An Analysis of Intercultural Organizational Communication in Multinational Corporation

8/6/2019 An Analysis of Intercultural Organizational Communication in Multinational Corporation

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An analysis of intercultural organizationalcommunication in multinational corporations

Bertha DLL-Babcock & Richard D. Babcock

Introduction

As the world economy moves toward globalization, individuals who speak differentlanguages and who come from different cultural backgrounds need to develop mutualunderstanding and skills to communicate effectively with one another. Terpstra (1991)states that the multiplicity of language use and the diversity of cultures in the worldeconomy have a constraining influence on the operation of international business. Toa large degree, international business depends on communication, and language, of

course, is the key component of communication. Although the accurate use oflinguistic form is essential for effective communication, in most communicativesituations, there must be familiarity with the culture of the communicators language.In other words, miscommunication can occur if the communicators do not possesssome awareness of culture differences. As cultural distance increases, communicationbecomes more different. Where there is a cultural gap, communication problems canbe greatly compounded.

Even though there is widespread awareness that knowledge of the language andculture is an essential prerequisite for efficient communication in the international

business practice, systematic knowledge correlati ng anguage proficiency, culturalawareness and skill level is still not readily available. The purpose of this paper is toexamine intercultural organizational communication, and specifically, how expatriatemanagers with various levels of second (Chinese) language proficiency communicatewith local Chinese personnel and the ways and methods these expatriate adapted inorder to communicate more effectively and efficiently.

Taiwans Business Environment

Taiwans economy grew rapidly and became globalized during the 1960's when thecountry opened up for foreign manufacturers to enjoy its cheap labor in assemblingproducts for re-export in specifically established Processing Zones. This developmentcreated situations where foreig (Western) expatriates needed to communicate withlocal Chinese personnel. With the constraint of English language education in whichstudents take English as a subject in junior high and high schools and perhaps the firstyear of college, the overall English proficiency levels are much lower than incomparable countries such as Hong Kong or Singapore.

Taiwan is a country where most Western expatriate managers must make a conscious

effort to adjust their communication styles and methods in order to compensate for the


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lack of English language proficiency of local Chinese personnel. In terms of the joint-venture or multinational corporations, these Western expatriates typically have onlylimited Chinese language speaking abilities, and the local Chinese have varying levelsof second language (English) capabilities. In addition, Chinese culture is verydifferent from Western culture. Given that the local Chinese employees have some butnot high second-language proficiency, the expatriate managers can still communicatein English without the use of translators. Yet these expatriates must adjust their stylesand methods of communication. In such a language-deficient and culturally divergentenvironment, expatriate managers face a communication challenge that is significantlydifferent from that of a home country environment in which their native language isthe dominant communication medium.

Focus and organization

This paper focuses on the adjustments expatriate managers make in theircommunication styles and methods and the ways in which the local Chinese respondto these adjustments. The adjustments vary accordin g to the expatriates languageskills and their cultural knowledge. By groupin g the expatriates based on theirChinese language proficiency levels, three distinct communication zones areidentified (see exhibit 1 for details). The communication process was found to bedistinctively different in these zones, and different factors contributed to or retardedcommunication effectiveness in each zone. The paper is organized as follows: (a)background information on communication, language, and culture, (b) descriptions ofa research project that examines expatriate-Chinese communication patterns in eightmultinational corporations (MNCs) operating in Taiwan, @ analysis of thecommunication patterns in the three zones, and (d) generalizations and comparisons.

Communication in organizations

Cornrnunication in an organization involves two overlapping areas: interpersonalcommunication and organizational communication. Interpersonal communication isthe exchange of information between two individuals, whereas organizationalcommunication is the pattern of communication between groups and individuals in theorganization. In multiple-language use and in a culturally divergent businessenvironment such as in Taiwan's MNCs, both language and cultural factors impact oninterpersonal and organizational communication.

Interpersonal communication has been described in a general model that traces theflow of information between two individuals (Adler, 1991). Language and culturalfactors impact on all the dimensions and phases of the communication process. Thus,international communication can suffer in the multicultural business environment.Common sense supported by the communication literature (for example, Harnzah-

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Sendut, Madsen & E Thong, 1989) indicate that limited language proficiencychanges the dynamics of the communication process. Both speed and accuracy areaffected. The communication process must be slowed down and simplified in order tocomplete the interchange of information between sender and receiver.

Status, hierarchy, and power always affect organizational communication. In thisstudy, most of the expatriates assumed upper-level positions in the corporation. Thisadds to the lack of English language competence and the tendency to respect theauthorities status and power, in compounding the communication difficulty.Consequently, information loss would always occur as information is filtered upthrough the organizational levels even though information loss is considered a widelyaccepted organizational phenomenon.

Cultural difference is also a factor that affects the communication process andindividual communication styles. According to Hall (1976), individuals from different

societies and cultures communicate differently. He developed a comparative modelthat is directly related to interpersonal communication and that has contrasting polardimensions, namely, high-context communication versus low-context communication.

In a high-context environment, more of the information lies either within the contextor within the counterparts who are parts of the interaction. Less of the meaning of amessage is provided in the coded, explicitly transmitted part of the total message. Incontrast, in low-context cultures, the verbal part of the message itself contains more ofthe information and the majority of the transmitted information is vested in explicitcodes.

