PART 3 - STRATEGY FOR COMMUNICATION

([Link], E.R Smith, [Link])

Effective communication requires planning. A strategy helps you develop a workable plan to
achieve a specific goal or objective. Simply stated, strategy is the art of devising or employing
a plan toward a goal. In business a strategy determines what entrepreneurial, competitive and
functional area approaches and actions will be taken to put the organization into the desired
position. A strategic plan is a detailed road map of the direction and course the organization
presently intends to follow in conducting its activities. Just as you need a road map when you
travel unfamiliar territory by car, you also need a strategy to communicate effectively.

The strategy approach to business communication implies several things. Before you start to
create your message, you need to assess all the possibilities needed to achieve a specific
objective. A strategy for communication is similar to outlining. A useful strategy should
include some sort of framework for all the goals and options of a particular occasion for
writing. You will be successful only to the extent that you make a valid assessment of all the
variables involved.

You are the author of your strategy. Since others might evaluate and assess the variables or
components differently, they would prepare their messages differently. The extent to which
your decisions and choices are correct can be measured only by the extent to which your
communication accomplishes your objective (s).

The basic components of a strategy for business communication include:

 The Problem.
 The Objective.
 The Reader/Audience.
 The Order.
 The Format.

3.1. The problem

The first component of your strategy should be to identify the problem by analyzing the
setting or situation. All business communication emanates from a particular setting or
background.

Problem
Figure 3.1- Strategy Diagram: The Problem (The Why)
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Some communications may require an evaluation of the internal strengths(forta ,
putere,rezistenta) and weaknesses of the various functional areas of business - marketing,
finance, accounting, and management. These factors help determine where the company is
right now. Other communications may require an evaluation of such external factors as
competition, customer attitudes, labour supply, or social, economic, and technological
conditions. Before making decisions on where a company's future should be, managers must
consider opportunities and threats from the external environment. These are examples of the
types of internal and external factors that make up the setting.

To identify the problem, then, you need to look at the work setting and assess the specific
circumstances that require you to communicate. The problem generally centers on the lack of
something. Identifying the problem helps you address the question "Why am I
communicating?"

Study the following short case and from the situation identify the problem(s)

A new phone system was installed in Stokely Enterprises, on January 20,20-, to

provide a more efficient phone system and to reduce costs. The phone service
was purchased from a reputable company that provides satisfactory service to
other companies. A memo, sent to all employees three months ago, explained
the use of the new system. However, employees still feel frustrated and
complain that the new phone system is difficult to use. Customers have
complained that they have been unable to reach the correct person, that they
have been transferred to the wrong persons, and that they have been
disconnected frequently. In fact, some customers have even gone to
competitors with their orders.

As the setting above indicates, the circumstances here have led to employee frustrations,
customer complaints, and loss of customers with possible loss of income to the company.
Both internal and external factors are involved. The initial problem is: The employees do not
know how to operate the new telephone system. At this point, the answer to your first
question "Why am I communicating?" is "Because the employees do not know how to
operate the new telephone system."
Your first task in developing the strategy is to review the setting and identify the problem.
(See Figure 3.1)

3.2 The objective

Problem Objective

Figure 3.2 - Strategy Diagram: The Objective (The What)

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The objective for communicating is the second component of the strategy. Objectives, or
goals, provide direction and meaning. An objective helps us keep moving in a deliberately
chosen direction and prevents our drifting in undesirable directions. If you don't have a plan
or objective, your communication will be confusing and disorganized.

When you write or speak, first establish the general objective of your writing or your speech
and then define the specific objectives or details which must be included in the message. By
doing this, you answer the question "What am I communicating'"

3.2.1 General Objective

The general objective of your communication should indicate the overall reason for the
communication. It may be to notify, to persuade, to inform, to teach, to obtain approval, to
obtain information, etc. As you begin a communication, identify the general objective and
make it a conscious theme of your message. Knowing your objective or purpose is critical to
the success of your communication.

