Multicultural Management and Negotiation
www.globalsuccess.org
Dr. Farid Elashmawi, President
Originally published in Certified Management Digest.How would you start your sales presentation to Japanese, American, or Malaysian organizations? What should you do if you disagree with your German, Korean, or Thai supplier? These are examples of the questions I have faced during my multicultural communication and negotiation experiences over the last several years, and they are being asked more and more by others who interact across cultures.
As today's managers and executives expand their business activities beyond local markets, they must deal with culturally diverse employees, suppliers, and clients. Developing the cultural competency necessary to supplement one's technical and management skills is becoming essential for survival in the expanding global marketplace we are faced with today.
The Case of Bob Smith
Let's look at Bob Smith, an executive of a major US corporation. Throughout his childhood, Bob's family, friends, and teachers rewarded him for being direct, open, and self-reliant. These values were enforced by the socialization and education he received at American universities, and, since graduation, his bosses have reinforced these values as well. These values have been essential for Bob's survival in the tough American business world.
Now, Bob Smith has been appointed to handle his company's product line in Malaysia. He must make a presentation to and negotiate with Mohammed Ali, the manager of a top Malaysian import-export organization.
Mr. Ali, in turn, has been cultured since childhood-due to the influence of his parents, teachers, friends, co-workers, etc.-to value group harmony, family, relationships, and spirituality. Based on these values, he has succeeded in becoming a top executive in Malaysia. Because of the differences in cultural priorities between Bob and Ali, there exists the potential for cultural conflict and clash in their business dealings.
Recognizing Cultural Differences
The multicultural management training process begins with attaining both an awareness of cultural differences and an identification of one's own core values. Once a recognition of cultural differences has been achieved, a new dynamic that will enhance the social and business dealings between conflicting parties can be developed.
For example, during my first visit to Malaysia presenting my management training programs, I pointed to one of the participants with my index finger. I noticed that he was not happy with my gesture and wondered why. I later learned that it is more proper in Malaysia to use the right thumb when pointing to someone. As a result, I corrected my mistake and once again learned the value of non-verbal communication, which studies have shown constitutes 60% of our interactive messages.
Once when making a presentation to a Japanese group, I noticed that the manager had a smile on his face ten minutes into my talk. Because of my Egyptian background I thought his smile indicated that he liked what I was saying. I therefore talked with even more enthusiasm for the next sixty minutes as he continued to smile. At my office in California I was disappointed when I received a rejection rather than an acceptance of my offer to the Japanese company.
When I later researched the Japanese smile, I learned that it can indicate not only an appreciation of what you are saying or doing, but can also mean that one is sorry or embarrassed for you. Needless to say, I took this information into account the next time a Japanese smiled at me. My increased cultural awareness could only improve my business dealings.
Cultural Dimensions of Management and Negotiation
When negotiating across cultures one must be aware of the dimensions of culture, which include language, values, patterns of thinking, religion, artifacts, and time and space orientations. In essence, culture can be defined as the set of norms that a group of people at a certain time and certain place have agreed upon in order to facilitate a harmonious and prosperous coexistence.
All of us fall into sub-cultural groups that reward and punish us for certain types of behavior. These groups may be made up of people from our families, work environments, cities, neighborhoods, countries, and social settings such as clubs and organizations. In my case, I am Egyptian, Arab, engineer, sportsman, father, businessman, and consultant. These subcultures have influenced and shaped my life.
Dealing with Malaysian organizations, for example, I have learned that the value of maintaining relationships and group harmony would be shown by their indirect refusal of an offer. Americans would respond, on the other hand, with a blunt "no." I have also learned that in order to get things done with most Malaysians, you must remind the person in charge at least three times before he or she will respond. An American would probably take the reminder as an insult and would completely shut you out from future dealings.
The successful global manager must adapt to the values of other cultures while at the same time maintaining his or her own set of values. The successful manager must resemble a tree that has strong roots and branches but flexible leaves that can adapt to the sunny, stormy, and windy external environment.
Working with American Managers
Working well with American managers can also be difficult. Ken Chen, a Singaporean Chinese with a Ph.D. in computer science from Stanford University, has worked for Surge Semiconductor in California's Silicon Valley for just over a year. Mr. Russell, his boss, has decided to review his first year's performance.
