplished. In cultures that are achievement-oriented, individuals derive their status from what they have accomplished. An individual with achieved status has to prove what he or she is worth over and over again: status is accorded and maintained on the basis of his or her actions. The Dutch culture is a good example of one that encourages people to achieve results, while family background is less important. It is what the individual does that is significant. Ascribed status is a reflection of what an individual is and how others relate to his or her position in the community, in society as a whole, or in an organization. In an ascriptive culture, people derive their status from birth, age, gender, or wealth. People with ascribed status do not have to achieve results to retain status: it is accorded to them on the basis of their being. In the Middle East and Far East, for example, who you are has to be taken very much into consideration. 313 Cross-Cultural Business Skills minor Sequential versus synchronic Every culture has developed its own response to time. The time-orientation dimension has two aspects: a culture’s approach to structuring time, and the relative importance it gives to the past, present, and future. Time can be structured in two ways. In the sequentialist approach, time moves forward, second by second, minute by minute, hour by hour, in a straight line. In the synchronistic approach, time moves round in cycles: of minutes, hours, days, weeks, months, and years. People structuring time sequentially tend to do one thing at a time. They view time as a narrow line of distinct, consecutive segments. Sequential people view time as tangible and divisible. They strongly prefer planning and keeping to plans once they have been made, rather than extemporizing and adapting. Time commitments are taken seriously, and staying on schedule is a must. Sequential cultures include Canada, Australia, and Switzerland. 314 CCBS TXTBK Conversely, people structuring time synchronically usually do several things at a time. To them, time is a wide ribbon, allowing many things to take place simultaneously. Time is intangible and flexible. Time commitments are desirable rather than absolute. Plans are easily changed. Synchronic people especially value the satisfactory completion of interactions with others. Promptness depends on the type of relationship. The whole philosophy of ‘Just in Time’ management derived from the highly synchronic Japanese. Past-oriented cultures If a culture is predominantly oriented towards the past, the future is seen as a repetition of past experiences. Respect for ancestors and collective historical experiences are characteristic of a past oriented culture. Present-oriented cultures A culture that is predominantly oriented towards the present will not attach much value to common past experiences, nor to future prospects. Rather, day- by-day experiences tend to direct people’s thinking and action. Future-oriented cultures In a future-oriented culture, most human activities are directed towards future prospects. Generally, the past is not considered to be vitally significant to a future state of affairs. Detailed planning constitutes a major activity in futureoriented cultures. Internally or externally controlled This dimension is concerned with relationships to nature. Every culture has developed an attitude towards the natural environment. Survival has meant acting with or against it. The way people relate to their environment – internalistically or externalistically – is linked to the way they seek to have control over their own lives and over their destiny. Internalistic people tend to have a mechanistic view of nature. They see nature as a complex machine, and machines can be controlled if you have the right expertise. Internalistic people do not believe in luck or predestination. They are “inner-directed”: one’s personal resolution is the starting point for every action. You can live the life you 315 Cross-Cultural Business Skills minor want to live if you take advantage of the opportunities. People can dominate nature, if they makes the effort. Many Israeli people, for example, are highly internally controlled. Externalistic people have a more organic view of nature. Mankind is one of nature’s forces, so should operate in harmony with the environment. Man should subjugate himself to nature and go along with its forces. Externalistic people do not believe that they can shape their own destiny. “Nature moves in mysterious ways”, and therefore you never know what will happen to you. The actions of externalistic people are “outer-directed”: adapted to external circumstances. Russians and Singaporeans are notably externally controlled. 316 CCBS TXTBK 70. Presentations in English Sander Schroevers Humour and jokes Anglophone speakers make more and easier use of humour than for example German or Scandinavian speakers. A French or Russian speaker will probably prefer not to make any jokes, as that damages the desired image. Finding the correct type of humour in your presentation is somewhat tricky, as humour doesn’t always travel well. In Asian countries, humour types like sarcasm, satire and parody aren’t always understood or appreciated. On the other hand, I remember all the serious warnings I got when lecturing in the Middle East or Far East, but much to my surprise I saw the whole crowd laughing out loud. It confirmed my believe that certain cultural differences seem to be getting smaller and smaller, despite all those that stay different. And isn’t that somehow less surprising, now that people are watching the same