Contemporary business culture

Whether you know German or use your own language, speak in complete sentences. Germans are in the habit of listening for the end of a sentence and can be annoyed if it doesn't materialize. The person who speaks the most softly in a meeting usually is the person who has the most authority.

Appropriate topics of conversation include hobbies, soccer, the places you have traveled in Germany, and the duration of your stay. Topics to avoid include World War II and personal questions. Avoid asking personal questions of a German executive. If a businessperson wants you to know if he or she is married or has children, he or she will find a way to communicate this to you. Family life is kept separate from work in Germany.

During a business meeting, expect the doors to be closed. Be sure to walk to your contact's left. By doing so, you will be giving the person a position of respect. Sit down only after you have been offered a seat.

When writing the date, Germans write the day first, then the month, then the year (e.g., December 3, 2010, is written 3.12.10 or 3/12/10).

Working hours in Germany tend to be from 8am to 5pm or 5.30pm. Do not schedule appointments on Friday afternoons; some offices close by 2:00 or 3:00 p.m. on Fridays. Many people take long vacations during July, August, and December, so check first to see if your counterpart will be available. Also be aware that little work gets done during regional festivals, such as the Oktoberfest or the three-day Carnival before Lent. In the former East Germany, businesses did not usually schedule appointments on Wednesdays. This has been changing since reunification.

Time is money in the minds of most German businessmen, and generally speaking at a business meeting they will want to get down to the heart of the discussion quickly. A certain amount of small talk is in order, but is best kept until the end of the meeting, When you are presenting to a German audience, they will expect to hear the full technical details of your idea. They prefer logical arguments rather than emotionally persistent type of proposals and the content is more important for them than body language. They also look for well worked-out proposals, with evidence that it has been tried or piloted successfully elsewhere. They feel perfectly capable of making up their own minds on the evidence presented. The attention span in German meetings is usually long - up to an hour. They will ask detailed questions and expect in-depth answers. They also have a great respect for the truth as they see it, and this may lead them to appear unusually outspoken at times.

Negotiating. Data, data, data: Germans depend upon objective facts. Emotional involvement is unacceptable in negotiations. Once a position is decided upon, Germans rarely budge, which gives them the reputation for being tough negotiators. A strong faith in their social democratic ideology influences Germans' perceptions of the truth.

The pace of German corporate decision-making is methodical--much slower than in the United States or Great Britain. The decision-making process in German firms can be a mystery to outsiders. In addition to the official chain of command, German companies often have a parallel “hidden” series of advisers and decision-makers. The approval of this informal “kitchen cabinet” is mandatory. Directness is appreciated. Germans may bluntly criticize your product or your company; do not take it personally. Germans can not hype and exaggeration. Be sure you can back up your claims with lots of data. Case studies and examples are highly regarded.

The German reputation for quality is based (in part) on slow, methodical planning. Every aspect of the deal you propose will be pored over by various executives. Do not anticipate being able to speed up this process. This slowness extends through all business affairs. Germans believe that it takes time to do a job properly.

Many of German negotiators view being forced to compromise as a personal failure. As some observers have noted, “Germans come in expecting 110 percent. They might settle for just 100 percent.”

The Civil Code declares contracts even non-written contracts legal, for example, in situations such as purchase, rent, booking a journey etc. Written contracts are serious matters in Germany and tend to be lengthy. Legal aspects may be reviewed repeatedly. In most German companies, only high-ranking managers have signature authority. Oral agreements and statements of intent may already be legally binding and are usually dependable, though they do not substitute for written contracts. Actions that have been agreed upon are usually implemented immediately, even if a final contract is still pending. German law makes offers binding unless otherwise noted. It is best to mark your offers with `good until…' or to add a `subject to change' clause.

Germans also take a lot of time to establish a close business relationship. Their apparent coldness at the beginning will vanish over time. Once they get to know you, Germans are quite gregarious.

Even if the German executives speak your language, all promotional materials and instruction manuals should be translated into German. Germans smile to indicate affection. They generally do not smile in the course of business, either at customers or at coworkers. Compliments tend to embarrass Germans; they expect to neither give nor receive them.

Without intending to be impolite, Germans tend to be more direct when it comes to expressing views or making statements and will expect the same from you. Therefore be careful not to use typical English sentences like - we may be able to deliver - when what you really mean is - there is no way we can deliver. Your counterpart will only understand that you can deliver.

For example: when an English contact once said “we 11 go away and think about it”. The German delegation were horrified because they thought that that meant they had been "dismissed" and that it spelt the end of the negotiations. Always remember that if your contact is speaking English, this is not their mother tongue - you should always summarise meetings at the end in order to avoid any misunderstandings.

