How Business Communications & Negotiations Differ Across Cultures: Rule- Vs. Relationship-Based

When you walk into a Western office, any Western office, you know that there are rules.

They are hardline rules, and they apply to everyone, across the board.

Western cultures (“Western” meaning the US and Europe) are rule-based cultures.

In countries where equality and justice for all are building blocks upon which society is built, this rigidity in rule-following makes perfect sense. Rules provide objective guidelines for companies, for government, for society as a whole.

Relationship-based cultures, on the other hand…

Relationship-Based Cultural Communication

Negotiation is the basis of relationship-based cultures. Even when it comes to “the rules.”

Managers in relationship-based cultures dictate these rules, and so the better the relationship you have with said managers, the better stacked you are at the negotiation table.

Anything and everything can be negotiated in such cultures.

This leaves a lot of room for ambiguity, something Westerners aren’t very comfortable with when it comes to the workplace.

Being as such, communicating within relationship-based cultures requires one to keep in mind a complex network of human relationships.

Rule-Based Cultural Communication

The company rules in a rule-based culture (like those in the West) are spelled out; they’re explicit. Unless a worker hopes to be fired, he follows the rules.

In fact, the rules laid out by Western managers are communicated directly, and they are often compiled in various written resources.

Most American companies have thousands of pages of rules, included in such documents as the company’s mission statement and vision, their HR handbooks, compliance handbooks, job descriptions and responsibilities, expense regulations, strategies, etc.

Written regulations, above all else, are spelled out for you. Personal preferences and favored relationships don’t apply (at least, they shouldn’t in theory).

This allows managers to communicate within a set of rules. They, therefore, often communicate directly, unambiguously, and concisely.

Negotiation

Considering each culture’s values and the way these values impact communication, negotiating tactics are extremely different across these two cultural types.

When negotiating in rule-based cultures, one often uses a direct approach, as the rules are objective, and disputes can subsequently be resolved using said rules.

In relationship-based cultures, where rules are not black and white, courtesy and saving face is the most important part of a negotiation.

A Western manager must go into a negotiation with the business partner of a relationship-based culture focused on building and maintaining a relationship, rather than with a strategic focus on “the rules.”

Americans and other Western cultures see business as business and not personal. There are rules, so negotiations can get tough, without partners walking away from the table with a broken personal relationship.

But with a relationship-based business partner, you can’t negotiate tough and then expect your partner to amiably join you in a round of golf.

This may be the norm in America, but not in China nor in Japan.

Instead, business and personal are intertwined, so the relationship must be cared for above all else.

Next week, we’ll talk about bridging this understanding.

“Fair and Generous” Missteps in Cross-Cultural Business: A Case Study

An American company was looking to build an assembly plant in Eastern Europe.

In an attempt to be “fair and generous,” the company decided not to pay the average living wage of the area, which was much lower than the average living wage in America; rather, they offered to pay new laborers four times that average.

Sounds pretty generous, right?

Well, what they didn’t consider is the disharmony this would sow in the community.

The new lucrative jobs tore the town’s social fabric apart. Folks were anxious about which families would benefit. Things got cutthroat.

The company was now in a precarious position. What should they do in this situation?

Identify the Culture’s Values

With relationship-based cultures, the family unit is often the most important unit in society. Unlike in rule-based cultures, which are often individualist, the family is more important than the individual. In fact, the two are one.

Many in relationship-based cultures support the family financially. Not just parents taking care of their children, but sons taking care of their parents, older brothers and sisters financially responsible for their younger siblings.

In hearing of such a lucrative wage for labor, who wouldn’t jump at the opportunity? Especially when it meant you could better support your in-group financially.

Moreover, the families of potential workers were also invested in these top-paying jobs. Securing the work would mean more money to go around.

Considering this society’s cultural values, what did the company do?

Did they close up shop in Eastern Europe for fear of the consequences of their offer?

Did they take the initial offer off the table and put forth a more comparable living wage?

Nope, they found a cross-cultural solution.

Work within the Culture’s Values

Rather than cut their losses or go back on their word, the company identified the culture’s values and incorporated them into their own.

In order to preserve social harmony in the town, they hired one person from every family unit. The anxiety of potentially being refused this opportunity was spared, and each family was better supported.

This is just one example of a cross-cultural solution that works.

Identify the culture’s values and work within those values the best you can. If you know what your workers care about, what matters most to them, then you know how best to support them, which is mutually beneficial to you.

“Employee of the Month”: Self-Realization & Individualist Cultures

What is the “American Dream”?

