IB7002-6, INTERNATIONAL BUSINESS
IB7002-6, INTERNATIONAL BUSINESS IB7002
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Popular in International Business
This 7 page Class Notes was uploaded by JC11 on Saturday April 9, 2016. The Class Notes belongs to IB7002 at Northcentral University taught by in Spring 2016. Since its upload, it has received 10 views. For similar materials see International Business in International Business at Northcentral University.
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Date Created: 04/09/16
NORTHCENTRAL UNIVERSITY ASSIGNMENT COVER SHEET Student: THIS FORM MUST BE COMPLETELY FILLED IN Follow these procedures: If requested by your instructor, please include an assignment cover sheet. This will become the first page of your assignment. In addition, your assignment header should include your last name, first initial, course code, dash, and assignment number. This should be left justified, with the page number right justified. For example: Save a copy of your assignments: You may need to resubmit an assignment at your instructor’s request. Make sure you save your files in accessible location. Academic integrity: All work submitted in each course must be your own original work. This includes all assignments, exams, term papers, and other projects required by your instructor. Knowingly submitting another person’s work as your own, without properly citing the source of the work, is considered plagiarism. This will result in an unsatisfactory grade for the work submitted or for the entire course. It may also result in academic dismissal from the University. IB70026 Isabel Wan, PhD International Business Assignment 6 Faculty Use Only <Faculty comments here> <Faculty Name> 2 Introduction Communication is a complex concept even when the language spoken is the same. As technology continues to drive globalization, the world becomes more connected. Businesses grow and expand into multinational corporations and the concept of communication is challenged. In the U.S. the primary method of communication is straight forward and direct, while in China, the method is considerably different. In China there is an art to communication. The Chinese are inherently quite shy, indirect, and utilize nonverbal communication to conduct business. The variation in communication creates a difficult and challenging business environment to function within. As individuals from the U.S. and China collaborate in business, each side will need to be aware of the other side’s perspective to avoid offending the opposing side. With an understanding of how the other side conducts business, negotiations have a higher potential of success. During this week’s assignment, the following will be reviewed and discussed: 1) communication during Chinese business negotiations, 2) managing conflict during Chinese business negotiations, and 3) examples. Communication and Chinese Business Negotiation Communication is one of the most neglected skills in the business arena. Managers and negotiators must use communication on a daily basis and to be effective both verbally and not verbally. To ensure communications are as effective, managers must focus on providing training for their employees. This training has to encompass much more than a broad concept of communication and include scenario specific training in order to acquire the best possible outcome (Conrad & Newberry, 2012). One of those specific types of training is business negotiation. 3 Business negotiations are defined as the back and forth communications which result in an outcome that is preferably winwin for each party (Payne, 2013). While negotiations allow for an agreed upon result in the end state, the communication methods that are utilized in the international environment are significantly different. Communication styles of Western and Chinese business negotiations are significantly different from one another. By taking some time to understand the difference between the forms of communication, an individual can gain an advantage in the board room. While the Western culture focuses on direct communication, fully stating intent and then later further discussing expectations, the Chinese culture is quite different. The Chinese culture focuses on the unwritten rules, body language, and reading between the lines. Throughout the course of a negotiation between Western and Chinese verbal and non verbal communications the personnel involved must work to understand the opposing side to attain a positive resolution. First off, verbal communication methods identified are high context or low context. In the U.S. the context is very low due to the direct nature of the wants and desires of the negotiator. China, on the other hand, requires a significant amount of context and body language to convey the same message. High context verbal communication styles incorporate indirect communication while low context incorporates direct communication. Voice intonation, timing, and facial expressions are all part of indirect and low context communications. Without the external context, one may never understand the true desires of the Chinese negotiator. In addition, as an international negotiator, an individual should do what can be done to not only learn the language but to understand the nuances of the culture. By doing so, 4 communications can become easier to decode without the help of another individual such as a translator. Being able to understand the hidden meanings behind the words takes skill and a thorough understanding of the language and culture (FernándezSouto, Gestal, & Pesqueira, 2015). Chinese Business Negotiations The first step to manage negotiations begins with