Transcript Stages in the Negotiation Process

Chapter 14
Hitt
Black
Porter
m a n a g e m e n t
Communication
and Negotiation
PowerPoint slides by
R. Dennis Middlemist
Colorado State University
Learning Objectives
After studying this chapter, you should be
able to:



2
Explain why communication is vital for
effective management.
Describe the basic process of
communication.
Explain how culture can influence
communication.
Learning Objectives
After studying this chapter, you should be
able to:



3
Identify key barriers to effective
communication.
Describe approaches to overcoming
communication barriers.
Describe the basic process of negotiation.
Basic Model of
Communication
 Communication: the process
of transferring information,
meaning, and understanding
from sender to receiver
 Encoding
 Medium
 Decoding
 Noise
4
Basic Model of
Communication
Sender
• Encodes message
• chooses a medium
(channel)
• Sends the
message
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Receiver
Noise:
Can interfere
at any point
• Receives message
• Decodes message
• May send feedback
for clarification
Adapted from Exhibit 14.1: Basic Communication Model
Modes of Communication
VERBAL MODE
NONVERBAL
MODE
Dress
Speech intonation
Gestures
Facial expressions
(LANGUAGE USED TO CONVEY MEANING
Examples
Advantages
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Oral
Conversation
Speeches
Telephone calls
Videoconferences
Written
Letters
Memos
Reports
E-mail
Fax
Vivid
Stimulating
Commands
attention
Difficult to ignore
Flexible
Adaptive
Decreased
misinterpretation
Precise
Effectiveness of
communication
increases with
congruence to
oral presentation
Can emphasize
meaning
Adapted from Exhibit 14.2: Modes of Communication
Modes of Communication
VERBAL MODE
(LANGUAGE USED TO CONVEY MEANING
Oral
Disadvantages Transitory
Subject to
misinterpretation
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Written
Precision loss in
translation
Inflexible
Easier to ignore
NONVERBAL
MODE
Meanings of
nonverbal
communication
not universal
Adapted from Exhibit 14.2: Modes of Communication
Media of Communication
 Different media have different sets of
characteristics (media richness)
 Personal-impersonal nature
 Speed in sending and receiving
 Availability of multiple cues
 Opportunity to receive immediate and continuing
feedback from the receiver
 One should match message with medium for
effective communication
8
Factors in Media Richness
Rich Media
• Personal
• Multiple cues to
aid in decoding
• Immediate
feedback
Lean Media
• Impersonal
• Few cues to aid
in decoding
• Delayed
feedback
Examples:
Rich
Face to face
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Lean
Telephone
E-mails, memos
Adapted from Exhibit 14.3: Factors Contributing to Media Richness
Organizational Context of
Communication
 Organizational characteristics that affect
communication
 Composed of individuals and groups
 Oriented toward goals
 Differentiated functions
 Intended coordination
 Continuity through time
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Directions of Communication
Lateral communication
Supervisor
Upward communication
Information, Questions,
Suggestions, Problems,
Requests for
clarification
Subordinate
Supervisor
Downward communication
Goals, Objectives, directions,
Decisions, Feedback
Subordinate
Lateral communication
Information, (formal or informal)
for joint problem solving
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Adapted from Exhibit 14.4: Directions of Communication within Organizations
Channels of Communication
 Formal communication channels
 Specify individuals responsible for tasks
 Specify individuals responsible for communicating
information above and below them
 Indicate persons (positions) to whom work-related
messages should be sent
 Informal communication channels
 Tend to operate laterally more than vertically
 Move information quite rapidly
 Carry both work-related and nonwork information
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Channels of Communication
Solid lines indicate FORMAL
channels of communication
Dotted lines indicate INFORMAL
channels of communication
Vice President
of Marketing
Advertising
Manager
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Promotions
Manager
CEO
Manager
Toy
Manufacturing
Supervisor
Board Games
Testing
Supervisor
Electronic
Games Testing
Adapted from Exhibit 14.6:
Patterns of organizational
Communication
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Formal
Communication Channels
Informal
Communication Channels
• Authorized, planned, and
