Nov 30

International Mergers and Acquisitions – Obstacles and Opportunities

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector No Comments »

The last decades have seen tremendous change in a multitude of aspects affecting the way we live and work. The ‘global village’ is moving closer and closer together. Organisations are no longer restricted by national borders in their operations. New opportunities for international business operations arise constantly and are enforced by the ever-improving information technology sector.

Cross-cultural mergers and acquisitions are common and often used to acquire more efficient access to resources and human capital, to expand markets and to create new ones. Due to promising predictions, as well as a considerable amount of time and money spent on legal and administrative issues, potential difficulties deriving from cross-cultural differences and hidden cultural rules are often neglected. These can have a tremendous impact on the international workforce and global business operations if not addressed in the early stages.

It is estimated that between 60% and 80% of cross-cultural mergers fail (Industrial Management, 2000) and in fact, cultural factors and the lack of preparation for them are often listed as key reasons for international M&A failures.

Obstacles for international M&As in the cultural field include differing values, attitudes and behaviour between the home and the host culture which can cause misunderstandings, client and employee dissatisfaction, increasing opportunity costs, direct financial losses and potential business failure. Intercultural competence developed through cross-cultural training programmes is therefore an essential success factor in today’s business world.

All of the parties involved, including management, employees and contractors on all levels, need to recognise the significance and impact of underlying cross-cultural values and attitudes in different cultures. This involves the understanding of different cross-cultural decision-making styles, perceptions of hierarchy, attitudes to polychronic or monochronic time as well as different communication styles such as high and low context.

Cross-cultural training programmes such as Communicaid’s Managing International Mergers and Acquisitions programme is essential to ensure that cross-cultural difference does not attribute to what is already very challenging.

© Communicaid Group Ltd. 2009

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Nov 30

Proxemics – Cross-Cultural Concept of Space

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector No Comments »

The concept of proxemics refers to different perceptions people have regarding physical space. The space between people or where things are positioned in a room have different meanings to people from different cultures and can affect international business and communication.

Edward T. Hall, one of the founding fathers of intercultural communication, categorised the space surrounding people into personal space, social space and public space. Personal space refers to the ‘bubble’ surrounding a person which can only be entered by friends or close family members. In contrast, a person’s public space is usually reserved for more impersonal and anonymous interactions. The layer of space between an individual’s personal and public space is often called social space. This is the physical space where everyday contact takes place such as on a crowded train or bus.

Every culture has a set of hidden cultural rules concerning the physical space – or proxemics - between people when communicating. Breaking any of these rules could be interpreted as impolite or even threatening.

Cross-cultural training programmes such as Doing Business in Spain will give you a better understanding of the concept of proxemics and of the reasons why someone from Spain might perceive their North American counterparts as being rude when they recoil from close physical proximity.

Understanding concepts such as proxemics through participating in cross-cultural training will help to avoid cultural faux-pas based on different perceptions of space.

© Communicaid Group Ltd. 2009

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Nov 30

Cultural Profile: Edward T. Hall

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector 1 Comment »

Name: Edward T. Hall

Nationality: US American

Born: May 16, 1914 in Webster Groves, Missouri, USA

Known For: One of the founding fathers of Intercultural Communication

Key Cultural Concepts: space (proxemics), time (chronemics), high context, low context

Key Publications:

  • The Silent Language (1959). New York: Doubleday & Co.
  • The Hidden Dimension (1969). New York: Doubleday & Co
  • Beyond Culture (1976). Anchor Books
  • The Dance of Life: The Other Dimension of Time (1983). New York: Doubleday & Co.
  • Understanding Cultural Differences – Germans, French and Americans (1990). Maine: Intercultural Press

Edward T. Hall, a respected anthropologist and cross-cultural researcher with a PhD from Columbia University, is often recognised as one of the founding fathers of intercultural communication. Hall developed a number of cross-cultural concepts which have become integral to any cross-cultural training discussion about cultural differences. His concepts include proxemics, monochronic and polychronic, and high context and low context.

Hall worked extensively with the military and the U.S. Foreign Service Institute in the 1950s training government personnel to become more effective communicators in cross-cultural interactions. This experience and research helped validate a number of important cultural concepts, all of which anyone doing business with another culture needs to be familiar with.

Many of Hall’s theories are widely used in cross-cultural training programmes such as Doing Business in the Middle East and Living and Working in France to improve understanding of communication styles and how people build relationships in that culture. Cross-cultural training applies each theory to a practical context to help you be more effective in cross-cultural interactions.

