IHRM_4_Session_2024 PDF

„International Human Resource Management“ Intercultural Communication, Collaboration, & Leadership Institute for Organization and Human Resource Management PD Dr. Thomas Köllen © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 1 Agenda Session 1: Introduction: IHRM & Cultu...

„International Human Resource Management“ Intercultural Communication, Collaboration, & Leadership Institute for Organization and Human Resource Management PD Dr. Thomas Köllen © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 1 Agenda Session 1: Introduction: IHRM & Culture (20.02.2024) Session 2: Globalization & Organization (05.03.2024) Session 3: IHRM: Personnel Selection and Development (19.03.2024) Session 4: Intercultural Communication, Collaboration, & Leadership (16.04.2024) Session 5: International Assignments (30.04.2024) Session 6: Diversity Management (14.05.2024) © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 2 Intercultural Communication, Leadership, and Collaboration Learning objectives Once you've worked your way through today‘s lecture, you should be able to explain what intercultural communication is taken to involve, how leadership can be approached in intercultural settings, what differences in leadership there are between cultures, how one negotiates effectively in intercultural contexts, © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 3 Introduction to Intercultural Communication 10 surprising ways to offend people in other countries https://www.youtube.com/watch?v=UTE0G9amZNk © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 4 Introduction to Intercultural Communication Definition Information is conveyed through communication. Communication involves: Information Emotions Ideas Opinions Stimulating advice What matters most is the receiver's impression of the message! „The normal case is misunderstanding.“ Paul Watzlawick © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 5 Introduction to Intercultural Communication Nonverbal and paraverbal communication Nonverbal signals are sent unconsciously and therefore cannot be continuously controlled. Paraverbal communication holds further possibilities for misunderstandings. Paraverbal signals include stress and intonation pauses laughter sighing etc. (cf. Gumperz, 1975) © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 6 Introduction to Intercultural Communication A simple model of the communication process Sender Encoding Channel Decoding Receiver : Message Communication is a process whereby a sender encodes a message by means of a certain code and sends it through a communication channel to the receiver, by whom the message is decoded and on whom it has a certain effect. (Blom & Meier, 2004: 73) (cf. Blom & Meier, 2004: 73) © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 7 Introduction to Intercultural Communication Basic model of intercultural communication communicator A communicator B thought affect encoding code A thought affect decoding code A translation to code B transmission transmission translation to code A decoding code B encoding code B thought affect responding content (Szalay 1981: 138) © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 8 Introduction to Intercultural Communication Definition "Intercultural communication is communication (i.e. varieties, channels, disturbances in communication) under conditions of cultural overlap, where cultural differences between participants exert significant influence on the communication process with regard to both the process itself and its outcomes." (Thomas, Kinast, & Schroll-Machl 2003: 101 f.) © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 9 Introduction to Intercultural Communication Categories of problems in intercultural communication Three categories of problems in intercultural communication are commonly distinguished: 1. Differences in "perception" 2. "Template thinking", stereotyping 3. Ethnocentric arrogance, "cultural myopia" © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 10 Intercultural Communication Basics Cultural influences on the communication process Culture 1: Sender’s normative belief about appropriate communication behaviour (e.g., belief in open and frank discussions; confrontation acceptable) Culturally compatible communication style (e.g., speak frankly and firmly; stay focused on task; push for quick response) Sender’s communication style (e.g., construct and convey direct message to receiver; expect direct and timely response) Other influences on communication process (e.g., past experiences with counterparts or others from same culture; knowledge of subject area; preparedness for cross-cultural communication; time constraints; amount of noise in system; mutual trust) Culture 2: Receiver’s normative beliefs about appropriate communication behaviour (e.g., reflect before speaking; avoid offending others) Culturally compatible communication style (e.g., speak subtly; consult with others before responding; avoid direct confrontation) Receiver’s response (e.g., ignore direct approach; evaluate message through cultural screens; delay responding; use non-verbal communication) (Steers, Sanchez-Runde, & Nardon, 2010) © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 11 Introduction to Intercultural Communication Culturally determined differences Culturally determined differences that have to be taken into account in intercultural