In a low-context Western culture, the prime responsibility lies with the sender toencode a clear and understandable message. Verbal messages are extremely importantsince people do not look in the environment for information. The messages areusually explicitly coded unless they pertain to relatively sensitive issues. Once themessage is encoded and sent, the receiver has the responsibility to ask for clarificationof the communicated message if the message is unclear. Direct feedback is an integralpart of the communication process. In contrast, in the high-context Chinese culture adifferent flow of information is created and different responsibilities between thesender and receiver are expected. In a high-context cultural environment like that of

Taiwan, the sender firstly assesses the communication environment or context andthen encodes the verbal message. Once the message is sent, the receiver also assessesthe communication environment before interpreting the meaning of words in theverbal message. The syntax, taken by itself, may be vague and indirect, especiallywhen dealing with sensitive interpersonal issues. Interlocutors instinctively receivecontextual or environmental variables as part of the message. As a result, what mightbe considered incomplete or vague becomes complete by adding the contextdimension to the communication process in high-context communication. During thecommunication process, immediate feedback and asking for clarification may notalways be an integral part of the communication process in a high-context culture.

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Face consideration is another crucial but subtle factor that impacts the communicationprocess. While all cultures give importance to saving and giving face, Hsu (1971)notes that losing face is the ultimate social sanction and is a real dread affecting thesocial system that is more than physical fear. Chinese individuals are thus reluctantto send messages in any condition where there is a possibility of losing face.Therefore, if a Chinese individual sends a message, that individual is conditioned tomake sure that the content of the message is correct or cannot be questioned by thereceivers. Consequently, there is a tendency to wait and respond in meetings and todelay reportin g until projects are completed or results are certain. This face-savingbehavior of Chinese is different from the face-saving or face-enhancing behavior ofWesterners. Westerners put forth tentative ideas and partial proposals and ask directlyfor feedback and clarification. In a Western style of communication, an individual caneven gain face by asking for clarification and putting forth a tentative idea. Ascompared to Westerners, Chinese are conditioned to communicate in completed

thoughts rather than in incomplete or hypothetical tentative ideas. Harmony amongindividuals, handed down from the Confucian tradition, leads to the suppression ofopen conflict and confrontation in Chinese culture and in the formal interactionsamong individuals that transpire in meetings.

Research methodology

Eight multinational corporations (MNCs), headquartered in both the United States andEurope, in the banking, petro-chemical, construction, and electrical industries wereinvolved in this study. The data for the study was collected by an American professorand a Chinese-American professor over a three-year period. A multiple researchmethodology was used. A standard English interview guide was developed and used.About 60 mid-to-upper level managers from eight MNCs were interviewed. Theexpatriates were interviewed in English and the Chinese in either Mandarin,Taiwanese, or English. In the case of the first-level Chinese managers, the interviewswere conducted either in Mandarin or Taiwanese as the co-researcher was a nativespeaker of both languages. With some mid-to-upper level Chinese managers,additional data was gathered in English in order to assess their command of English

and to allow the non-Chinese researcher to ask questions. Through the observation,the Chinese researcher had the opportunity to more accurately judge the Englishcommand of the local Chinese. According to the researchers judgment, which shouldbe viewed as a relative frame of reference rather than as a precise measurement, theChinese managers English proficiency fell largely within the FSI (Foreign ServiceInstitute Scale) Sl and S4 range (Jones, 1982).

FSI scale divides the foreign and second learning proficiency into five levels; namelySl, S2, S3, S4, and S5. Sl indicates that individuals are able to use greetings, ordinarysocial expressions, and ask simple questions. Individuals with S2 proficiency level areable to satisfy both routine social demands and limited office requirements. In this

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by the researchers. This expatriate continuously provided insights that were followedup in succeeding interviews. In explaining and elaborating on these conversationswith the Chinese-speaking researcher, the researchers continually expanded theirinsights. In addition, the Chinese-American researcher had a personal college friendwho was an executive secretary at one of the companies. Through extended

conversation with that individual, the researcher gathered examples and insights thatbroadened the texture of the research.

Findings and discussion

Zones of communication

Among expatriates, second-language (Chinese) proficiency varied. Some possessed

nearly native-like Chinese proficiency, but some only spoke very limited survivalChinese or so-called shopping language. For discussion purposes, three zones ofcommunication; namely, zone 1, zone 2, and zone 3 are categorized.

The zones have general application and can describe the second language abilities ofexpatriates and local Chinese managers. Exhibit 1 describes the language proficiencylevels of the three categorized expatriates and the local Chinese managers as well astheir cultural knowledge. Zone 1 refers to the communication ability of expatriateswho possess no proficiency or a limited to low level of Chinese language proficiency.Zone 2 is the communicative level of those who have resided in Taiwan for over a

period of time and could speak and comprehend up to about 70% of their dailyconversation and daily routine tasks. Zone 3 is the communicative level of thoseindividuals who possessed nearly native-like Chinese proficiency. Expatriates withsuch of high second language proficiency would be individuals who were born in theChinese-speaking countries and went abroad for advanced studies. After graduation,these individuals stayed in Western countries and were naturalized as citizens o f theUS or the UK.

