Communication and Negotiation Chapter 14 Hitt Black Porter Communication and Negotiation m a n a g e m e n t

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.

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.

Basic Model of Communication Communication: the process of transferring information, meaning, and understanding from sender to receiver Encoding Medium Decoding Noise

Basic Model of Communication Sender Encodes message chooses a medium (channel) Sends the message Receiver Receives message Decodes message May send feedback for clarification Noise: Can interfere at any point Adapted from Exhibit 14.1: Basic Communication Model

Modes of Communication VERBAL MODE (LANGUAGE USED TO CONVEY MEANING NONVERBAL MODE 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 Adapted from Exhibit 14.2: Modes of Communication

Modes of Communication VERBAL MODE (LANGUAGE USED TO CONVEY MEANING NONVERBAL MODE Oral Written Disadvantages Transitory Subject to misinterpretation Precision loss in translation Inflexible Easier to ignore 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

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 Lean Face to face 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

Directions of Communication Lateral communication Supervisor Supervisor Upward communication Information, Questions, Suggestions, Problems, Requests for clarification Downward communication Goals, Objectives, directions, Decisions, Feedback Subordinate Subordinate Lateral communication Information, (formal or informal) for joint problem solving 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

Channels of Communication Solid lines indicate FORMAL channels of communication Dotted lines indicate INFORMAL channels of communication CEO Vice President of Marketing Manager Toy Manufacturing Advertising Manager Promotions Manager Supervisor Board Games Testing Supervisor Electronic Games Testing Adapted from Exhibit 14.6:

Patterns of organizational Communication 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 long-lasting 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 Adapted from Exhibit 14.7: Examples of Two Organizational Communication Networks

Barriers to Communication Origin of Barrier Affects Communication Between: Level 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 Adapted from Exhibit 14.8: Barriers to Communication

Barriers to Communication Origin of Barrier Affects Communication Between: Level 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 Adapted from Exhibit 14.8: Barriers to Communication

Communication Differences in High-and Low Context Cultures Japan China Italy Germany South Korea Saudi Arabia France Australia Canada USA Vietnam New Zealand High-Context Cultures 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 More and greater 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 Low-Context Cultures Fewer and smaller 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

Improving Communication Listening Skills Be more open-minded Develop empathy Listen actively Observe nonverbal cues

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?

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. 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

Communication and 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

Achieving Effective Negotiations 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

Important characteristics Needed by Negotiators U. S. Managers Japanese Managers Chinese Managers (Taiwan) Brazilian Managers Preparation and planning skill Thinking under pressure Judgment and intelligence Verbal expressiveness Product knowledge Ability to perceive and exploit power integrity Dedication to job Ability to perceive and exploit power Ability to win respect and confidence Integrity Listening skill Broad perspective Verbal expressiveness Persistence and determination Ability to win respect and confidence Preparation and planning skill Product knowledge Interesting Judgment and intelligence 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). 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

Stages in the Negotiation Process Planning and preparation Advance planning and analysis Background research Gathering of relevant information Planning of strategies and tactics Setting objectives Predetermining possible concessions Stage 1 Planning and preparation 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 rapport Establishing long-term association Stage 2 Relationship building between negotiating parties Stage 1 Planning and preparation Adapted from Exhibit 14.13: The Five Stages in the Negotiating Process

Stages in the Negotiation Process Information exchange Learning about the needs and demands of the other set of negotiators Acquiring and exchanging other information Stage 3 Information exchange Stage 2 Relationship building between negotiating parties Stage 1 Planning and preparation Adapted from Exhibit 14.13: The Five Stages in the Negotiating Process

Stages in the Negotiation Process Persuasion attempts American managers treat as the most important stage Mixture of approaches Assertive and straightforward Warnings or threats Calculated delays Stage 4 Persuasion attempts Stage 3 Information exchange Stage 2 Relationship building between negotiating parties Stage 1 Planning and preparation Adapted from Exhibit 14.13: The Five Stages in the Negotiating Process

Stages in the Negotiation Process Concessions/Agreement 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 4 Persuasion attempts Stage 3 Information exchange Stage 2 Relationship building between negotiating parties Stage 1 Planning and preparation Adapted from Exhibit 14.13: The Five Stages in the Negotiating Process