In cross-cultural literacy, leaders need an understanding of and appreciation for cultural diversity. Organizations seek diversity in order to compete, and leaders need to be better educated about culture to lead effectively and to take full advantage of the value diversity provides.
The cultural layers include national, regional, gender, generational, social class and corporate level.
We should understand the six factors that apply across all cultures. Context is the first factor and emphasizes what is going on outside and what’s going on inside the individual. There is high-context meaning more interpersonal and more on non-verbal and low-context meaning more and explicit verbal messages. Another factor is Information Flow which is the flow of informational, like who communicates, what kind of messages and how fast. Time is the third factor and can be polychromic (many events at once) or monochromic (one event at a time). The factor of Language isn’t just different languages, but even in same language spoken what tone like professional vs. relaxed, syntax, jargon. The fourth factor or Power is perception of power and equality. For example high-power distance is more inequality and low-power distance have people more equal. Collectivism vs. Individualism is whether culture where societies where people are integrated or expected to look after themselves more. The last factor is Spirituality and Tradition. This factor is important to determine behavior and how individuals communicate and interpret message.
Consequently, the challenge for every international negotiator is to understand the simultaneous, multiple influences of several factors on the negotiation process and outcome and to update this understanding regularly as circumstances change.
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