Cross - Cultural Communication

How would you describe the problem in this case in terms of cross-cultural communication?

One can never fully understand culture. “Cultural analysis is always incomplete... the more deeply it goes, the less complete it is” (Geertz, 1973, pp. 29). It becomes more complicated when we embark on studies on cross-cultural comparative analysis. It is an utterly futile and meaningless attempt to compare cultures in general. Meaningful comparison between cultures can be conducted only on similar standards of human conduct (Goodenough, 1970).

Cross-cultural communication (or intercultural communication) on this case is the misunderstanding of the American bank General Manager to the “Italian style” of corporate tax system. This is a simple instance of how culture and communication relate to each other and the importance they bring in every diverse culture. The clear consequence of not knowing the culture of the place led to more serious problems. Solving this cultural dilemma will root back to the culture of business industry particularly taxation in Italy. Addressing this problem goes back in the process of communication in line with culture.

The American bank manager committed an “honest mistake” in a foreign land. In this instance, the tax system of Italy was being questioned by him. He considered it as “dishonest and because it was inconsistent with the practices of his parent company in the United States”. With his belief that the practice of having commercialista is a “bad” or “against” in their culture, he chose to do what he thinks is right. He forgot that he is in a place where it consist different sets of culture and that he needs to deal with it. Because of his resistance to the influence of the “mother culture”, he was trapped in a cultural dilemma.

In a multicultural setting, such as those of outsourced companies, the customs, beliefs and practices of the native country the company has set up its business contributes in the development of a corporate culture. As man mingles with different kinds of people, he/she tries different kinds of ways in living life, cultures has been evolving through time and changes brought by such circumstances. In dealing with these concepts, such ideas as orientalism and assimilation break through the theme.

At this point, the cross-cultural communication has different cultural dimension, mostly value oriented or psychological in nature. The belief of the American bank manager was rooted in him since he is a pure breed American. Because of this, intercultural communication occurred as expected.

If you had been an adviser to the General Manager, how would you have advised him?

Granted that I am the adviser to the General Manager, I will advise him to do the same advice the lawyers and tax accountants gave him - to get a commercialista. There are two basic reasons why I will carry out the equivalent suggestion.

First, considering that I am doing business in a foreign nation that has its own trade-related culture and as a part of acculturation, I will set on with the “Italian federal corporate system”. In the business world, acculturation serves as the common denominator for host and foreign culture to avoid conflict and miscommunication. At this situation, the General Manager needs not to compare the taxation of his country with the host’s culture. Instead, the least but could be the best thing to do is to “co-exist” with the existing policy present in the host culture. Acculturation is a” term originally applied only to the process concerning a foreign culture, from the acculturing or accultured recipient point of view, having this foreign culture added and mixed with that of his or her already existing one” (www.wikepedia.org.) In the process of acculturation, one must try to accustom his/her self to the “mother culture”. However, cultural differences may come along. But it is still important to consider that every culture has its own characteristic and views on things. Culture is relative and that it does not mean that what is “right” in the United States is “wrong” in Italy when it comes to tax system.

Second, as a part of cultural integration, I will adapt to the international policies in tax collection of the host country. Emigrant managers should be familiar with the host culture (Maddox, 1993). Believing that the cultural incorporation will solve all of the cross-cultural problems, it is essential that the expatriate need not to be only technically proficient but to have an overly simplistic view of the cultural integration of the firm's activities and existing culture on the host culture. According to Hodgetts and Luthans (1991), using an integrator can help. It will give an idea on how will a foreign culture will mix up with a host culture. An example of integrator is the tax accountants and lawyers inhabitant to the host culture. Their presence will be used in communicating with people involve in some business circumstances. Cross-cultural communication plays a vital role in any business world. The awareness and knowledge that they hold will provide needed information that could lessen up the problem of cultural resistance and differences. By doing it so, problems in communication could be minimized if not alleviated.

This case does not have a happy ending. What specific action should the bank take to prevent similar problems arising in future?