4. BUSINESS ETIQUETTE

Business cards. Bring plenty of business cards; quite a few Germans may wish to exchange them with you. If your company has been around for many years, the date of its founding should be on your business card. If you have a large number of employees, that number should be included too. Since education is highly respected in Germany, consider including any title above the bachelor's level on your card. Rather than presenting your business card to your potential German business partner, attach it to the material in your presentation folder.

Business entertaining. Germans have a much more rigid definition of friendship than exists, for example, in Britain. In Germany a friend is a close friend for life, and the relationship with a foreigner will be initiated from the German side.

Breakfast meetings are still somewhat uncommon in Germany. However, business lunches are customary. At lunch, be aware that business may be discussed before a meal, but never during the meal itself. If you are invited out to a luncheon, you may offer to pay, but expect your host to decline your offer. Insist on paying only when you have made the invitation.

Evening business dinners take place from 7pm. They're usually formal affairs, so wear a lounge suit or a jacket and tie; a trouser suit is appropriate for women. Titles may be used (Herr Professor, Frau Doktor), and there might be a formal seating plan. The host will propose any toasts, and you can then reciprocate: do not touch glasses until the first toast has been raised.

When eating, always use utensils; very few items are eaten with the hands. Place your utensils vertically side by side on the plate when you are finished eating. If you smoke, always offer your cigarettes to everyone else before lighting up. Of course, ascertain if smoking is banned at your location. It is considered impolite to put your hands in your pockets. Gum chewing in public is also considered rude. Germans may not use a smile as a nonverbal cue that they are pleased about something.

Extended, direct eye contact is expected when conversing. Failure to meet a German's gaze will give the impression that you are untrustworthy.

5. PROTOCOL

Greetings. In business situations, most Germans shake hands at both the beginning and the end of a meeting. The German handshake may be accompanied by a nod of the head. Although this gesture is subtle, it is important. Germans keep a slightly larger personal space around them than do most British or North Americans. Stand about six inches beyond handshaking distance. It is common for a third party to introduce two people who do not yet know one another. The avoidance of public spectacle is reflected in the way Germans will get quite close to each other before offering a greeting.

Titles and forms of address. The order of names in Germany is the same as in most of Europe: the first name followed by the surname. Traditionally, only family members and close friends addressed each other by their first names. When speaking to persons who do not have professional titles, use “Mr.,” “Mrs.,” or “Miss,” plus the surname. In Germany, these titles are Mr. = Herr; Mrs. (or Ms.) = Frau; Miss = Fraulein. Fraulein is now used only for young women (under age eighteen). Any businesswoman you meet should be addressed as “Frau,” plus her surname, whether or not she is married.

It is very important to use professional titles. Attorneys, engineers, pastors, and other professionals will expect you to address them as “Herr” or “Frau” plus their title. This goes for anyone with a Ph.D. as well (e.g., Herr (or Frau) Doctor/Professor). However, make sure you know the correct professional title.

Gestures. To get someone's attention, raise your hand, palm facing out, with only the index finger extended. Do not wave or beckon. When sitting, cross one knee over the other, rather than resting your ankle over one knee. Do not prop your feet on anything other than a footstool. `Okay' sign is an obscene gesture.

Gifts. German businessmen do not give or expect to receive expensive gifts. A gift should be of good quality but not of excessive cost. Gifts that are small in size are preferred. German civil servants are prohibited from accepting any form of gift whatsoever. Appropriate gifts include good-quality pens, reasonably priced electronics (MPS players loaded with music that your associate will like, etc.), or imported liquor. Gifts from your home region or country are good choices, such as an illustrated book of your home city. The only article of clothing considered an appropriate gift is a scarf. Other clothing, perfume, and soap are considered too personal. An invitation to dinner at a German home is considered an honor, and you should send a bouquet of flowers ahead of time for your host. The bouquet should not be ostentatiously large and should have an uneven number of flowers (but not thirteen). Business gifts are usually given at Christmastime, although many German companies restrict themselves to sending Christmas cards or a calendar. Avoid giving: lilies and chrysanthemums (associated with funerals), and intimate gifts such as perfume or jewellery; be careful about wine - many Germans have good cellars.

Dress. Business dress in Germany is very conservative. Virtually all businessmen wear dark suits, sedate ties, and white shirts. However, blue blazers and gray flannel pants are also considered formal. Khaki suits are not acceptable! Women dress equally conservatively, in dark suits, pantsuits, and blouses of a neutral color. Follow the lead of your German colleague with regard to removing your jacket or tie in hot weather. Do not be surprised if he or she remains fully dressed in sweltering heat. Business wear is also appropriate for most formal social events: parties, dinners, and the theater.

LECTURE 5. CULTURAL TRADITIONS AND BUSINESS COMMUNICATION STYLE OF CHINA

l. COUNTRY BACKGROUND

business culture communication style

China has 1.3 billion inhabitants, making it the most populous country in the world. One quarter of the earth's population lives there. China has implemented a rigorous birth control program that limits couples to only one child. The People's Republic of China is well on its way to becoming the superpower of the twenty-first century. Now it is a global economic power as well.