Effective business communicators usually include only one major objective for each piece of
writing or oral presentation. Whenever there is more than one general objective, careful
attention to order is needed so that the objectives are clearly identified for the reader. If the
objectives aren't clearly identified, the results are:
 Scrambled messages.
 Long and involved explanations.
 Emphasis on one objective at the expense of the other objectives.
 Ineffective communication.
 Misinterpretation.

3.2.2 Specific Objectives

Specific objectives are the details you need to include in the communication. What is
important is to list all of the essential details. Don't worry initially about the order. How you
say things and in what order you present them are not important at this point.

The absence of important details can result in:

 Additional or unnecessary work.
 Additional communication to clarify message.
 Unnecessary error.

The objective component of the strategy can now be applied to the Stokely Enterprises case.
General Objective. The objective of the communication is to resolve the problem you
have identified: Inform the employees about the new system and how to use it.
Specific Objectives. The details you must include are:
How to handle incoming calls.
How to transfer calls.
How to place a call (local and long distance).
How to use special features of the system.
How to report problems.
How to make conference calls.

Now you should understand the first two components in developing your strategy for
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communicating - determining the Problem and defining the Objective. (See Figure 3.2).

3.3 The reader/audience

Problem Objective Reader/Audience

The Why The What The Who

Figure 3.3 - Strategy Diagram: The Reader/Audience (The Who)

The third component in developing the strategy for communicating is the Reader, or
Reader/Audience. The person who receives your communication is one of your primary
concerns. The importance of the reader is emphasized in the following statements: "The first
rule of effective writing is to help the reader. . . . Failure to do so will result in your losing
money for your business and the opportunity to promote good will. When writing letters,
reports, or memos, it is critical that you first determine specifically who the reader is and then
decide how to meet that reader's need." ; or "a writer should be sensitive to audience needs
since good writing nearly always engages its readers. " (Stallard, Smith, Price).

Busy executives and professionals appreciate clear, unambiguous writing; they dislike letters
and reports that require much time to decipher. As a writer, you should have some regard for
the reader's time. In oral communication, a good audience analysis will yield time savings for
the participants. When you know your audience, you tailor(croiesti) the presentation for that
audience. This vital element results in a perception of respect on the part of the audience and
significantly contributes to a successful communication.

Written and oral communications are prepared for someone else - not for yourself. For most
communications, you may assume that the reader is intelligent but uninformed. Therefore,
you need to understand, as much as possible, the characteristics of the audience and their
reactions to the communication. By doing such analysis, you answer the question "With
whom am I communicating?"

3.3.1 Characteristics

Readers can be classified in a number of ways. It is probably impossible to develop a

generic system that would include every conceivable individual who may receive your
communication. No one system covers everyone. However, a general understanding of some
of the various types of classifications will help you.
Initially, you should establish whether your reader is inside or outside the organization.
Even inside an organization, the reader can be divided into three general classes-public,
expert/layperson, or decision maker.
 General Public.
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  Expert/Layperson. As an expert, you usually make a livelihood(trai ) from expertise in
a selected field. When you read outside that field, you become a layperson. If you
communicate with an individual in your field, you are one expert writing to another
expert. In this case, you use the specialized vocabulary that each of you understands.
If you are writing a message that will be read by people outside your field, then you
are writing for lay readers. You will need to use a common vocabulary or provide
definitions of special terms. For example, if you used the acronym BDOS, you need to
help your reader with the meaning. The layperson might not know BDOS is a term
from computer science which means "basic disk operating system."
 Decision Maker. Perhaps your most important reader will be a decision maker-another
manager. Decision makers want clear and concise messages that save them time. You
must select and arrange the ideas in your communication to make them easy to read
and understand.
In addition to this classification of general public, expert/layperson, or decision maker,
you may also classify your audience as either primary or secondary. Each audience may
consist of one or many persons. A primary audience includes those who make decisions or
take specific actions on the basis of content. A secondary audience consists of those who are
affected by the decisions or actions contained in a communication. Consider this example:

The Board of Directors of Compass Company has voted to decrease

personnel by 10 percent in the Statistic Department at corporate
headquarters. A written report with supporting rationale, prepared by
the Board (consiliu de conducere) , will be sent to the president of the
company, the vice president of personnel, and the manager of the
Statistic Department.