communication concern: verbal communication (speech and writing) nonverbal and paraverbal communication directness content/rapport ratio expectations on communicative behaviour (cf. Herbrand, 2000: 58) © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 12 Intercultural Communication Basics Cultural logic in cross-cultural communication Initial message creation: Sender’s mental image of intended message Sender’s communication preferences: Content and form Sender’s assumptions of recipient’s knowledge and communication preferences Sender’s final message creation and transmission: Incorporating sender’s preferred message content and form as modified by his/her assumption of recipient Recipient’s communication preferences: Content and form Recipient’s assumptions of sender’s knowledge and communication preferences Message receipt: Recipient’s mental image and interpretation of received message Recipient’s response: Based on message Interpretation and learning, recipient becomes sender of a second message as the communication exchange continues Original sender to recipient Recipient becomes sender (Steers, Sanchez-Runde, & Nardon, 2010) © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 13 Intercultural Communication Basics The role of language Challenges facing non-native speakers Native Chinese Speaker Speaking English Native English Speaker Speaking English Thinks in English Speaks in English Understands subtleties of English Since messages are usually clearly understood, action implications are also clear. Thinks in Chinese; often must interpret incoming and outgoing messages. Speaks in English as a second language, often with limited vocabulary. Often lacks sensitivity to subtleties of English language conversations. Since messages are not always clearly understood, action implications can also be unclear. (Steers, Sanchez-Runde, & Nardon, 2010) © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 14 Intercultural Communication Basics High-, mid-range, and low context cultures High context cultures Subtle message content. Non-verbal (contextual) cues are often very important. Medium is often more important than message. Rank of receiver can affect medium and message. Example: Declining a request with vagueness or body language instead of with written or spoken words. Mid-range context cultures Both verbal and nonverbal communication is often used in tandem. Medium and message are both important. Most countries fall somewhere within this mid-range category. Example: Using body language along with reasonably clear, but not necessarily highly explicit, speech. Low context cultures Overt message content. Non-verbal cues often unimportant or ignored Message is typically more important than medium. Rank of message sender or recipient may affect message or medium. Example: Stating very explicitly, and frequently in writing, precisely what you want done or plan to accomplish. (Steers, Sanchez-Runde, & Nardon, 2010) © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 15 Intercultural Communication Basics Protocols governing appropriate formalities Formality protocols Alternative styles Examples People are typically more assertive in AngloSaxon countries. In Japan, people are expected to be more hesistant Opening a conversation Assertive vs. hesistant Ending a Conversation Sudden vs. elaborate Presenting ideas or proposals Sequencing vs. integration of information to be presented Interruptions and silence Wait one’s turn vs. interrupt to make a point; short vs. long periods of silence Vocal characteristics Rapid vs. slow; loud vs. soft People in North America normally leave after the main topic has been discussed. Spanish people are expected to talk about other things before departing. Many North Americans tend to communicate linearly, Asians prefer a more non-linear approach, following a circular pattern of conversation, many people from the Mediterranean tend to favor a zigzag approach. People in Italy say everything they want to everytime they can and it is not uncommon that people are talking at the same time. Northern European countries are more likely to wait. Conversations in Latin America tend to have very few lapses of silence. They feel uncomfortable by the silence. By contrast, silence periods are common in Japan. Indians tend to speak English twice as fast as Americans or Britons; Spaniards tend to speak significantly louder than the French or Belgians. (Steers, Sanchez-Runde, & Nardon, 2010) © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 16 Intercultural Communication Basics Protocols governing appropriate behaviors Behavioral protocols Apologies Disagreements Emotional displays Feedback Requests Alternative styles Acceptance of responsibility; facesaving for self or others, admission of guilt; empathy with others, social bonding. State one’s opposition; pursue best answer, humility Examples Apologies in Indonesia are used frequently to show empathy; apologies in western Europe are used to admit guilt and used sporadically. Disagreements in Japan are communicated with silence, in Spain through emotional outbursts and in Northern Europe more clearly, calmly and directly stated. Outward displays of emotions are accepted and sometimes encouraged in Brazil; control over one’s emotions is admired in Japan. Express positive or negative opinions; suggest new directions; motivate and build confidence; assertion of