The Chinese boast the world's oldest continuous civilization, with more than 4,000 years of recorded history. Beijing (old Peking) has been the capital of China for over 800 years and is the country's political, economic, and cultural hub. China was ruled by strong dynasties for thousands of years. The first recorded dynasty, the Hsia, existed around 2200 B.C., and the last dynasty, the Ch'ing, ended in 1911. Some of the most important cultural achievements in history were produced during this time, such as papermaking, the compass, gunpowder, and movable-type printing.

After the fall of the last dynasty, Sun Yat-sen founded the Republic of China and was succeeded by Chiang Kai-shek in 1927. Mao Tse-tung's Communist forces took control in 1949 and established the Communist government that still exists, although events-- from the massacre in Tiananmen Square in June of 1989 on--have shown an increasingly popular demand for democratic reform. China has been divided into twenty-two provinces, five autonomous regions, and three municipalities.

Type of government. The People's Republic of China has a Communist government. There is a single legislative house, the National People's Congress; all members belong to the Communist Party. The National People's Congress elects the Standing Committee, which holds executive power and is made up of the premier and leading ministers. The premier is the head of the government; the president is the chief of state. The position of secretary general of the Central Committee of the Chinese Communist Party is also an office of great power; it is often held by the current president.

The Communist regime is highly centralized and authoritarian, and controls many aspects of life in China. Current government data can be found at http://english.gov.cn/.

Language and education. The official national language is standard Chinese, based on the Mandarin dialect. It is spoken by more than 70 percent of the population. Each minority speaks its own dialect or language. English is spoken by many businesspeople. The revolutionary government of the People's Republic of China made changes to the Chinese language. Many complex symbols in written Chinese were simplified. And the direction of written Chinese was changed: instead of being written in vertical columns, it is now primarily written like most Western tongues, from left to right in horizontal rows.

Education in the People's Republic of China is a state-run system of public education run by the Ministry of Education. All citizens must attend school for at least nine years. In 1985, the government abolished tax-funded higher education, requiring university applicants to compete for scholarships based on academic ability.

Religion. Despite the fact that the government encourages atheism, the Chinese Constitution guarantees religious freedom (within certain constraints). Buddhism, Islam, and Christianity are the three major formal religions practiced in China. However, even larger numbers of Chinese believe in traditional Chinese philosophies, notably Confucianism and Taoism. Confucianism, although not a religion with a divine deity, has great influence on Chinese society.

2. VALUES AND ATTITUDES CHARACTERISTIC OF THE CHINESE

National characteristics. The Chinese are quiet, reserved and never lose their temper. But at times they can seem chaotic and unfocused. It is collectivist, high-context, polychronic culture. A key organizing principle in Chinese society is Confucianism. It states that the family is the basic unit of society, and praised the virtues of hierarchy. All actions of the individual reflect upon the family, and filial devotion is of utmost importance. The virtues of kindness, propriety, righteousness, intelligence, and faithfulness have also been deeply revered. One must be preserved in relationships. These relationships are between ruler and subjects, between husband and wife, between father and son, between elder brother and younger brother, and between friends. Since all but the last are hierarchal, rank and age have historically been very important in all interactions.

Although reciprocity is an important principle in Chinese society (if you receive something, you give something back), companies investing in China need to ensure that potential partners are fully aware of the issue of intellectual property rights.

For centuries, China's civilization was more advanced in the arts and sciences compared with the West, so it is not surprising that its people continue to believe in their superiority, despite the social and military problems that afflicted the country in the 19th and early 20th centuries. The Chinese admire the work ethic, Confucian tenets, the power of the extended family and sincerity. They appreciate patience, soft-spokenness, adaptability, humility and perseverance. They do not appreciate boisterousness, impetuousness or anger, and they also dislike losing face, immodesty, disrespect towards elders and extravagance.

Duty, self-sacrifice, gentleness and wisdom are other traits admired by the Chinese. They consider that relationships are more important than tasks, and that the quest for virtue is more important than the search for truth. The Chinese do business with people rather than companies, so personal contact and loyalty are important. They value sincerity above all other qualities.

There is deep rooted respect for the older generation which still embraces the more traditional values and is not as profit orientated. Senior people are "paraded" at official events as grey hair symbolises influence and respect. Consequently, it is advisable to send senior staff to important events. This also "gives face" to the hosts by demonstrating that they are being taken seriously.

Cultural orientation. The Chinese are generally circumspect toward outside sources of information. They usually process data through a subjective perspective, derived from experience--unless they have been educated at a Western university.