movies, wearing the same clothing brands and so forth? Listening habits The way you set up your presentation should take into account which audience you are addressing. Research shows that the way specific cultures listen (and watch) differs to a great extent. Just like cultures use speech in different ways, so do they listen alternatively. An example: Dutch, German, Swedes and Finnish business cultures put great emphasis on factual information and they know how to listen well to that. Spaniards, French or Italians according to their expectations prefer an imaginative talker, using eloquent phrases and knowing how to present oneself. They much rather hear things brought with flair or grandeur, than those dry facts or technical details. The same applies for the listening span, which can be relatively shorter. Being Dutch or Flemish, one is used to a very data orientated and linear build-up of presentations. Mind you that not every audience will react in the same way. The best solution is to be able to jump between the different units within your presentation. You should also know how 317 Cross-Cultural Business Skills minor to deal flexibly with interruptions or delays. In certain countries you will find yourself being photographed endlessly with members of the audience. That’s probably why the VIP-rooms usually can be found behind the stage. Nonverbal communication There exist international differences in the way people understand certain information. This may involve elements you don’t always think of, like certain gestures you are used to make, or the use of certain colours, images etcetera. For instance, in China red and yellow (or gold) bring luck and prosperity, but the same colours in Mexico can mean death. Chinese also really care about numbers: where in our culture financial amounts will end at comma 99, or comma 00, Chinese prefer the use of lucky numbers and will try to avoid the unlucky numbers. Take a look at the flight numbers when you book a seat for a Chinese destination, know how certain floors in buildings never seem to be on the elevator buttons, and so forth. Another unexpected element of talking abroad is the gestures you use. My worst own experience concerns two gestures: the OK- sign (thumb up) and the perfect-sign (thumb to forefinger, making a circle). Because they can mean the most horrible things in other cultures. May I here refer to the chapter called: ‘Gestures the world at hand’ further in this book? It is funny to read… When doing business with someone from a different cultural background, it is worth preparing this often overlooked element of communication. Then of course there may be religious influences as well, certain animals aren’t liked, or on the contrary liked more than we expected. I remember at an international conference that I wasn’t allowed to show certain images, because these showed too much woman’s skin (the upper arm in fact). Things you actually know, but simply forget since you are perhaps too used to it. In short, when presenting abroad, it is worth to critically go through your slides, based on the points mentioned above. 318 CCBS TXTBK 71. Getting acquainted globally Sander Schroevers, Ian Lewis The way people are welcomed, can influence the atmosphere substantially, as is illustrated in the following example; Delegates from Bangalore, India and Shenzhen, China arrive at the airport, and are unpleasantly surprised by the fact that they weren’t welcomed personally, but only received detailed (perfectly) written information. Such misunderstandings can influence the atmosphere negatively. Also, first impressions are important. Research shows that during the first seconds of meeting individuals interpret the other person’s character, mood, and even manner in how they are going to negotiate. We therefore need to give some thought as to how best present ourselves. This is also relevant when you have met the person or persons previously. The way you greet someone is a form of respect. Each culture has developed its own norms of greeting. Some are better than others at learning about another’s greeting norms and being prepared for them. In most cultures of the world, seniority and hierarchy are important in whom to greet first. Handshakes Any face-to-face contact requires some handling. The English verb to handle is related to the word hand, and in most countries a handshake is the preferred way of greeting. In some countries a handshake is not acceptable, particularly between male and female, and in others, a bow is more appropriate. Handshakes with Iranian women aren’t appreciated, whereas a lady from the Saudi delegation, for example, might shake your hand. Additionally, there are subtle differences in how long a hand-shake should last. These may be mere seconds, as between European countries, but can last much longer further afield. A short handshake in some cultures means you’re not to be trusted. 319 Cross-Cultural Business Skills minor Welcoming words In addition to a handshake, some welcoming words need to be said. Please note that the question ‘How do you do?’ is best answered with ‘How do you do?’ or ‘I’m fine, thank you. How are you?’ A commonly made mistake by non-English speakers is to take such phrases seriously and reply in detail. After having the greeting, and welcoming words in place, how do we best introduce ourselves? Names and titles The easiest approach throughout the world when introducing yourself in English is to use your first name (or the name you generally use as your first name) and surname: “I’m John Smith, pleased to meet you.” Listen to how the other party introduces itself. For example, in Britain, Ireland, the US and Australia they may only give you their first name: “Hi, I’m John, glad you could join us today.” Some professions may continue to prefer the more formal surname: “Good afternoon, I’m Mr. Smith, partner solicitor in this firm.” Certain professions such as doctors or professors continue to use their title: “Hello, I’m Dr. Riana Van den Bergh, from the part-time department.” If you have received correspondence in advance, letters or emails, they may give a clue as to how they would like to be addressed. Job positions Stating your job position in the company differs from country to country. For example, in the UK, people may be shy about indicating their job title. John’s title is General Manager of Sales Department but he is more likely to introduce himself as: “I’m John from Hounslow Engineering.” In the US, job titles are very important so they will usually specify: “I’m Joe, vice president of Sales, Houston Engineering.” In China or Japan people may give you their company name, followed by department, job title and finally their name.  I’m from Donghua Daxui, the International Department.  I’m the vice Dean, and my name is Frances Liu.  I’m the exclusive representative for….  I’m one of the many local sales teams. 320 CCBS TXTBK Business cards A lot has been written on how to receive a business card. For example, that it is important to study them respectfully instead of simply sticking someone’s card into your pocket, or that in Asian cultures, people give and receive cards with both hands. Very little, however, has been written on what information is written on cards and their actual appearance. In a country like South Korea someone’s job description is considered very important, or in France people may add extra information. In many cultures a card is simply something practical, containing contact information, but there are also cultures where much more attention is given to the quality of the material or the printing technique. It is logical that when visiting such countries, you want to pay some attention to such details. Finally, it is advisable to have your business card translated on the reverse of your card in cultures where English is less commonly spoken. For example, if travelling to South Korea, have a Korean translation on the reverse. It is advisable to have your business card translated into English on the reverse when travelling to English-speaking countries, unless it is clear. Being confronted with a business card in another language makes many English speakers uneasy. Take enough time to have the translations and proofs double-checked by native speakers from the target country itself. Too many companies have made silly bloopers without knowing it. Addressing others For many English-speaking cultures, first names have become the usual way of introduction. It feels very formal and pompous to give your full name such as Mr. Smith unless in a specific job such as Dr. Smith. Thus, when doing business with Americans, Australians, New Zealanders, Canadians, British, South Africans or Irish, it may surprise you, how quickly they can switch to using first names. Many East Asian countries (China, Japan, South Korea) reverse the order so the surname comes first. This is a difficult hurdle for any cultural group to overcome, so we tend to find ourselves being called Mr Stefan instead of Mr Aust and we refer to them as Mr Jintao instead of Mr Hu. East Asians prefer to be more formal initially, particularly when older people are concerned. They are uncomfortable using first names and also nicknames. 321 Cross-Cultural Business Skills minor ‘You can say you to me’ People from cultures that use family names in combination with Mr and Mrs, may feel a bit uneasy. Nevertheless, it is important to think about the social consequences of not being on first-name terms with people. It may seem too distant or even unfriendly. Therefore, simply follow the approach of your conversation partner. The cultures known to have larger scores on status orientation, have a preference of using a person’s title also when addressing them. It may be better in such situations to say: “Thank you vice president Lee”, instead of “Thank you Mr. Lee”. Nicknames Many Americans or other English-speaking people commonly use nicknames in their business contacts. The English language often shortens first names. Examples of common nicknames are: Harry for Harold, Tony for Anthony, Bob for Robert, Gene for Eugene, Jack for John, Bill for William, Frank for Francis and Ted for Edward. To address business partners with their full first name could look somewhat strange. Some people will even mention their nickname on their business card (in quotation marks), for example: Robert ‘Chip’ Loeffler. Their first name will naturally appear in full on most judicial documents. It is not uncommon for people to be known by another name other than their first in the British Isles. For example, Francis Gordon Lacey is known to everyone as Gordon except on official documents. Socialising and small talk For the majority of cultures, socialising in the work environment plays an important, sometimes vital role. Getting to know the person you are doing business with is as important as the actual business itself. In most of the Arab cultures it is practically impossible to do business without knowing the person very well. Leaving room for getting to know people is an important element in any negotiation. Small talk is used both to get to know other people, as well as help put people at ease. Some cultures place more