HittBlackPorter Management 1st ed

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					                      Chapter 14
                      and Negotiation

m a n a g e m e n t        PowerPoint slides by
                          R. Dennis Middlemist
                         Colorado State University
    Learning Objectives
    After studying this chapter, you should be
    able to:
        Explain why communication is vital for
         effective management.
        Describe the basic process of
        Explain how culture can influence

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

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

     Basic Model of

    • Encodes message       Noise:                      • Receives message
    • chooses a medium
                         Can interfere                  • Decodes message
                         at any point                   • May send feedback
    • Sends the
                                                          for clarification

5                                        Adapted from Exhibit 14.1: Basic Communication Model
    Modes of Communication
                     VERBAL MODE
           (LANGUAGE USED TO CONVEY MEANING                      NONVERBAL
                Oral                  Written                    MODE
Examples        Conversation          Letters                    Dress
                Speeches              Memos                      Speech intonation
                Telephone calls       Reports                    Gestures
                Videoconferences      E-mail                     Facial expressions
Advantages      Vivid                 Decreased                   Effectiveness of
                Stimulating            misinterpretation           communication
                Commands              Precise                      increases with
                 attention                                         congruence to
                Difficult to ignore                                oral presentation
                Flexible                                          Can emphasize
                Adaptive                                           meaning

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

7                                                  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                                   Lean Media
    • Personal                                  • Impersonal
    • Multiple cues to                          • Few cues to aid
      aid in decoding                             in decoding
    • Immediate                                 • Delayed
      feedback                                    feedback

        Rich                                                                    Lean

    Face to face         Telephone                                  E-mails, memos

9                                    Adapted from Exhibit 14.3: Factors Contributing to Media Richness
     Organizational Context of
      Organizational characteristics that affect
        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,                              Downward communication
  Suggestions, Problems,                               Goals, Objectives, directions,
       Requests for                                       Decisions, Feedback

       Subordinate                                       Subordinate
                         Lateral communication
                     Information, (formal or informal)
                         for joint problem solving

11                                             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

               Vice President
                of Marketing

                                               Supervisor       Supervisor
     Advertising           Promotions
                                              Board Games        Electronic
      Manager               Manager
                                                Testing        Games Testing

13                                                               Adapted from Exhibit 14.6:
     Patterns of organizational
             Formal                                       Informal
      Communication Channels                        Communication Channels
      • Authorized, planned, and                    • Develop through interpersonal
        regulated by the organization                 activities of organization
      • Reflect the organization’s formal             members
        structure                                   • Not specified by the organization
      • Define who has responsibility for           • May be short-lived or long-
        information dissemination and                 lasting
        indicate the proper recipients of           • Are more often lateral than
        work-related information                      vertical
      • May be modified by the                      • Information flow can be very fast
        organization                                • Used for both work-related and
      • Minor to severe consequences                  nonwork information
        for ignoring them

14                                  Adapted from Exhibit 14.6: Characteristics of Formal and Informal Communication Channels
     Example of Communication

                                                                       Network 1
                                                                       Network 2

15              Adapted from Exhibit 14.7: Examples of Two Organizational Communication Networks
     Barriers to Communication
 Level            Origin of Barrier           Affects Communication
 Interpersonal    Selective perception        Individuals or groups
                  Frame of reference
                  Individual differences
                  Nonverbal cues
 Organizational   Hierarchical                Individuals and/or groups within
                   (barriers resulting from     an organization
                   formal structure)          Individuals and/or groups in
                  Functional                    different organizations
                   (barriers resulting from
                   differences between
                   functional departments)

16                                                Adapted from Exhibit 14.8: Barriers to Communication
     Barriers to Communication
 Level      Origin of Barrier          Affects Communication
 Cultural   Language                   Individuals or groups in different
            High/low-context culture     organizations with different
            Stereotyping                 national cultures
            Ethnocentrism              Individuals or groups from
            Cultural distance            different organizational
                                       Individuals or groups form
                                         diverse cultural backgrounds
                                         within an organization