Locus of decision-makings. In a centrally controlled economy, responsibility rests with government planners, but individuals are held responsible for their decisions within the system. Local decisions are made by the head of the collective, and members must behave accordingly. Collectives are insular, closed entities in which individual goals are subordinated to those of the collective. In the zones of free enterprise, businesses are experimenting with freedom from party rule but not from the collectivist way of thinking.

Sources of anxiety reduction. The family, school, work unit, and local community are the basic social structures that give stability to a person's life. There is a strong commitment to the extended family. The state, rather than religion, traditionally dictated the standards of wisdom, morality, and the common good. Obedience to parents is integral to a sense of security and stability. Maintaining harmony is vital. Faith in the Communist Party, which rules the PRC, is abating.

Issues of equality/inequality. Relative to the general population (over 1.3 billion), the number of people who are powerful members of the Communist Party is small. There has always been some concern about inequality in a system in which equality is the purpose, but being a member of the party is the only avenue to the position of authority. Free enterprise is purported to breed inequality and uncertainty, but there are rapidly increasing areas where it is allowed to flourish. Age is the only noticeable interpersonal indicator of inequality because it is still revered. Women are purported to be equal to men, but economic and social inequalities continue. The principle of respect in China means that women may be polite to senior men, which may be seen as sexist by some Westerners. Do not react to this. Chinese women have considerable authority at home, in politics and in commerce.

3. BUSINESS PRACTICE OF CHINA

China has a civil law system and its judicial decisions do not have precedential value. The Chinese Communist Party currently controls all aspects of China. There is no separation of the judicial, legislative or executive powers. Regarding the law and litigation, there is an old Chinese proverb: "It is better to be vexed to death than enter into a lawsuit." Chinese business is based on the development of good personal relationships over time, from which the business will grow. They are formal and quite ritualistic in business behaviour. They are quite reserved, and separate emotions from business. Experienced business travelers to China avow that patience is the most important skill needed to do business in this country. The Chinese are very good at figuring out when a foreigner is under pressure from a tight deadline, and they turn that to their advantage in negotiations. China is still a hierarchical society. Age is respected. When you send more than one representative to China, the oldest person should receive deference from the younger ones. The elder representative should even enter and leave the conference room first. When entering a business meeting, the highest-ranking member of your group should lead the way.

The concept of "face" can also be a major obstacle. It means that situations should be avoided where your Chinese partners are put in a situation where they "lose face" (for example by contradicting them or exposing them publicly). Chinese culture is based on the principle of "shame" (Confimcianism) as opposed to the Western culture which is based on the principle of "guilt" (Christianity). When there is a problem or something goes wrong, your Chinese partners are very likely not to tell you as this would bring shame upon them.

The principle of "Guanxi" (connections) is very important in China. It runs like a red thread through a person's life, starting at family level and continuing through school, university and employment. It is a system of favours and relationships that is hard to duplicate! 'Guanxi' - sometimes termed as 'value-laden relationships' -which means the building up of a network of contacts to help you succeed in all aspects of life in China. Also, do not forget to mix business and pleasure. If you cultivate your contacts and make an effort to understand the culture and your partner, your connections will develop automatically. It is also important to remember that Guanxi influences a Chinese person's decisions. There are situations where social acceptance is more important than individual desires. For instance, an offer may be declined because accepting it would mean to upset the family or social circle. The Chinese are very sensitive to western criticism in politics and business.

Laws and regulations are generally complex and difficult to understand or interpret. Chinese law is advisory only. It is often up to the local authorities to interpret and apply them. This can lead to great uncertainty. A foreign company can also face the problem that business activities can be very restrictive. Companies need to apply for a business license and must not operate outside that license. There are many levels of regulations and permits, industry restrictions. The Chinese enjoy reluctance to resort to formal legal proceedings.

Corruption is still wide-spread, although the government is starting to crack down. For large foreign companies it is less problematic, but for small companies it is much more difficult to resist. China is a bureaucratic country, so things are unlikely to happen fast. Do not show impatience or anger: this is seen as a serious character flaw. Keep your schedule light to allow for long meetings. Office hours tend to be 9am-5pm with a half day on Saturday, although a five-day working week is becoming more common. The key break is between noon and 2 pm, when there is a general lull in the working day. One should be cognizant of the fact that the Chinese write the date differently than most North Americans. The year is written first, then the month, then the day (e.g., December 3, 2010, is written 10.12.03 or 10/12/03).

It is advisable avoid traveling to China during the lunar New Year. Also called Spring Festival, this is China's most important, nationwide weeklong holiday. Tradition demands that every Chinese return to his or her traditional home during the lunar New Year. With so many migrants to the cities, this means that there are millions of trips taken by car, bus, train, or airplane during the festival.