In this brief scenario, the primary audience is composed of the:

 President of Compass Company.
 Vice president of personnel, Compass Company.
 Manager of the Statistic department, Compass Company.
The secondary audience in this situation includes those employees who work in the corporate
headquarters. Ten percent of the personnel will lose their jobs. Perhaps other divisions that
use their services may also be affected.

An analysis of both primary and secondary audiences should be done before you complete
your written or oral communication. Do not neglect this important factor when planning your
communication.

Still another view of-the reader may be gained by studying a basic organizational chart for a
company (see Figure 3.4). Review the structure and the respective departments. The solid
lines show the formal communication channels. The individuals who hold administrative
positions within such a company may at times be classified as either primary or secondary
readers. The situation for a communication determines which is appropriate.

Communication may be upward or downward (vertical) within a firm. The president

communicates downward to the vice presidents, the director or information systems, or the
managers. Likewise, the vice presidents, the director of information systems, or the managers
communicate upward to the president. Each level of principals within the company
communicates upward or downward to the next level.

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 Informal communications network

Formal communications network

Figure 3.4 – Example of communication network

Principals(sef director ) within an organization may also communicate horizontally within the
firm. The vice president for marketing, who works and talks daily with the vice president for
finance and is indeed on the same administrative level, would probably use a slightly different
style and tone when writing to this colleague than when writing to subordinates.

The dotted lines in Figure 3.4 show how communications occur informally within the firm.
This is especially true for oral communications. Informal networks (sometimes referred to as
the grapevine) are powerful mechanisms within any organization. Informal groups emerge
naturally and can have a major influence on the decisions made by managers. Informal groups
may form among principals (or administrative personnel) within a company; informal groups
may also be made up of administrative and nonadministrative personnel.

The more you know about your reader before you communicate, the better. You can then
adapt your communication to that person or that group. Job and employment information are
useful. What job does the reader hold? Is this job a supervisory position? What level' How
long has the reader been in the position?

Personal information about the reader can also help. Does the person have an outgoing
personality? Is the person people-oriented? Difficult to get along with? Detail-minded? A
sports enthusiast? Does the person know you well? What formal education does the person
have?

In addition, it is important to know how much the reader knows about your subject. Does the
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person have preformed opinions about your subject? All these questions reinforce the three
classes of reader/audience-public, expert/layperson, or decision maker.

3.3.2 Reaction

You should anticipate how your reader will react to your message. Will the reaction be a
positive feeling (pleasure, enjoyment)? A negative response (displeasure, disgust)? Or
perhaps a neutral one (disinterest)? If you anticipate the reader's reaction accurately, you can
write or speak to lessen( a diminua, a micsora) the unpleasant reaction or to emphasize the
pleasant.

You are probably wondering how you can know or find out all these detailed things about an
audience. You will probably write to some of your readers only once, or you may speak to
them in a group and not even know their names. Other important details vie for your
attention, and you cannot afford the luxury of investigating and developing individual data on
everyone with whom you communicate.

It is important to reemphasize that the better you know someone the easier it is to write
effectively to her/him. If you do not know the characteristics of your reader, you are the most
logical source for obtaining the information needed. You react to a communication the same
way other people do-negatively or positively. You probably like recognition and agreement
just as others do. You have feelings and reactions similar to those that your readers will have.
So you should be able to anticipate some of your reader's characteristics simply because you
are quite similar. Put yourself in the reader's role and consider how you would react to the
content of the message.