power, etc. Praise is a key motivational strategy in North America; praise and positive feedback are saved for extraordinary circumstances in Russia, otherwise may be interpreted as hollow and false; positive feedback in both France and Indonesia can sometimes be offensive in that it suggests that the supervisor was surprised that the employee did a good job. Seek help with task completion; ask a favour. In North America, requests are expected to be clear, direct, and precise or they may not be heard; in Brazil, requests are more likely to be made indirectly. Communicate feelings (Steers, Sanchez-Runde, & Nardon, 2010) © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 17 Intercultural Communication Basics Interdependent learning Concrete experience Concrete experience Reflect action Develop new theory action Reflect Develop new theory Patterns of individual learning Transfer of learning through interactions with others (Steers, Sanchez-Runde, & Nardon, 2010) © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 18 Intercultural Communication Basics Management challenge: communicating effectively across cultures Communication challenges: Language and logic differences Message content and context Communication protocols Technologymediated communication Communication enhancement strategies: Communication outcomes: Improved exchange of ideas Improved cooperation and job performance Avoidance of future misunderstandings Establish basis for future relationships Enhance message clarity Enhance message comprehension Minimize communication breakdowns (Steers, Sanchez-Runde, & Nardon, 2010) © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 19 Leadership Basics Definition Definitions in management literature "Leadership is the process of influencing other people to behave in preferred ways to accomplish organizational objectives." (Holt & Wigginton, 2002: 581) "Leadership is the social and target-oriented exertion of influence directed at the fulfilment of collective tasks in or by means of a structured work situation." (Wunderer 1995: 667) © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 20 Leadership Basics Managers In international corporate practice, it is usually company-specific criteria that are used to define managers, such as: Number and qualification of subordinates Non-pay-scale employment Decision-making authority Hierarchy level, etc. © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 21 Leadership Basics Leadership situations Typical intercultural leadership situations are e.g. Intercultural personnel deployment for an organisational unit Personnel selection/assessment for intercultural tasks Integration of employees in mixed-culture organisational units (team, department, branches) Analysis and control of intercultural communication in the manager's area of responsibility Mediation in culture-related conflict situations Assistance to foreign assignees on location Fostering of intercultural and international flexibility in foreign assignees Developing employees towards international/intercultural tasks that transcend organizational and national borders © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 22 Leadership Styles in Intercultural Contexts Framework conditions Leadership is always subject to the framework conditions like: corporate structure, corporate culture, personality of employees and superiors, various random determinants and influences (moderating factors). In intercultural contexts, the cultural determinants of the host country and mixedculture employee teams complicate the picture. © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 23 Leadership Styles in Intercultural Contexts Framework conditions More than 200 implicitly or explicitly culture-comparative studies have yielded the following insights: Direct questionings of managers reveal that the nationality factor determines only around 20 to 30% of leadership preferences ("participative" or "authoritarian"). Research by Hofstede (from about 1983 onwards) has shown that leadership behaviour in distinct cultures is mainly determined by two dimensions: „high vs. low power distance" and "individualism vs. collectivism". © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 24 Leadership Styles in Intercultural Contexts Groups of countries with varying motivational patterns and leadership preferences Example of a possible difficulty: The introduction of a participative leadership style in an authoritarian environment © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 25 Leadership Styles in Intercultural Contexts Ranking: „The best things about being a leader“ in Britain, France, and Germany (based on Barmeyer & Haupt, 2007: 12) 1= very important 10= least important © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 26 Intercultural Negotiation Definition Negotiation can be defined as: "[…] the process of communicating back and forth for the purpose of reaching a joint agreement about different needs or ideas." Negotiation comprises three elements: 1. The process 2. The negotiating parties 3. The final agreement or outcome of the negotiations © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 27 Intercultural Negotiation Some subtleties of negotiations in intercultural settings The size and composition of negotiation teams is strongly dependent on cultural determinants. In collectivistic cultures (e.g. Japan), teams are