Managerial

Communication
We cannot negotiate with those who say,
“What’s mine is mine and what’s yours is
negotiable.”
-John F. Kennedy
Contents

1. Prominent Forms of Managerial Communication

a. Conflict and Negotiation Communication

Negotiation
•Lewicki et al. (1999) argue that what they call a 'negotiation situation' exists when
the following conditions are present:

there are two or more parties (groups or individuals),

 a conflict of interest exists between them, i.e. what one wants is not necessarily
what the other wants, so

there is a need to search for a resolution;

each party believes that they can get a better deal by seeking to influence the
outcome.

•Rather than by simply taking what the other side is willing to offer, the parties—at
least for the moment—prefer to attempt to reach agreement rather than fighting,
breaking off contact, giving in, or asking a higher authority (e.g. the legal system) to
resolve the dispute.
Contd.
•The parties expect that there will be give and take and that they will modify their
initial demands (1999: 6).

•One of the defining characteristics of negotiation is 'interdependence'.

Each party in a negotiation needs each other. If they did not need each other, they
would not have to negotiate.

•While negotiation arises precisely because of differences in the interests of the

parties, at the same time unless there is some degree of common interest in reaching
resolution then negotiation cannot take place.

•Negotiating skills are therefore an essential feature for any successful manager, as a
tool on its own and as a tool to manage conflict.
Contd..
• Needless to say with complex projects and contracts to back them up, there
are going to be issues with diverse opinions and interpretations by the
different parties engaged. Each of these issues will need careful negotiations
by the manager if they are to be managed.

• Negotiation situations for managers:

 Increased budget allocation;

 Better purchasing prices;
 Higher salaries for themselves and their subordinates;
 Increased time to finish important assignments;
 More favourable annual objectives;
 Better salary package before joining a company etc.
Cont.
•Negotiation is one of the main techniques used to manage conflict.

Rules for negotiation as suggested:

separate the people from the issues

focus on interests, not on positions
generate many alternatives before deciding what to do
insist that results are based on some objective standard.

•Team members should negotiate agreements about client projects around different
interests and values by sharing information and expertise, attempting to influence
others to adopt their own point of view, and making intermediate and non-binding
compromises regarding the work.

•Negotiation involves an elaborate series of interactions in which members support

their own position and critique others.

Thus, in any negotiation situation, there is a mixture of conflict and cooperation.

Steps in Negotiation

Agreement

Concession

Persuasion

Information Exchange and Offer

Building relationship

Strategy

Preparation
Steps Contd..
1. Preparation:

a. Culture:

Both national and organisational culture is to be considered.

- Long negotiation session or a quick resolution.
- Initial offer close to an expected settlement or nowhere near an expected
outcome.
- Develop personal relationships or just the superficial knowledge about the other
persons involved.

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Steps Contd..
b. Sender, Receiver and Purpose:

- Confidence and appearance play and important role in negotiation.

- Purpose: “to maximize your advantage.”

- Know what you want or know what is reasonable to expect.

- Define MSO and LAO: should reflect primary, secondary, short-term and long term
considerations.

- The establishment of MSO reflects the “one-trip-to-the-well” principle.

- LAO and MSO serve as a guidepost so needs to be clearly defined.

- Modifying MSO and LAO suggest the unduly influence of your adversary.

- The area between MSO and LAO is the settlement range.

Steps Contd..
c. Time, Environment, Content and Channel:

- Time : when to negotiate and how to best use the time within the negotiation.

- Do no reveal the true deadline; be patient; and use the clock.

- Environment: Site selection; physical arrangements of the room and physical

position.

- Content: Opening messages, concessions and questions.

- Guidelines for making concessions: negotiators expect one another to make equal
number of concessions and an equal sacrifice.

- Channel: Not limited to face-to-face communication.

- Letter of intent or a memo.

Steps Contd..
2. Core Strategies:

a. Surprise: unexpectedly introducing a goal or a concession.

b. Bluff : creating an illusion without lying.

c. Stacking: linking one idea with another for argument’s sake.

d. Fait accompli: acting as if terms are acceptable to the opposition before any
agreement has occurred.

e. Take it or leave it: letting the opponent know that this offer is the last.

f. Screen: Using the third party as part of the negotiation.

Relevant Terminologies

• Offer: It is the process of preparation phase before the negotiation begins.

• Counter Offer: It is the actual negotiating process where the interaction that
leads to final agreement about an outcome.

• Compromise: Negotiation implies that both parties accept that the agreement
between them is needed before any decision is to implemented.

• Concession: Negotiating party needs to offer and receive concession.

Concession making requires that each side relax certain demands to meet the
other party’s needs.
Relevant Terminologies

• Maximum Supportable Outcome (MSO): It is the absolute most one can ask
for in the opening position and it should be reasonable.

• Least Acceptable Outcome (LAO): It is the point below which nothing can be
accepted because of potential loss.

• Best Alternative to a Negotiated Agreement (BATNA): is the most

advantageous alternative course of action a party can take if negotiations fail
and an agreement cannot be reached.

• Agreement: The process of discussion is towards that desired agreement.

