N05: Perception, cognition, and Communication

 

 

Perception, cognition, and communication are fundamental processes that govern how individuals construct and interpret the interaction that takes place in a negotiation. Reduced to its essence, negotiation is a form of interpersonal communication, which itself is a subject of the broader category of human perception and communication.

 

Perception and negotiation:

The role of Perception negotiators approach each negotiation guided by their perceptions of past situations and current attitudes and behaviors. Perception is the process by which individuals connect to their environment. The perception is a “sense – making” process; people interpret their environment so that they can respond appropriately.

 

Framing:

A frame is the subjective mechanism through which people evaluate and make sense out of situations, leading them to pursue or avoid subsequent actions. Framing is about focusing, shaping, and organizing the world around us--making sense of complex realities and defining it in ways that are meaningful to us.

 

An important aspect of framing is the cognitive heuristics approach, which examines the ways in which negotiators make systematic errors in judgment when they process information.

 

The cognitive heuristic approach to framing focuses on how a party perceives and shapes the outcome (particularly with regard to risk), and how the party's frame tends to persist regardless of the events and information that follow it.

 

Mood, Emotion, and Negotiation:

            The role of mood and emotion in negotiation has been the subject of an increasing body of recent theory and research during the last decade. The distinction between mood and emotion is based on three characteristics: specificity, intensity, and duration. Mood states are more diffuse, less intense, and more enduring than emotion states, which tend to be more intense and directed at more specific targets. Emotions play important roles at various stages of negotiation interaction. There are many new and exciting developments in the study of mood, emotion, and negotiation, and we can present only a limited overview here. The following are some selected findings.

 

            The chapter discussed one of the most important recent areas of inquiry in negotiation, that of cognitive biases in negotiation. This was followed by consideration of ways to manage misperception and cognitive biases in negotiation. In a final section we considered mood and emotion in negotiation, which provides an important alternative to cognitive and perceptual processes for understanding negotiation behavior.

 

Question

1. What is the definition of perception? Think of it as the process of becoming aware of the world around you through your senses.

Your senses play a critical role in perception and behavior. They not only allow you to perceive your environment, they also enable you to act in response to it.

 

            Sensation and perception psychology is one of the oldest fields of study in social psychology. Below I'm going to take you through the process we go through to become aware of anything in our environments.

 

2. Why are Frames Important?

An essential element in conflict resolution is an understanding of how frames affect conflict development. In the context of a conflict, we create frames to help us understand why the conflict exists, what actions are important to the conflict, why the parties act as they do, and how we should act in response. During the evolution of a conflict, frames act as sieves through which information is gathered and analyzed, positions are determined (including priorities, means, and solutions), and action plans developed. Depending on the context, framing may be used to conceptualize and interpret, or to manipulate and convince.

 

3. How do you use emotion strategically in a negotiation?

As mentioned above, Fisher and Shapiro cogently argue for the use of the five core concerns as levers to create and enhance positive emotions in order to achieve a better negotiated outcome. Recent research has shown that both emotion and mood can have an effect on the behavior of the negotiator experiencing them, on the other party perceiving them, on the relationship between the parties, and on the negotiated outcome. However, the strategic use of emotion raises significant ethical issues.

N04: Negotiation: Strategy and Planning

 

 

Business negotiations should always start with a plan. Planning and preparation will help lead you to success. Before you choose any negotiation tactics or specifics, you must start with your negotiation strategy. Planning your negotiation strategy should always come before selecting negotiating tactics. Your negotiation strategy serves as the foundation for the approach and techniques that you use to achieve your goals.

 

In any kind of negotiation the planning stage is probably the most important. Too often we go in badly prepared and end up giving concessions that reduce the overall profitability of the final deal. The importance of planning is in having a very clear idea before entering into the negotiation.

 

            Discussed the importance of setting clear goals, based on the key issues at stake. They then presented a model of negotiation strategy choice, returning to the familiar framework of the dual concerns model. A negotiator who carefully plans will make an effort to do the following

            1. Understand the key issues that must be resolved in the upcoming negotiation.

            2. Assemble all the issues together and understand the complexity of the bargaining mix.

            3. Understand and define the key interests at stake that underlie the issues.

            4. Define the limits – the point where we will walk away or stop negotiating.

            5. Define the alternatives – other deals we could do if this deal does not work out.

            6. Clarify the target points to be achieved and the asking price where we will be the discussion.

            7. Understand my constituents, what they expect of me, and the social context.

            8. Understand the other party in the negotiation – their goals, issues, strategies, interests, limits, alternatives, targets, openings, and authority.

