Intercultural Competence in Business

This report discusses the importance of intercultural competence in business and provides strategies to effectively deal with cross-cultural problems. It includes a case study analysis of Hannah Muller.

INTERCULTURAL
COMEPETENCE IN THE
BUSINESS

TABLE OF CONTENTS
TABLE OF CONTENTS................................................................................................................2
INTRODUTION..............................................................................................................................1
CASE 2............................................................................................................................................1
Where did Hannah and company go wrong ?..............................................................................1
How Hannah and company could better understand the cross cultural problems.......................2
Using intercultural theories for explaining and supporting the decisions...................................2
Advice to the Hannah and company for cross culture communications.....................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................6

INTRODUTION
For business it is very essential to deal effectively with the cultural competencies. In the
present global workplace intercultural competence is one of the crucial skills. Businesses are
operating globally and have to deal with people with different cultures. It is seen that the
companies who have adjusted and developed skills of dealing with intercultural competencies
see higher productivity in the employees who are shaped with different, beliefs, values and the
experiences. Present report is based over the requirement and importance of the intercultural
competencies for the business to successfully operate the business in different regions or
countries. In reports case study 2 of Hannah Muller has been chosen for providing understanding
on the intercultural competencies.
CASE 2
Where did Hannah and company go wrong ?
In the present case Hannah Muller is having corporate attorney for Frankfurt
departmental stores chain has the responsibility of negotiating the leases for the outlets abroad.
She had been successful in negotiations over Europe. After the success Hannah looked forward
for securing the attractive leasing agreement from the shopping mall developer in the Osaka of
Japan. In telephonic conversations with the Japanese hosts Muller became quite optimistic and
wanted to visit in person. Hannah in this case on the basis of previous experience in Europe
planned to decide a meeting with Japanese also for the agreements without knowing their
perception. Japan is having different culture where time is considered very valuable and they
avoid social meetings. Also the Japanese hosts were may be having culture of meeting after
hours where Hannah was included in after hours socializing (Klyukanov, 2020). For the business
it is essential to understand the culture of the counterpart clients with whom company is planning
to deal as it can significantly impact the agreements. Hannah should have asked to Japanses hosts
for the way they prefer to deal for the negotiations and should have also shared their
requirements and policies. Another issue was not socialising after hours which has made the host
to communicate with assistants Marcus and Jonas.
If Hannah before arriving in Japan would have asked for the meeting, the wrong
impression of company would not have been framed. Also involving in socialising would have
made negotiations directly with Hannah instead with assistants.
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How Hannah and company could better understand the cross cultural problems.
As businesses are becoming international managers are also facing issues of cultural
differences. It has become strategically important for the companies to deal with the cross
cultural communications. Understanding the cross cultural communications are important as
company has to deal with the diverse clients and people and doing business over global scale.
This is done by understanding the people of different culture about way of speaking,
communicating and perceiving world around. Intercultural communication in the company deals
with understanding the different beliefs, customs and the communication strategies. The
language, cultural differences, high-low contexts, non verbal differences and the power distance
is the major factors that are affecting cross cultural values and communications.
As Hannah is having international business it is very important to understand and take
steps to ensure that the cross cultural problems are mitigated and dealt effectively.
They have to understand the style of communication of the different people from different
cultures (Piller, 2017). It may be possible the same words are having different meanings in
different cultures which could create issues. Some of the cultures have habit of communicating at
high pitch where some have low pitch while talking.
After understanding communication styles they are also required to understand the
cultural values such as power distance, feminity, individualism, uncertainty and orientation.
Businesses have to understand the cultural values of the people with whom they are dealing
directly as it could affect the business and could frame misconception in the minds of other
people.
Common platforms should be created for the communication where people of different
cultures are having communication only about the business and concepts are not framed on other
things. Also they could get knowledge about the cross culture from the people they are dealing
with by making effective communications.
Using intercultural theories for explaining and supporting the decisions
Theory refers to the set of ideas which are drawn from the systematic study for explaining
the phenomenon. There are several factors which hamper intercultural communications based on