17                                       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                                                                                     Low-Context
  Cultures                                                                                         Cultures

18                                      Adapted from Exhibit 14.9: Communication Differences in High- and Low-Context Cultures
     Communication Differences in
     High-and Low Context Cultures
     High-Context Cultures          Low-Context Cultures
         More and greater              Fewer and smaller
          adjustments in messages        adjustments in messages
         Rank of receiver will         Rank or receiver may or
          probably affect message        may not affect message or
          and medium                     medium
         Nonverbal communication       Nonverbal communication
          cues may be very               cues not as important
          important                     Message is more
         Medium may be as               important than medium
          important as message

     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

     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
     1. Study general principles that apply to all types of intercultural
     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
        listener’s 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.

23                                     Adapted from Exhibit 14.10: Tips on Being a More Effective Cross-Cultural Communicator
     Improving Communication
      Gatekeepers
        Individuals at the communication interface between
         separate organizations or different units within an
        Increase formal communication
        Replace some face-to-face communication with
         electronic communication
        Develop communication networks
        Create centralized office to manage communication
     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

      Less effective                More effective
      • Positions                   • Interests
      • People Involved             • Problem/Issue
      • Maintaining/Increasing      • Decreasing/Lessening
        Competition                   Competition
         (Win/Lose Focus)               (Collaborative

26                               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
                                                                       Chinese Managers
     U. S. Managers             Japanese Managers                          (Taiwan)                            Brazilian Managers

1. Preparation and              1. Dedication to job                 1. Persistence and                       1. Preparation and
     planning skill             2. Ability to perceive                    determination                            planning skill
2.   Thinking under                  and exploit power               2.   Ability to win                      2.   Thinking under
     pressure                   3.   Ability to win                       respect and                              pressure
3.   Judgment and                    respect and                          confidence                          3.   Judgment and
     intelligence                    confidence                      3.   Preparation and                          intelligence
4.   Verbal                     4.   Integrity                            planning skill                      4.   Verbal
     expressiveness             5.   Listening skill                 4.   Product knowledge                        expressiveness
5.   Product knowledge          6.   Broad perspective               5.   Interesting                         5.   Product knowledge
6.   Ability to perceive        7.   Verbal                          6.   Judgment and                        6.   Ability to perceive
     and exploit power               expressiveness                       intelligence                             and exploit power
7.   integrity                                                                                                7.   Competitiveness
 Source: J. L. Graham and Y. Sano, Smart Bargaining: Doing Business with the Japanese, 2nd ed. (New York: Harper Business, 1988).

28                                                   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
                                     Background research
                                     Gathering of relevant
                                     Planning of strategies and
                                     Setting objectives
                                     Predetermining possible
             Stage 1                  concessions
     Planning and preparation
30                                      Adapted from Exhibit 14.13: The Five Stages in the Negotiating Process
     Stages in the
     Negotiation Process
                                 Relationship building
                                  between negotiation
                                    Developing trust
                                    Developing personal
            Stage 2                 Establishing long-term
 Relationship building between
       negotiating parties

             Stage 1
     Planning and preparation
31                                     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
            Stage 3                 Acquiring and exchanging
      Information exchange           other information
            Stage 2
 Relationship building between
       negotiating parties

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

             Stage 1
     Planning and preparation
33                                     Adapted from Exhibit 14.13: The Five Stages in the Negotiating Process
     Stages in the
     Negotiation Process
            Stage 5
                                    Permit each party to take
            Stage 4                  away something of value
       Persuasion attempts
                                    American managers tend
            Stage 3                  to have less leeway for
      Information exchange           concessions
            Stage 2                 Some use normative
 Relationship building between       appeals such as “it’s your
       negotiating parties           obligation”
             Stage 1
     Planning and preparation
34                                     Adapted from Exhibit 14.13: The Five Stages in the Negotiating Process

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