The Commission on National Goals had the answer for President Eisenhower.

They reported that the primary motivator of American citizens was the possibility of individual self-realization.

What does this mean?

Pull Yourself Up By Your Own Bootstraps

The American Dream doesn’t often include the economic success and overall wellness of one’s neighbor or third cousin.

It’s a dream of one’s own economic success.

In individualist societies – like that of the United States, western Europe, and other Western countries – a person often identifies with themselves above all others and looks to satisfy his own needs before those of the group.

He also sees his path as one of self-determination. “Pull yourself up by your own bootstraps,” so to speak.

Self-reliance, personal freedom, and independence are the values glorified by individualist societies.

The individual is the smallest unit of survival.

Employee of the Month

This is why, at an American company, “employee of the month” is a successful incentive for productivity and improved performance in work culture.

The strong individualist culture means that employees will seek any way in which they can stand out from the pack in a positive light.

When your name and photo are posted on a bulletin board of achievement in the company lobby, recognition is your reward, and it fuels individualist motivation.

As a Swiss manager in the US, I appreciated the effectiveness of this reward system. So, I attempted to bring it back to Switzerland with me.

When I implemented “employee of the month” at the Swiss company I was managing, it fell flat. In fact, not only was it not a motivator, the reward system was met with immediate and breathtaking negativity on the staff’s part.

“This is ‘typical American,’” they said, adding that Swiss workplaces traditionally don’t single out individual successes, as they see success as a result of teamwork.

Although “employee of the month” type of recognition is frowned upon by Swiss companies, they are not so collectivist as to dissuade pay-for-performance or achievement-based promotion, also distinctions. The difference is, these are in-group and colleague-approved.

Collectivist Thought

On the other hand, a collectivist culture, which centers around group betterment, rather than individual development and freedom, would not even humor the idea of “employee of the month.”

An international survey asked managers from Egypt, China, Japan, and the US whether they agreed with the following statement:

“When individuals are continuously taking care of their fellow human beings, the quality of life will improve for everyone, even if it obstructs individual freedom and individual development.”

Who agreed?

  • 70% of Egyptian managers
  • 59% of Chinese managers
  • 61% of Japanese managers
  • 31% of US managers

We’ll talk more about that difference in mentality next week.

The Six Styles of Leadership Across Cultures, PART I

Do you prefer an authoritative leader or a supportive one?

Do you like a manager that allows you some autonomy or would you rather be micromanaged?

Last week, we talked about how research shows Maslow’s hierarchy of needs doesn’t stand up across cultures.

This week, we’ll discuss research that has found how management styles differ, according to a society’s values and norms.

Charismatic Leadership

Charismatic leadership was once considered the most effective.

By the ‘90s, what makes a charismatic leader and the behaviors such leaders demonstrate had undergone thorough research.

In 1991, Professor Robert J. House at the Wharton School of the University of Pennsylvania examined studies from the Netherlands, India, Singapore, and the United States. He found that charisma was popular in a leader but certain cultures preferred other leadership styles.

His research led to GLOBE.

GLOBE

Global Leadership and Organizational Behavior Effectiveness is a top cross-cultural research program.

In its formative years, interviews and focus groups of 17,300 managers from 951 organizations in 59 countries by 170 investigators were conducted and gathered for this project.

What did they find?

They found that societal cultures directly influence organizational cultures.

The Six Styles of Leadership

Leadership was defined as the capacity to influence, motivate, and enable employees to contribute toward company objectives.

Six distinct leadership styles were identified by GLOBE:

  • Charismatic/Value-based – a motivational and inspirational leadership style defined by charismatic, value-based leaders expecting high-performance outcomes from employees and colleagues, based on the company/organization’s core values.
  • Participative – a participatory leadership style in which managers often ask the involvement of others in making decisions and implementing them.
  • Team-oriented – a team-building leadership style, in which the implementation of a common goal is sought and work toward it is divided amongst team members.
  • Human-oriented – an empathetic and supportive leadership style, in which modesty, generosity, compassion, and sensitivity to others are promoted.
  • Autonomous – an individualistic and independent leadership style, never before appearing in business literature.
  • Self-protective – a face-saving leadership style, in which the security and safety of each employee or colleague is most important, with a focus on status consciousness. Also, a new dimensional term to business literature.

This outline of distinct leadership personalities allowed GLOBE to identify what type of leadership style was preferred by different cultures. We’ll talk more about that next week.

Family, Sex & Love: A Look at Humankind’s Social Fabric

From linguistics to archaeology, anthropology is the study of humankind, past and present, and the origin of all cross cultural studies.