© Communicaid Group Ltd. 2009

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Nov 30

Impact of Culture Shock

Cross Cultural Training, Cultural training for Relocation, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector 1 Comment »

Culture shock, a natural state of psychological and physical disorientation that can occur when living and working in a new culture, can have a huge impact on international business if not recognised and dealt with effectively.

Most people think about culture shock as something that happens only when they are relocated to another country. In fact, it can also happen when doing business in another culture on a short-term basis, whether you are visiting for a week or a month. Being aware of the cultural differences and having the ability to deal with them is integral to ensuring a successful cross-cultural business endeavour or international assignment.

Cultural training for relocation such as Living and Working in France and cross-cultural business and management training such as Doing Business in India can help you better understand the culture thereby reducing the impact of culture shock.

Another common assumption about culture shock is that it only happens when you go to a culture which is significantly different from your own. However, culture shock can often be more intense when you go to a similar culture.

For example, a business person being relocated from the UK to the US may assume that they will not have difficulty adapting to American culture since they share the same language and have similar values and attitudes. However, what many people don’t recognise are the subtle nuances and behaviours unique to American culture which impact social and business communication and relationships and result in culture shock. Often, because these nuances and behaviours are very subtle, they are interpreted as rudeness or disrespect instead of a cultural difference.

The assumption that doing business in a similar culture will not be very challenging has been proven wrong by numerous studies which show that the majority of international assignments which failed were those where people were relocated to a culture very similar to their own. No matter where you are doing business or relocating to, cross-cultural training can help reduce the impact of culture shock on international assignments and global business.

© Communicaid Group Ltd. 2009

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Nov 30

What is Culture Shock?

Cross Cultural Training, Cultural training for Relocation, Culture 2 Comments »

Culture shock is a natural state of psychological and physical disorientation that can occur upon encountering a new environment and culture. Loss of social support networks, independence, and the ability to communicate combined with the differences and challenges of entering a new culture are all factors that contribute to feelings of culture shock.

Culture shock occurs at different times and to different extents for different people. Some symptoms of culture shock which cross-cultural training helps international assignees understand include:

  • Depression, fatigue, insomnia
  • Loss of self-confidence
  • Anxiety, confusion, frustration
  • Fear and insecurity
  • Grief – mourning for old life
  • Loneliness and isolation
  • Annoyance and over-sensitivity
  • Impatience

Numerous studies have been conducted on the phases of adaptation during international assignments and the impact of culture shock. Traditionally, culture shock and the emotional adjustment phases have been described as a U or W-Curve and have been divided into distinct phases starting with the ‘Honeymoon Phase’ during which people are really happy and excited about their new cultural experience.

While an increasing number of scholars doubt the validity and exactness of these culture shock models due to their simplicity and lack of empirical support, many international assignees say that they help them understand what they might go through during their adjustment to another culture.

The impact of culture shock, which everyone experiences differently, can be quite serious if not recognised and dealt with accordingly. Country-specific cross-cultural training such as Living and Working in China can help you understand the impact of culture shock and develop strategies for dealing with it during an international assignment in China.

© Communicaid Group Ltd. 2009

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Nov 30

Importance of Cross-Cultural Training

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector No Comments »

Today’s world is characterised by globalisation, ever-improving information and transportation systems, multicultural communities and workplaces, as well as changing political systems. The process of globalisation facilitates operations across cultures. However, it also creates new obstacles that international companies have to deal with in order to be successful. The amount of cross-cultural interaction, loaded as it is with potential difficulties rooted in cultural differences, grows steadily in frequency and intensity, bringing about the necessity of cross-cultural training.

Doing business in a cross-cultural environment requires an in-depth understanding of and clear communication with people from a variety of cultural backgrounds and nationalities and makes cross-cultural training essential in order to maximise positive outcomes of intercultural interactions and to reduce potential cultural faux-pas.

Different verbal and non-verbal communication styles can cause misunderstandings and frustrations that can potentially affect international business relationships and cause a decrease in productivity and efficiency due to the lack of knowledge or appreciation of cultural differences.

Problems in communication may arise from the obvious linguistic differences, but also from the often less apparent differences in cultural values which are often unconsciously embedded in people’s behaviour. Being aware of your own values and the impact they have on how you behave and are perceived is essential for anyone working in international organisations.

Cross-cultural training programmes such as Communicating Effectively across Cultures helps you understand your own values as well as those of other cultures through a combination of trainer-led discussion, group activities and self-assessments. The insight gained from cross-cultural training will help you start to build intercultural competence which is essential in international business.

© Communicaid Group Ltd. 2009

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