which different theories have been given for communications. There are several theories for
effectively managing the intercultural dimensions in organisation.
Hofstede’s cultural dimension theory
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It is framework for the cross cultural communications which was developed by the Geert
Hofstede. The theory defined the effects of culture of society on values of the members and how
the values are related to the behaviour with the use of structure derived from the factor analysis.
The theory is used for understanding the differences between overseas countries and discerning
the ways in which businesses are done across multiple cultures. Framework distinguishes
between the cultural dimensions, cultural differences and their impact on business
Six categories of the culture were given by the Hostfede which are power distance,
individualism, collectivism, uncertainty avoidance index, masculinity vs masculinity, long tern
vs short term orientation and indulgence vs restraint.
In the present case the issue related to the uncertainty avoidance could be identified that
shows the extent to ambiguity and uncertainty is tolerated (Chen, 2017). Hannah visited Osaka
without concerning the Japanese for the agreements that created uncertain visit for Japanese that
created a wrong impression of company.
Trompenaar’s national culture difference theory
It is the framework for the cross cultural communication which is applied to the business
& management. The theory of the cultural differences has seven dimensions. Five orientations
are there which cover the manner in which humans deal with one another, one deals with time
and one with environment.
Particularism vs Universalism
Universalism is belief that the ideas & practices could be applied at all places without any
modifications while the particularism states circumstance dictates how the ideas & practices are
applied.
Communitarianism vs Individualism
Individualism states about the people regard themselves as separate individuals while in
the communitarism states about the people that regard themselves as the part of group.
Emotional vs neutral
The dimension states neutral cultures as the culture where check is held over the
emotions where in the emotional culture people express their emotions naturally and openly.
Neutral cultures could be said of Britishers and Japanese where emotional cultures are Israel,
Italy and the Spain.
Diffuse vs Specific
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Diffuse culture refer to one where private spaces and public spaces are same in size &
individuals guard the public spaces carefully as entry into the public spaces provides entry to the
private space also. In specific culture individuals have the large public space. People share with
the others & small private spaces guard closely & shares with associates and close friends only.
Ascription vs Achievement
In achievement, people are accorded with the status based over their performance of
functions where in ascription culture status is based over what or who the person is.
Achievement is followed in the countries like Austria, US and UK.
Anxiety Uncertainty management theory
Theory believes that reduction of the anxiety and the uncertainty plays important role in the
successful intercultural communications. The theory requires the people to ensure that different
strategies to reduce the uncertainty over first counter. The varying strategies exists depending
over whether the people belong to collectivistic or individualistic culture. Theory presumes that
the optimal level of uncertainty and anxiety existing in the intercultural communication promotes
establishment of the successful cross culture information (Özdemir, 2017). Anxiety and
uncertainty above the accepted scale could frame negative impression over the counterparty that
may affect the negotiation.
Advice to the Hannah and company for cross culture communications
In the present case Hannah having the attorney and company that maintains store chain is
required to learn and understand the cross cultural differences and the values pertained by the
them. Things should be made clear when making conversations with other party about the
business. Deals should be negotiated based over common grounds and identifying the manner
how ideas and practices are followed by them as per their culture (Yang, 2018). This requires
some study and time however this will help in managing the cross culture differences properly
and adequately. Hannah and company have to apply different theories of intercultural
communications to manage their business successfully over cross countries.
CONCLUSION
It could be summarised from the above report that the intercultural communications across
the different cultural borders are different and companies have to adopt ways to manage the
issues related with the cultural differences. It could significantly influence the business if culture
of the nations in which it is operating is not understood properly. There are different theories of
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the intercultural communications that could be used by the organisations for managing the
differences. Negotiations are influenced if the cultural values and beliefs are not understood
properly.
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REFERENCES
Books and Journals
Klyukanov, I., 2020. Principles of intercultural communication. Routledge.
Piller, I., 2017. Intercultural communication: A critical introduction. Edinburgh University
Press.
Chen, L. ed., 2017. Intercultural communication (Vol. 9). Walter de Gruyter GmbH & Co KG.
Özdemir, E., 2017. Promoting EFL learners’ intercultural communication effectiveness: a focus
on Facebook. Computer Assisted Language Learning.30(6).pp.510-528.
Yang, P., 2018. Developing TESOL teacher intercultural identity: An intercultural
communication competence approach. TESOL Journal.9(3). pp.525-541.
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