CHAPTER SIX Communication INB 350 Lecture By: Ms. Adina Malik (ALK)

Learning Objectives Basic mechanisms for Negotiation Distortions in Communication What is Communicated in Negotiation How People Communicate in Negotiation Communication Channels How to Improve Communication in Negotiation

Communication in Negotiation Communication processes, both verbal and nonverbal, are critical to achieving negotiation goals and to resolving conflicts. Negotiation is a process of interaction Negotiation is a context for communication subtleties that influence processes and outcomes

Communication Mechanisms Communication is a process of transferring information from one entity to another and when you break down the art of negotiation, it's really about communication. It's about connecting and ultimately the art of compromise.

Basic Models of Communication Communication is an activity that occurs between two people: a sender and a receiver A sender has a meaning in mind and encodes this meaning into a message that is transmitted to a receiver A receiver provides information about how the message was received and by becoming a sender and responding to, building on, or rebutting the original message (processes referred to as “feedback”)

Distortion in Communication 1. Senders and receivers The more diverse their goals or the more antagonistic they are in their relationship, the greater the likelihood that distortions and errors in communication will occur 2. Transmitters and receptors The choice of transmitter can affect outcomes Some messages may be better spoken, others written Poor eyesight, faulty hearing, etc. diminish the ability of a receiver to receive a message accurately

Distortion in Communication 3. Messages The symbolic forms by which information is communicated The more we use symbolic communication, the more likely the symbols may not accurately communicate the meaning we intend 4. Encoding The process by which messages are put into symbolic form Senders are likely to encode messages in a form which receivers may not prefer

Distortion in Communication 5. Channels The conduits by which messages are carried from one party to another Messages are subject to distortion from channel noise or various forms of interference 6. Decoding The process of translating messages from their symbolic form into a form that makes sense When people speak different languages, decoding involves higher degrees of error

Distortion in Communication 7. Meanings The facts, ideas, feelings, reactions, or thoughts that exist within individuals and act as filters for interpreting the decoded messages Those filters can introduce distortions 8. Feedback The process by which the receiver reacts to the sender’s message Absence of feedback can contribute to significant distortions Feedback can distort communication by influencing the offers negotiators make

What Is Communicated during Negotiation? Five different categories of communication that take place during negotiation: Offers, counteroffers, and motives Information about alternatives Information about outcomes Social accounts Communication about process

Offers, Counteroffers & Motives Negotiators motivation explains their preferences and has powerful influence on the negotiation’s outcome Assumptions: Communication of offers is a dynamic process The offer process is interactive Various internal and external factors drive the interaction Thus offer-counter-offer process is dynamic and interactive, and subject to situational and environmental constraints

Information about Alternatives Knowing your BATNA allows you to determine whether the outcome of your negotiation is a success. Research substantiated that- parties possessing attractive BATNA set higher reservation price parties possessing weaker BATNA set lower reservation point If both the parties are aware about each others BATNA the potential for reaching more positive negotiation outcome increases.

Information about Outcomes Negotiators feels less positive about their outcome if they found out that the other negotiator had done better Thus negotiators should be cautious about sharing their outcomes or even their positive reactions to outcomes with other party , especially if they want to pursue long- term relationship

Social Accounts Social accounts have been identified as communications that can mitigate the negative impact of unfavorable outcomes Negotiators need to explain things to other party especially when the need to justify bad news. Explanations of mitigating circumstances Explanations of exonerating circumstances Reframing explanations

Communication about Process During negotiation communication could also be directed towards the process, for example If opponents are pursuing hardball tactics then parties could directly call attention towards their contentious actions and explicitly label it as counterproductive

How People Communicate in Negotiation Use of language: language operates at two levels Logical level (proposals, offers) Pragmatic level (semantics, syntax, style) Researchers identified five linguistic dimensions of making threats- Use of polarized language Conveyance of verbal immediacy Degree of language intensity Degree of lexical diversity Extent of high/low power language style

How People Communicate in Negotiation As suggested by the researchers threats could be made more credible and more compelling by negatively polarized description of the other party and their position, high immediacy, high intensity, high lexical diversity and a distinctive high power style

How People Communicate in Negotiation Use of nonverbal communication: it is also known as attending behaviors Making eye contact: it’s a way to show that you are paying attention, however, this perception differs across culture Adjusting body position Nonverbally encouraging or discouraging what the other says: face to face interaction stimulate rapport which in turn enhances coordination and led to higher joint gains.