The Reader component of the strategy can now be applied to the Stokely Enterprises, Ine.
case.
Reader Characteristics
1. Employees inside the organization.
2. Employees who understand the system very well (experts). Employees who
are fairly familiar with the system.
3. Employees who are in management positions (decision makers).
4. Employees who are in nonmanagement positions.
5. Audiences who are both primary (people in the company who will use the
telephone) and secondary (visitors).
Reaction
1. Some will be pleased.
2. Some will resist the new technology.
3. Some will be neutral about the change,

Now you should understand the first three components in developing your strategy for
communicating-the Problem, the Objective, and the Reader. (See Figure 3.3.)

3.4 The Order

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 Problem
Objective
Reader/Audience Order
The Why The What The Who The How
Figure 3.5 - Strategy Diagram: The Order (The How)

Once the Problem, Objective, and Reader have been identified, you are ready for the fourth
component in developing your strategy - the Order of presentation. Order is simply the
arrangement of selected data and information to achieve an identified purpose. Business
executives reported on the importance of order in a survey of business communication (Stine
and Skarzenski). When asked what communication characteristics they considered most
important, the executives ranked clarity, conciseness, and organization as the top three. They
also listed the shortcomings (related to order) they saw in communications crossing their
desks: wordiness, awkward sentence structure, lack of precision, illogical organization, poor
word choice, lack of coherence, faulty paragraph structure, and lack of unity. By striving to
improve order, clarity, and precision, you can improve the overall effectiveness of your
message.

The arrangement of data and information can be approached at three levels: the overall
message, the paragraph, and the sentence. By considering arrangement specifically, you
allswer the question "How will I communicate?" When planning the order of your
communication, you need to keep in mind the other components of the strategy.

3.4.1 Overall Message

When deciding on the order of the overall message, you can select from two basic
arrangements - direct and indirect. Basically, the direct arrangement presents the most
important idea(s) at the beginning of the message. This arrangement helps the reader
immediately recognize the objective of the message. In an example of direct order (Figure
3.6) notice that the objective of the communication can easily be identified in the first
sentence of the letter.

If you choose to use the indirect arrangement for your message, the objective or intent will be
placed at or near the end. The revised version of the letter to Maxim is shown in Figure 3.7-
this time in indirect order.

When you communicate, assess the situation and carefully select either the direct or indirect
arrangement to achieve your desired objective. The decision to use the direct or indirect
arrangement is based on the type of message, objective, and previous relationship with the
reader rather than on some "recipe" approach. According to most recipes, you should "use the
direct arrangement for all positive messages and an indirect arrangement for negative

8
messages." Depending on the circumstances, however, sometimes it may be best to place the
objective at the beginning of a negative message. Sometimes the reader expects to receive
some negative responses. Consider the job applicant who sends out many letters of
application to a broad range of companies. Wouldn't it be reasonable to expect that a few will
say no? As an effective communicator, you need to assess the situation and select the
appropriate arrangement to achieve your desired objective.

ams association for management

success

-----------------------------------------------------------------------
February 1, 20…

Mr. Harry P. Maxim

First Security Bank
887 Ninth Street
Colorado Springs, CO 80900

Dear Mr. Maxim:

Would you present a 20-minute talk on "Time Management" at the

April 14, 20__ meeting of the Administrative Management Society?
Since your article about your time management program appeared in the
October issue of the MANAGEMENT JOURNAL, several people in our society
have suggested that we invite you to speak to us about your program. Perhaps a
brief question-and-answer session could follow.

The meeting will be held at the Alexander's Restaurant, 605 State Street, on
April 14. Please join us at 6:30 p.m. for dinner; please extend an invitation to
your wife to be our guest also. After dinner, you will present your talk to
approximately 40 men and women from this area who want to improve their
managerial skills.

So that advance publicity can be given, please let me know by February 20

whether you can accept. Your comments about your experience in directing a
time management program will certainly be of great benefit to our members. We
are looking forward to your presentation.

