For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN  Copyright © 2005 Cengage Learning 1 COMMUNICATION, DECISION MAKING AND NEGOTIATION Lecture 16

For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN  Copyright © 2005 Cengage Learning 2 Communication, decision making and negotiation Not every act of communication involves decision making or negotiation

For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN  Copyright © 2005 Cengage Learning 3 Communications within organizations

For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN  Copyright © 2005 Cengage Learning 4 Communications within organizations Communications in large organizations needs to be managed carefully: Limitation Procedure Teamwork Automation Separation

For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN  Copyright © 2005 Cengage Learning 5 Communications Communication - four general functions: Information processing Co-ordination Visioning Personal expression Methods of communication: Written Oral Non-verbal Electronic

For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN  Copyright © 2005 Cengage Learning 6 Seating arrangements impact on communication

For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN  Copyright © 2005 Cengage Learning 7 The communication model Several stages in a circular process: Source encodes idea into a message Source transmits the message to receiver Receiver captures message Receiver decodes message Receiver interprets message Receiver encodes a response Receiver transmits the response Source captures message Source decodes message Source interprets message Source encodes a response All of these stages are ‘contaminated’ by surrounding ‘noise’

For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN  Copyright © 2005 Cengage Learning 8 Interpersonal communication

For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN  Copyright © 2005 Cengage Learning 9 Decision making within organizations

For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN  Copyright © 2005 Cengage Learning 10 Problem-solving preferences Thompson and Tuden (1959) Preferences for outcome Beliefs without causation

For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN  Copyright © 2005 Cengage Learning 11 Decision making models Rational and Restricted nationality models Political model Conflict model Programmed and non-programmed decision making Pragmatic model Cycle model

For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN  Copyright © 2005 Cengage Learning 12 Approaches to decision making Conclusions from comparing programmed and non-programmed approaches to decision making: Risk Cost Performance Variety Employee skill Organization design

For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN  Copyright © 2005 Cengage Learning 13 Decision making models

For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN  Copyright © 2005 Cengage Learning 14 Negotiating and organizations Negotiation is defined as: The resolution of difference The exchange of something mutually sought by both parties The making of agreements

For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN  Copyright © 2005 Cengage Learning 15 Negotiating tactics Torrington and Hall (1987) Avoidance Smoothing Forcing Compromise Confrontation Win-lose tactics Probing Get/give Emotion Good guy/bad guy Poker face Managing the minutes Understanding not agreement Getting upstairs Forcing Fisher and Ury (1981) Principled negotiations Separate the people from the problem Focus on interests not positions Invent options for mutual gain Insist on objective criteria

For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN  Copyright © 2005 Cengage Learning 16 Factors influencing negotiation tactics

For use with MARTIN, ORGANIZATIONAL BEHAVIOUR AND MANAGEMENT 3e ISBN  Copyright © 2005 Cengage Learning 17 Negotiator characteristics Successful negotiators tend to: Seek information Test understanding Summarize Label behaviour Successful negotiators avoid: Irritators Defend attack spirals Counterproposals Argument dilution