Appointments. Punctuality is very important in China, not only for business meetings, but for social occasions as well. Lateness or a cancellation is a serious affront. Be sure to establish contacts in China before you invest in a trip. Your government's Department of Trade or Commerce can usually assist in arranging appointments with local Chinese business and government officials, and can identify importers, buyers, agents, distributors, and joint venture partners.

Interpreters are often used in discussions, but never make the mistake of addressing the interpreter and not the boss. Allow for a moderate attention span of about 30 minutes when presenting. Stress the benefits of your proposal for China and for the bottom line. Remember that the Chinese rarely say 'no'. Instead they will hint at difficulties, so be sensitive to this. Show commitment and enthusiasm to your project, and repeat your key points several times. Don't assume that silence means acceptance, and avoid asking personal opinions.

Chinese teams are groups of specialists working under a leader, who may not himself be a specialist but will have links to the head of the company. Show respect to him and refer issues to him in the first place. Any one-to-one contact between members of your team and the Chinese should be authorized by the team leader first. The Chinese like to experience harmony and consultation. The working pace tends to be slow and methodological, and deadlines are regarded as flexible. Emphasize the moral and social aims of the project.

Negotiating. Agendas are adhered to in China, but expect slow, repetitious dealings: patience is essential. The Chinese like to establish general principles before moving onto detailed discussion. They also take the long view - sometimes extending over several generations. Be prepared to discuss problems at length to achieve total agreement, and be ready to understand their difficulties - these may be linked more to social matters or relationships than to the business. Do not push for information, and despite any irritation that you might feel internally, maintain a flexible but firm negotiation style. Your aim is to develop mutual trust in the long-term.

In general, truth is subjective, and one's feelings, along with a modified belief in the Communist Party line, are primary sources of the truth. Facts are accepted by younger Chinese, particularly within the burgeoning entrepreneurial sector. However, they still strongly consider the other two sources, and will not usually accept a proposal if it is in conflict with their personal feelings for the prospect.

Use short, simple sentences, and pause often to make sure that your exact words are understood. Expect to make presentations to different groups at different levels. Unless you understand the significance of different colors in China, use black and white for your collateral materials.

Foreign executives--especially those from the USA--have a reputation for impatience, and the Chinese will drag out negotiations well beyond your deadlines just to gain an advantage. They may try to renegotiate everything on the final day of your visit, and they may continue to try for a better deal even after the contract is signed.

Expect to make several trips to China before negotiations are final. The Chinese are cautious in business matters and expect a strong relationship to be built before they close a deal Unlike many Western organizations, the Chinese are not obsessed by achieving short term successes that may look impressive, but have not been fully thought through.

Chinese executives tend to establish contractual relationships based on trust and honor without any reliance on the enforcement powers of law. "A contract is considered unnecessary, sometimes offensive, when rules of loyalty and mutual obligation structure the business environment." They will frequently ignore the written contract and treat it as a mere formality. Even if a contract is ultimately signed, a signed contract means the beginning of a relationship, not the "be all and end all" document which controls the parties' economic relationship, as in the eyes of U.S. contract law.

The Chinese expect the business conversation to be conducted by the senior officials of each side. Subordinates may speak when they are asked to provide corroborating data, or a comment, but in general, they do not interrupt. Familiarize yourself with all aspects of China before you arrive. The Chinese appreciate Western visitors who demonstrate an interest in their culture and history. Be patient, expect delays, show little emotion, and do not talk about your deadlines. At the end of a meeting, leave before the Chinese.

Organizational structures in China are vertical. A manager will seek consensus from his team, but will take personal responsibility for decisions. One potential difficulty for visitors is that a manager's authority is often based on his wealth and family background, rather than purely on his competence at the job. All of this, together with language difficulties, makes it hard for visitors to read meetings and negotiations accurately. In addition, family businesses tend to belong to trade groups, which will also exert pressures.

4. CHINESE BUSINESS ETIQUETTE

Business cards. Business cards are important. Bring business cards with a translation printed (in Mandarin Chinese) on the reverse side. Gold ink is the most prestigious color for the Chinese side. Never place a person's card in your wallet or put it in your back pocket.

Business entertaining. Hospitality is an important tradition in China, and sharing the bill is unknown. You must reciprocate, however. Business lunches have become popular. Tea is always served in mugs with lids: never refuse. You will probably be treated to at least one evening banquet. Banquets at restaurants can be ordered in varying degrees of extravagance. Most banquets start between 6:30 and 7:00 p.m. and last for several hours. Business is not generally discussed during a meal. Never begin to eat or drink before your host does. Start by eating lightly, as there could be up to twenty courses served. Expect your host to keep filling your bowl with food whenever you empty it. Finishing all of your food may be an insult to your host, because it can mean he did not provide enough food. Leaving a bowl completely full is also rude.

Toasting is popular. At banquets, the host offers the first toast, and the ceremony continues all evening. It is acceptable to toast with a soft drink, but various alcoholic drinks will be available.