Sincerely,

Kermit Evans
Program Chairman

Figure 3.6 – Direct order

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 ams association for management
success

-----------------------------------------------------------------------
February 1, 20…

Mr. Harry P. Maxim

First Security Bank
887 Ninth Street
Colorado Springs, CO 80900

Dear Mr. Maxim:

Your article in the October issue of the MANAGEMENT JOURNAL about your
time management program is excellent' Many members of the Administrative
Management Society, a group of men and women interested in improving their
skills, have suggested you as a speaker for one of our monthly meetings.

Our regular monthly meetings are held the second Thursday of each month at
Alexander's Restaurant, 605 State Street. Dinner is at 6:30 p.m.; and the program
starts at 7:30 p.m. About 40 men and women from this area attend the meetings.

Would you present a 20-minute talk on "Time Management" at our April 14

meeting?A brief question-and-answer session could follow. So that advance
publicity can be given, please let me know whether you can accept our invitation
by February 20, 20_. Comments about your experience in time management will
be timely and of great benefit to our members. Please join us for dinner as our
guest at Alexander's Restaurant; please extend an invitation to your wife to be our
guest also.

Sincerely,

Kermit Evans
Program Chairman

Figure 3.7 – Indirect order

3.4.2 Paragraphs

A paragraph is composed of several sentences that relate to a similar topic. Just as you can
order the overall message, you can also arrange the sentences within a paragraph to
emphasize a particular point or direct the reader's attention to an especially important fact.
Actually, there are few hard-and-fast rules which govern paragraphing. The main point to
remember is that an effective paragraph has a controlling idea, or topic sentence. The
sentences we combine to make up a paragraph must be related.

A paragraph should be coherent (with the organization following a definite plan); it should be
developed (with its sentences adequately explaining or qualifying the main point); and it
should be unified (with all its sentences relevant to the main point).

10
The following paragraph about the human element in office automation is written twice to
show how placement of the topic sentences (the underscored portions) subtly changes the
order of ideas:

There must be regard for the human element in office automation. It is not simply a
matter of optimizing machine operating hours or minimizing processing time. The
human equation must be given prime consideration. Vital are the people's belief in,
training for, and adaptation to the automated system.

Office automation is not simply a matter of optimizing operating hours or minimizing

processing time. The people's belief in, training for, and adaptation to the automated
system need to be recognized. It is vital that the human element be given consideration
in office automation.

3.4.3 Sentence

The sentence is a basic unit of any message. The words within the sentence can also be
ordered to achieve emphasis and direct the reader's attention to specific details. Notice in the
following sentences how the secretarial function is emphasized because of its placement at
the beginning of the sentence:

The secretarial function will also become more specialized.

Now, by placing the words at the end of the sentence, you can change the emphasis:

Specialization will become a part of the secretarial function.

The word specialization is now emphasized more than the secretarial function.

Your sentence construction should contribute to ease of reading and clarity. It is a constant
challenge to maintain relatively short sentences and yet avoid monotony in sentence structure.

To create an effective message, vary your sentence structure. Generally, use more simple
sentences than compound and complex ones. Use compound sentences when you want related
ideas expressed as a unit and complex sentences to show a relationship.

In addition to ordering the overall message, paragraphs, and sentences, you need to sequence,
or order, those items identified as specific objectives in the strategy. Your ideas can be
arranged according to various standard patterns, such as:
Least important to most important.
Most important to least important.
Familiar to unfamiliar.
Unfamiliar to familiar.
Time sequence (chronological).
Cause and effect.
Simple to complex.

The Order component of the strategy can now be applied to the Stokely Enterprises case.
Order
1. Overall Message: Indirect (to temper the negative impact of the technological change

11
 and provide a mind set to encourage the reader to learn the new instructions).
2. Paragraph and Sentences: Creating effective sentences and paragraphs is necessary. ,
3. Specific Objectives: These items may be ordered from "most often used" to "least often
used," The decision to order them in this way makes good sense because, if the things
done most often are done correctly, most of the problems will be eliminated,

Now you should understand the first four components in developing your strategy for
communicating - the Problem, the Objective, the Reader Audience, and the Order. (see Figure
3.5).