Family, sexuality, and love are topics of much interest to anthropologists.

Each of these themes is at the core of humanity.

We’ll cover them in detail over the upcoming weeks.

Why These Topics Matter to Cross-Cultural Management

If you’re coming to this blog for corporate success across cultures, you might think that family and sexual mores don’t apply here.

However, I’d argue that they do for two reasons:

  1. A culture’s social fabric is woven by family structures. By better understanding family-related values and norms, you’ll integrate much more smoothly into a society than if you have no clue about the important roles that family members play.
  2. Sexual mores often evoke the strongest emotional reactions, as these norms are amongst the earliest socialized norms in a culture and are often enforced by religious and social taboos. Awareness of unfamiliar social mores will help you avoid crossing boundaries and keep you clear and well away from those dratted taboos.

In effect, any information about a culture’s values and norms will fortify understanding and help you view a culture through their own lens. Only when you can see from the culture’s perspective can you truly identify with their mentality and integrate cross-culturally.

Family, Sex & Love in Culture

Of these three topics, family structures is one of the more thoroughly researched of all anthropological studies.

The study, Family: Variations and Changes Across Cultures, explains why:

“In order to study psychological phenomena cross-culturally, it is necessary to understand the different types of family in cultures throughout the world and also how family types are related to cultural features of societies.”

Family structures are the blueprint for societal structures. This is why some knowledge of family values and norms will gain you significant headway when managing across cultures.

Sex is also on the mind of many an anthropologist. Although, according to The Cross-Cultural Study of Human Sexuality, “Anthropology has long had a love-hate relationship [with it].”

This is largely due to the own sexual mores of those anthropologists in question. Across many cultures, the topic is seen as taboo or controversial, so sexuality remains a “rarely studied” topic of human experience.

Moreover, love and romance is mixed in with family and sexuality and has been since the dawn of time.

According to Love Across Cultures:

“Although love needs to be framed within a cultural context, many scholars believe that romantic love is transcultural. Elaine Hatfield and Richard L. Rapson (1996) viewed passionate love as common to virtually all cultures, and indeed, romantic love has been found in most countries of the world.”

Over the next few weeks, we’ll dissect research on all three topics in more detail, taking a look at remote and predominant cultures, alike, to discover both shared and divergent values and norms in these themes.

Contact vs. No Contact Cultures: A Guide to Touching

If you’re a man, how would you greet another man? Probably just a shake of the hand, right?

How would you greet a woman? If you’re from the West, probably the same.

You’d offer your hand without a second thought. But, considering the different body contact norms across cultures, you shouldn’t assume sameness when it comes to greetings.

Sometimes, cross-cultural matters of gender are quite sensitive and, depending on the culture, even same-gender greetings may require some specific behaviors.

If you don’t want to do something taboo in your new culture, as a monkey, watch and learn. Or, better yet, prepare yourself beforehand by reading up on gender norms in this “guide to touching.”

Touching Across Genders

In certain cultures, particularly in traditional ones, touching when greeting is only acceptable when of the same gender.

Generally, same-gender contact (male-to-male and female-to female) is acceptable in many cultures. But what about male-to-female contact?

Physical contact between men and women in African countries and in Muslim majority countries is often seen as taboo.

Moreover, in traditional societies, PDA is unacceptable, and you’ll rarely see a man and a woman holding hands in public or greeting each other with physical contact.

In some regions, the latter is acceptable if the man and woman are family.

Left Hand/Right Hand

You should also consider which hand you greet someone with.

If you are left handed, and normally reach out to shake with your dominant hand, hold up a minute.

When in Africa or Muslim majority countries, many will consider this left-handed shake disrespectful, because the left hand is considered the “dirty” hand.

Because clean water for hand-washing isn’t always readily available in some regions, tasks in these cultures are separated between the left and right, with the left hand being responsible for dirty tasks…even cleaning oneself after using the toilet.

Not only that, but in Islam, a preference is always given to the right hand.

DohaNews states why:

“This follows in the tradition of the Prophet Muhammad, who favored his right hand for such actions [eating meals and greeting people].”

When Muslims perform wadu – purifying themselves ritually before prayer – they follow a sequence while washing, always prioritizing the right side.

Imam Talib Shareef told PBS:

“That cleanliness is a process. It starts with your intentions. In basic terms it’s, ‘I intend to make the ablution in preparation to stand in obedience before my Lord.’”

Being as the right hand is given such preference, touching or greeting someone with the left hand would be considered very rude, regardless of whether or not the right hand is busy at the time.