It is considered polite to sample every dish. The Chinese may even test your fortitude on purpose with exotic delicacies, like thousand-year-old eggs or marinated, deep-fried scorpions (completely intact with their stingers).

The Chinese use chopsticks for eating and a porcelain spoon for soup. Your attempts at using chopsticks will be appreciated When you are finished, set your chopsticks on the chopstick rest. Placing them parallel on top of your bowl or dropping is considered a sign of bad luck.

The serving of fruit signals the end of the meal. If you do not want refills of tea, leave some in your cup. Historically, women did not drink alcoholic beverages. If the business dinner is extremely formal (like a black-tie event), businesswomen should accept a drink if offered, take a sip, and leave it. However, at a less formal affair (like a trade association dinner), women can now be the drinking representative!

Good topics of conversation include Chinese sights, art and inquiries about the health of the other's family. Generally, conversation during a meal focuses on the meal itself and is full of compliments to the preparer. While the Chinese are not traditionally sports fans, their interest in sport has been increased by the Olympics. U.S. football is called "olive ball" in Mandarin Chinese because the ball is roughly olive-shaped.

5. PROTOCOL

Greetings. Introductions in China are courteous and formal, so expect to take a fair amount of time over them on your first visit. The highest-ranking member of your group should lead the way. The Chinese nod or bow slightly when greeting another person, although handshakes are common. Wait for your Chinese associate to extend a hand first. Visitors to factories, theaters, or schools may be greeted with applause as a sign of welcome. The usual response is to applaud back.

Titles/forms of address. The Chinese are sensitive to titles, so use them whenever possible (e.g. Director, Engineer), Do not address a Chinese person with the word 'comrade', a privilege reserved for Communist Party members. If you do not know a person's title, use Mr., Mrs. or Miss until you are advised otherwise. Names are listed in a different order from Western names. In China the surname comes first and the given names second. So Mao Tsedong was known as Chairman Mao, not Chairman Tsedong.

Gestures. The Chinese do not use gestures and strong facial expressions, and are not tactile, so it's not surprising that they are often said to be inscrutable. One should avoid making exaggerated gestures or using dramatic facial expressions. The Chinese do not use their hands when speaking, and become distracted by a speaker who does. The Chinese do not like to be touched by people they do not know. This is especially important to remember when dealing with older people or people in important positions. Use an open hand rather than one finger to point. To beckon, turn the palm down and wave the fingers toward the body.

Gifts. Gift giving is a sensitive issue in China. While often in violation of Chinese law, gift giving is widespread. Avoid giving anything of value in front of others; it could cause the recipient both embarrassment and trouble. A gift from your company to the Chinese organization or factory is acceptable. Make it clear that the gift is on behalf of the whole company you represent and is for the whole group on the receiving end. Be sure to present the gift to the acknowledged leader of the Chinese delegation. A banquet is considered an acceptable gift. Your Chinese hosts will certainly give you one, and you should reciprocate.

When giving or receiving a gift, use both hands. The gift is not opened in the presence of the giver. The Chinese traditionally decline a gift three times before accepting; this prevents them from appearing greedy. Continue to insist; once they accept the gift, say you are pleased that they have done so.

Gifts of food are always appreciated by Chinese, but avoid bringing food gifts with you to a dinner or party (unless it has been agreed upon beforehand). Stamps are appreciate gifts if your associate is a collector (stamp collecting is popular in China). Older Chinese associate all of the following gifts and colors with funerals--avoid them: straw sandals, clocks, handkerchiefs (they symbolize sadness and weeping), gifts (or wrapping paper) in which the predominant color is white, black, or blue. If possible, wrap gifts in red, a lucky color. Pink and yellow are happy, prosperous colors, and are also good choices. All business negotiations should be concluded before gifts are exchanged.

Great gifts: company pens, ashtrays, paperweights, books, whisky. Avoid giving: flowers, chocolates and especially knives or clocks, which represent death or the end of a relationship. Money should be given in even numbers.

Dress. For business, men should wear conservative suits, shirts, and ties. Loud colors are not appropriate. Women should also wear conservative suits, with relatively high-necked blouses and low heels--their colors should be as neutral as possible. At formal occasions, evening gowns are not necessary for women unless the event is a formal reception given by a foreign diplomat. Men may wear suits and ties.

Casualwear is still somewhat conservative. Revealing clothing may be offensive, but jeans are acceptable for both men and women.

LECTURE 6. CULTURAL TRADITIONS AND BUSINESS COMMUNICATION STYLE OF JAPAN

1. COUNTRY BACKGROUND

Japan's population is approximately 127 million (2006 estimate). This dense population is cited as the prevailing factor explaining the Japanese "group mentality." Over 99 percent of the population consists of native-born Japanese. The largest minority (less than 1 percent) are Koreans.