emphasis on this than others, but it’s important at all times. Always begin with small talk even if late for a meeting. Never begin with business. If you arrive in the middle of a meeting, apologise even if it’s not your fault for being late before you make your business 322 CCBS TXTBK points. If you start immediately with business, you are in danger of being thought of as anything between nervous to rude to downright dangerous. Small-talk items What is discussed during small talk is generally not business-related. This comes naturally to many people, but can be an issue for others. Items such as the weather, your journey to the meeting and sports are often the only topics mentioned, as they are usually non-controversial. Americans are happy to talk about their families in detail but other English-speaking cultures tend to keep family private. Talking about family is vital to cultures that need to build a relationship, such as certain Asian, Middle Eastern, African and South American countries as they need to have an overview of your family and your role in the family group. However, you do not have to go into great detail. Politics, cultural differences, sex and religion are best avoided unless you already know they can be discussed. If these come up at any time during negotiations then it’s best to be curious and open, rather than state opinions. Health is a subject most English- speaking cultures talk freely about. It is important to show sympathy with any illnesses mentioned, even if you may think they’re purely psychological. ‘Let’s get down to business’ is a signal many use as the reference moment when enough small talk has taken place. It is best to try to feel the atmosphere before proceeding too quickly. You want to avoid making the other side feel uncomfortable. How it works Small talk is used in English speaking cultures to influence conversations in a positive way. Small talk is functional to introduce or end a conversation with a few phrases about friendly and risk-free topics. It helps to create a polite and friendly atmosphere. Try to use open questions (see section on Asking questions). It is also possible to answer a question with another question if you don’t want to respond to the question asked. 323 Cross-Cultural Business Skills minor 72. What is Culture Shock? Leonel Brug Introduction Culture, as we have seen, comes in layers. It hits you first on the explicit level, where culture elicits itself through its products and artefacts. Once you hit this level a variety of reactions might be evolved in you. These reactions might be referred to as culture-shock. And culture shock comes in layers too. Research by Leonel Brug and Clyde Sargeant have elicited that the disruption of emotional and psychological stability is only partly due to the most superficial, explicit layer of culture. The fact that one is irritated by the lack of sugar lumps in New York or the mixing of salt and washing powder in Nigeria. The irritation is just so much larger than at home because it raises general feelings of anxiety so normal in less predictable environments. This anxiety is very much more the result of the fact that one experiences different rules of behaviour (norms) and different values attached to those. And finally the most severe and profound hits caused by culture shock are produced by the challenge of your own basic assumptions about relationships, time and nature. Culture shock comes in stages: Clyde Sargeant distinguishes different patterns in the psychological stability of a person over a certain period of time. The "Honeymoon phase" First of all there is the honey moon-phase. It is the psychological feeling of excitement - a high feeling or kick - once one prepares for and enters into a new cultural environment. However, it is like with most of our honey moons, it is exciting but short. The newness of the environment is in most cases stimulating. It is like being on vacation. You feel the sun burning like in Spain or Mexico. The food is appealing because it departs from gravy, potatoes and the famous other national dishes like hamburger, the split-pie soup and the fish and chips. What a delight to have the real chicken curry and the genuine Chinese chopsticks, rather than our Western version of it. And what about the architecture, isn't it beautiful 324 CCBS TXTBK over here? Yes, but it's nothing compared with the airconditioning over here. At home we rather melt in the few days of summer we have than to spend some dollars on keeping the temperature down a little. And the kids love the beach. We will have an enjoyable time over here. Indeed, most of the expatriate families are very excited and enthusiastic in the first three months. It's like vacation. And the people are ok and much more hospitable than at home. Again, it is honey moon time, so be prepared for the dip. The "Sauerkraut stage" After some 3 to 6 months (average) the first signs of irritaton show. The manager, like in any new job, gets the first serious problems at work, which couldn't be blamed on the fact that he or she was new in the job. So you blame it on the locals and their culture. And at home things are not exactly as they should go. Cissy, we already had such problems in finding good schooling for her, is not doing well in class. Obviously, because the teachers there don't speak proper English. And my spouse is having great trouble in fixing the elevator of our condominium. And the locals are blamed for it, regardless of why and what happened. Leonel Brug told us a wonderful story when he was taking a tour in Brazil, finding some German expatriates. They were clearly in their dip-period. When he saw the deserted Amazon jungles the German said: "Jee, you see these Brazilians don't know to earn their own money. If they would build a resort with a swimming pool here they would attract a lot of foreign currency". Not more than half an hour later we passed by an amusement park, in the middle of the jungle. The same German commented directly about the lack of taste of the Brazilian mind: "How can they build such an awful park here. For some foreign money they destroy beautiful nature." He was clearly in culture-shock. You are not logical and rational if you're in shock. Regardless of what your host does, it's not good. And it is confirmed by the family. 