3.5 The Format

Problem Objective Reader/Audience Order Format

The Why The What The Who The How The Type

Figure 3.8 - Strategy Diagram: The Format

Format, the fifth component of the strategy, refers to the manner or type of presentation you
select as appropriate for your communication, There are several choices you can consider-
memo, letter, report, oral presentation, or handwritten notes, Determining an appropriate
format helps you answer the question "What type of communication will I use?"

3.5.1 Memos (memorandums)

Memos are probably the preferred way of presenting written material in business, especially
within the company. Memos are usually no more than two pages, and the message is written
in an informal style, The memo contains two different parts - heading and message. The
heading of a memo contains:

The date,
The name of the person to whom the correspondence is going,
The name of the person who wrote it,
The topic of the communication.

Figures 3.9 and 3.10 show two different arrangements of the heading material. You may be
able to choose your own format in some organizations, but more than likely the company you
join will already have an established format for memos. Many companies create their own
printed memo forms, making it very easy to identify sender, receiver, and topic.

January 5, 20___

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TO: Gilbert Word, Marketing Director

FROM: Joseph Miller, Personnel Coordinator

SUBJECT: Applicants for Marketing Position

Attached are the resumes of five applicants who have applied for
your department position:

Jessica Elbers
Ronald Hogan
Kevin Kiljoy
Elizabeth Matthews
Amanda Rogers

Please evaluate these and then recommend the people you want to
interview. As soon as I have the names, I will make arrangements for
the interviews.

Figure 3.9 - Memo

TO: Gilbert Word DATE: January 5, 20___

Marketing Director

FROM: Joseph Miller SUBJECT: Applicants for

Personnel Coordinator Marketing Position

Attached are the resumes of five applicants who have applied for your
department position:

Jessica Elbers
Ronald Hogan
Kevin Kiljoy
Elizabeth Matthews
Amanda Rogers

Please evaluate these and then recommend the people you want to interview. As
soon as I have the names, I will make arrangements for the interviews.

Figure 3.10 – Memo with alternate form

3.5.2 Letters

Letters are generally used to correspond with people outside the company - clients,
customers, community officials, etc. A letter differs from a memo primarily in terms of its
layout; the writing style can be formal or informal.

Traditionally, a letter includes the date, inside address, salutation, body, close, and signature
line. When you write letters, you may choose from three popular arrangements or styles,
shown in Figures 3.11 to 3.13. The block and modified styles are popular, but the simplified
style is also frequently used.

In block style, all parts of the letter start at the left margin. As shown in Figure 2.11, the date
13
line, inside address, salutation, all paragraphs, and closing signature line all begin at the left
margin and give a blocked appearance. The differences between the block and modified styles
are in the placement of the date line, the close, and signature lines. Notice in the modified
style of Figure 3.12 that the date line, close, and signature lines all begin in the center of the
page. In addition, the paragraphs may or may not be indented,

For some time, many writers have dropped the salutation and closing lines because they have
little purpose beyond satisfying a tradition. Instead of the salutation, a subject line is
substituted. The subject line helps the reader quickly identify the objective of the letter. The
simplified style shown in Figure 3.13 is a block arrangement in which the salutation and close
have been eliminated. Note also the courtesy title Mr. or Ms., which may be omitted if
desired, since the sex of the reader is not known. Note also the listing of enclosures.

Deciding on a letter style is frequently a manner of personal choice; however, a preferred

style may be dictated by company policy. All of the styles above are used in business today.

==================================================================

Heading ROCKWELL MANUFACTURING, INC.

4200 WEST CLAIBORNE DRIVE
KNOXVILLE. TN 37906
PHONE (615)292-6610

Date October 17, 20___

Inside Mr. Gene Glass, Manager

address ABC Consultants
320 Cedar Bluff Road
Knoxville, TN 37923

Salutation Dear Gene

Body Thanks for a very informative one-day seminar on Techno-Stress

for our employees. Both managerial and support staff commented
on the superb job you did with the seminar.