understanding who will not only be at the meeting, but who will be negotiating and mediating the meeting. With this knowledge each party can create a strategic plan to understand the opposing side. By understanding the differences of elaborate and succinct styles behind the representatives from each country, the negotiators can understand how much talking will be included. Direct communication falls towards the side of the succinct style while elaborate falls towards the indirect communication style (Luthans & Doh, 2012). Once an understanding of the various communication styles is in place, the negotiator must understand how the business meeting will be conducted. When negotiating with the Chinese, there is a different pace and style that will in the initial meeting, the ground rules are set and the overall focus of the meetings defined going forward. An individual from the U.S. may find this as a waste of time and frustrating to understand. The perspective each party brings to the table will need to be adjusted to allow for a positive experience and a meeting of the minds. If the meeting of the minds falls short, conflict is likely to take place. In order to resolve or manage conflict, a negotiator can use one of five varying techniques utilized in order. The five techniques discussed by Luthans and Doh (2012) are as follows: 1) separate people from the 5 problem, 2) focus on interests, 3) identify options before agreeing, 4) agree that decisions must be based on objective criteria, and 5) stand your ground. Live Examples As a negotiation is conducted there are a number of nonverbal communication forms utilized. Each of these areas should be understood while conducting business with Chinese businesses: 1) hand gestures, intentional or unintentional (rubbing of hands), 2) facial expressions (smiles, frowns, and yawns), 3) posture/stance, 4) clothing and hair styles, 5) interpersonal distance, 6) eye contact and direction of gaze, 7) nonverbal symbols (lapel pins, walking sticks, and jewelry 9). Paralanguage, 9) symbolism of eating or drinking while talking, 10) Cosmetics and tattoos, 11) symbolism of time, and 12) Timing and pauses in verbal communications (Luthans & Doh, 2012). While each of these factors are important, it is also extremely important to understand how to incorporate compromise into the global business environment. Each party needs to take a step back and try to understand the views of the other side, as well as the nuances that go along with each side. It is very easy to offend someone from another culture with even the most unlikely offenses. Without an understanding of the other culture, a word, an action, or a statement may move the conversation from being productive to being destructive. By taking the extra time to research and study the culture, many offenses can be avoided (Logwood, 2013). A personal example I came across while in the Middle East is the use of chai, or a particular type of sweet tea. Chai consists of a small amount of tea and a large amount of sugar and was served in a special type of glass. This particular tea was served during any occasion 6 while business was being conducted and if it was not accepted, the gesture would be seen as rude and offensive. By refusing the drink, the locals may have found our business processes or our team members less than trustworthy. Another example that was discussed by (Luthans & Doh, 2012) is the use of the OK symbol by placing the thumb and forefinger together. Something as simple as this gesture can be construed by people in other countries much differently than people do in the U.S. In Japan, this same symbol is a sign for money. In France it means something is worthless, and in Brazil the symbol is regarded as obscene or vulgar. One can see how quickly nonverbal communication can go wrong with the use of simple, everyday nonverbal action, or gesture. Conclusion Overall, communication is one of the most vital concepts while conducting business. As communication is needed to form agreements and to move forward in business, one needs to recognize how other cultures differ from one another. As individuals conduct business internationally, the concept of communication takes on an entirely new set of challenges. These challenges include not only the limitations of speaking another language, but understanding the cultural nuances behind the language. Additional challenges include the concept of direct versus indirect communication, elaborative and succinct styles, and the importance of verbal versus nonverbal communication will factor into all interactions. To understand these concepts, the following areas were reviewed and discussed: 1) communication during Chinese business negotiations, 2) managing conflict during Chinese business negotiations, and 3) examples. 7 References Conrad, D., & Newberry, R. (2012). Identification and instruction of important business communication skills for graduate business education. Journal of Education for Business, 87(2), 112120. doi:10.1080/08832323.2011.576280 FernándezSouto, A. B., Gestal, M. V., & Pesqueira, A. B. (2015). Business and intercultural communication. Procedia Economics and Finance, 23(2nd global conference on business, economics, management, and tourism), 233237. doi:10.1016/S2212 5671(15)00338X Lockwood, J. (2013). International communication in a technology services call centre in India. World Englishes, 32(4), 536550. doi:10.1111/weng.12060 Luthans, F., & Doh, J. (2012). International Management: Culture, Strategy, and Behavior 8th New York, NY McGrawHill Irwin Payne, R. J. (2013). Global issues. New Jersey: Pearson Education, Inc.
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