11. Cultures.

Companies which deal in the global marketplace need to be able to adapt to different business cultures. It is easier to make a good impression in our own culture than in another, where our knowledge of the language and rules of behaviour may be limited. Knowledge of the protocol and etiquette in the countries we do business with is essential. Protocol is adhering to the correct procedures and conduct in formal situations. This involves knowing the acceptable way to behave and includes formalities of rank which denotes the level of a person's position in an organisation. Etiquette focuses on communicating in a respectful and polite way in accordance with the good manners and accepted norms of the culture.

When employees travel abroad on business, particularly on prolonged assignments, there can be a period of adjustment when they adapt to the local culture. If sufficient preparation has not been made, then the person may not be able to acclimatise to the loss of familiar cultural cues. These cues normally allow us to read gestures, body language and facial expressions and provide us with prompts that indicate how we should act in particular situations, if this is not possible then culture shock may occur, leading to frustration and ineffective communication on both sides. To avoid this, some companies provide cross-cultural training. Staff is shown skills and strategies to help with cultural adjustment. These include factual information about the culture, negotiating across cultures, managing employees from different backgrounds, decision-making styles in different countries and differing attitudes to time and task management. A good course will also teach employees about their own culture and the-preconceptions that others might have of them.

It helps to be aware that even the most basic forms of non-verbal communication are culturally specific. In most Western countries people stand close enough to shake hands without moving forward. This is the ‘comfort zone’, which means that standing closer than this can make other people feel slightly uncomfortable. However, in Asian countries people usually prefer to keep a greater distance, whereas in most of the Middle East and Latin America the ‘comfort zone’ is much closer. In order not to cause offence, it is preferable not to back away. Similarly, maintaining eye contact is seen as a positive thing in the West and avoiding it can be interpreted as evasive. However, in South Korea too much eye contact could be considered hostile or aggressive. Intermittent eye contact is acceptable in most parts of the world. A smile may be regarded as a universal gesture but in Japan it can communicate that the person is uncomfortable or sad.

Cultural awareness may be complex but companies can pay dearly if intercultural research has not been carried out. Nike Inc had to recall 38,000 basketball shoes because its swoosh design logo was considered offensive in some cultures. This example illustrates that even the largest companies can make cultural mistakes. Such errors can be costly in terms of both a company's money and its public image.