Comparison of Communication in the Zones

Exhibit 2 provides a comparison of the communication process in the three zones.Expatriates had to make more adaptations in Zone 1 and successively fewer in Zones2 and 3. As the expatriates Chinese proficiency increased, they were able to sendmessages more directly and could gradually discard the Zone 1 adaptations. In Zone1, supplemental communication channels were developed to facilitate communication;the channels could be partly discarded in Zone 2 and completely discarded in Zone 3.In Zone 1, communication between senders and receivers had distinct phases asmessages were sent through the auxiliary channels and the expatriates then had to waitfor responses. These phases were replaced in Zone 2 partly and Zone 3 totally because

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the expatriate managers could communicate directly in Chinese. As this processunfolded, one-way communication with delayed feedback (Zone 1) was firstlyreplaced by one-way communication with feedback (Zone 2), then by two-way, fluid,continuous communication (Zone 3). The volume and texture of communicationincreased from Zone 1 through Zone 3 as informal communication was added to. and

at the same time enriched the communication network.

Zone 1 Communication

Zone 1 expatriates modified their communication approaches because of theirinability to use regular normal communication style and methods. These adaptationsinvolved (a) redefinition of their communication strategy and (b) change in theirinterpersonal communication channels that were developed either by design orinformally to compensate for their language deficiencies.

Redefinition of communication strategy

The expatriate managers refined their roles to compensate for their communicationslimitations; this redefinition changed the content, timing, and methods ofcommunication. ,At both the senior and middle levels, the expatriates practiceddelegation by results expected and avoided problems of over supervision. At thesenior level the expatriates concentrated on translating and integrating corporate(headquarters) objectives and programs into operational programs for the Taiwanoperations. At the middle levels, the expatriates concentrated on setting forth clear and

understandable objectives and policies. However, there were misunderstandings, oneexample being the assignment of the design of a building with Chinese characterist ics.In this case, the expatriate manager, thinking he delegated in unambiguous terms, waspresented by his design team with a very sensible and economical design but not onethat did not conform to classic Chinese characteristics. The design team interpretedChinese to mean modern Chinese design as currently practiced in Taiwan and notclassic Chinese design as the expatriate had intended to communicate.

Interpersonal communication

Zone 1 expatriates modified both their roles as senders and receivers of information inthe interpersonal communication process. Because feedback was either delayed, lowerin content, or non-existent in the Zone 1 environment, the expatriates adjusted theirapproaches to sendin, 0 and receiving messages. Confronted with the difficulties ofcommunicating in an unfamiliar environment, expatriates with low second-languageproficiency altered their communication style and messages. Because of the languagebarriers in the Zone 1 environment, the expatriates could not provide the same qualityof feedback that they could have with higher proficiency language individuals; thusthe expatriates took more care in both verbal and written communication. This


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deficiency resulted in a pattern of expatriates sending fewer messages andconcentrating more on developing clarity in these messages.

Contributing factors

In addition to expatriates adaptation, there were contributing factors that facilitatedan efficient exchange of information between expatriates and Chinese. In relation tothe Chinese nationals, the expatriates occupied prominent positions in the companyhierarchy. Consequently, the Chinese subordinates could focus on finding themeaning of messages being sent by relatively few individuals. In transmittingmessages, expatriates simplified the content of their verbal message. This languagesimplification process allowed the Chinese to expand and interpret the messages sentby the expatriate managers. At all scheduled meetings, the expatriate managers used ablackboard or newsprint to emphasize key points. They would write key words andphrases to amplify and reinforce their verbal messages. The Chinese subordinates tookthese key points away from the meetings, even though most Chinese did notcompletely understand the simplified explanations and discussions that surrounded thewritten summary statements. Even with the limitations in the area of verbalcommunication, a highly effective and efficient communication system wasestablished.

Unintended but beneficial consequences

The unintended but beneficial consequence of this communication pattern was that itestablished a cultural fit between sender (the Zone 1 expatriate with limited languageskills necessitating simphfied English language communication) and the Chinesesubordinates (the Chinese with low comprehension in English) but with highlydeveloped sensing abilities. Through their sensing abilities, the Chinese received non-verbal messages through the context element of the communication process. Themessages corresponded to messages that were sent by Chinese bosses and to theprinciples of high context communication. The expatriate used few words,emphasized by being written on the blackboards or in a handout and newsprint,. and

this communication pattern corresponded to the Confucian and Taoist instructions ofbeing sparing in the use of words. Without filling in the full message, correspondingto the concept that less is more, the expatriates were communicating effectively andefficiently to their Chinese subordinates. In terms of effectiveness, the expatriateschose expressions and messages very carefully, thereby conveying the essence of themessages in language understandable to the Chinese subordinates. In terms ofefficiency, the Chinese did not have to ask for clarification or amplification of themessages. These Chinese subordinates were given room to interpret and expand theverbal messages but were also given parameters to guide this expansion. Because ofthe tendency of Chinese to expand any received message regardless of completeness,

the expatriates were providin g a communication channel for constructive expansion.

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By providing messages that had to be expanded and interpreted, the languagedeficiencies of both expatriates and Chinese indeed created an information exchangethat was different but one in which language deficiencies and cultural differencesproduced messages that were both effective (successfully completed) and efficient(requiring less transmission time).

Behavioral pattern of Zone 1 expatriates

Because of the low second-language competencies, the behavior pattern of the Zone 1expatriates was quite similar in certain respects to that of Chinese superiors. Thiscorresponds to patterns described by Silin (1976) and Redding (1990), who point outthat top level Chinese managers remain aloof and remote from their subordinates.They run very centralized organizations and make all major organizational decisions.In seven out of eight studied organizations, the top-level expatriate managers madethe major enterprise decisions, relying heavily on interaction with headquarters and onenvironmental information outside the organization and outside Taiwan. Theseexpatriate managers in effect remained aloof from their Chinese subordinates mainlybecause language deficiencies prevented the development of social interchange. Thecommunication style of these Zone 1 expatriate managers was influenced by their lackof Chinese language skills and by their Western backgrounds.

