Effective Intercultural Communication

This report discusses the intercultural challenges faced by BeautyPro in China and offers recommendations on how to overcome them. The challenges include different cultural values and etiquette, direct versus indirect styles of communication, and different cultural norms of decision-making. The report emphasizes the importance of effective intercultural communication in ensuring the success of a company in an environment composed of people of different ethnic backgrounds and holding different cultural values.

Running head: EFFECTIVE INTERCULTURAL COMMUNICATION
EFFECTIVE INTERCULTURAL COMMUNICATION
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EFFECTIVE INTERCULTURAL COMMUNICATION 2
Table of Contents
1.0 Introduction.........................................................................................................................................3
1.1 Significance of effective intercultural communication......................................................................3
1.2 Purpose and the structure of the report..............................................................................................4
2.0 Intercultural challenges facing the BeautyPro Company in China.................................................4
2.1 Different cultural values and etiquette...............................................................................................5
2.2 Direct versus indirect styles of communication.................................................................................6
2.3 Different cultural norms of decision-making.....................................................................................8
3.0 Conclusion............................................................................................................................................9
4.0 Recommendations..............................................................................................................................10
4.1 Recommendations on the issue of different cultural values and etiquette........................................10
4.2 Recommendations on the issue of direct versus indirect styles of communication.....................11
4.3 Recommendations on the issue of different cultural norms of decision-making..............................12
5.0 REFERENCES..................................................................................................................................13

EFFECTIVE INTERCULTURAL COMMUNICATION 3
1.0 Introduction
BeautyPro is a multinational company dealing with the distribution of organic cosmetics in
various parts of the world. Its headquarter is in Brisbane, Australia. It offers an array of beauty services
with many clinics providing comprehensive and advanced cosmetic skin care products. With the
BeautyPro expansion to other countries such as China, the issue of intercultural communication arises.
1.1 Significance of effective intercultural communication
Intercultural communication is a term used to refer to diverse communication issues that are
inevitable in an organization (Padhi, 2011). They usually come up due to the composition of people of
different ethnic, social, religious as well as an educational background within the company. Due to these
differences, each employee brings in a unique set of values and experiences into the workplace hence
creating conflicts. The culture of the people where the company is located and how the employees were
brought up, plays a vital role in the development and success of a company. Therefore, it is very vital for
an organization to consider means in which they can facilitate effective communication between the
employees and other stakeholders to bridge the intercultural communication barriers (Costea, 2011).
Failure to resolve the cultural-based conflicts and tensions arising within the company, will eventually
lead to decreased productivity, diminished performance, and also the closure of the company in the long-
run.
Effective intercultural communication is essential in making a company succeed in an
environment composed of people of different ethnic backgrounds and holding different cultural values.
As such, it serves as a shaper of cultural identity as well as an expression of artistic background. ( Li,
2011). It’s through an effective intercultural communication process that the management of the
company can create proper ethnic identities, professional identities, and also class identities. Language
remains to be the cornerstone of an efficient and effective intercultural communication. Therefore, the
most significant element of ethnocentrism revolves around language. For instance, the majority of the
China people speak Chinese as their primary language. On the other side, Australian people are known to

EFFECTIVE INTERCULTURAL COMMUNICATION 4
use the English language and, thereby regarded as the de facto language of the nation. Therefore, the
language factor has to be put into consideration in ensuring the success of the BeautyPro company in
China. Otherwise, the language issue can lead to conflicts and non-cooperation between the co-workers as
well as affecting their interactions with customers hence causing disastrous effects (Hymes, 2005). As a
manager in China, there is a considerable need to understand the culture of the Chinese people. In doing
so, the communication will be improved, and no misunderstandings will arise. Therefore, this will help in
the growth of the business.
1.2 Purpose and the structure of the report
The purpose of this report, therefore, is to identify the intercultural challenges that the China-
based BeautyPro company is facing and, thereby come up with suitable recommendations on how the
problems can be overcome. The report will aim to discuss those challenges in depth and offer possible
practical and logical solutions. The structure of the report begins with the introduction of the company
and the importance of effective cross-cultural communication, analysis of the intercultural challenges
facing the company in China, a summary of the report, recommendations of the identified problems, and
the references used.
2.0 Intercultural challenges facing the BeautyPro Company in China
In today’s era of globalization, organizations are faced with several intercultural challenges.
Globalization has increased the inevitability of intercultural communication (Gudykunst, 2002).
Understanding other people’s culture helps to avoid the misinterpretations that are likely to occur due to
language and culture barrier. Communication is vital in any business operation. Any Multinational
Company like BeautyPro has to understand the diverse cultures of the people and find means in which
they can communicate effectively with them. Some of the challenges faced by the BeautyPro company in
China include; different cultural values and etiquette, direct versus indirect styles of communication and
different cultural norms of decision-making (Bücker, Furrer, Poutsma, & Buyens, 2014)