325 Cross-Cultural Business Skills minor How to recognize culture shock Recognition of the symptoms of psychological disequilibrium in culture shock is not easy. You're living in your own logic and the people around you confirm your feeling. However, in this second stage there are some clues of recognition. The behaviour of your family Since the expatriate manager is often coming into a familiar company and business, those who suffer earliest of culture shock is spouse and children. If we analyse the traditional role of the spouse we see that she (and sometimes he) has most genuine contacts with the locals. Irritations are most likely occurring with daily activities of the spouse such as shopping, repair management, etc. A first sign you should be aware of that in case your partner or children behave oddly it might be the result of the second stage of culture shock. In the extreme case the partner asks frequently to go home for whatever reason you can imagine. Moreover, spouses need to take more responsibility over the care of children; one of the most painstaking tasks when you are abroad. Their educational, health and language problems first hit the spouse. And reaction of these shock stimuli are getting on the back of the home-coming expatriate manager. The latter has enough problems in the new job, so very frequently little understanding is given to these mundane problems of the large family; in a period where they need it most. Another symptom is the expatriate partner's urge for closing him or herself off from local activities. The joining of other expatriate spouses is ok as long as it is not overdone in frequency as a sign of complete ignorance of the local environment. Second the reason for joining need not be negative, such as a great opportunity to discuss the latest sick jokes about the local over a deep glass of alcohol. Physical signs within the expatriate family Culture shock reveals itself in the most serious cases by physical reactions. Some of these reactions look very much like the symptoms of stress: eruptions of the skin, a faraway stare, lack of appetite, severe depressive moods, and finally an ache at both lungs and liver to obvious reasons. Talking is about home rather than about their actual life at present. 326 CCBS TXTBK Reactions within the expatriate manager The expatriate manager clearly recognizes culture shock by some of his or her own behaviour. Fast irritations about little things at work, which are blamed on the locals. They will be seen as undereducated, stupid and obviously in need of your expertise and excellent management competences. You will frequently think of your former jobs which went so well and where the sky was always blue. Now, it has all been polluted by these damned locals. And you will tell yourself that a good move of their part (if recognized at all) was just good luck. Once home at night and in the week-ends the genuine symptoms of the second stage of culture shock hits you when you start to frequently (i.e. every day) join the local country-club where expatriates join. That's ok as long as it doesn't become your haven of joining with three most intimate friends, Johnny, Al and Benny. Johnny Walker keeps you from reality, Al Cohol keeps you sharp for the sick jokes about the locals by Benny Hill. These three partners take your hand to lead you through your experiences in culture-shock and they are the only ones who really understand your feelings. A second symptom of culture-shock is the idealization of everything at home. That's one of the reasons why Brug calls the second stage of culture shock the "sauerkraut stage". Sauerkraut is one of the national dishes of the Germans and the Alsace in France. You eat it during winter-time and infrequently. Compare it with Fish and Chips for the British, "Dropjes" (licorice) and raw herring for the Dutch and Cheese cake for the Americans. These dishes you really start missing when you're gone. And once you get these postcard pictures in your mind of food a climate at home, start to be careful. The amount of food cannot be eaten without stomach ache (and you ate it less than you might have thought). The snow in the Centre of Amsterdam was not as white as you might have thought, and rain gets boring after two days. In the last chapter on reversed culture shock we will come back to this phenomenon. This sauerkraut stage, however, is a very normal one to go through as an expatriate manager. It is just an introduction to the third stage of culture shock "the recovery stage". 