The expatriate managers in all eight organizations differed from the patterns ofChinese managers. The expatriate managers did not use the divide-and-rule tacticsused by Chinese managers in Chinese organizations. Rather than parcel outinformation to maintain control, the expatriates relied on their assessment ofinformation from headquarters and from the formal authority of their positions to leadand manage their organizations. In other words, the subordinate Chinese managershad the necessary information to coordinate amon, g themselves and did not need touse the expatriate managers as coordinators. In effect, the Zone 1 expatriate managerswho were making major decisions were not involved in the implementation process astheir Chinese counterparts in Chinese organizations would have been.

Chinese subordinate reaction

The Chinese subordinates reacted positively to the absence of the divide-and-ruleapproach. The Chinese also appreciated the positive style of the expatriate managers.One similar comment was made in various expressions in all eight organizations. As asecretary stated : Americans are very kind and generous. This comment did notmake sense to the researchers until it started to fit into a general pattern. Being a self-selected group, the Chinese who chose to work for foreign firms did so for positive aswell as negative reasons. A widely held stereotype throughout Taiwan is that Chinesebosses in the age groups from 45 to 60 (comparable to that of the expatriates) were

mean and inconsiderate to subordinates. Whether true or not, this belief put the

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expatriates in a favorable comparative light. Consequently, the Chinese were able toidentify with the expatriate managers because of cultural similarities (positiveinfluence) and the absence of undesirable Chinese cultural styles (lack of negativeinfluence). The expatriates bosses were viewed as kind and generous whereas Chinesebosses had the reputation of bein g stingy with money and not showing appreciation.These reputations were passed through the grapevine as relatively few Chinese hadintensive direct experience with expatriates or Chinese general managers.

Seeing themselves as a select group, the Chinese subordinates viewed themselves asset apart from other Chinese. Normally paid higher wages than could be earned inlocal firms, these Chinese also were afforded an intangible prestige. This prestige canbe viewed as the characteristic of general phenomena in which Western products andservices have acquired preferred status in Taiwan. Furthermore, in comparison toseeking employment in family firms, those Chinese without family or "guanxiconnections could escape being outsiders in Chinese firm environments. TheseChinese reacted positively to the removal of the restrictive pressures to conform toChinese cultural norms. In a sense they were still outsiders, but the Chinese did notsee this as a negative factor.

Ambitious Chinese saw employment in foreign firms as an alternative route to careeradvancement and wealth accumulation other than relying on family connections.Culturally, these Chinese were amenable to accepting the more direct communicationstyle of the expatriates; there was a cultural fit between the low context-low languagecompetency expatriates and the high-context and less direct Chinese.

Emergence of link-pins

A critical part of the communication process was the emergence of Chinese

link-pins or mediators who served as a bridge between the Chinese subordinateswith low English proficiency Zone 1 expatriates. These link-pins were Chinesepersonnel who were fluent in both Chinese and English.

There were varying patterns in the development and use of link-pins. In one pattern,the link-pins were Chinese managers who had studied in the United States. These

individuals would translate difficult-to-understand expressions (involving slang oridioms) from English to Mandarin, or vice versa. One Chinese manager whorepresented this pattern communicated entirely in Mandarin with his subordinatesexcept in situations where non-Chinese speaking expatriates were present or where theChinese CEO was present (English was the official company language). A secondpattern consisted of expatriates and their executive secretaries; these secretaries tookon the role of link-pins between expatriate bosses and their subordinates.Representative of this pattern was an American manager in a construction firm and hisexecutive secretary. Not being threatened by a link-pin process that looked as thoughhe was delegating authority to his secretary, this expatriate was able to use this

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process to more closely monitor the work of his subordinates. The subordinates werewilling to provide informal progress reports to the secretary without feeling a loss offace in reporting problems or difficulties. Usin g this information the expatriate haddeveloped an information base to give the subordinates constructive feedback.

A third group of link-pins were staff assistants who connected CEOs and upper andmiddle-level managers. Serving as a link-pin in a petro-chemical firm was the publicrelations officer. Having continuous access to both the CEO and other members of themanagement team because of his job functions, this manager could informally conveyinformation back and forth. This allowed the Chinese managers to use an intermediaryand made it easier for them to convey sensitive information and to avoid directconfrontation and possibly lose face. As face protection and avoiding confrontationare prominent elements of Chinese culture (Hsu, 1971; Bond, 1991), these practiceswere consistent with and reinforced by Chinese culture. This link-pin manager hadearned the trust of the Chinese subordinate managers, and he had the languagecapabilities to serve at a link-pin between these Chinese managers and the expatriateZone 1 CEO.

A Fourth group of link-pins were the first-level managers who possessed a bettercommand of English than their co-workers. At the floor-shop, these individuals wereassigned as link-pins to translate and to assist other first-level managers who spokevery limited English. These individuals indirectly served as link-pins between workgroups, first level management, and expatriates. In one company a work group wascomposed of native Hakka Chinese who spoke neither Mandarin nor Taiwanese, butthe Hakka dialect of Chinese. To assist in managing this particular group, a Hakkaindividual who was fluent in English, Chinese (Mandarin), and Hakka was assigned toassist in managing this work group. He in effect served as the link-pin between theTaiwanese and Mandarin speakin g managers and the Hakka Chinese who spokeneither Mandarin and Taiwanese. Hired for this role specifically and also groomed asa fast-track candidate, this link-pin split his time between managing this work groupand carrying out special assignments. Because of his language abilities, he created abridge with tied together many parts of the organization. He had access to variousdepartments by carrying out special assignments.