large, in individualistic societies (e.g. US) they are rather small In collectivistic societies, people and human relationships are of great importance. … Behavioural cultural intelligence (behavioural CQ) (Cf. Templer, 2010) © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 28 Intercultural Negotiation Cultural influences on the negotiation process Culture 1: Manager 1’s normative beliefs about uncertainty and social control (e.g., risk oriented; rule oriented) Culturally compatible negotiation style (e.g., win-lose approach to bargaining; buffer risk through legal contracts; contracts before relationships) Manager 1’s negotiation style (e.g., competitive negotiation; sequential bargaining; seek written contract; doctrine of fixed circumstances) Other influences on the negotiation process (e.g., previous experiences with prospective partners; preparedness for negotiation and bargaining; degree of mutual trust and mutual benefit; degree of competition; control over valued resources; personal and situational differences; realities on the ground) Culture 2: Manager 2’s normative beliefs about uncertainty and social control (e.g., risk averse; relationship oriented) Manager 2’s negotiation style (e.g., problem-solving negotiation; holistic bargaining; seek verbal contract; doctrine of changed circumstances) Culturally compatible negotiation style (e.g., win-win approach to bargaining; buffer risk through personal networks; relationships before contracts) (Steers, Sanchez-Runde, & Nardon, 2010) © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 29 Intercultural Negotiation Competitive and problem-solving bargaining strategies Stages in negotiation Competitive bargaining Problem-solving bargaining 1. Preparation Identify current economic and other benefits your firm seeks from the deal. Prepare to defend your firm’s position. Define the long-term strategic interests of your firm. Prepare to overcome cross-cultural barriers to defining mutual interest. 2. Relationship building Look for weaknesses in your opponent’s position. Learn about your opponent, but reveal as little as possible. Adapt to the other side’s culture. Separate the people involved in negotiation from the problems and goals that need to be solved. 3. Information exchange and first offer Provide as little information as possible to your opponent. Make your position explicit. Make a hard offer that is more favourable to your side than you realistically expect to receive. Give and demand to receive objective information that clarifies each party’s interests. Accept cultural differences in speed of response and type of information needs. Make firm but reasonable first offer. 4. Persuasion Use dirty tricks and pressure tactics where appropriate to win. Search for new creative options that benefit the interests of both parties. Begin with high initial demands. Make concession slowly and grudgingly. Search for mutually acceptable criteria for reaching accord. Accept cultural differences in starting position and in how and when concessions are made. Sign only if you win and then ensure that you sign an ironclad contract. Sign when the interests of your firm are met. Adapt to cultural differences in contracts where necessary. 5. Concessions 6. Agreement (Steers, Sanchez-Runde, & Nardon, 2010) © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 30 Intercultural Negotiation Sequential and holistic bargaining strategies Sequential bargaining: Both parties work through the contract proposal… (item 1) …item by item, gaining agreement on eacht item… (item2) …as the negotiations proceed. (item 3) Holistic bargaining: Both parties negotiate the entire contract as a whole, moving back and forth across items until they are fully satisfied with the entire document. (items 1-3) (Steers, Sanchez-Runde, & Nardon, 2010) © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 31 Intercultural Negotiation Contracts and the doctrine of changed circumstances Typical contract under the doctrine of fixed circumstances Typical contract under the doctrine of changed circumstances Personal relationships generally follow from contracts. Contracts generally follow from personal relationships. Contracts summarize specific details that will typically remain unchanged. Contracts summarize general details that may evolve or change. Long, detailed, legalistic. Short, less detailed, less legalistic. Contracts backed largely by courts and judicial system. Contracts backed largely by personal integrity and relationship of partners. Note: It is important to note that contracts using some form of doctrine of changed circumstances are far more prevalent around the world than typical and more legalistic «Western» contracts. (Steers, Sanchez-Runde, & Nardon, 2010) © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 32 Intercultural Negotiation Negotiation tactics in Japan, Brazil, and the US Negotiating tactics Number of times used in twenty-minute bargaining session Japanese managers Brazilian managers US managers Verbal negotiation tactics Offering rewards or incentives 1 2 2 Making promises 7 3 8 Making threats 4 2 4 Normative appeals to higher goals 1 0 1 Giving orders or commands 8 14 6 Interrupting opponent 13 29 10 Rejections (saying «no») 6 83 9 Silent periods 6 0 4 Facial glazing or staring into space 1 5 3 Touching opponent 0 5 0 Non-verbal negotiation tactics (Steers, Sanchez-Runde, & Nardon, 