regulated by the organization
• Reflect the organization’s formal
structure
• Define who has responsibility for
information dissemination and
indicate the proper recipients of
work-related information
• May be modified by the
organization
• Minor to severe consequences
for ignoring them
• Develop through interpersonal
activities of organization
members
• Not specified by the organization
• May be short-lived or longlasting
• Are more often lateral than
vertical
• Information flow can be very fast
• Used for both work-related and
nonwork information
Adapted from Exhibit 14.6: Characteristics of Formal and Informal Communication Channels
Example of Communication
Networks
Network 1
Network 2
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Adapted from Exhibit 14.7: Examples of Two Organizational Communication Networks
Barriers to Communication
Level
Origin of Barrier
Affects Communication
Between:
Interpersonal
Selective perception
Frame of reference
Individual differences
Emotion
Language
Nonverbal cues
Individuals or groups
Organizational
Hierarchical
(barriers resulting from
formal structure)
Functional
(barriers resulting from
differences between
functional departments)
Individuals and/or groups within
an organization
Individuals and/or groups in
different organizations
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Adapted from Exhibit 14.8: Barriers to Communication
Barriers to Communication
Level
Origin of Barrier
Affects Communication
Between:
Cultural
Language
High/low-context culture
Stereotyping
Ethnocentrism
Cultural distance
Individuals or groups in different
organizations with different
national cultures
Individuals or groups from
different organizational
cultures
Individuals or groups form
diverse cultural backgrounds
within an organization
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Adapted from Exhibit 14.8: Barriers to Communication
Communication Differences in
High-and Low Context Cultures
Japan
South Korea
Vietnam
High-Context
Cultures
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China
Italy
Germany
Saudi Arabia
France
Australia
Canada
USA
New Zealand
Low-Context
Cultures
Adapted from Exhibit 14.9: Communication Differences in High- and Low-Context Cultures
Communication Differences in
High-and Low Context Cultures
High-Context Cultures
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Low-Context Cultures
 More and greater
 Fewer and smaller
adjustments in messages
 Rank of receiver will
probably affect message
and medium
 Nonverbal communication
cues may be very
important
 Medium may be as
important as message
adjustments in messages
 Rank or receiver may or
may not affect message or
medium
 Nonverbal communication
cues not as important
 Message is more
important than medium
Cross-Cultural Barriers
 Ethnocentrism
The belief in the superiority and
importance of one’s own group
 Stereotyping
The tendency to oversimplify and
generalize about groups of people
 Cultural distance
The overall difference between two cultures’ basic characteristics
such as language, level of economic development, and traditions
and customs
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Improving Communication
Listening Skills
 Be more open-minded
 Develop empathy
 Listen actively
 Observe nonverbal
cues
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Improving Communication
Sending Skills
 Simplify the language
 Organize the writing
 Understand the audience
 What is the direction of the communication ?
 Does the receiver have any expectations
concerning this communication?
 Is the communication formal or informal?
 Does the receiver have preferences for certain
channels of communication?
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Barriers to Communication
1. Study general principles that apply to all types of intercultural
communication.
2. Learn about the fundamental characteristics of the other cultures with
which you will be working.
3. For high-context cultures, learn as many details in advance about the
target organization(s) and their specific individual representatives.
4. For high-context cultures, use at least a few words or phrases in the
listener’s language.
5. For high-context cultures, be especially careful about body language and
tone of voice.
6. For low-context cultures, organize written communications so that the
major points are immediately and directly stated.
7. Study and respect communicators’ preference for greater degrees of
formality, especially compared with the typical American approach of
casual informality.