Knowledge of these differences in cross-gender contact and right hand/left hand norms can make the difference between success across cultures or a terrible first impression.

Stairs Ascending: How Differing Visual Frameworks Lead to Misinformation

How do you view three dimensions?

How do you view snow?

How does an American view a staircase? Is it different from how an Arabic person views it?

As a matter of fact, yes, it is.

stairs

This depiction of a staircase would likely be viewed by an American as stairs ascending.

For an Arabic person, they’re descending.

Why?

Because of our language and the way we read it.

Americans read left to right, while Arabs read right to left.

This is a difference in our visual framework. For the past few weeks, we’ve talked about how this framework is culturally informed.

So, now let’s ask the question whose answer will make you a more insightful and successful cross-cultural manager: how can the differences in these frameworks be an issue in a cross-cultural context?

Organizational Charts

Taking the example of the Arab versus the American further, consider a chart that shows the different levels of departments in a company, based on their importance.

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As is usual in Europe and the US, the most important position is organized at the top center (or sometimes the top left) of the chart.

This is where our cultures have trained us to view it.

Each descending department is of lesser and lesser status.

A chart in Arabic would be organized the opposite way.

Advertisement

Here’s another pretty famous example of misunderstandings that can arise from differing cultural frameworks.

Marketing was launched in Japan by a Western pharmaceutical company.

The product? Medicine for upset stomachs.

The advertisement depicted three pictures.

The first illustration showed the patient feeling sick. The second showed him taking the medicine. And, in the last pic, the sun had come out and the man was smiling and healthy.

That’s how a Westerner would read the advert anyway, left to right.

But like Arabic cultures, Japan reads their Mangas (i.e. comic books) from back to front.

So, when they viewed this comic strip within their visual framework, they saw a healthy man taking medicine and becoming sick.

Not at all the message this company wanted to send out to potential customers.

The Bottom Line

When you live, work, or advertise in a foreign culture, you have to wear their visual framework like virtual reality goggles.

Seeing the world through their eyes is the only way you can relate to your clients and to those you manage.

And, the bottom line is, the ability to relate to others is what makes a manager – or anyone working in a multicultural environment – successful.

10 Cultural Universals: Education

What role do educators play in society?

Teaching reading, writing, arithmetic. Sure.

But they teach our children and young adults other things too.

In many ways, educators are charged with teaching our youth about the basic tenets of our culture.

Socialization

We talked a lot about primary socialization in earlier blog posts.

According to sociologyguide, education has both tangible and intangible results. Specific skills are learned, but so is knowledge, judgement and wisdom.

“Education has as one of its fundamental goals the imparting of culture from generation to generation. Culture is a growing whole. There can be no break in the continuity of culture.” – sociologyguide

Education begins at home and continues through schooling. It is here and there that a culture’s heritage is passed on through social institutions, and it’s transmitted this was through each and every society, making it one of the 10 Cultural Universals.

Education is delivered through many forms:

  • Curriculum
  • Relationships (teacher-student, etc.)
  • Extra-curricular activities
  • Communication of values and skills – i.e., discipline, teamwork, cooperation, respect, duty, etc.

These taught skills, both tangible and intangible, are designed to enable children to understand their culture and to help them integrate into the world.

Cultural Education Clash

Different cultures see the world differently. This isn’t in error. It’s how culture is perpetuated.

Matthew Lynch, Ed.D., talks about that in his article, “Examining the Impact of Culture on Academic Performance.” He writes:

“A person’s culture and upbringing has a profound effect on how they see the world and how they process information.”

Lynch describes Richard Nisbett’s studies on the difference between Eastern and Western thought.

In The Geography of Thought: How Asians and Westerners Think Differently, Nisbett found that the Chinese and Japanese view the world in a holistic way, seeing objects with respect to their relationship with other objects, while Americans view the world in distinct parts or classes of objects, defined by rules.

In this way, learning, in and of itself, also differs across cultures. There are a number of theories as to why and how, some of which are discussed in Lynch’s article. But the one we’ll outline here is the cultural difference theory.

The Cultural Difference Theory

This theory suggests that children growing up in different cultures likely learn in different ways.

You might take our example from Primary Socialization V: Conflict Resolution.

The conflict between Ahmed, Khalid, and Ann illustrates that learning and education in some areas of the world is a communal effort, while in other areas, study is independently geared and self-driven.

This is why, when working in a cross-cultural environment, one must always be aware of different traditions of learning and approaches to education.