            9. Plan the process by which I will present and “sell” my ideas to the other party (and perhaps to my own constituency)

            10. Define the important points of protocol in the process – the agenda, who will be at the table or observing the negotiation, where and when we will negotiate, and so on.

            When negotiators are able to consider and evaluate each of these factors, they will know what they want and will have a clear sense of direction on how to precede. This sense of direction, and the confidence derived from it, is a very important factor in affecting negotiating outcomes.

Question

1. How to do when you know you have a negotiation coming up?

You should do a lot of planning before you meet the other party. Part of this planning is to establish a clear idea of what you want to achieve. Research the other party it is critical in negotiation to know who you are dealing with. If you don't know anything about the other party you are at a severe disadvantage.

 

You should at least know these details about the other party:

- Who you will be dealing with?

- Their track record.

- How badly they need what you have to offer?

- What alternative parties are accessible to them?

- The major strategy they are expected to use.

- Their likely opening demands.

- Their strengths and weaknesses.

 

2. What’s “The Dual Concern Model”?

The Dual Concern Model assumes that parties’ preferred method of handling conflict is based on two underlying dimensions: assertiveness and empathy. The assertiveness dimension focuses on the degree to which one is concerned with satisfying one’s own needs and interests. Conversely, the empathy (or cooperativeness) dimension focuses on the extent to which one is concerned with satisfying the needs and interests of the other party. The intersection points of these dimensions land us in different conflict styles. It’s always helpful not only to realize your own conflict style, but to appreciate the style that your opposite number is using.

 

3. Explain Active-Engagement Strategies?

1. Collaboration – integrative bargaining, win-win (I win, you win)

Integrative bargaining is about searching for common solutions to problems that are not exclusively of interest to only one of the negotiators. Positive sum situations are those where each party gains without a corresponding loss for the other party. The law of win-win says “Let’s not do it your way or my way; let’s do it the best way”

 

2. Competition – distributive bargaining, win-lose (I win, you lose)

Distributive bargaining refers to the process of dividing or distributing scarce resources

            - Two parties have different but interdependent goals

            - There is a clear conflict of interests

 

3. Accommodation – involves an imbalance of out comes (I lose, you win)

The negotiator wants to let the other win, keep the other happy, or not to endanger the relationship by pushing hard to achieve some goal no the substantive issues.

 

            Accommodation is often used;

            - When the primary goal of the exchange is to build or strengthen the relationship and the negotiator is willing to sacrifice the outcome.

            - If the negotiator expects the relationship to extend past a single negotiation episode.

N03: Strategy and Tactics of Integrative Negotiation

 

 

When a negotiation is integrative, it means that negotiation is based on interest or otherwise negotiation strategy which lay emphasis on win-win situation. The goal of Integrative Negotiation is to make the parties’ interest compatible, so that both sides can win. That is, reach an agreement that satisfies their need. The goals of the parties are integrative. Negotiations are not mutually exclusive. If one party achieves its goals, the other is not precluded from achieving its goals as well. The fundamental structure of integrative negotiation situation is such that, it allows both sides to achieve their objective.

 

            While Integrative Negotiation Strategies are preferable, they are not always possible. Sometimes parties’ interests really are opposed as when both sides want a larger share of fixed resources.

 

            What makes integrative negotiation different? For a negotiation to be characterized as integrative, negotiators must also:
            · Focus on commonalties rather than differences.
            · Attempt to address needs and interests, not positions.
            · Commit to meeting the needs of all involved parties.
            · Exchange information and ideas.
            · Invent options for mutual gains.
            · Use objective criteria for standards of performance.

 

Past experience, based perceptions and truly distributive aspects of bargaining makes it remarkable that integrative agreements occur at all. But they do, largely because negotiators work hard to overcome inhibiting factors and search assertively for common ground. Those wishing to achieve integrative results find that they must manage both the contest and the process of negotiation in order to gain the cooperation and commitment of all parties. Key contextual factors include:

- Creating a free flow of information

- Attempting to understand the other negotiator’s real need and objective

- Emphasizing the commonalties between the parties and minimizing the differences

- Searching for solutions that meet the needs and objectives of both sides.