2010) © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 33 Intercultural Negotiation Negotiation tactics in Japan, Brazil, and the US Negotiating strategies Japanese firms Brazilian firms US firms Ultimate goal Long-term profitability, without personal benefit. Long-term mutually beneficial relationships. Short-term profitability, often with personal benefit for negotiator. Ideal negotiating climate Oblique and at times personal Impromptu; difficult to generalize Straightforward and impersonal Risk orientation Risk averse. Risk averse. Risk-oriented. Communication style High context; talks indirectly; seldom blunt; technical language. High context; talks indirectly; frequently emotional; frequently exaggerates. Low context; talks directly; frequently blunt; sometimes exaggerates. Emotional sensitivity Emotional sensitivity avoided Emotional sensitivity highly valued Emotional sensitivity avoided Basis of decisions Decisions usually made on cost-benefit basis for the long term. Decision often tied to emotional or family considerations. Decisions usually made on a costbenefit basis for the short term. Importance of face-saving Critical; embarrassing either party should be avoided. Critical; embarrassing either party should be avoided, if possible. Not critical; embarrassing opponent may lead to an advantage in negotiations. Dispute resolution Preference for conciliation and contract renegotiation over litigation. Preference for conciliation and contract renegotiation over litigation. Preference for contract language and litigation over conciliation for dispute resolution. Conflict Seldom argumentative and uncomfortable Argumentative but uncomfortable At times argumentative (Steers, Sanchez-Runde, & Nardon, 2010) © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 34 References Barmeyer, C. & Haupt, U. (2007). Die dritte Kultur. In: Personal, vol. 59 2007, issue 9, pp. 12-15. Blom, H. & Meier, H. (2004). Interkulturelles Management: Interkulturelle Kommunikation, internationales Personalmanagement, DiversityAnsätze im Unternehmen, 2nd ed., Herne/Berlin 2004. Chua, R. YJ, Morris, M. W, & Mor, S.. (2012). "Collaborating across cultures: Cultural metacognition and affect-based trust in creative collaboration". Organizational Behavior and Human Decision Processes, 118, 116-131. Fatehi, K. (1996). International management: a cross-cultural and functional approach, London 1996. Gumperz, John J. (1975). Sprache, lokale Kultur und soziale Identität. Theoretische Beiträge und Fallstudien, Düsseldorf 1975. Steers, R. M., Sanchez-Runde, C. J., & Nardon, L. (2010). Management across cultures: Challenges and strategies: Cambridge University Press. Szalay, L. B. (1981). Intercultural Communication – a Process Model. In: International Journal of Intercultural Relations, vol. 5 1981, issue 2, pp. 133-146. Templer, K. J. (2010). Personal attributes of expatriate managers, subordinate ethnocentrism, and expatriate success: a host-country perspective. In: International Journal of Human Resource Management, vol. 21, no. 10, pp. 1754-1768 Thomas, A., Kinast, E., & Schroll-Machl, S. (Ed.) (2003). Handbuch Interkulturelle Kommunikation und Kooperation. Volume 1: Grundlagen und Praxisfelder, Göttingen 2003. van Woerkom, M. & de Reuver, R. S.M. (2009). Predicting excellent management performance in an intercultural context: a study of the influence of multicultural personality on transformational leadership and performance. In: International Journal of Human Resource Management, vol. 20, no. 10, pp. 2013-2029. © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 35 References Barmeyer, C. & Haupt, U. (2007). Die dritte Kultur. In: Personal, vol. 59 2007, issue 9, pp. 12-15. Blom, H. & Meier, H. (2004). Interkulturelles Management: Interkulturelle Kommunikation, internationales Personalmanagement, DiversityAnsätze im Unternehmen, 2nd ed., Herne/Berlin 2004. Chua, R. YJ, Morris, M. W, & Mor, S.. (2012). "Collaborating across cultures: Cultural metacognition and affect-based trust in creative collaboration". Organizational Behavior and Human Decision Processes, 118, 116-131. Fatehi, K. (1996). International management: a cross-cultural and functional approach, London 1996. Gumperz, John J. (1975). Sprache, lokale Kultur und soziale Identität. Theoretische Beiträge und Fallstudien, Düsseldorf 1975. Steers, R. M., Sanchez-Runde, C. J., & Nardon, L. (2010). Management across cultures: Challenges and strategies: Cambridge University Press. Szalay, L. B. (1981). Intercultural Communication – a Process Model. In: International Journal of Intercultural Relations, vol. 5 1981, issue 2, pp. 133-146. Templer, K. J. (2010). Personal attributes of expatriate managers, subordinate ethnocentrism, and expatriate success: a host-country perspective. In: International Journal of Human Resource Management, vol. 21, no. 10, pp. 1754-1768 Thomas, A., Kinast, E., & Schroll-Machl, S. (Ed.) (2003). Handbuch Interkulturelle Kommunikation und Kooperation. Volume 1: Grundlagen und Praxisfelder, Göttingen 2003. van Woerkom, M. & de Reuver, R. S.M. (2009). Predicting excellent management performance in an intercultural context: a study of the influence of multicultural personality on transformational leadership and performance. In: International Journal of Human Resource Management, vol. 20, no. 10, pp. 2013-2029. © IOP 2024 I PD Dr. Thomas Köllen I International Human Resource Management 36