Communication and

Negotiation in the
Organization
Communication and Negotiation in the Organization

What is Communication?

-Communication is simply the act of transferring information from one place, person
or group to another.

A communication therefore has three parts: the sender, the message, and the
recipient.

-The sender ‘encodes’ the message, usually in a mixture of words and non-verbal
communication. It is transmitted in some way (for example, in speech or writing), and
the recipient ‘decodes’ it.
Communication and Negotiation in the Organization

An effective communicator understands their audience,

chooses an appropriate communication channel, hones their
message to this channel and encodes the message to reduce
misunderstanding by the receiver(s). 
Communication and Negotiation in the Organization

Communication Channels

-Communication channels is the term given to the way in which we

communicate. It is therefore the method used to transmit our message to a
recipient, or to receive a message from someone else.

-Communication channels can be categorized into three principal channels:

(1) verbal, (2) written, and (3) non-verbal. Each of these communications
channels have different strengths and weaknesses, and oftentimes we can
use more than one channel at the same time.
Communication and Negotiation in the Organization

Encoding Messages

-All messages must be encoded into a form that can be conveyed by the
communication channel chosen for the message.

-We all do this every day when transferring abstract thoughts into spoken
words or a written form. However, other communication channels require
different forms of encoding, e.g. text written for a report will not work well if
broadcast via a radio programmed, and the short, abbreviated text used in
text messages would be inappropriate in a letter or in speech.
Communication and Negotiation in the Organization
Decoding Messages

-Once received, the recipient needs to decode the message. Successful

decoding is also a vital communication skill.
People will decode and understand messages in different ways.
This will depend on their experience and understanding of the context of the
message, how well they know the sender, their psychological state and how
they feel, and the time and place of receipt. They may also be affected by
any barriers to communication which might be present.
Communication and Negotiation in the Organization

Common Barriers to Effective Communication:

-The use of jargon. Over-complicated, unfamiliar and/or technical terms.

-Emotional barriers and taboos. Some people may find it difficult to
express their emotions and some topics may be completely 'off-limits' or
taboo. Taboo or difficult topics may include, but are not limited to, politics,
religion, disabilities (mental and physical), sexuality and sex, racism and
any opinion that may be seen as unpopular.
-Lack of attention, interest, distractions, or irrelevance to the
receiver. 
Communication and Negotiation in the Organization
Common Barriers to Effective Communication:
-Differences in perception and viewpoint.
-Physical disabilities such as hearing problems or speech
difficulties.
-Physical barriers to non-verbal communication. Not being able to
see the non-verbal cues, gestures, posture and general body language can
make communication less effective. Phone calls, text messages and other
communication methods that rely on technology are often less effective than
face-to-face communication.
-Language differences and the difficulty in understanding
unfamiliar accents.
Communication and Negotiation in the Organization
Common Barriers to Effective Communication:

-Expectations and prejudices which may lead to false assumptions

or stereotyping.  People often hear what they expect to hear rather than
what is actually said and jump to incorrect conclusions.
-Cultural differences.  The norms of social interaction vary greatly in
different cultures, as do the way in which emotions are expressed. For
example, the concept of personal space varies between cultures and between
different social settings.
Communication and Negotiation in the Organization

Feedback

The final part of a communication is feedback: the recipient lets the

sender know that they have received and understood the message.
Recipients of messages are likely to provide feedback on how they have
understood the messages through both verbal and non-verbal reactions. Effective
communicators pay close attention to this feedback as it is the only way to assess
whether the message has been understood as intended, and it allows any
confusion to be corrected.
Communication and Negotiation in the Organization

Negotiation in Organizations

-Negotiation is a decision-making process between two parties having oppos­ing

interests. In conflict resolution, we use negotiation mostly to settle differences between
the management and the unions through the collective bar­gaining machinery.