EFFECTIVE INTERCULTURAL COMMUNICATION 5
2.1 Different cultural values and etiquette
The culture of a particular group ranges from language, social habits, religion, arts, and music.
The system of beliefs, values as well as physical products differ between China and Australia. Belief
systems determine how an individual think, behaves and carries out his or her daily activities. It also
involves the value systems which influences how people act especially regarding honesty, openness, and
integrity. Finally, it encompasses physical products such as clothing, music, and food. As such, how one
behaves cannot be separated from the cultural habits he has obtained since birth (Adekola & Sergi,
2016). Therefore, it is crucial for managers to offer cross-cultural training to employees to promote the
growth and success of the company.
The Chinese market has a vast potential in the growth of any organization. Its rapidly changing
demographics, great human resource availability, and increased consumer spending makes the marketing
attractive for an organization. For one to be able to navigate easily in the Chinese business world, there is
a need to learn to some basic skills, etiquette, and courtesies. The attitude that one has towards the
seniors, hierarchies, and the entire relationship among the various employees need to be put in check. In
dealing with customers, employees, and other workforces within the organization who belong to disparate
cultural backgrounds, managers need to employ critical cross-cultural communication skills- both the
trans-cultural and intercultural communication (Wang, Fan, Freeman, & Zhu, 2017). Language
barriers, aesthetic value divergence, and cultural nuances usually cause unintended misunderstanding
among co-workers as well reducing their production efficiency within the internal interface. Due to
differences in cultural values and etiquettes between China and Australia, an organization has to be
established in knowing how to tackle these differences. It is worth noting that individuals who do not
share the same cultural background, display different patterns of thinking, reasoning, reacting as well as
reacting based on their cultural heritage. Cultural norms that determine the behavior of an individual, if
not taken into account undermine communication in an organization. Conflicts that can occur in a
business hence affecting the objectives, goals, and productivity, are majorly intensified by the emerging

EFFECTIVE INTERCULTURAL COMMUNICATION 6
cultural differences such as etiquette and values (Casimir, Waldman, Bartram, & Yang, 2006). If the
protocol of the people is not understood, then it will create a significant barrier in intercultural
communication and negotiations.
Chinese culture and Australian culture differ significantly concerning values, etiquettes, beliefs,
and lifestyle. Cultural divergence as such play a significant role in determining people’s ideology. In
China, people value collectivism as compared to individualism that is held in Australia (Triandis, 2018).
Individualism emphasizes only on the productivity, achievement, competence, and independence of a
person. However, in Chinese organizational culture, overall harmony among the people and group
objectives takes precedence. Therefore, it is essential to put this into consideration as a manager and
ensure that the Chinese employees are not left out, and they feel part of the organization. If not careful,
the Chinese employees in the organization may think that the Australian culture is indifferent, cold, and
uncaring. On the other hand, an Australian worker may have a difficult time acclimatizing to the Chinese
workplace since they are more of self-reliant individuals. As such, effective intercultural communication
practices should be in place to ensure these two groups of people interrelate with one another efficiently
(Pauluzzo & Shen, 2018). Individualism and collectivism influences to a greater extent the
communication styles of people. While the individualistic culture inspires one to be open and hence speak
up and express themselves, the collectivistic culture encourages people to hold their feelings and show
them subtly.
2.2 Direct versus indirect styles of communication
Styles used in communication determines how effective business operation will be carried out. If
employees cannot communicate effectively and efficiently with one another, or with the top management,
or customers and stakeholders, then, there is a high probability of business failure. Given that the
BeautyPro has now extended to China and the culture of these two countries differ, it is crucial to lay a
foundation whereby a conducive environment will be created for business growth. Communication is
fundamental in the passage of information within and outside the company. Usually, Australia is a low

