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PowerPoint slides by R. Dennis Middlemist Colorado State University Chapter 14 Communication and Negotiation Hitt Black Porter m a n a g e m e n t.

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Presentation on theme: "PowerPoint slides by R. Dennis Middlemist Colorado State University Chapter 14 Communication and Negotiation Hitt Black Porter m a n a g e m e n t."— Presentation transcript:

1 PowerPoint slides by R. Dennis Middlemist Colorado State University Chapter 14 Communication and Negotiation Hitt Black Porter m a n a g e m e n t

2 2 Learning Objectives Explain why communication is vital for effective management. Describe the basic process of communication. Explain how culture can influence communication. After studying this chapter, you should be able to:

3 3 Learning Objectives Identify key barriers to effective communication. Describe approaches to overcoming communication barriers. Describe the basic process of negotiation. After studying this chapter, you should be able to:

4 4 Basic Model of Communication Communication: the process of transferring information, meaning, and understanding from sender to receiver Encoding Medium Decoding Noise

5 5 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

6 6 Examples Modes of Communication Adapted from Exhibit 14.2: Modes of Communication OralWritten Conversation Speeches Telephone calls Videoconferences VERBAL MODE (LANGUAGE USED TO CONVEY MEANING Letters Memos Reports 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 NONVERBAL MODE

7 7 Disadvantages Modes of Communication Transitory Subject to misinterpretation VERBAL MODE (LANGUAGE USED TO CONVEY MEANING Precision loss in translation Inflexible Easier to ignore Meanings of nonverbal communication not universal Adapted from Exhibit 14.2: Modes of Communication OralWritten NONVERBAL MODE

8 8 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

9 9 Factors in Media Richness Adapted from Exhibit 14.3: Factors Contributing to 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: RichLean Face to faceTelephone s, memos

10 10 Organizational Context of Communication Organizational characteristics that affect communication Composed of individuals and groups Oriented toward goals Differentiated functions Intended coordination Continuity through time

11 11 Directions of Communication Adapted from Exhibit 14.4: Directions of Communication within Organizations Supervisor Subordinate Lateral communication Downward communication Goals, Objectives, directions, Decisions, Feedback Lateral communication Information, (formal or informal) for joint problem solving Upward communication Information, Questions, Suggestions, Problems, Requests for clarification

12 12 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

13 13 Channels of Communication Adapted from Exhibit 14.6: CEO Vice President of Marketing Manager Toy Manufacturing Advertising Manager Promotions Manager Supervisor Board Games Testing Supervisor Electronic Games Testing Solid lines indicate FORMAL channels of communication Dotted lines indicate INFORMAL channels of communication

14 14 Formal Communication Channels Patterns of organizational Communication Adapted from Exhibit 14.6: Characteristics of Formal and Informal Communication Channels Authorized, planned, and regulated by the organization Reflect the organizations 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 Informal Communication Channels

15 15 Example of Communication Networks Network 1 Network 2 Adapted from Exhibit 14.7: Examples of Two Organizational Communication Networks

16 16 Level Barriers to Communication Adapted from Exhibit 14.8: Barriers to Communication InterpersonalSelective perception Frame of reference Individual differences Emotion Language Nonverbal cues Origin of Barrier Affects Communication Between: Individuals or groups OrganizationalHierarchical (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

17 17 Level Barriers to Communication CulturalLanguage High/low-context culture Stereotyping Ethnocentrism Cultural distance Origin of Barrier Affects Communication Between: 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

18 18 Communication Differences in High-and Low Context Cultures Adapted from Exhibit 14.9: Communication Differences in High- and Low-Context Cultures JapanItaly FranceCanadaUSASouth Korea China Saudi Arabia Vietnam Germany Australia New Zealand High-Context Cultures Low-Context Cultures

19 19 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

20 20 Cross-Cultural Barriers Ethnocentrism The belief in the superiority and importance of ones 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

21 21 Improving Communication Be more open-minded Develop empathy Listen actively Observe nonverbal cues Listening Skills

22 22 Improving Communication 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? Sending Skills

23 23 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 listeners 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. Barriers to Communication Adapted from Exhibit 14.10: Tips on Being a More Effective Cross-Cultural Communicator

24 24 Improving Communication 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 Organization-Level

25 25 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

26 26 Achieving Effective Negotiations Adapted from Exhibit 14.11: Improving Effectiveness of Negotiations Less effectiveMore effective Positions People Involved Maintaining/Increasing Competition (Win/Lose Focus) Interests Problem/Issue Decreasing/Lessening Competition (Collaborative Focus)

27 27 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

28 28 U. S. Managers Important characteristics Needed by Negotiators Adapted from Exhibit 14.12: Important Characteristics Needed by Negotiators in Four Countries Japanese Managers Chinese Managers (Taiwan)Brazilian Managers 1. Preparation and planning skill 2. Thinking under pressure 3. Judgment and intelligence 4. Verbal expressiveness 5. Product knowledge 6. Ability to perceive and exploit power 7. integrity 1. Dedication to job 2. Ability to perceive and exploit power 3. Ability to win respect and confidence 4. Integrity 5. Listening skill 6. Broad perspective 7. Verbal expressiveness 1. Persistence and determination 2. Ability to win respect and confidence 3. Preparation and planning skill 4. Product knowledge 5. Interesting 6. Judgment and intelligence 1. Preparation and planning skill 2. Thinking under pressure 3. Judgment and intelligence 4. Verbal expressiveness 5. Product knowledge 6. Ability to perceive and exploit power 7. Competitiveness Source: J. L. Graham and Y. Sano, Smart Bargaining: Doing Business with the Japanese, 2nd ed. (New York: Harper Business, 1988).

29 29 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

30 30 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

31 31 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

32 32 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

33 33 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

34 34 Stages in the Negotiation Process 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 its your obligation Stage 5 Concessions/Agreement 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


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