The fifth group of link-pins were top-level Chinese reporting directly to the expatriateCEO. At an electronics firm, two upper-level managers served as overall or generallink-pins. One upper level manager concentrated on technical matters, and the otheremphasized administrative affairs.

The link-pin relationships were not formally recognized in the formal organizationalcharts; rather, they were informal arrangements that developed out of the need tocommunicate. The link-pins were tied to their respective groups through trustrelationships that were built up over time. Saving and giving face was the essential

ingredient in evolving into being a link-pin.

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Danqers in Zone 1

There were dangers in Zone 1, the most critical being the psychological health of theexpatriates. By readin g between the lines and watching carefully, the researchersconcluded that all of the expatriate managers with limited Chinese language

proficiency showed symptoms of stress. This stress manifested itself in feelings ofisolation and lack of control. Physical effects-evidenced in speech and bodymovements -were observed, especially when these expatriates were discussing theirproblems and overall impressions. But apparently this stress was not translated into asignificant lowering of enterprise efficiency. The judgment of the researchers, backedup by operating results, was that these were seven highly efficient enterpriseenvironments with the eighth being efficient until the Chinese partner withdrew fromthe venture. Rather, the cost was directly absorbed by these expatriate managersthemselves or possibly indirectly in less than optimal decisions made by theseexpatriate managers. Because of compensatin g factors mentioned previously, theexpatriate managers did not feel in control and suffered a feeling of isolation; but theoverall results were that (a) major decision makings were highly centralized, and (b)implementation and control were highly decentralized. The critical factor that existedin the firms studied was the existence of effective link-pins who in fact controlled anddirected the flow of information. The expatriate managers took an external focusthereby linkin g the Taiwanese operation to headquarters and other overseas units.Meanwhile the Chinese were freed from excessive top-down control. Communicatingthe corporate culture was the major communication task for Zone 1 expatriatemanagers.

Expatriate cultural studies

Lastly, two expatriate managers specifically undertook cultural studies to betterunderstand their Chinese colleagues and subordinates. One banking manager pridedhimself on his Chinese studies and stated that he had altered his management styleaccordingly. In loan meetings for example, he structured the discussion so that eachloan officer had an assigned time to speak without interpretation and so that everyonehad to use the assigned time. There were at least two rounds in the decision-makingprocess-the first was given to presenting analysis and the second to announce therecommendations. This approach was derived from Chinese norms of allowingindividuals to present completed, thorough statements and avoiding openconfrontation.

Zone 1 expatriates did not engage language tutors. The job demands and stresses weretoo great, according to the expatriates, to take on the additional task of languagelearning.

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Zone 2 communication

Zone 2 includes those individuals who were able to satisfy both routine socialcommands and to handle professional discussions with one or more specified fields.The dynamics of the communication process in Zone 2 were significantly different

from Zone 1; the Zone 2 expatriates could now interact with the local Chinese in theChinese language. Communication was now possible with all Chinese and not justwith those Chinese who had English language speaking abilities.

Differences between Zone 1 and Zone 2 communication

To point out the differences between Zone 1 and Zone 2 communication, thefollowing are contrasting examples of Zone 1 and Zone 2 plant managers. The Zone 1manager stated that he felt a constant pressure when he would walk through the plant.

Unable to speak directly to the first level supervisors or workers, he becameincreasingly reluctant to tour his own plant. In his first year he was able to get by bysaying a few Chinese words and the Chinese responded well to his attempts atminimum Chinese. But this routine became difficult to repeat and this expatriate hadeliminated the embarrassing tour situation by his second year. He thus becameisolated because of his language limitations. The Zone 2 expatriate had just theopposite experience. His language skills fell in the low Zone 2 level, but he couldcarry on social conversations and understand the essence of some technical Chineseconversations between Chinese that he would overhear during his tour. By being ableto greet Chinese as he walked through the plant, he was able to positively demonstratethe interest of upper level management in the floor operations. At the same time, thisexpatriate stressed that he was careful not to communicate anything that could beinterpreted as a command or even a suggestion.

Zone 2 language environment

The Zone 2 expatriates were not as isolated as Zone 1 expatriates. However, theirsecond language competency (especially the individual who possessed low level Zone2) was not developed to the extent of bein,g able to understand and communicatesensitive interpersonal or technical issues. In these areas the Chinese with whom theyinteracted in most instances would have higher level English language abilities thanthe expatriates. So the Zone 2 expatriate managers would continue to use English asthe medium of exchange in normal business communication but would be able to useChinese language competency to supplement their communication. This means thatZone 2 expatriates can productively use their Chinese language competency to (a)listen to Chinese conversations and pick up an overview of the main points and (b)use Chinese in social conversation to bond more closely to the Chinese colleagues andsubordinates. As long as expatriates confined themselves to listening, informationgathering, and social conversations, the use of the Chinese language skills was a

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positive factor for Zone 2 expatriates. It was in cases in which these Zone 2expatriates overused their Chinese language skills that communication problemsdeveloped.

With intermediate and improving second-language skills, Zone 2 expatriate managers

were in a position to communicate directly with a larger number of Chineseindividuals. The information loss that occurred in the Zone 1 indirect communicationprocess was now reduced. It now became possible to simplify the communicationprocess by eliminating the intermediaries or link-pins.