EFFECTIVE INTERCULTURAL COMMUNICATION 7
culture context country that relies mainly on verbal expression in their communication. People
communicate directly to one another. On the other side, China is a high context culture that gives less
information in verbal expression. Thereby, their mode of passing the message is the indirect
communication style (Yang, 2016).
China is an interdependent country that embraces togetherness and unity. It is important to note
that the meanings that are attached to a word may be interpreted in different ways and carries several
implications. The manner in which they are uttered or the context in which they are used as well give
different connotations. Since they rely more on body language, symbolic objects, and facial expression, it
is crucial for employees to understand when and where those signs are used. For instance, the same word
when accompanied by a body language may mean differently with the same word used somewhere else.
Understanding the non-language code is vital in ensuring business survival as it has the power to break or
make a company (Brew & Cairns, 2004). For instance, due to the culture of Chinese, their women do
not maintain eye contact or a firm grasp with men. As such, Australian businesspeople can mistake their
behavior as a lack of confidence, trustworthiness, and honesty. Therefore, it is vital for Australian
employees and others to understand the culture of Chinese people so that they can avoid
misunderstandings.
Contrary to the Chinese culture, countries that rely on low context communication express their
ideas directly and are known to be frank in assessing any situation. People here are flawless in their
words, and a universal meaning can be deduced easily. It is also essential for the company to train any
Chinese workers on the importance of using direct mode of communication (Park, Lee, & Pinto, 2017). If
a business operates under the high context communication culture, it has a very high probability of
success.
In the direct communication style, usually employed in low-context communication cultures, the
speaker intentions are revealed. However, in indirect form employed in high-context communication

EFFECTIVE INTERCULTURAL COMMUNICATION 8
culture, verbal messages are used which camouflage the real intentions of the speaker (Korac-Kakabadse,
Kouzmin, Korac-Kakabadse, & Savery, 2001) Therefore, what the speaker said may not be what he
intended. One has to read the non-verbal cues and deduce what the speaker meant. In cultures that
embrace collectivistic such as China, they aim at achieving overall emotional quality interactions rather
than meanings of the words. They aim at protecting mutual face and maintain social harmony. Courtesy is
valued over truthfulness. For instance, when selling a product and a Chinese feels it’s not up to the
standard they will not tell you directly.
2.3 Different cultural norms of decision-making
With the expansion of globalization and the establishment of multinational companies in different
countries, it is crucial to understand the cultural norms employed by the host country. Culture influences
various aspects of running a business. For instance, exercising of power, indigenous methods of decision-
making, procedures of economic relations and production as well as economic and socio-political
behavior (Podrug, 2011). Culture variables influence significantly the decisions made by the
management. As an Australian manager based in China, there is a need to understand the culture of
Chinese people and their viewpoint when it comes to organization management. They should be ready to
take the perspectives of Chinese and embrace cultural awareness in the development of appropriate
policies (Khairullah & Khairullah, 2013). The decision-making process is structured in such a way that
the international managers have to choose a particular course of action in the midst of many alternatives.
A country’s culture influences the decision-making process and styles in an organization since the
culture-based value systems of a state determines how an individual will perceive or interpret a situation.
The management style of an organization relies significantly on the cultural values and norms of the host
nation. Factors such as individualism, masculinity, power distance, and uncertainty avoidance are vital
(Soares, Farhangmehr, & Shoham, 2007). For instance, on masculinity, Chinese managers have more
vigor compared to Australian managers. On individualism, Australians embrace more of this compared to
Chinese people. On the power distance dimension, the Chinese show the highest as compared to