If you’re aware of how individuals in a culture have been taught to learn, you will be better able to teach; to work with and/or manage them successfully.

Monkey Moments: What Should You Do When Culturally Adapting is Impossible?

What beverage do you order with lunch?

In the US, you might have a Coke.

In Germany, you’d probably order a beer.

And in France, perhaps a glass of wine.

For those moving to one of these countries, this is a simple enough behavior to adapt to.

But what happens when the behavior is not that simple? What happens when becoming “one of the locals” is impossible?

One of the Locals

Speaking a foreign language. Learning a special set of skills. Drinking unfiltered water.

Due to their complexity or the body’s own limitations, these are the types of behaviors where adaptation may be more difficult.

Learning a language requires patience, dedication, and time. Not everyone who is living abroad has all of these in abundance, especially if living in the foreign country for only a short period.

In regions of Africa, the handshake requires a special set of skills, because it’s rather elaborate. Without practice, the finger-snapping greetings are difficult to master.

And, in certain cases – like drinking unfiltered water in Africa, for instance – your body may simply not allow you to adapt. Although it’s the tradition in a number of ethnic communities in Africa to offer visitors water to drink, sometimes your health must take precedence over local custom.

And refusing to speak, greet, or drink may provoke monkey moments.

Monkey Moments

Although your inability to adapt may not be by choice, but rather by time, skill, health, or any other restrictive factor, this inability may still provoke monkey moments.

(Remember: a monkey moment is when your foreign nature is revealed to everyone through your actions…or, in some cases, your inactions).

How do you overcome these monkey moments?

If the short duration of your stay doesn’t allow you enough time to learn an entire language, learn the local greetings and short phrases. Doing so will show the locals that you are making an effort to communicate.

Don’t have the skills to master the complex local handshake?

Give it your best shot, and the locals will surely acknowledge you’re trying.

Can’t stomach the water?

Declining the customary drink may cause a monkey moment, but you must make clear that your health is the reason that you decline. Any other reason would likely be considered rude or disrespectful.

So, my advice is three-fold: make an effort, explain yourself when you physically cannot adapt, and respect the local culture.

This is ultimately what a successful cross-cultural relationship comes down to. We’ll talk more about respect next week.

The Baobab Theory of Culture

Most folks who are interested in culture have heard about the Iceberg Theory.

The phrase was coined by Ernest Hemingway and applies to his style of writing – a.k.a. the theory of omission. But it also applies to culture.

The idea is that the deeper meaning of a story is below the surface. Or, in the theme of our blog, the deeper meaning of a culture…

Like an iceberg, that which we see of culture only makes up a small portion of the whole. What lies below is even more astounding and impactful.

But I’d like to expand on the Iceberg Theory and compare culture to a baobab.

The Baobab

We talked last week about the mythical baobab tree.

For the purpose of this theory, the baobab’s huge trunk and canopy will represent the visible part of culture.

Traditional clothing, food, art, architecture, language, gestures, appearance, behavior – this is all represented in the visible part of the baobab.

Behavior is often regulated by norms. Folkways, mores, taboos and laws are all represented above the surface.

The small branches at the edges of the canopy represent folkways, the most flexible of the norms. As the branches extend toward the trunk, they become thicker and more rigid. These are a society’s mores. They’re stricter and often based in deeper values.

And the trunk, itself? This represents a culture’s taboos and laws. Punishment for those who do not adhere to these two sets of norms is the most severe. Society members must comply, or they’ll be ostracized or imprisoned.

Know Before Traveling

While knowing the baobab – or the visible part of a culture – is only the beginning of full-on cross-cultural integration, this basic intro would probably be enough for brief travel to a foreign country or a short business trip.

For instance, if you’re traveling to Greece, it would be nice to know that their official working day ends during the early afternoon. Moreover, when formal events are held at work, they are often attended by only employees of the same rank.

Or if you’re on business in the UK, you’ll find that business culture there is quite direct. You’ll also find that the Brits are often on first-name basis with fellow colleagues and superiors. This may seem in stark contrast to the stereotypical image of their formality.

On the other hand, if business takes you to Portugal, you might be addressed very formally as “doutor” (doctor), whether you have a doctorate or not. Everyone with a university degree is honored with this title. You’ll also find that nepotism isn’t an issue in Portugal, as business and personal relationships are often intertwined.

Below the Surface

While all of these aspects are visible parts of the cultural baobab, this begs the question: what lies below the earth?

In the baobab’s case, an enormous network of roots spread into the soil as a culture’s underlying invisible values. We’ll talk about these roots next week.