At one company, a sales manager conducted his quarterly meetings in Mandarin.Using what he called a narrow window approach, he isolated over a two-year perioda vocabulary that could be used in marketing situations. He identified the essentialChinese vocabulary and used this vocabulary in oral communication. In spite of theeffort expended by this expatriate, the Chinese did not react favorably to his

extraordinary effort. The Chinese managers would rather have had the meetingsconducted in English and have Chinese translations to supplement the Englishlanguage communication when necessary. The second-language proficiency level ofthis expatriate manager was not sufficient to handle nuances in Chinese, and theChinese subordinates felt that he oversimplified the marketing issues. This judgmentapplied to Chinese at all levels of English-language proficiency. Those Chinesemanagers with low-level English-language competency could pick up the essence ofthe presentation by studying hand-outs and looking at visual aids. More importantly,those Chinese personnel with a better command of English served as link-pins forthose Chinese individuals with low-level English proficiency.

As receivers of messages. the Chinese subordinates from eight MNCs stated that theywould have preferred to receive higher quality messages in English rather thansimplified Chinese messages. In receiving the information, the Chinese could thenwork among themselves to interpret the messages. The Chinese were much moresensitive to a process of simplifying Chinese than they were to a similar process ofsimplifying English. With English, they had a message they were more confident inreceiving. With the Chinese message, the Chinese individuals did not have the sameconfidence -the Chinese were much more sensitive to grammatical errors in theirnative language. In fact, this Zone 2 expatriate did. of course, send more

grammatically correct messages in his native language than he did with his attempts atChinese communication. The Chinese, unaccustomed to hearing their native tonguespoken by a foreigner, were distracted by the accent and grammatical constructions.Possibly, the reaction would have been less if Chinese personnel had been able to hearsecond-language speakers more frequently; but in the case of this expatriate bankingmanager, the quarterly meetings did not allow enough exposure to enable his Chinesesubordinates to comprehend his attempted Chinese messages. The local Chinesemanagers were only exposed to this expatriate manager speaking Chinese on a non-continuous (quarterly) basis and in a small number of one-day meetings. Continuous


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and expanded exposure may have allowed the Chinese to tune their ears to his way

of speaking.

Another Zone 2 case illustrates an expatriate who had acquired the second languageskills to overcome the communication difficulties experienced by the first-level

managers. This managers language skills had risen to a level where he was able tocarry on normal business activities in Chinese, although this added effort led tofatigue and anxiety. The researchers observed the same anxiety symptoms as with thelow-language (Zone 1) expatriate managers although the causes were different.

Possessing an intermediate level of Chinese language proficiency, one of the Zone 2CEOs from a consulting firm had increasingly been accepted by his Chinesecolleagues and subordinates. In contrast to another Zone 1 CEO, whose efforts tobecome an insider were resisted by his Chinese subordinates, this CEO possessedsufficiently high-level Chinese language skills to be accepted as an insider. His

language skills in fact enhanced his reputation and authority in the eyes of his Chinesesubordinates. His communication problems arose in his evolving relationship with theChinese Chairman of the Board. As described by Redding (1990) and Hsu (1971),these two individuals increasingly mixed business and social activities. The Zone 2expatriate CEO went from being an outsider to gradually becoming an insider. Thistransition created a new set of expectations; that is, the expatriate CEO was expectedto conform to the norms of the Chinese culture. Because the Chinese person was thesenior individual in this relationship, the junior Westerner was implicitly expected torespect and honor this relationship. Their relationships should be tempered by theChinese concepts of jjen and lli (Hsu, 1971). JJen can be translated as

humanness and lli as propriety. Being interrelated concepts in Confuciantradition, humans should show compassion toward one another in establishedrelationships (jen) and show this compassion in structured ways (li). Beingunconsciously influenced by Chinese tradition, the researchers interpretation is thatthe Chinese Chairman of the Board unconsciously expected the newly culturally-integrated expatriate to act according to these Confucian codes.

Over a one-year period, the two individuals evolved into the above-mentioned roles;this created an environment of rising expectations. At a Board of Directors meeting,the expatriate CEO did not conform to the insider role he had established for himself

with the Chinese Chairman of the Board. Thinking he had a policy agreement with theChinese chairman before the meeting, the expatriate CEO was shocked to hear amodified policy announced by the Chinese chairman. Reacting instinctively, theexpatriate CEO interpreted the chairmans intention, and this led to an opendisagreement. Having above average but not native-like Chinese abilities, theexpatriates disagreement came across as more crude and blunt than intended. Theexpatriate CEO still lacked the Chinese language skills to deal with sensitive issueseffectively. More importantly, he did not follow the cultural modes and tradition ofthe host country of which he was now a part. On the next day after the Board meeting,

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the Chinese chairman resigned his post and called for repayment of a personalinvestment that he had made to the company.

Language and culture pitfalls and opportunities

The combined language and cultural pitfalls of a Zone 2 environment are illustratedby both language-related and culture-related difficulties that the expatriatesexperienced in their companies. Zone 2 offers both additional opportunities andpitfalls. If the expatriates confined their newly acquired Chinese to social situations,the use of Chinese language was considered a positive factor that could broaden anddeepen the relationship of the local Chinese and expatriates. The Chinese appreciatedthe expatriates effort, and the language exchange did not interfere with businesscommunication. In the case of listening, this was definitely a plus. The expatriateswere able to monitor the Chinese conversation and felt less excluded. Indirectly, asthe Chinese realized that the expatriates could understand their conversations, they felta pressure to transfer their speech to English. It was in fact easier to exclude theexpatriate and speak Chinese in front of the expatriate if the expatriate did not knowany Chinese. There was much more language switching initiated by the Chinese whenthe expatriate had even low-level Chinese language skills. To provide an overview,the researchers found that expatriate second language competence most always aidedeffective communication if confined to social situations for speaking and listening andin business situations for listening.