-In any negotiation process, we consider two goals: sub­stantive and relationship.
Substantive goals are those that help us to settle some claims, involving either receiving
or giving some benefits. A negotia­tion for wage increase is an example of substantive
goal.
Communication and Negotiation in the Organization

-Relationship goals deal with the outcome of decisions, which put the two
negotiating parties to work well subsequent to the negotiation reached.
Effective negotiation, there­fore, requires resolving the substance issues,
while nurturing the harmonious relationships between the two negotiating
parties.
Communication and Negotiation in the Organization

An effective communication is directly proportional to an

effective negotiation.
The better the communication is the better the negotiation would be.
Discussion does not mean fighting and shouting, instead it is simply the
exchange of one’s ideas, thoughts and opinions with each other. One
needs to have excellent communication skills for a healthy and an
effective discussion.
Communication and Negotiation in the Organization

Stages of Negotiation
Communication and Negotiation in the Organization

Preparation and Planning

In the preparation and planning stage, you (as a party in the negotiation)
need to determine and clarify your own goals in the negotiation. This is a
time when you take a moment to define and truly understand the terms and
conditions of the exchange and the nature of the conflict. What do you want
to walk away with?
You should also take this moment to anticipate the same for the other party.
What are their goals in this negotiation? What will they ask for? Do they have
any hidden agendas that may come as a surprise to you? What might they
settle for, and how does that differ from the outcome you’re hoping for?
Communication and Negotiation in the Organization

Definition of Ground Rules

After the planning and strategy development stage is complete, it’s time to work with the
other party to define the ground rules and procedures for the negotiation. This is the time
when you and the other party will come to agreement on questions like
   Who will do the negotiating—will we do it personally or invite a third party?
    Where will the negotiation take place?
    Will there be time constraints placed on this negotiation process?
    Will there be any limits to the negotiation?
   If an agreement can’t be reached, will there be any specific process to handle that?
Usually it’s during this phase that the parties exchange their initial positions.
Communication and Negotiation in the Organization

Clarification and Justification

Once initial positions have been exchanged, the clarification and justification stage can begin.
Both you and the other party will explain, clarify, bolster and justify your original position or
demands. For you, this is an opportunity to educate the other side on your position, and gain
further understanding about the other party and how they feel about their side. You might
each take the opportunity to explain how you arrived at your current position, and include
any supporting documentation. Each party might take this opportunity to review the strategy
they planned for the negotiation to determine if it’s still an appropriate approach.
This doesn’t need to be—and should not be—confrontational, though in some negotiations
that’s hard to avoid. But if tempers are high moving into this portion of the negotiation
process, then those emotions will start to come to a head here. It’s important for you to
manage those emotions so serious bargaining can begin.
Communication and Negotiation in the Organization

Bargaining and Problem Solving

This is the essence of the negotiation process, where the give and take begins.
You and the other party will use various negotiation strategies to achieve the goals
established during the preparation and planning process. You will use all the information
you gathered during the preparation and planning process to present your argument and
strengthen your position, or even change your position if the other party’s argument is
sound and makes sense.
The communication skills of active listening and feedback serve the parties of a negotiation
well. It’s also important to stick to the issues and allow for an objective discussion to occur.
Emotions should be kept under control. Eventually, both parties should come to an
agreement.
Communication and Negotiation in the Organization

Closure and Implementation

Once an agreement has been met, this is the stage in which procedures need
to be developed to implement and monitor the terms of the agreement.
They put all of the information into a format that’s acceptable to both
parties, and they formalize it.
Formalizing the agreement can mean everything from a handshake to a
written contract.
Communication and Negotiation in the Organization

Types of negotiation in organizations

1. Day-to-day/Managerial Negotiations

-Such types of negotiations are done within the organization and are related to the internal
problems in the organization. It is in regards to the working relationship between the
groups of employees. Usually, the manager needs to interact with the members at different
levels in the organization structure. For conducting the day-today business, internally, the
superior needs to allot job responsibilities, maintain a flow of information, direct the
record keeping and many more activities for smooth functioning. All this requires entering
into negotiations with the parties internal to the organization.
Communication and Negotiation in the Organization

2. Commercial Negotiations
-Such types of negotiations are conducted with external parties. The driving forces behind
such negotiations are usually financial gains. They are based on a give-and-take
relationship. Commercial negotiations successfully end up into contracts. It relates to
foregoing of one resource to get the other.
3. Legal Negotiations
-In a legal context, the key aims of negotiation are to: Arrive at a compromise in settling a
dispute in a way which is most beneficial to the client. Achieve the best possible outcome
for the client without needing to resort to litigation. Obtain enough information from the
other party to reach a potential solution.