Required Skills
•React sensibly - A good negotiator must react sensibly. S/he should never lose his
/her temper or over react. If you are unhappy with the deal, show your displeasure.
Don’t keep things to yourself or assume that the others will understand it on their
own. One has to voice his /her opinions. Make the other person realize that you are
not satisfied with the deal and it must be revised. Show your unhappiness to others.

•Patience - One needs to be patient enough for a good negotiation. It is not always
that the other person will accept your suggestions in the first attempt itself. You need
to convince them and it needs patience. Never be in a hurry to close the deal.

•Confident - One needs to be confident enough for an effective negotiation. You might
need something but never show your desperation to anyone. They will take undue
advantage of your helplessness. Take care of your facial expressions. Never be
nervous in front of the second party. Don’t start sweating.
Cont..
Be dignified - One should maintain the decorum of the place and should not stoop to
any level for getting the best deal. Present your ideas in a dignified way. Remember it
is just a discussion, not a battle field. Avoid shouting or using derogatory statements
against anyone. If you are not satisfied with the deal, its better to quit rather than
fighting and using abusive languages.
•Be very clear in your communication - Stay firm on your quotes and do not change
statements quite often. Don’t play with words or try to confuse others. One needs to
be straightforward from the very beginning.
•Be a good listener - Don’t jump to conclusions; instead listen to what the other party
offers. It’s okay to think about your personal interests but don’t be mad for it. If the
deal is not benefiting the other party, they will obviously not accept it. If you don’t
listen to others, they would obviously not respond to you.
•Be reasonable - Don’t quote anything just for the sake of it. Be reasonable. Don’t
quote imaginary or unusually high figures. Don’t ask for anything you yourself know is
not possible. It will just be wastage of time and no one would benefit out of it.
Persuasion
“Changing people's attitudes and behaviour through the spoken and written words".

•“A conscious attempt by one individual to change the attitudes, beliefs or the
behaviour of another individual or group of individuals through the transmission of
some message".

•Persuasion is assumed to involve conscious intent on the part of the persuader to

affect the receiver of a persuasive message.

•It involves a selection of a strategy perceived to be most effective and the control of
message and environmental variable so as to maximise the likelihood that the
strategy will be effective.

•The persuasive effectiveness of messages often heavily depends on the credibility of

threats and the promises preferred by the communicator.

•The persuader and the receiver of the persuasive message are consciously active.
The receiver is as active in the receiving process as is the source in the transmitting
process. The attitudes and beliefs of the receiver mediate the way in which the
message will be received and responded to.
Empathy
•Empathy is the ability to identify and understand another's situation, feelings and
motives.

•It's our capacity to recognize the concerns other people have. Empathy means:
"putting yourself in the other person's shoes" or "seeing things through someone
else's eyes.”

•It allows us to create bonds of trust, it gives us insights into what others may be
feeling or thinking; it helps us understand how or why others are reacting to
situations, it sharpens our "people acumen" and informs our decisions.

•A famous study by Professor Emeritus, Albert Mehrabian , states: when

communicating about feelings and attitudes, words – the things we say – account
for only 7% of the total message that people receive. The other 93% of the message
that we communicate when we speak is contained in our tone of voice and body
language. It's important, then, to spend some time to understand how we come
across when we communicate with others about our feelings and attitudes.
Conclusion
•An effective communication is of prime importance in business deals also.

•The terms and conditions must be mentioned clearly for better transparency and
don’t try to hide anything from the second party. It’s always better to depend on
written modes of communication like emails, letters, documents or agreements for
better reliability.

•Use corporate terminologies, professional jargons and never use irrelevant

statements in your speech. It is considered highly unprofessional.

•One should also be very careful with his pitch and tone. Always remember battles
can be won just by being decent and polite. Don’t be rude and harsh on others.

•Speak slowly and convincingly in a tone audible to one and all. Do not speak either
too fast or too slow. Never be loud or shout on anyone. It’s unethical to speak ill or
insult anyone just for a deal. Relationships are more important and must be valued.
Cont..
•If the other party comes to know that you are nervous, they would definitely try to
sit on your head and the deal would never be in your favour. Don’t express your
helplessness to anyone.

•Be very confident and show a positive attitude. Whenever you are going for a
negotiation, don’t forget to carry your smile. But don’t laugh unnecessarily or crack
silly jokes in between.

•Exchange greetings and compliments to break the ice. Sit straight, don’t lean on the
chair and do make an eye contact with the person sitting on the other side of the
table. It shows your confidence and strong will power.

•Negotiation is no rocket science. You just have to be very clear about your
expectations and interests; express the same clearly, convince the other party and
come to something acceptable to both. Be very polite in your speech, involve
everyone in the discussion and decide in the favour of all the participants for an
effective negotiation.
Cont.

Definition of a 'negotiation' was given by Richard Shell, in his book 'Bargaining

for Advantage' as

“an interactive communication process that may take place whenever we

want something from someone else or another person wants something
from us.”

A line from Freund in 'Anatomy of a Merger' 1975:

In the last analysis, you cannot learn negotiating techniques from a book. You
must actually negotiate.
Facts

• Men initiate negotiation four times more often than women do.

• 7% female MBAs graduates negotiated for higher salary compared to 57%

male graduates.
Source : Women Don’t Ask