Zone 3 Communication

In Zone 3, the expatriates Chinese language proficiency level is nearly native.Continuing to fulfill the link-pin function with the corporate headquarters (as forZones 1 and 2 expatriates), the Zone 3 expatriates also were able to participate moreactively in the management activities of Taiwan operations.

Having additional personnel to serve in the role of linking the expatriates and theTaiwanese personnel was essential in Zones 1 and 2 but not a must to the Zone 3expatriates. That role could now be performed at least partially by the expatriate

manager. The danger in a Zone 3 environment is that if the expatriate spends toomuch time working with the Taiwanese operations the expatriate may lose contactwith the corporate headquarters. The possible result is that the expatriate will becomeless effective in communicating the corporate philosophy and culture and that theTaiwanese operations will become less successfully integrated within the corporatefamily. Because the Zone 3 expatriate is not constrained by language, the expatriatemust strike a balance between (a) maintaining contact with the corporate headquartersand thereby not losing touch with the corporate culture and (b) implementing thecorporate culture throughout the Taiwanese operation by being deeply involved inday-to-day operations.

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One executive in the study who successfully accomplished this dual task was the CEOof a construction company. Bein g a naturalized American citizen and retuming toTaiwan after 30 years in the United States, he insisted on maintaining English as theofficial company language. Stressing the need for a cooperative work environmentand the importance of early discussion of problems, the office environment of theTaiwanese branch resembled that of the home office in the United States.

Patterns in Zone 3

There were two different patterns in Zone 3. One situation is that of overseas Chinesereturning to Taiwan. These individuals were fluent in both the English and Chineselanguages. Communication without alteration for language deficiencies is possiblewith this pattern. In communicating with these individuals, a communicator wouldsend or could receive a standard message (in either Chinese or English). The abovementioned CEO was a case in point. He dealt equally well with expatriate managersor with low-level or non-English speaking Chinese subordinates.

The second pattern was that of expatriates who have acquired native-like fluency inspoken Chinese. One example was an engineering superior who had extensivelanguage training before assuming his position in Taiwan. His style represented aWestern participation approach with a mixed language environment. Because Englishwas the officia l company language, this expatriate manager used English as his primelanguage in business situations in the office. However, he switched to Chinese whencommunication could be improved by usin,g that medium. Unusual for Chineseculture, this expatriate manager had extensive social relations with his work group. Atleast once a week, he, together with his departmental engineers, would have a Fridayafternoon beer, called a TGIF party, much as in Silicon Valley firms in the US. Oncea month, the group had a official meal together, and these scheduled activities weresupplemented by informal socialization. The language used in these social gatheringswas Mandarin exclusively. The expatriate had imposed a Western style participativework environment together with a mixed English-Chinese language environment; theself-selected Chinese who associated with him responded positively to this culture-language mix.

Generalizations

The objective of the study was to identify those factors in the eight MNCs thatfacilitated the development of highly effective communication systems in spite of anylanguage deficiencies and cultural differences. The overall findings were interpretedin terms of three communication zones; expatriates made different adjustmentsprimarily depending on their second-language (Chinese) speaking and listening

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abilities and secondly on their cultural sensibility (either intuitive or by acquiredknowledge).

Since their second language deficiencies were obvious, the Zone 1 expatriates knewthat they had to alter their communication styles in order to communicate effectively.

The adaptations in communication style by Zone 1 expatriates in six out of the eightmultinational corporations studied led to efficient information exchange. Onecharacteristic or attribute that describes the managers in the six efficient environmentswas cultural sensitivity. The Chinese identified the expatriates as compassionateoutsiders and also as reflecting behavior that the Chinese could identify with. Bybeing disconnected because of language deficiencies (Zone l), the behavior of theexpatriates resembled that of successful Chinese leaders. However, not all expatriateswere successful. While maintaining the requisite sensitivity, one expatriate had notidentified Chinese link-pins to bridge the exchange of information from English toChinese. Chinese subordinates also judged this individual as too inflexible, and the

designated link-pins only served to widen cultural misunderstanding. In anothercompany, the expatriate had progressed to Zone 2 and communicated without the aidof link-pins. The direct interaction intensified and highlighted the cultural differences,so that in a stressful situation, the expatriate reverted to his primary direct andconfrontational style, with seriously negative consequences.

Competency in second language communication

By acquiring second-language competency the expatriates enhanced the possibility of

improving both the ease and efficiency of communication. At the same time assecond-language competencies were increasing, there was a parallel development ofnew responsibilities and challenges as the expatriate moves into Zone 2 and finallyinto unrestricted communication in Zone 3. Rather than show off their secondlanguage ability, the expatriates felt they should exercise restraint and make modestuse of their language abilities. Even in cases in which expatriate managers possessedan intermediate level (Zone 3) of Chinese proficiency, many Chinese subordinatescould still speak better English as compared to the expatriates speaking Chinese. Theexpatriate could utilize listening skills; this is the area of constantly increasing returns.With even modest listening skills, the expatriates reduce the psychological sensationof isolation and increases the amount of information at his or her disposal. It is whenthe expatriates attempted to use the second-language competencies in oral businesscommunication that potential problems arose. The exercise of modesty and notshowing off new skills until perfected is an important Chinese value, and theperceptive expatriate managers adhered to this practice. In addition to constructivelistening, as Chinese-language proficiency improves, the expatriate could make use ofChinese language skills in situations after work. Since there is a clear distinctionbetween social and business situations in Taiwan, the expatriate could carefully andgradually make the transition from Zone 1 to Zone 2. However, to make thistransition, the expatriate needs to make a long-term investment in language training.