 

Key Steps in Integrative Negotiation Process:

a. Identify and define the problem

b. Understand the problem and bring interests and needs to the surface

c. Generate alternative solution to the problems

 

            We have stressed that successful Integrative Negotiation can occur if the parties are predisposed to finding a mutually acceptable joint solution. Many other factors contribute to a predisposition toward problem solving and a willingness to work together to find the best solution.

 

Question

1. How to communicate “firm flexibility” if no guarantee of finding a win-win solution?

- Use contentious tactics to establish firmness about basic interests

- Signal flexibility and concern for their interests

- Indicate willingness to change proposals if it helps bridge the gap in interests

- Demonstrate problem-solving capacity

- Maintain open communications

- Reaffirm what’s important or fundamental

- Reconsider aspects of your interests that are clearly unacceptable to them are they really essential

 

2. Why Integrative Negotiation Is Difficult to Achieve?

• The history of the relationship between the parties

– If contentious in past, it is difficult not to look at negotiations as win-lose

• The belief that an issue can only be resolved distributive

– Negotiators are biased to avoid behaviors necessary for integrative negotiation

• The mixed-motive nature of most negotiating situations

– Purely integrative or purely distributive situations are rare

• The conflict over the distributive issues tends to drive out cooperation, trust needed for finding integrative solutions

 

 

3. What some of the main tactics used in integrative negotiation?

1. Send a message about the intention to cooperate: to send a clear message to the other party of our intention to cooperate, to solve the problem, to be flexible, for example, to let you know that we both face the same problem, by showing concern for their interests, to show willingness to dialogue.

2. Create a climate of problem solving: a climate of problem solving, unlike what happens in a distributive bargaining where it often creates a climate of competition and belligerence.

3. Ensure good communication: to create conditions for good communication, maintain open communication channels.

4. Find differences: it is through the differences (whether in needs, preferences, tastes, values, interests, resources, skills, etc.) That can create value, for example, to identify something that is not as valuable to one but for the other party itself, and exchange it for something that the other party is not so valuable, but for one another.

 

N02: Strategy and Tactics of Distributive Bargaining

 

 

In a distributive bargaining situation, the goals of one party are usually in fundamental and direct conflict with the goals of the other party. Resources are fixed and limited, and both parties want to maximize their share of the outcomes to be obtained. Distributive bargaining is basically a competition over who is going to get the most of the limited resource.

 

There are two reasons that every negotiator should be familiar with distributive bargaining. First, some interdependent situations that negotiators face are distributive, and to do well in them negotiators need to understand how they work. Second, because many people use distributive bargaining strategies and tactics almost exclusively, all negotiators will find it important to know how to counter their effects.

 

            Distributive bargaining is basically a conflict situation, where in parties seek their own advantage sometimes through concealing information, attempting to mislead, or using manipulative actions. All these tactics can easily escalate interaction from calm discussion to bitter hostility. Yet negotiation is the attempt to resolve a conflict without force, without fighting. Further, to be successful, both parties to the negotiation must feel at the end that the outcome was the best they could achieve and that it is worth accepting and supporting. Hence, effective distributive bargaining is a process that requires careful planning, strong execution, and constant monitoring of the other party’s reactions. Finally, distributive bargaining skills are important when at the value claiming stage of any negotiation. This is discussed in more detail in the next chapter on integrative negotiation.

 

            The behaviors and perspectives are the main components of the integrative process such as, identifying and defining the problem, generating alternative solutions. Finally, they must share a motivation and commitment to work together, to make their relationship a productive one, and work hard to establish and maintain that trust. They must be clear and accurate communication about what each one wants and an effort to under stand the other’s needs. The strategy and tactics of integrative negotiation greatly facilitated by common goals to achieve their objective.

 

 

Question

1. Explain how these factors can affect the process of distributive bargaining?

They have four major propositions:

1. The other party’s resistance point will vary directly with his or her estimate of the cost of delay or aborting negotiations.

2. The other’s resistance point will vary inversely with his or her cost of delay or aborting.

3. A resistance point will vary directly with the value the other party attaches to that outcome.

4. The other’s resistance point varies inversely with the perceived value the first party attaches to an outcome.

 

2. What are the four fundamental strategies to increase business revenues?

Strategy One: Increase the number of people who are aware of and interested in your products. In other words, generate more prospects. There are literally hundreds of ways to get more visible to your target market, and every business owner should have at least five to ten marketing tactics at work all the time in order to attract more prospects.