"Well," the boss says, "I must say that we've been quite happy with your work. Your input on the Phase Two project really opened some doors for us. We have no complaints about your work." Ken thanks Mr. Russell and says that his year with Surge has been very rewarding. Mr. Russell then says, "Well, tell me, Ken, where do you want to be one year from now. Let me know what your plans and ambitions are while working for Surge."
Embarrassed, Ken blushes and smiles sheepishly. He declines to give Mr. Russell any idea of how he would like to move up within the ranks of Surge Semiconductor. Within a week he decides to quit his job at Surge and look for another job.
Ken quit his enjoyable and promising job because he misunderstood his boss' inquiries. Mr. Russell offered Ken an opportunity to sell himself. He liked his work and wanted to learn about his long term goals with Surge Semiconductor. But Ken interpreted Mr. Russell's inquiries as a sign of abandonment. Because of his Chinese background, he expected his boss to be more of a patriarch who expresses his concern about his workers by directing them appropriately.
Ignorance of the American values of self-reliance and open communication cost Ken a great job. He may lose more jobs if he doesn't learn about the differences of American and Chinese cultures.
Cross-cultural Meetings and Presentations
Mr. Yamamoto, an electronics salesman from Japan, and his two assistants have traveled to San Francisco for one week to give a presentation to an American distributing firm. A deal with the American distributor could secure their company's share of the American market. The trip also offers Mr. Yamamoto and his assistants an opportunity to demonstrate their value to their company.
The presentation begins with a description of the Japanese company's product line. Mr. Yamamoto then outlines a strategy for marketing his products. Several of the American executives interrupt him immediately, voicing their concerns about the marketability of the products. Their discussion is not inflammatory, but candid and to the point. Unfamiliar with the direct style of the meeting, Mr. Yamamoto refrains from expressing his opinions to the American executives. To maintain harmony, he simply nods at their comments and tells one of his assistants to take notes.
Mr. Yamamoto intends to relay the Americans' concerns to his superiors when he returns to Tokyo. But the Americans do not receive any indication from him that he will do this. They want to receive direct, immediate feedback to their inquiries. At the end of the presentation, the Americans feel that Mr. Yamamoto has failed to provide this feedback, and they decide to search for another supplier. The Americans believe Mr. Yamamoto's silence indicated that he wasn't taking their concerns seriously.
Social Situations
Socializing with Americans can be another forum for cultural confusion. Raj Singh, a chemical engineer from India, was hired recently by an American firm in Texas. Bill Porter, a co-worker, knows that Raj is an outstanding tennis player, and invites him to his country club to play tennis on a Saturday afternoon.
They begin playing at one o'clock. Raj plays better than anyone Bill has played against in a long time. As both men enjoy each other's company, they don't finish playing until 5 p.m.
After they shower, Raj asks Bill if he would like to join him for dinner. Bill declines. "I've made dinner plans with Mark and later on I'm taking Susan to a movie. Thanks, though. I'll take a rain check!" Raj says he understands, but is actually quite upset. He has swatted all day long playing tennis in the Texas hot sun and expected to spend the rest of his evening with Bill. He now has to go back home, and his wife has made no plans for dinner!
Raj should not upset by Bill's actions. He should simply take note that most Americans have several different types of friendships. One friend may be a tennis partner, another a frequent dinner guest, and still another a sailing companion.
Tips for Dealing with Americans
And Americans don't have to be difficult to work with. Consider the following tips when interacting and negotiating with Americans:
When first meeting an American, don't be too personal. Maintain a friendly, but reserved, manner.
Be concise and direct in your written correspondence and telephone communication.
Be direct and open in your communication with American superiors. Your American boss will value your input, so don't refrain from giving it to him or her.
Expect feedback from Americans when making presentations to them. Make sure you can satisfy their inquiries.
Remember that Americans often have several types of friendship. Understand where you stand with your American partners and friends.
If you keep these suggestions in mind, you can easily interact successfully with Americans.
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This material is presented to you by Global Success, a leading multicultural management, negotiation, training, and consulting organization. The company develops managers' skills in dealing successfully with global diversity in employees, clients, partners, and suppliers. It was founded by Dr. Farid Elashmawi, author of Multicultural Management 2000.