Karen and Ted’s Communication Breakdown

Karen and Ted’s Communication Breakdown

Karen Leary and Ted Chung’s breakdown escalated from a series of miscommunications rooted in cultural, communication, motivation, management, and leadership differences.

CULTURE

Karen's concerns escalate when Ted's stock purchases deviate from the conservative financial plan that Karen had previously approved. Karen is low-context, universalistic, and forward-looking; she is comfortable with the financial plan because it is essentially a written contract that explicitly states Ted's plans for the future of the account (a conservative purchase plan). Although Ted is careful to document his unsolicited trades, in an attempt to abide by Merrill's universalistic compliance issues, his high-context, particularistic, and past and present-oriented relationship with the client later lead him to invest in riskier stocks. Ted's relationship with the client is rooted in trust, which is a dynamic, unspoken contract that can be changed with the situation. This trust has its foundation in a shared historical past (both Ted and the client come from the same village) and grows stronger by the day, requiring Ted to adjust the financial plan to the changing relationship. Additionally, since Ted has succeeded in entrepreneurial contexts he has a lower uncertainty avoidance than Karen, who climbed the corporate ladder. Thus, Ted and the client may be more comfortable with the ambiguous profitability of risky stocks.

Ted's adherence to standard procedures and compliance issues are a result of power distance. Although Ted defers to Karen’s authority by never openly challenging her management practices, he considers sales-assistant work “beneath him, particularly if an underling asked him [to help].” From Karen’s low-power-distance perspective, this behavior seems “egotistical;” however, it is better explained by a sense Confucian dynamism where relationships are ordered by status and reporting lines observe that hierarchy.

Ted's "stiff formality" can be explained by a neutral, specific, collectivist and masculine culture; while Karen's perception of him derives from an affective, diffuse, and individualistic perspective. Karen’s high-profile position as a manager promotes a large public space that is accessible to other FC’s at the office. Ted, however, carefully guards both his public and private personas, thereby leading Karen to feel like she never truly knows the person behind the cool and composed professional. Additionally, Ted is more likely to consider his co-workers as an out-group and hence more likely to distance himself from the office culture.

COMMUNICATION

Given the role of relationships and high power distance in Taiwanese culture, Ted is more likely to communicate in a way that is high-context, indirect, and formal; whereas Karen is low-context, direct, and informal. Ted’s displays of ceremony are not well-received by Karen, who prefers to manage through “informal counseling and coaching.” Additionally, Karen has a high dependence on words and cannot address Ted’s concerns if he doesn’t explicitly voice them. Her interpretation of his silence becomes a source of miscommunication.

Although Karen initially gives Ted some latitude in developing Taiwanese market, she later grows uncomfortable with his decisions due to lack of contexting in communication. Ted does not consult with Karen before making decisions (such as the one to invest in equities) because he is high-context. This, however, leads to a breakdown in trust since it leads Karen to suspect that Ted is behaving sneakily. Her request to personally speak with Ted’s client is a way for her to verify background information directly from the source; however, Karen grows increasingly uncomfortable since her dependence on verbal communication cannot be satisfied due to the language barrier.

Ted’s “need for privacy” is a function of territoriality and having a large personal space bubble, which stems from the specific, neutral culture. Karen is more communally focused—in terms of shared office space and responsibilities—and therefore finds Ted’s touchiness about his desk and duties to be excessive and hostile.

Karen is monochronically-focused, while Ted operates on a level that is more synchronous. Karen wants to see that Ted has a clear plan and schedule for when he will develop additional accounts, but Ted can only give her vague assurances since a deadline cannot be placed on a developing relationship. Additionally, information flows between Ted and the client are likely to be controlled, which is a challenge for Karen who expects this information to flow freely and rapidly.

MOTIVATION

Although Karen uses reinforcement theory to provide Ted with positive feedback, her commendations often come with the criticism that he shouldn’t focus too much of his time developing one account. Constructive criticism pushes Americans to do better, but may lead Ted to feel that his efforts are not fully appreciated. Additionally, since Ted has already fulfilled his basic, physiological needs, Karen’s constant monitoring may hinder his ability to self-actualize and achieve autonomy. It should be noted that Ted is motivated by power and prestige as well as training and promotion opportunities.

CHINESE MANAGEMENT

Ted's relationship with the Taiwanese client exhibits the Chinese management principles of paternalism, particularism, and insecurity. The patron-client relationship is based in a sense of mutual obligation, where the client is expected to defer to Ted's expertise and Ted is expected to trade the account responsibly. Karen is unfamiliar with this dynamic and is uncomfortable using trust as a regulation mechanism. Although she fears the client may not fully understand Ted’s trades, the client (who has a low uncertainty avoidance) may have requested the trades himself, looking to wealth as a substitute for security.

Additionally, Ted’s attendance of social networking events exemplifies the particularistic nature of guanxi, or relationship, connections in Chinese management. His presence at these events increases his “visibility and prestige,” which in turn contributes to the face that is needed to be considered a trustworthy business partner—the status items that Ted displays on his desk serve

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