 

Strategy Two: Increase your conversion rate so that more prospects buy from you. Visibility is not enough. You also need to hone your sales process to convert prospects to customers. For instance, many online businesses incorrectly focus first on driving traffic to their website when a more profitable strategy would be to focus first on having a website that converts more visitors to customers.

 

Strategy Three: Increase the average price per sale. Many businesses have an opportunity to earn more money per sale by bundling products, adjusting pricing, cross-selling, and changing the products or service portfolio.

 

Strategy Four: Increase the number of sales per customer over time. In today’s economy, it is expensive to attract new customers. Therefore, customer loyalty or a high lifetime value of a customer is essential to the survival and success of almost every business. It is crucial to have a business with products, services, a service model, and relationship marketing that keeps customers coming back and has them raving about your business to others. Business owners need to put in place a process and systems to build on going relationships, continue to provide value to customers, and be the first business a customer thinks to call when they have a need.

 

 

3. What BATNA are?

In negotiation theory, the best alternative to a negotiated agreement or BATNA is the course of action that will be taken by a party if the current negotiations fail and an agreement cannot be reached. BATNA is the key focus and the driving force behind a successful negotiator. A party should generally not accept a worse resolution than its BATNA. Care should be taken, however, to ensure that deals are accurately valued, taking into account all considerations, such as relationship value, time value of money and the likelihood that the other party will live up to their side of the bargain. These other considerations are often difficult to value, since they are frequently based on uncertain or qualitative considerations, rather than easily measurable and quantifiable factors.

N01: The Nature of Negotiation

 

            Negotiation is not a process reserved only for the skilled diplomat, top salesperson, or ardent advocate for organized labor; it is something that everyone does, almost daily. The structure and processes of negotiation are fundamentally the same at the personal level as they are at the diplomatic and corporate levels.

 

            Negotiation is one of several mechanisms by which people can resolve conflicts. Characteristics:

1. There are two or more parties. Negotiation can be between individuals, within groups, and between groups.

2. There is a conflict of needs and desires between two or more parties

3. The parties negotiate by choice; they think they can get a better deal by negotiating than by simply accepting what the other side will voluntarily give them or let them have.

4. We expect a give and take process; both sides will modify their opening position in order to reach an agreement.

5. The parties prefer to negotiate and search for agreement rather than to fight openly. Usually people can invent their own solutions for resolving a conflict.

6. Successful negotiation involves the management of tangibles and also the resolution of intangibles.

 

Interdependence: In negotiation, both parties need each other. Interdependent relationships are characterized by inter looking goals-the parties need each other in order to accomplish their goals. Interdependent goals are an important aspect of negotiation. The structure of the interdependence between different negotiating parties determines the range of possible outcome of the negotiation and suggests the appropriate strategies and tactics that the negotiators should use.

 

            Conflict: A potential consequence of interdependent relationships is conflict. Conflict can result from the strongly divergent needs of the two parties or form misperceptions and misunderstandings. Conflict can occur when the two parties are working towards the same goal and generally want the same outcome or when both parties wan very different outcomes.

 

            Definitions: Conflict may be defined as a “sharp disagreement or opposition, as of interests, ideas, etc” and includes “the perceived divergence of interest, or a belief that the parties’ current aspirations cannot be achieved simultaneously” Conflict results from “the interaction of interdependent people who perceived incompatible goals and interference from each other in achieving those goals.”

 

Question

1. What is the different between Negotiation and bargaining?

Negotiation- win-win situation- both parties are trying to find a mutually acceptance solution to a complex conflict.

            Bargaining- win - lose situation (haggling over prices).

 

2. What are the Types of interdependence?

1. Zero -sum or distributive - individuals linked together that there is a negative correlation between their goal attainments.            

 

2. Non- zero sum or integrative - positive correlation between the goal attainments of both parties.

 

3. What is the different between Value Claiming and Value Creation?

Value Claiming is to do whatever is necessary to claim the reward, gain the lion's share, or gain the largest piece possible (distributive).

 

Value Creation is to finding a way for all parties to meet their objectives, either by identifying more resourcs or finding unique ways to share and coordinate the use of existing resources (integrative).

 

 

 

L12: Leadership through Effective External Relations

 

             This chapter focuses on leading through effective external relations that include developing an external relations strategy, building and maintaining a positive corporate image, working with the news media, and handling crisis communication. Effective external relations require a sound communication strategy. You can use the communication strategy framework.