327 Cross-Cultural Business Skills minor The recovery stage of culture shock Severe highs and lows in the first six months of your stay abroad are very normal for any expatriate family. The crucial moment, where different types of personalities do take different journeys is at the end of the "Sauerkraut" stage. Here the alternatives are wide open. Empirical research shows that just 5% of all expatriates follow the D-route. This is one of the worst of all cases where the locals are despised, your work is getting impossible, your family is ready to leave. And you join them. The D-route is indicating the route where you psychologically die and return home. It is the most expensive route because it happens after generally 6 months. Never forget the extreme cases. It is known that some people take as the honey-moon the glass of whiskey on the plane, followed by the sauerkraut stage when landing, and returning home on the same plane once the initial impressions of the airport are so shocking that nobody who wasn't insane could stay there. Other people take 3 years before they realize they die psychologically. Returning home is the expensive but only way out. The alternative is to close off from the world completely turning expatriate managers into loners, especially once the family has chosen to quit. A more common road to take is the C-route. About 15% of all expatriates take this journey. This is the most painstaking route for the expatriate manager and his or her family. Financing this route seems less expensive for the company. True, but if you add all non-financial costs up the C-route is the most painstaking. First of all the expatriate manager doesn't perform well in this continuous state of alienation of local society. Relationships within the organization and in larger society are ill. The locals are blamed. They need to develop and being educated. In other words, the locals are so far from the expatriate set of basic assumptions about life that it results in irreversible alienation. The expatriate manager and family look for people in similar positions and with similar attitudes. You share bad views about the situation with them and Al, Nico and Benny. It all becomes a self-fulfilling prophecy. The job, obviously, is performed poorly in most cases. Fortunately 40% get into the B-route. They perform their job adequately and think frequently at the end of their foreign assignment. 328 CCBS TXTBK They do survive but great fun is at home. They, however, only hit the home- sickness syndrome (so continuous as a feeling for the C-expatriates) at the special moments at home, such as Christmas, birthday parties, etc. The final 40% is reserved for those who really learn from their expatriate experience. They grow into the effective manager-they are used to be elsewhere. They perform even better, because they have integrated their feeling of respect for the variety expatriate life is offering in. The expatriate family, very often is very happy in their situation and feel sorry when their next assignment is forthcoming. They have grown as personalities and the local environment frequently appreciates the family as much as the manager. How to cope with culture shock Half of the coping with culture shock is in its preparation for it. In our workshops we have seen that half an hour introduction into what is culture shock, how to recognize it and to deal with it makes the difference. People recognize themselves as being in a certain situation which could be described as culture- shock. Especially in the Sauerkraut stage the steep descent into a depressive and homesick feeling can be somewhat smoothened. Furthermore, it seems that if you recognize the emotions half of the possible damage can be psychologically shared. And you know better times are coming. Everybody goes through it, anyway. A second way of dealing with culture shock is to take it by the roots and prepare you in more detail about the society you are going to. Very important it is to involve the larger family with the preparation. It need not be limited by the technical details of the society like governmental issues, health and education systems within that society. Obviously, the technical details are of importance, but the context in which these technical details of the political, social, economic, health, and financial environment need to be discussed too in the preparation. Culture, as the contextual environment, enclosing the transactional environment need to be discussed otherwise it all makes little sense. We frequently get postcards from people after half a year of their stay thanking us for the details we have given them about the society they were going to in general and culture shock in particular. 329 Cross-Cultural Business Skills minor Prepare at the top what you need at the bottom The preparation for the negative aspects of culture shock need to be done in the early stages i.e. in the "honeymoon-phase" or before. This is quite obvious because once one is hit by the "Sauerkraut" phase or beyond preparing for it is difficult if not impossible. The environment is taken in such a negative way that the courage and stimulus lacks for taking countermeasures. If, however, one is in the middle of the "honeymoon phase" the looking around for your favourite tennis- or golf-club, to discover your natural surroundings or to make an appointment with your music teacher is much more effective. Even in case you do not use these facilities immediately, they are of use once you feel down in the second stage of culture shock. You need to prepare yourself and your family when you don't really need it in order to be prepared once you do. Take your "teddy bear" with you Another piece of advice for preparing for culture shock is to not forget to take your materials with you which are most probably not very available in the society you're going to. So in case you have scuba-diving as a hobby, take it with you once you're going to a society with lakes or sees. Or