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Adapted from Exhibit 14.10: Tips on Being a More Effective Cross-Cultural Communicator
Improving Communication
Organization-Level
 Gatekeepers
 Individuals at the communication interface between
separate organizations or different units within an
organization
 Increase formal communication
 Replace some face-to-face communication with
electronic communication
 Develop communication networks
 Create centralized office to manage communication
activities
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Communication and
Negotiation
 Negotiation
 Process of conferring to arrive at an
agreement between different parties, each
with their own interests and preferences
 Two types of negotiation activities
 Day-to-day activities of the managers
organizational unit
 Part of a formally appointed negotiating
team representing unit or organization
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Achieving Effective
Negotiations
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Less effective
More effective
• Positions
• People Involved
• Maintaining/Increasing
Competition
(Win/Lose Focus)
• Interests
• Problem/Issue
• Decreasing/Lessening
Competition
(Collaborative
Focus)
Adapted from Exhibit 14.11: Improving Effectiveness of Negotiations
Key Factors in
Cross-National Negotiations
 Three principal variables generally determine
the outcome of negotiations
 People
 Listening skills
 Orientation toward people
 High self-esteem
 Influence in the home organization
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Important characteristics
Needed by Negotiators
U. S. Managers
1. Preparation and
2.
3.
4.
5.
6.
7.
planning skill
Thinking under
pressure
Judgment and
intelligence
Verbal
expressiveness
Product knowledge
Ability to perceive
and exploit power
integrity
Japanese Managers
1. Dedication to job
Chinese Managers
(Taiwan)
1. Persistence and
2. Ability to perceive
3.
4.
5.
6.
7.
and exploit power
Ability to win
respect and
confidence
Integrity
Listening skill
Broad perspective
Verbal
expressiveness
2.
3.
4.
5.
6.
determination
Ability to win
respect and
confidence
Preparation and
planning skill
Product knowledge
Interesting
Judgment and
intelligence
Brazilian Managers
1. Preparation and
2.
3.
4.
5.
6.
7.
planning skill
Thinking under
pressure
Judgment and
intelligence
Verbal
expressiveness
Product knowledge
Ability to perceive
and exploit power
Competitiveness
Source: J. L. Graham and Y. Sano, Smart Bargaining: Doing Business with the Japanese, 2nd ed. (New York: Harper Business, 1988).
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Adapted from Exhibit 14.12: Important Characteristics Needed by Negotiators in Four Countries
Key Factors in
Cross-National Negotiations
 Three principal variables generally determine
the outcome of negotiations
 Situation
 Location
 Physical arrangements
 Emphasis on speed and time
 Composition of the negotiating teams
 Negotiation process
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Stages in the
Negotiation Process
Planning and preparation
 Advance planning and
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Stage 1
Planning and preparation
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analysis
Background research
Gathering of relevant
information
Planning of strategies and
tactics
Setting objectives
Predetermining possible
concessions
Adapted from Exhibit 14.13: The Five Stages in the Negotiating Process
Stages in the
Negotiation Process
Relationship building
between negotiation
parties
 Developing trust
 Developing personal
Stage 2
Relationship building between
negotiating parties
rapport
 Establishing long-term
association
Stage 1
Planning and preparation
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Adapted from Exhibit 14.13: The Five Stages in the Negotiating Process
Stages in the
Negotiation Process
Information exchange
 Learning about the needs
Stage 3
Information exchange
and demands of the other
set of negotiators
 Acquiring and exchanging
other information
Stage 2
Relationship building between
negotiating parties
Stage 1
Planning and preparation
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Adapted from Exhibit 14.13: The Five Stages in the Negotiating Process
Stages in the
Negotiation Process
Persuasion attempts
 American managers treat
Stage 4
Persuasion attempts
Stage 3
Information exchange
Stage 2
Relationship building between
negotiating parties
as the most important
stage
 Mixture of approaches
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

Assertive and
straightforward
Warnings or threats
Calculated delays
Stage 1
Planning and preparation
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Adapted from Exhibit 14.13: The Five Stages in the Negotiating Process
Stages in the
Negotiation Process
Stage 5
Concessions/Agreement
Concessions/Agreement
 Permit each party to take
Stage 4
Persuasion attempts
Stage 3
Information exchange
Stage 2
Relationship building between
negotiating parties
away something of value
 American managers tend
to have less leeway for
concessions
 Some use normative
appeals such as “it’s your
obligation”
Stage 1
Planning and preparation
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Adapted from Exhibit 14.13: The Five Stages in the Negotiating Process