            With the framework in mind, you can take the following steps to create a strategy for external audiences:
            1. Clarify your purpose and strategic objectives.
            2. Identify your major audiences or stakeholders.
            3. Create, refine, and test your major messages.
            4. Select, limit, and coach your spokesperson(s).
            5. Establish the most effective media or forum.
            6. Determine the best timing.

            7. Monitor the results.

            Building and maintaining a positive corporate image require having an external relations strategy that is vigilant, vigorous, and comprehensive. It involves developing a strategy for managing the press and media, making meaningful and sincere philanthropic contributions, being actively involved in the community, obeying all of the legal and regulatory requirements of investor relations, and ensuring all external communication vehicles carry honest, clear, consistent, and meaningful message to all stakeholders.

            Working with the new media there are three major issues need to follow: understanding the media rule and importance, deciding when to talk to the media, and preparing for and delivering a media interview in here also mention three little things they are preparation, is the key to an affective interview. Performance during the interview, you better very well prepared and be ready for it. Step to take after the interview.

 

            This is chapter is a must read for every CEO especially here in Nigeria where CEOs care very little about their company’s image as long as the profits come in. the situation is further pronounced in our leaders in government where corruption has become the order of the day. We must be concerned about our image both locally and internationally. It is the poor image of our government and corporate bodies that has made foreign investments scarce.

 

Question

1. What Is a Corporate Image?

            A corporate image is the perception that the general public holds about a particular business. Many companies invest a great deal of time and other resources in an effort to influence the opinion that consumers hold about the products offered by the business, as well as the business itself. This process of cultivating positive public relations extends to not only interaction with consumers, but also ongoing interaction with the media, labor unions, industrial associations, and other entities that have a direct and indirect impact on public opinion.

 

2. What is the news media?

            The news media play an important role in shaping people's views of both the world and the local community. What they say can and does affect the public's attitude toward individuals with disabilities. Their words and pictures can present a positive image by showing individuals' capabilities and contributions or the images can reinforce prejudices, discrimination and negative stereotypes. Positive stories alone, however, are not enough. The stories need to show people with disabilities as typical individuals, and they need to help the public recognize disability issues as human issues that concern us all.

 

3. How to reach the news media?

            The best way to reach the news media is usually through a carefully constructed press release. But you do not have to rely on this alone. Different ways to reach the news media include:

            - Calling reporters in your target news organization(s) directly, and following up with an email press release.

            - Arranging a press briefing to which members of the press are invited. (This is usually reserved for big announcements and important discoveries).

            - Inviting members of the press to events which they can report upon.

            - Arranging photo opportunities.

            - Writing an article for a news organization.



L11: Leadership through Strategic Internal Communication

 

            In this chapter the author emphasized on communication with employees because employees are important part in an organization. If employees trust and respect in CEO, they will feel participate and have a goodwill for their company, they are providing, establishing a positive and productive working environment. Effective internal communication provides organizational direction and employee motivation. Employees are motivated when, through words and actions, the leaders carefully translate the vision and strategy goals into terms that are meaningful to all employees.

 

            The mission and vision need to be concise. The strategic objectives are developed to make the vision. Cascading meeting is the way to test the employee about the mission and vision. It might start with the upper level of the organization broken into functions or division and then give way to cross-level, functional, or divisional meetings. Next step is the designing and implementing effective change communication which should begin with determining the scope of the change communication program, and then structuring a communication program for major change.

 

            Leaders should interact with employees for creating and communicating visions, strategic objectives, or other direction-setting messages to help them understand and support company, Internal communication requires leaders to use all of the best leadership communication skills, in particular, that you project a positive ethos, create meaningful, purposeful messages, analyze audiences and target your messages and lead through emotional intelligence to make the greatest possible contribution to the success of your organization.

 

Question

1. What are missions and visions?

            A mission is a statement of the reason a company exists that is intended primarily for internal use. It should ensure that employees understand the company’s purpose by defining a company’ basic business.

            A vision statement establishes the company’s aspirations. It describes as inspiring new reality, achievable in a well –understood and reasonable time frame. Companies often use visions for internal and external audiences, although their greatest purpose is usually to guide internal actions.

 

2. Why are missions and vision important in Organizational Strategy?

            A mission and vision are standard and critical elements of a company's organizational strategy. Most established companies develop organizational mission statements and vision statements, which serve as foundational guides in the establishment of company objectives. The company then develops strategic and tactical plans for objectives.

3. What is Strategic Employee Communication Model?