History. The Japanese Islands have been occupied for thousands of years. The dynasty of the current emperor is said to have been founded in 660 B.C. Historically, Japan has resisted outside influences and frequently closed itself to foreigners. The United States of America forcibly opened Japan to foreign markets in 1853 when Commodore Perry sailed his war fleet into Tokyo Bay.

What Westerners consider World War II was only part of a long-running Asiatic war in which Japan invaded neighboring nations. Korea was annexed in 1910, Manchuria was annexed in 1931, and China proper was invaded in 1937.

Japan surrendered to the Allies in 1945, and was occupied until 1952. The USA, wishing to demilitarize and democratize Japan, imposed many reforms after World War II. These efforts included a decrease in the power of the emperor and decentralization of the government. Subsequently, the Japanese recentralized much of their government.

Devastated by the war, the Japanese rebuilt their factories and infrastructure. Japan's economy boomed in the 1970s and 1980s. Recently, the government led by

Prime Minister Junichiro Koi-zumi has made some painful changes to the economy. While this resulted in economic improvement in 2003, it remains to be seen if this recovery will be sustained.

Type of government. Japan is a parliamentary democracy under a constitutional monarch. The chief of state is the emperor; Emperor Akihito was crowned in 1990. The head of the government is the prime minister. (Currently, the 95th Prime Minister Yoshihiko Noda.)

Power within the government resides mainly in the prime minister, who is the leader of the majority party of the Diet, or Parliament. The prime minister dissolves the House of Representatives every two or three years. The prime minister also appoints the Supreme Court and leads the Cabinet.

The Diet is made up of two houses, the House of Representatives and the House of Councilors. Both are elected, with the House of Representatives having more authority. Finally, the Cabinet is responsible to the Diet. In the Cabinet, it is the Ministry of Finance (MOF) and the Ministry of International Trade and Industry (MITI) that are the most important.

MITI, through involvement in business and industry following the Second World War, helped Japan gain its strength. Today MITI does not have the same authority it once did, both because it is not as needed as much as before and because of pressure from other governments (such as the United States of America). For current government data, visit http://www.kantei.go.jp/foreign/index-e.html.

Language and education. Japanese is the official language of Japan. It is a complex and subtle language, spoken nowhere else in the world as a primary tongue. Literacy is close to 100 percent in Japan, and 95 percent of the population has a high school education. The Japanese educational system includes difficult qualifying exams that students must pass, which puts enormous pressure to study and to get good grades. Once a student has passed the entrance exam for college, however, exams are over. Students accepted to the top colleges are almost guaranteed top jobs.

Religion. Japan has its own unique belief system, called Shinto. Shinto means "the way of the gods," yet it is not always categorized by Westerners as a religion, in part because Shinto lacks an official religious text or a system of ethics to live by. The Japanese are surprisingly tolerant of religious differences, and may even practice both Buddhism and Shinto concurrently. Many people are married in a Shinto ceremony but select a Buddhist funeral. Christianity (less than 5 percent) and other religions (under 20 percent) are also present in Japan. There is no official religion.

2. VALUES AND ATTITUDES CHARACTERISTIC OF THE JAPANESE

National characteristics. For two centuries, from 1648 to 1853, Japan was cut off from Western and other Asian trends. This isolation, together with crowded living conditions, has produced a society with carefully evolved social rituals marked by high degrees of politeness and consideration. The Japanese are highly respected of status and position. They negotiate in groups or teams and avoid criticism of partners or proposals. A Japanese will work his or her whole career at a single company. The Japanese culture is collectivist by nature, that is, group achievement and harmony comes before that of individual fulfillment. It is a high power-distance culture where workers do not seek personal decision-making power.

The Japanese have a unique culture and language. Despite increasing scientific evidence, many Japanese believe that they are genetically unique as well. (One good way to make yourself unpopular in Japan is to quote studies that indicate the Japanese are descended from immigrants from mainland Asia.)

The Japanese are extremely protective of their culture and their society. They discourage large numbers of foreigners from coming to work and live in Japan. You may be told that certain services are "for Japanese only, "especially when you travel outside areas frequented by tourists. Foreigners in Japan are often considered to be the source of crime and public disorder, Often, Japanese who spend too much time studying abroad are stigmatized for "not being Japanese enough."

One important aspect of Japanese behavior is apology. Not only do individuals apologize for missteps, but companies do as well (in the person of their highest-ranking officers). For example: both foreign and domestic companies are expected to offer apologies for wrongdoing in Japan. In October of2004 Japan's bank regulatory department, the Financial Services Agency, ordered Citigroup to close its private banking business for fraudulent transactions. Citigroup subsequently flew the company's chief executive officer to Japan to hold a press conference. During the conference, he bowed deeply and apologized for his company's failure to comply with legal and regulatory requirements in Japan. " His apology was broadcast on Japanese television, and it was viewed as an important first step in repairing its reputation with regulators and customers.

