Chapter 14 Communication and Negotiation PowerPoint slides by R Dennis Middlemist Colorado State University Learning Objectives After studying this chapter, you should be able to: Explain why communication is vital for effective management Describe the basic process of communication Explain how culture can influence communication ©2005 Learning Objectives After studying this chapter, you should be able to: Identify key barriers to effective communication Describe approaches to overcoming communication barriers Describe the basic process of negotiation ©2005 Basic Model of Communication Communication: the process of transferring information, meaning, and understanding from sender to receiver Encoding Medium Decoding Noise â2005 Basic Model of Communication Sender Encodes message • chooses a medium (channel) • Sends the message ©2005 Noise: Can interfere at any point Receiver • Receives message • Decodes message • May send feedback for clarification Adapted from Exhibit 14.1: Basic Communication Model Modes of Communication VERBAL MODE NONVERBAL MODE (LANGUAGE USED TO CONVEY MEANING Oral Written Examples Conversation Speeches Telephone calls Videoconferences Letters Memos Reports E-mail Fax Dress Speech intonation Gestures Facial expressions Advantages Vivid Stimulating Commands attention Difficult to ignore Flexible Adaptive Decreased misinterpretation Precise Effectiveness of communication increases with congruence to oral presentation Can emphasize meaning ©2005 Adapted from Exhibit 14.2: Modes of Communication Modes of Communication VERBAL MODE Written NONVERBAL MODE Precision loss in translation Inflexible Easier to ignore Meanings of nonverbal communication not universal (LANGUAGE USED TO CONVEY MEANING Oral Disadvantages Transitory Subject to misinterpretation ©2005 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 ©2005 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 ©2005 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 10 ©2005 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 20 ©2005 Improving Communication Listening Skills Be more open-minded Develop empathy Listen actively Observe nonverbal cues 21 ©2005 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? 22 ©2005 Barriers to Communication Study general principles that apply to all types of intercultural communication Learn about the fundamental characteristics of the other cultures with which you will be working For high-context cultures, learn as many details in advance about the target organization(s) and their specific individual representatives For high-context cultures, use at least a few words or phrases in the listener’s language For high-context cultures, be especially careful about body language and tone of voice For low-context cultures, organize written communications so that the major points are immediately and directly stated Study and respect communicators’ preference for greater degrees of formality, especially compared with the typical American approach of casual informality 23 ©2005 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 24 ©2005 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 25 ©2005 Achieving Effective Negotiations 26 Less effective More effective • Positions • People Involved • Maintaining/Increasing Competition (Win/Lose Focus) • Interests • Problem/Issue • Decreasing/Lessening Competition (Collaborative Focus) ©2005 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 27 ©2005 Important characteristics Needed by Negotiators U S Managers Preparation and planning skill Thinking under pressure Judgment and intelligence Verbal expressiveness Product knowledge Ability to perceive and exploit power integrity Japanese Managers Dedication to job Chinese Managers (Taiwan) Persistence and Ability to perceive and exploit power Ability to win respect and confidence Integrity Listening skill Broad perspective Verbal expressiveness determination Ability to win respect and confidence Preparation and planning skill Product knowledge Interesting Judgment and intelligence Brazilian Managers Preparation and 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) 28 ©2005 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 29 ©2005 Stages in the Negotiation Process Planning and preparation Advance planning and Stage Planning and preparation 30 ©2005 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 Relationship building between negotiating parties rapport Establishing long-term association Stage Planning and preparation 31 ©2005 Adapted from Exhibit 14.13: The Five Stages in the Negotiating Process Stages in the Negotiation Process Information exchange Learning about the needs Stage Information exchange and demands of the other set of negotiators Acquiring and exchanging other information Stage Relationship building between negotiating parties Stage Planning and preparation 32 ©2005 Adapted from Exhibit 14.13: The Five Stages in the Negotiating Process Stages in the Negotiation Process Persuasion attempts American managers treat Stage Persuasion attempts Stage Information exchange Stage Relationship building between negotiating parties as the most important stage Mixture of approaches Assertive and straightforward Warnings or threats Calculated delays Stage Planning and preparation 33 ©2005 Adapted from Exhibit 14.13: The Five Stages in the Negotiating Process Stages in the Negotiation Process Stage Concessions/Agreement Stage Persuasion attempts Stage Information exchange Stage Relationship building between negotiating parties Concessions/Agreement Permit each party to take away something of value American managers tend to have less leeway for concessions Some use normative appeals such as “it’s your obligation” Stage Planning and preparation 34 ©2005 Adapted from Exhibit 14.13: The Five Stages in the Negotiating Process ... 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 ©2005 Lean Telephone E-mails,... 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... receiving Availability of multiple cues Opportunity to receive immediate and continuing feedback from the receiver One should match message with medium for effective communication ©2005