Communication Channel Selection People can communicate through variety of communication media. Face- to-Face Interaction Telephone Writing Electronic Channels Communication is experienced differently when it occurs through different channels Key variation that distinguishes one communication channel from another is social presence.

Communication Channel Selection Face- to-Face Interaction: In F2F negotiation interacting parties could more easily develop personal rapport Social clues are communicated more easily compared to other channels Research showed that in F2F communication negotiators are more inclined to disclose information more truthfully, increasing their ability to attain mutual gain

Communication Channel Selection Telephone: Negotiating on the telephone is generally far less satisfying than F2F communication. We are deprived of the opportunity to observe the social cues of the people with whom we are negotiating. Telephone negotiation is often most effective when it is a follow-up to in person conversations. Nonetheless, negotiating on the telephone is more satisfying than doing so using letters, faxes, or email. At least on the telephone we can hear if someone is hesitating, we can listen for the tone of their voice.

Communication Channel Selection In order to negotiate effectively on the telephone we need to consider a few rules that also apply to face-to-face negotiation We should be well-prepared. It is a good idea to have a clear sense, or at least informed assumptions, about what interests are most important to ourselves and the person with whom we are negotiating. Doing a good job of homework can be crucial. One of the worst things about telephone negotiation, and negotiation in general, is when we forget to pay attention to particular points.

Communication Channel Selection 3. One crucial rule of negotiation, to Listen Actively, is particularly important in telephone negotiations since sound is the only medium of communication involved. 4. Don't let the immediacy of a telephone call force you into fast, unwise decisions.

Communication Channel Selection Written Communication Written communication convey less social clues than the other two channels However, one’s choice of words and the way they are arranged can certainly convey tone, in formality and emotion Additionally, Written communications may have gone through several drafts, which helps to “level the playing field”; telephone conversations are less likely to follow a carefully- crafted script.

Communication Channel Selection Electronic Channels: The use of network mediated information technologies in negotiation is referred as Virtual Negotiation E-mail is another form of written communication that happens to involve electronic transmission In E-mail people could also use text based emoticons to convey emotional social cues in the message There is evidence that negotiation through written channels is more likely to end in impasse There is also evidence that e-mail negotiators reach agreements that are more equal than F2F negotiators

Four Biases that Threaten E-mail Negotiations 1. Temporal synchrony bias Tendency for negotiators to behave as if they are in a synchronous situation when they are not 2. Burned bridge bias Tendency to do risky things during e-mail that would not be used in a face-to-face encounter 3. Squeaky wheel bias Tendency to use a negative emotional style 4. Sinister attribution bias Overlooking the role of situational factors

How to Improve Communication in Negotiation Use of questions: two basic categories Manageable Cause attention or prepare the other person’s thinking for further questions: “May I ask you a question?” getting information “How much will this cost?” generating thoughts “Do you have any suggestions for improving this?”

How to Improve Communication in Negotiation Use of questions: two basic categories Unmanageable questions Cause difficulty “Where did you get that dumb idea?” Give information “Didn’t you know we couldn’t afford this?” Bring the discussion to a false conclusion “Don’t you think we have talked about this enough?”

How to Improve Communication in Negotiation Listening: three major forms Passive listening: Receiving the message while providing no feedback to the sender Acknowledgment: Receivers nod their heads, maintain eye contact, or interject responses Active listening: Receivers restate or paraphrase the sender’s message in their own language

How to Improve Communication in Negotiation Role reversal Negotiators understand the other party’s positions by actively arguing these positions until the other party is convinced that he or she is understood Impact and success of the role-reversal technique Effective in producing cognitive changes and attitude changes When the positions are compatible, likely to produce acceptable results; when the positions are incompatible, may inhibit positive change Not necessarily effective overall as a means of inducing agreement between parties

Special Communication Considerations at the Close of Negotiations Avoiding fatal mistakes Keeping track of what you expect to happen Systematically guarding yourself against self-serving expectations Reviewing the lessons from feedback for similar decisions in the future Achieving closure Avoid surrendering important information needlessly Refrain from making “dumb remarks”