Intercultural Communication in Business

This assignment examines the impact of globalization on business practices, highlighting the crucial role of intercultural communication. It discusses how managers and entrepreneurs need to develop frameworks for navigating diverse cultures, build inclusive workplaces, and manage multicultural teams effectively. The importance of intercultural communication in overseas project management is also emphasized.

Running Head [Intercultural Communication]
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Business Communication
Intercultural Communication
Name Of Student
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Intercultural Communication 1
Executive Summary
This report about intercultural communication discusses various models used to understand
various cultures, followed by importance it holds in the era of globalisation. Implications of
developing intercultural competence for managers were also highlighted in the report. It was
concluded that in order to take the benefit of globalisation managers and entrepreneurs
should be trained to communicate inter culturally.

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Contents
Executive Summary.................................................................................................................1
1.0 Introduction....................................................................................................................3
2.0 Intercultural Communication..........................................................................................3
3.0 Importance of Intercultural Communication...................................................................4
3.1 Negotiation:................................................................................................................5
3.2 Business Expansion..................................................................................................5
3.3 Customization:...........................................................................................................5
4.0 Application of Intercultural Communication...................................................................6
4.1 Opportunities offered by Globalisation:......................................................................6
4.2 Developing a workplace Culture................................................................................6
4.3 Preparing for Leadership Roles:................................................................................6
4.4 Multicultural team management:................................................................................6
4.5 Overseas Project Management:................................................................................7
5.0 Conclusion.....................................................................................................................7
6.0 Bibliography.......................................................................................................................8

Intercultural Communication 3
1.0 Introduction
Intercultural communication deals with exchange of information between organisations
located in different countries with different cultural backgrounds. It includes both verbal
and non-verbal communication. In this report, various models used to understand
different cultures are described with the implications and importance of intercultural
communication for managers and entrepreneurs.
2.0 Intercultural Communication
According to Sir Edward Burnett Tylor, Culture is the sum total of knowledge, belief,
morals, laws, customs, art and habits which an individual acquires as a member of
society (Samovar et al., 2012). Today cultures of different countries are greatly impacted
due to Globalisation. Globalisation has brought about an increase in the level of
interaction taking place between people who come from different national, ethical,
cultural and religious backgrounds. Intercultural communication has now become a
subject of study especially after the subject has gained attention from various scholars
across the globe. Intercultural communication in its simplest form means receiving as
well as sending pieces of information across sundry cultures, which can also be in
different languages (Arent, 2009). Understanding cultural diversity is the key to effective
intercultural Communication. In order to understand intercultural communication there
are four widely used models:
2.1 Hofstede’s five value dimensions: A Dutch researcher better known as Geert
Hofstede identified 5 different dimensions of important cultural values. These 5
dimensions include
 Masculinity and femininity dimension
 Collectivism and Individualism dimension
 Avoidance of uncertainty dimension
 Distance Power Dimension

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According to this model, moving towards individualism from collectivism societies
become more self-centred. Power distance suggests the level of acceptance in a
culture for unequal power distance. Uncertainty avoidance measures the true
extent up to which any society avoids indeterminate or largely vague situations.
Masculinity-femininity examines that on a spectrum ranging from Masculine to
feminine where does the dominant values of a society fall. Finally the long term
orientation deals with a society’s consideration for virtues.
2.2 Edward T Hall who is a renowned American anthropologist, once proposed a
High and Low context model after researching the cultures of the US, France,
Germany and Japan. According to his research context of message is important
than the message itself. In low context countries communication is direct and
frank whereas in high context countries meaning in the message is conveyed
indirectly by careful selection of words.
2.3 GLOBE: Robert House conducted a research which focuses on gaining an
understanding about the influence that culture has on various leadership
processes. This led to development of a theory which is better known as Global
Leadership and Organisational Behaviour Effectiveness (GLOBE). GLOBE
Model is similar to Hofstede’s value model but GLOBE approach is focused more
on management and leadership studies (Nardon & Steers, 2009).
3.0 Importance of Intercultural Communication
The adage ‘World is shrinking’ is a reality now. With the advent of World Wide Web even
the small businesses are doing business across geographical boundaries. In order to
excel in workplace and reap benefits of globalisation every manager should understand
the nuances of intercultural communication. Growing importance of cross cultural
communication has made this a topic of great interest.
3.1 Negotiation: Another point of interest in study of intercultural communication is
Negotiation styles. Negotiation styles of different countries are as different as

