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

2. 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.

3. 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.

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

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. Modes of Communication
VERBAL MODE
(LANGUAGE USED TO CONVEY MEANING
NONVERBAL
MODE
Oral Written
Examples
Conversation
Speeches
Telephone calls
Videoconferences
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
Adapted from Exhibit 14.2: Modes of Communication

7. 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

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. 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
s, memos
Adapted from Exhibit 14.3: Factors Contributing to Media Richness

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. 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

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. 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:

14. 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

15. Example of Communication Networks
Adapted from Exhibit 14.7: Examples of Two Organizational Communication Networks

16. 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

17. 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

18. 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

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. 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

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

22. 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?

23. 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

24. 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

25. 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

26. 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

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. 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

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. 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. 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. 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. 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. 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