Before engaging in a business enterprise in an international environment, one must take into consideration some essential ingredients to make the business success. Economics, society, politics, geographic, and cultural aspects are very important matters to consider in order to cope up with the challenges it may face in the future. Through this, success in a business enterprise is assured.

Prior to the introduction of a business from a foreign location, managers must have a working knowledge of the culture in which they are operating. This generally calls for a sound cross-cultural training program for all managers destined for overseas assignments, and their families (Maddox, 1993). Initial planning and fact finding is also important. As information is power, the more information you can obtain about the other side, the better. This should begin well before any transaction commence and should involve learning about the organization, history, styles ad other related features of the other side. One should also identify all the potential issues to be discussed, prioritize the issues, establish a settlement range, and develop the strategies and tactics to be used during the course of action. If it is at all possible, one should assemble the team to conduct all preliminary discussions, individual assignments, and team organization to collect a satisfactory amount of information. Managers are responsible with this process.

It is still important for the bank to maintain its co-existence with the “Mother culture”. Through deliberate and continuous acculturation, the industry will be “acculturated” and it would mean acceptance in the part of the inhabitants of the host culture. Since this American bank will be “Italianized”, people of the same location will be persuaded to utilize the services of the bank. It would open greater opportunities for profit generation and healthy competition with other banks foreign to the place.

Communication will always play a fundamental function. According to Hendon, Hendon and Herbig (1996), “the more and better the communication, the greater the amount of information shared or extracted, and the greater the build-up of trust, the more likely is the possibility of creating the satisfaction” (pp. 9). In a cross-cultural environment, the role of communication is to establish and understand how people from different cultures communicate with each other. Their aim is to produce some guidelines with which they can use to better communicate with each other.

As for the bank, after negotiating with the taxes, the management must strengthen and rebuild its relationship with the host culture. If possible, the determinants in choosing another American manager should include cultural awareness. It is also possible to have an Italian manager to do the job. However, the American bank will still hold on with its corporate objective without violating any boundaries existing to the host country. Both parties must be in a position to communicate clearly and overcome cultural barriers to effective communication.

There are guiding principles that can be used in dealing with cultural diversity and for better intercultural communication. First, create contact with other cultural groups. Initiation of contact usually lessens and sometimes brings down the cultural barrier. The best way is to have a friendly approach and never to be discouraged by some negative perceptions and biases on that particular group. This will be helpful in being objective of the attitudes and values that they may have that may be necessarily different from yours. Further, a multitude of culturally different people leads to a casualness of being with them and unconsciously, accepting the differences and cherishing it. On the contrary, confining one’s self to a cultural group decreases the likelihood of ever understanding and accepting cultural diversity. Second, opening up with other cultural groups entails a prior knowledge of their background. This is not necessarily an academic knowledge or an extensive one. Just an overview of other cultures and some facts may help in dealing with them. This can be done through reading and even watching movies from their country. This may also trigger a more friendly contact with other cultures especially upon mention of anything that is familiar with them. Finally, age-old stereotypes and biases must be eliminated and downplayed. Further, ethnocentrism tends to be showcased by some groups. While there are more progressive countries, there are no superior civilizations. Each evolved and developed within contexts and thus, their progress is relative and subjective.

References

Acculturation, www.wikipedia.org. the Free Encyclopedia, modified 2August

2005, accessed 24 August 2005.

Geertz, A. (1973) The interpretation of cultures. New York. Basic Books.

Goodenough, W. (1981). Culture, Language and Society.

Hendon, D.W., Hendon, R.A. & Herbig, P. (1996). Cross-Cultural Business

Negotiations. Praeger Publishers:Westport, CT. 1996.

Hodgetts R.M.. & Luthans, F (1991). International Management. New York:

McGraw-Hill, 1991.

Maddox, R.C. (1993). Cross-Cultural Problems in International Business: The

Role of the Cultural Integration Function. Quorum Books: Westport, CT. pp. 118-119.