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their cultures, and for a successful negotiation effective intercultural
communication is a prerequisite. Intercultural negotiation involves discussions
about common and conflicting interest among the organisations with different
cultural backgrounds. In order to carryout successful negotiations a cultural study
based on Hofstede’s value dimensions can prove beneficial (Zhang & Zhou,
2008).
3.2 Business Expansion: For businesses that try to gain a competitive advantage
in domestic as well as international markets, understanding the impact of
globalisation on intercultural communication is of prime importance. Businesses
which can effectively communicate inter culturally will find it easier to prove the
superiority of their product in global market. Tie ups with foreign business
partners is another way business expansion, success of which is dependent on
an organisation’s preparedness as a intercultural communicator (Kei &
Yazdanifard, 2015).
3.3 Customization: In order to establish a product or service in a different country
it is beneficial to customize their specific needs. Intercultural communication
plays important role in appropriately tailoring the product or service to suit the
cultural norms of that particular country. Additionally, during marketing and
promotion activities ineffective intercultural communication can offend, confuse
or send wrong message to consumers (Papa, 2017).
4.0 Personal reflection of intercultural communication
I have rarely been a part of intercultural communication however I wish to travel to various
places and become a part of multinational organizations. Therefore, I understand the
importance of inter cultural communication. Hence I chose this subject to get a deeper
insight upon the same.
Intercultural communication requires a brief understanding of the foreign language and
culture. More so, I believe, Intercultural communication is a source of learning new things. I
have always been fascinated by learning foreign languages and cultures.

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Last reason behind selecting this topic was that the increasing globalization and the use of
social media has made it plausible for people across the world to remain connected with
each other. Through this I have made many friends across various social media platforms
and from my experience, my communication with them has always helped me learn more
and experience a different world altogether.
5.0 Application of Intercultural Communication
5.1 Opportunities offered by Globalisation: Multinational companies are
increasingly expanding their operations to other countries of the world. Small
entrepreneurs are also investing and competing in global marketplaces.
Therefore, there is a need for managers and entrepreneurs to develop
frameworks for negotiating, managing and communicating across cultures
(Okoro, 2013).
5.2 Developing a workplace Culture: In an era where a workplace comprises of
both natives and expatriates from all over the world the focus of Managers and
Entrepreneurs should focus on developing a universally accepted culture.
Preparing for Leadership Roles: To be Successful in future leadership roles
it is imperative for today’s managers to be adept at leading and managing people
from different cultural backgrounds. It is important to understand here that as the
workforce becomes multicultural the internal organisational communication
should take note of intercultural elements. For a leader it is important that he/she
is being understood and is able to make people understand what is expected of
them and this should happen across cultural boundaries.
5.3 Multicultural team management: Global demand for qualified and diverse
workforce has risen with the advent of globalisation. As the reliance of
organisational success over multicultural teams has increased the need to
develop communication processes to enable smooth functioning of multicultural
teams (Congden et al., 2009).

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5.4 Overseas Project Management: Intercultural communication finds its
application in managing overseas projects. Success of such projects depends
largely on how well the manager is able to lead a team which has a different
work culture from the work culture of his/her own organisation.
6.0 Conclusion
There is no denying the fact that Globalisation has changed the way organisations do
business. It has impacted every business function from marketing to human resource
management. Intercultural or cross cultural communication has made its place in
organisational communication practices. Given its implication for managers and
entrepreneurs, organisations should focus on developing culturally competent workforce
by imparting training on intercultural communication.

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6.0 Bibliography
Arent, R., 2009. Bridging the Cross-Cultural Gap. University of Michigan Press.
Congden, S.W., Matveev, A.V. & Desplaces, D.E., 2009. Cross-cultural Communication and
Multicultural Team Performance: A German and American comparision. Journal of
Comparative International Management, 12(2), pp.73-89.
Kei, S.S. & Yazdanifard, R., 2015. The Significance of Intercultural Communication for
Businesses and the Obstacles that Managers should Overcome in Achieving Effective
Intercultural Communication. Global Journal of Management and Business Research: A
Administration and Management, 15(4).
Nardon, L. & Steers, R.M., 2009. Cambridge Handbook of Culture, Organizations, and Work.
Cambridge University Press.
Okoro, E., 2013. International Organizations and Operations:An Analysis of Cross-Cultural
Communication Effectiveness and Management Orientation. Journal of Business &
Management, 1(1), pp.1-13.
Papa, N., 2017. Importance of Cross Cultural Communication in Business. [Online] Available
at: https://bizfluent.com/about-6710853-importance-cross-cultural-communication-
business.html [Accessed 18 January 2018].
Samovar, L.A., Porter, R.E. & Mcdaniel, E.R., 2012. Intercultural Communication: A Reader.
Boston: Wadsworth.
Zhang, T. & Zhou, H., 2008. The Significance of Cross-cultural Communication in
International Business Negotiation. International Journal of Business and Management ,
3(2), pp.103-09.