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Adaptations in communication

The adaptations in the communication process can produce highly effective andefficient communication systems as would be indicated intuitively or simply by usingcommon sense. Zone 3 is the most effective and efficient communication environment

as supplemental communication networks do not have to be created or evolved inorder to have high-level communication from/in this zone.

In addition, outsiders can bring forth viewpoints, additional information, and ways ofsolving problems that are not contained in a monocultural language group. As Adler(1991) points out, the potential output of multi-cultural groups is greater than forgroups drawn from the same culture. By includin g expatriates in the language-cultureenvironment, this new mix may unleash an energy where both sidesovercompensate for their respective language deficiencies. The constructive strugglewith communication can create cultural synergy and more creative decision making.

In these eight Taiwanese multinational corporate environments, the Chinese hadchosen to be different from their countrymen by taking positions in foreign firms, andif they did not succeed, their commitments would cause them to lose face before theirChinese peers.

This study was able to uncover both successful and less successful examples ofexpatriate-local Chinese communication. but the study focused on identifying factorsleading to successful communication. By confining the study to companies whereoperating results indicated successful operations, the researchers were not searchingfor examples of communication breakdowns.

The study was able to demonstrate that it is possible to establish and maintaineffective and efficient communication in language-deficient and culturally divergentenvironments. In the widely divergent Western and Chinese cultures, thecommunication process through adaptation can meet the demands of effective andefficient transfers of information. This communication process requires the respect ofboth cultures (Chinese and Western), and further improvement is possible as secondlanguage competency is acquired. The danger of intercultural miscommunication isgreatest in the middle zone but can occur a t any level. The general proposition is thatbetter command of second-language proficiency increases the potential and capacityfor effective and efficient communication; but at the same time it brings forth newresponsibilities and possibilities for communication breakdowns. Acquiring culturalknowledge is a parallel development to the acquisition of second-languageknowledge.

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Expatriate/

Local Chinese

Z Language: Speaking 0%30% Language: Speaking 15%-50%

0 Listening 0%30% Listening 15%50%

N Culture: Low I Culture: LOW to low-medium

E Culturally sensitive to some cultural 1 Culturally sensitive to some1 knowledge and intercultural / cultural knowledge and

communication skills intercultural communication skillsI

Z Language: Speaking 3 I%-60% Language: Speaking 510/c-80%0 Listening 3 17~60% ; Listening 5 1%-SO%N Culture: Intermediate ! Culture: High mediumE Both cultural knowledge and Both cultural knowledge and skills2 intercultural communication skills

Z Language: Speaking 6 l%-90% : Language: Speaking 81%-99%

0 Listening 6 I%-90% j Listening 8 I%-99%N Culture: High Culture: HighE Advanced cultural knowledge with More cultural knowledge plus3 intercultural communication skills / skills

,

Exhibit 1: Descriptions of second language proficiency and culturalknowledge of expatriates and local Chinese in the three zones

Zone 1

Adaptations necessarybecause of expatriatesecond languagedeficiencies

Zone 2

Fewer adaptationsnecessary because ofdeveloping expatriatesecond-languagecapabilities

Supplemental Fewer supplementalcommunication channels communication channels

Separated phases of Less separated phases ofcommunication process communication process

One-way communication One-way communication

with delayed feedback with feedback (with sometwo-way)

Emphasis on formalcommunication

Formal communicationsupplemented by informalcommunication

Zone 3

Natural communicationprocess with developedexpatriate secondlan,ouage capabilities

Least supplementalcommunication channels

Inter-connected phases ofcommunication process

Two-way fluid,

continuouscommunication

Formal and informaicommunication

Exhibit 2: Comparative summary of the communication process in the threezones

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References

Adler, N. (1991). Intemational dimensions Of Organizational behavior. Boston, MA:PWS-Kent.

Bond, M. (199 1). Beyond the Chinese face: Insights from psychology. Hong Kong:Oxford University Press.

Hall, E. (1976). Beyond culture. New York: Doubleday Anchor.

Hamzah-Sendut, T., Madsen, D., & E Thong, T. S. (1989). Managing in a pluralsociety. Sigapore: Longman.

Hsu, F. (1971). Psychological homeostasis and jen: Conceptual tools for advisingpsychological anthropology. American Anthropology, 93. 23-44.

Jones, R. (1982). The FSI oral interview. Papers in Applied Linguistics: Advances in

Language. Testing Services No. 1. Oxford: Oxford University Press.

Redding, G. (1990). The spirit of Chinese capitalism. New York: Walter de Gruyter.

Silin, R. (1976). Leadership and values; The organization of large-scale Taiwaneseenterprises. Cambridge, MA: Harvard University Press.

Terpstra, V. (1991). The cultural environment of international business. Cincinnati,OH: South-Western Publishing Co.

Documents

An Analysis of Intercultural Organizational Communication in Multinational Corporation