The Japanese respect age and experience. Listeners are careful not to disagree with teachers or presenters. Communication in Japan is subtle and much is left unspoken, although it is perfectly understood by the Japanese. It is easy for Westerners to cause offence where none is intended, so until you are attuned to Japanese nuances always check that you have clearly understood instructions.

The Japanese think it is wrong to get emotional or lose your temper. Rather than saying 'No' outright, they will convey disagreement through silence, hesitation, or responses such as, “Yes, but ...” or “The situation is delicate” They often refuse by saying, “Thank you. We'll study that”'

Asian psychology requires that people observe the proper order of things. For example: when three Japanese hostages were released from Iraq in 2004, they had to pay for their own flights home. Instead of being welcomed back to Japan, they returned to widespread animosity because they had entered Iraq against their government's recommendation. This was a violation of protocol, and they were perceived to have put the government and the Japanese people in a bad position.

Cultural orientation. The Japanese generally close all doors to outside influences, although they are open to ideas from within their group. They are subjective and experiential in their thinking, holding fast to traditional values. Strong loyalty to their groups makes the Japanese look to the particular and specific rather than the universal and abstract. While the Japanese pride themselves on anticipating others' needs, they can also be very compartmentalized.

Locus of decision-making. Decisions are made within the group. A person's actions reflect on the group, particularly his or her family. Outsiders must be accepted into the group before they can participate in decision making. The Japanese are only moderately collective.

Sources of anxiety reduction. The Japanese have very high anxiety about life because of the need to avoid embarrassment. There are constant pressures to conform. A very strong work ethic and strong group relationships give structure and stability to life. Emotional restraints are developed in childhood, and all behaviors are situation-bound. This makes it extremely difficult for a foreigner to understand the culture.

Issues of equality/inequality. Age is revered. There is a great deal of competitiveness among equals, but also an inherent trust in people. Ethnocentrism is very strong. Male dominance is still strong in public situations. Japanese politics, like most areas of power, has been almost exclusively male for decades. Recently this has begun to change. In 2000, Fusae Ota became the first Japanese woman to win a gubernatorial election when she became governor of Osaka.

3. BUSINESS PRACTICE IN JAPAN

The Japanese are relationship-focused, formal, very time conscious and reserved. It is extremely difficult for a foreign business to establish itself without first generating a trusting relationship that enables it to gain entry through a joint venture in this country. The Japanese may rely more on their feelings than on facts, because they tend to be more subjective than objective. Since they strive for consensus within their groups, individuals are prepared to change their position for the sake of group harmony.

The Japanese value hard work and long hours. Business hours are from 8am- 6pm, and although Saturday duties do not exist everywhere, many executives go in then to get themselves noticed. It is considered respectful to leave the office after the boss.

Foreigners sometimes interpret the Japanese dismissal of facts and decision-by-consensus process as evidence that Japanese belief in their superiority to others. The non-transparency of their decision-making and their tightly controlled communicative behavior complicates this situation with unknowing foreigners.

A “poker face” that means “an expression on the face that shows none of your feelings” is of great use in Japan. The Japanese dislike strong public displays of emotion. If you show shock or anger during business negotiations, they will believe that you lack self-control and are questionable as a business partner.

The Japanese have sometimes been characterized as averse to all-controlling written contracts. Rather, certainty comes from “giri”, a system of intertwining social and moral obligations. In the event that parties under “giri” should fall into a dispute, then they will adopt a conciliatory and flexible concessionaire approach. The presence of “giri” might be incompatible with the nature of litigation and operate to inhibit a resort to legal resolution of disputes. Differing attitudes toward contracts can cause even more confusion. Agreements of confidentiality are vague. Contracts are not perceived as final agreements. You or they may renegotiate. For instance, the custom of “naniwabushi” allows the Japanese to request a change in a contract if the terms become onerous or unfair, which is not acceptable in Western cultures. A business contract in Japan is like a wedding vow: it means more in spirit than in substance. If the relationship is not working, rereading the contract will not help. The Japanese are insulted when an executive brings a lawyer to negotiations.

As the Japanese get to know and trust you, they will reveal their real feelings and be more direct and honest. This often happens not in the office, but in social events. It's important to take every opportunity to attend these. Next you can practise consistency in thought and action by doing what you say and showing loyalty and respect - to build still more trust.

A positive, persuasive presentation works better with the Japanese than does a high-pressure, confrontational approach. To get the ideas accepted one should seek “adoption” by senior Japanese managers. In a hierarchical structure such as theirs, it is important to address questions and suggestions to the next level of management, who will then direct them to the appropriate sources.