EFFECTIVE INTERCULTURAL COMMUNICATION 9
Australians (Khatri, 2009). Therefore, it is crucial to understand all these factors as they will in one way
or another determine the decision making process. In China, the decision-making process is primarily
autocratic. Therefore, the employees understand that the top management makes the final decisions of the
organization. Australian managers should consequently understand this and not expect the junior
employees to make any decision since they rely mostly on their bosses.
The Chinese culture is established on various philosophies based on several traditions such as
legalism, Taoism, Confucianism, and Buddhism. The culture emphasis significantly on social order and,
therefore, every individual should understand their role and position in the society. They embrace
collectivism as opposed to individualism. They esteem work so much, and they give all in their jobs. It is
crucial for Australian managers and other workers to understand that work is vital in China and thereby
they should value it (Yuan & Clegg, 2002). Chinese are polite people who show good manners and
courtesy. They are usually patient people who make decisions without any hurry. In integrating with
them, therefore, the Australian managers should be ready to cooperate with them and involve them in the
decision-making process. However, they should not make numerous drastic changes at the same time
since the Chinese do they things slowly.
3.0 Conclusion
The greatest challenge encountered by many multinational organizations nowadays is the issue of
cultural diversity. The workforce is increasingly becoming diverse with people of different cultural
backgrounds. Cultural nuances, cultural values, and norms divergence, and language barriers lead to
misunderstandings and affect communication efficiency within the organization. The significance of
intercultural communication in a multinational environment, therefore, cannot be taken lightly.
Intercultural communication in business serves as a lubricant, mitigating any possible frictions that can
occur as well as resolving conflicts that inevitably arise in an organization. It also acts as a coagulant
whereby it integrates the collective strength and wisdom of all the workers, thereby improving teamwork
collaboration. Teamwork is very vital especially to the BeautyPro company given that it is established in

EFFECTIVE INTERCULTURAL COMMUNICATION 10
Chinese soil and the Chinese people value unity, harmony, and cooperation. Intercultural communication
as well brings multiple cultures together by uniting diverse races and ethnicity together. Through all
these, intercultural communication leads to a sizeable virtuous circle that contains practical synergy
effect.
Many cultural challenges are facing BeautyPro company in China such as different cultural
values, communication style, and diverse cultural norms of decision-making. The culture of China and
Australia differs significantly. Therefore, the top management of the company (Chief Executive Officer
(CEO) and other directors) should encourage the training of the employees based in China on the
significance of intercultural communication. When the Australian employees get to learn the culture of
the Chinese people and embrace it, it will be easier to interact with them and understand their needs and
wants. By doing so, the growth of the company will be guaranteed, and it will be able to develop and
expand tremendously.
4.0 Recommendations
For any multinational company to be successful in a foreign country, it has to embrace effective
intercultural communication. Relevant skills are vital in managing intercultural context as well as
expectations (Thomas & Peterson, 2017). It is crucial for the top management of the BeautyPro to
understand the challenges facing the company in China, and hence determine the manner in which they
can be overcome to stay competitive and relevant in the region. Regarding the three challenges discussed
above that are facing the BeautyPro in China, the following recommendations are outlined which when
implemented within the organization can result in the growth of the company.
4.1 Recommendations on the issue of different cultural values and etiquette
The culture of Chinese and Australians is entirely different. If not carefully understood, there will
be miscommunication due to ambiguity and, therefore, increasing misunderstandings. The first thing that
an Australian employee needs to do while in China is to understand the Chinese culture. There is no