don't forget to take your violin if you're fond of playing it. In the beginning this might not seem reasonable, but once you're sliding into the "Sauerkraut" phase you will need it. Ask the hosts A very frequently asked question deals with how to find out in detail about the peculiarities of a society. You cannot prepare for all details, regardless of how important they are. And how to recognize if you're dealing with a personality trait or with a genuine cultural characteristic. The best way of getting inside information is to ask local hosts. Preferably you need to ask local people you have known for some time and that you might trust as a friend. They will be delighted to give you information about the local society, if you don't ask things in a too judgmental way: "Can you tell me how this stupid behaviour in your society can be explained?" How would you feel if people ask about your society? Great, isn't it? However, be aware of the fact that very many aspects of cultural society are things taken for granted. People might not know the answer because it is so normal. 330 CCBS TXTBK 73. Cross-Cultural Bites Sander Schroevers Entrée Imagine a dinner party comprising invitees from the following countries: Argentina, Costa Rica, India, Israel, Italy, Mexico, Peru, South Korea, Spain, Turkey, United Arab Emirates, and the United States. This would certainly be challenging for even the most seasoned of cooks. This would especially be the case if the guests from the Emirates, Israel and India strictly adhered to their respective religions, as Muslims and Jews cannot eat pork meat while the latter are not allowed to eat beef. There is further uncertainty over which beverage(s) to have with dinner? Indeed, even if the majority of the guests could come to a consensus over which to serve, those from certain countries may have strong feelings about the oenological options on offer. Consequently, all of the cultural groups represented at the dinner will most likely have to make some kind of concession. For example: strict Muslims might end up being seated next to women, while the Koreans may have to eat without chopsticks for the night. Moreover, the starting time might be somewhat later than some are used to, which, in turn, might lead the Americans in the room to experience hunger pangs. This example serves to illustrate the extent to which one’s cultural background can impact upon something as straightforward as dinner. Ultimately though, food is important for everyone, not merely as a means through which to nourish oneself, but above all as something to be enjoyed! Despite the fact that in the international business world, deals are often brokered and agreed upon over dinner in restaurants, very little has been written on this topic. Consequently, one way to think of this chapter is as a nice entrée into learning more about this topic. Codes for behaviour The value that different cultures place upon eating can differ substantially. It is commonly said that the Dutch eat to live, while the French live to eat. While this 331 Cross-Cultural Business Skills minor is perhaps an over-simplification, it is undeniable that the amount of plastic sandwich bags or lunch boxes lying around computers in the Netherlands, is incomparable to the luncheon diaspora in any Parisian office quarter. Recent work from German researchers has shown that the average time office workers spend on lunch is approximately 30 minutes. Besides eating, this includes going to the company cafeteria, waiting in line at the counter and finally paying. The situation in Scandinavia is similar. It is interesting just how different this is from the social importance that the French, Spaniards, Portuguese, or Greeks attach to the midday meal, which generally lasts from one to two hours, and may include some wine, a dessert and small coffee at the end. From a more general perspective, as children growing up in a particular society, we are all taught and socialised into a code of behaviour. We more or less come to know what is right and wrong, respectable, and disreputable, in short: we are instructed regarding the taboos that our particular culture imposes. As with so many other localisms, there also cross-country differences in dining etiquette. Who among us has not felt uneasy when we entered a Belgian, French, or Japanese setting for the first time? I know I certainly did when I was younger. New ‘rules’ suddenly applied that I simply was not aware of: the order that dishes arrived, knowledge of wines or a certain formality was needed. This can serve to make someone feel uneasy, which is not a good feeling when you are looking to conduct business or conclude a deal. The main problem in this regard is that a shared sense of international etiquette is lacking. That is to say, what is considered good manners in one country can be an absolute faux pas elsewhere. It is useful to cite an example from my own experience which I will never forget. I was involved in a panel discussion at a conference in Teheran, where a charming older professor from Vienna was giving a lecture. With his elegant three-piece suit and well-chosen anecdotes, there is no question that he would have been an absolute hit anywhere in Europe, and, indeed, the Persian audience also seemed to be enjoying his talk. Or at least they were until Herr Professor took out his handkerchief and blew his nose, in a fashion comparable to a short trumpet solo by Miles Davis. After this clamorous act, he then swiftly observed the result of his act in his handkerchief, all

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