EFFECTIVE INTERCULTURAL COMMUNICATION 11
universal management method, but management procedure varies from one culture to another (Fang,
2003). Even in the management of a business, you will have to put into consideration other factors such
as politics, religion, cultural beliefs, family, and people’s norms. Therefore, it is crucial to understand the
Geert Hofstede cultural dimension model. According to this model, the values of a nation differ in five
perspectives; Power distance, Uncertainty Avoidance, Masculinity versus Femininity, Long-term versus
Short-term, and Individualism and Collectivism (Yoo, Donthu, & Lenartowicz, 2011). If the managers
understand the culture of China by these dimensions, then it will be easier to maneuver. The top
management of the company should then develop the right competencies to equip the managers based in
Australia with the right skills and altitude to work well. The employees should also be cultural flexible
and be able to tolerate one another.
Integration method can be used to determine the success or failure of the above
recommendations. It involves putting together all the components of intercultural communication such as
beliefs, norms, and values of the involved people and analyzing how they influence the outcome of
communication in an organization (Bhawuk & Brislin, 1992). The method uses the mnemonic
‘SPEAKING’ (setting, participants, ends, acts, keys, instrumentalities, norms, and genre) to determine
how an individual understands the culture of others. This the method that has been used by the China
Henan International Cooperation Group (CHICO) in Africa and other parts of the world. They encourage
their employees to understand the culture and norms of their host country, thereby enhancing their co-
existence.
4.2 Recommendations on the issue of direct versus indirect styles of communication
China uses the indirect style of communication. It would be crucial if the CEO and directors of
BeautyPro company would enroll Australian employees in China branch in a program where they would
be taught the meaning of the non-verbal code used by the Chinese people. Lack of knowledge concerning
the non-verbal code such as the body movements, gestures, proxemics, chronemics, facial expressions,
and paralanguage used by Chinese people, will bring a lot of misunderstanding and affect communication

EFFECTIVE INTERCULTURAL COMMUNICATION 12
among the managers and employees as well as with customers and other stakeholders (Selmer, 2005).
For instance, Chinese people value silence, and their slogan is, ‘silence is golden.’ On the other side,
Australians term silence as an act of shyness or lack of enthusiasm. Competence in communication is
therefore crucial in ensuring the success of a company in a new environment. Australians should be
encouraged to embrace intercultural competence whereby they can participate and familiarize with
various activities of the host country. Having the right attitude, knowledge, and skills will ensure effective
intercultural communication. The staff should also be encouraged to master the aspect of intercultural
sensitivity thereby be able to appreciate differences originating from the culture of other people. These
can only be achieved if the CEO can employ intercultural development trainers who will teach the staff
on the above matters.
The success or failure of this can be measured using the semantic differentiating method
(Landauer & Dumais, 1997). Through this method, the connotative meaning of the message is analyzed
and thereby one can tell if they got the message right, whether it was correct, fluent, pleasant, aggressive,
incorrect, or distorted. Many non-governmental institutions in China have mastered the importance of
intercultural communication and how language barrier can affect their performance. As such, they
encourage coaching of their executives and other employees in mastering the Chinese style of
communication.
4.3 Recommendations on the issue of different cultural norms of decision-making
Chinese is a nation that embraces high-power distance and collectivism. The managers have the
final say in decision-making and the subordinates staff respect that. Any Australian manager in China
should know these and, therefore understand he or she is in charge. They should build a strong social and
interpersonal relationship with the Chinese employees. They should also develop mutual loyalty,
cooperation, and trust (Presbitero & Attar, 2018). Since China is a collectivist nation, during
remuneration and offering rewards to employees, one should incorporate equality. The decisions made
should reflect long-term perspectives as well as the collective goal of the company. The intrinsic reward

EFFECTIVE INTERCULTURAL COMMUNICATION 13
should be emphasized contrary to performance-based. For instance, Khairullah & Khairullah, 2013
showed that when a manager promotes some staff due to their outstanding performance without
promoting the whole group, the performance of the company deteriorates. Chinese people work well as a
team rather than working for the benefit of a single person.
The success or failure of these recommendations can be measured based on the preference,
practice, and effectiveness of the decision-making style employed (Ko & Yang, 2011). The CEO and
other executives should analyze the communication styles (both the limitations and benefits) used by
China and Australia and settle for the best. For instance, Hodge International Advisors, a company
operating in China and other parts of the world appreciates the importance of business skills training
programs that teaches negotiation skills, teamwork, and effective communication. Therefore, by doing so,
it has helped the company grow to greater heights.

EFFECTIVE INTERCULTURAL COMMUNICATION 14
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