Our managerial staff is now incorporating some of your ideas into

the corporate strategy for handling Techno-Stress within the
company. Perhaps you will be available later for some consulting
activities.

Gene, thanks for a job well done! I shall be in touch with you later.

Close Cordially

Signature E. Ray Smith

Title Seminar Coordinator

================================================================

Figure 3.11 – Letter – Block style

==================================================================
Heading The Georgia Educational Center
802 Hathaway Lane, Athens, GA 30604, Phone ….
14
Date October 17, 20___

Inside Mrs. Nathan Goodfellow

address Vendor and Associates
43794 Oklahoma Avenue
Charlotte, NC 8200

Salutation Dear Mrs. Goodfellow:

Body By answering some questions, you will help us decide

whether to install a staff lounge on the sixth floor of our
building. We want our 100 employees to use the lounge on a
staggered basis for morning and afternoon breaks.

1. What type appliances would you recommend for coffee

and hot water? Cost of each?
2. What type of refrigerator would you recommend? Cost?
3. What other items should be included? Is our space
adequate?
4. What are your suggestions for operating the lounge?
5. Could you install the lounge by May 1?

Since the Executive Board will decide on this project at its

April 2 meeting, I would appreciate receiving your reply by
March 25.

Close Sincerely,

Signature George A. Huber

Title Facilities Coordinator

==================================================================

Figure 3.12 – Letter – Modified style

=============================================================
Heading WGS
WGS Inc. 37 East 38th Street
New York New York 10019
15
 (212) 755 2396

Date May 3, 20___

Inside [Link] Mrs. [Link]

address 1701 White Avenue
Waco, TX 76700

Subject SUBJECT: Career in Television

line

Body Enclosed are an application, a pamphlet entitled “Television

Career Opportunities”, and a pre-addressed envelope as you
requested in your April 26 letter. If you are interested in a
career in TV, complete and return the enclosed application.

As soon as your application has been reviewed, you will get a

call from Marilyn N. Morrison, our agent. Thanks for your
interest.

Signature Larry A. Estep

Title Personnel Director

Enclose Enclosures: Application

Pamphlet – „Television Career Opportunities”
Envelope
===============================================================

Figure 2.13 – Letter – Simlified style

3.5.3 Reports

Although reports are often presented in memo or letter form, they can be prepared in the
format of a formal report. A report is a presentation of facts or data to a specific audience for a
particular purpose. Generally, reports inform the reader about the subject, procedures, and
findings and conclusions of investigations or research. Therefore, the style of writing is more
formal. Facts are emphasized. Visuals in the form of tables, graphs, or pictures are typically
used to present the findings of the report. The "meat" of the report is frequently presented in
condensed form, sometimes called an executive summary, to a person or group of people for
decision making. The findings from the study, then, are gathered to solve some problem.
Given the supporting data, an executive or management group can decide on a course of
action on the basis of hard evidence rather then guesswork.

3.5.4 Oral presentation

As you plan your strategy, you may consider it best to present your communication orally

16
rather than in writing. If you need immediate feedback and personal interaction to accomplish
your objective(s), you will select the oral method of communication. For a group
presentation, you need to use visual aids to present a clear picture to your audience,
particularly to present data.

You should also decide on the type of oral presentation you think would meet your audiences'
needs. Will your group be large or small? How formal will your presentation be? What time
constraints do you have?

3.5.5 Handwritten Notes

Often it is appropriate and acceptable to reply to a request or inquiry by simply jotting your
response on the original letter or memo and returning it to the original author. You should
make a copy of this original letter with your handwritten reply if you want a file copy. This
method of communicating is becoming more common in business. It reinforces the
philosophy that business communication should facilitate and assist employees in doing their
job efficiently and effectively. Figure 3.14 is an example of a handwritten response.

The Format, which is the last component of the strategy, can now be applied to the Stokely
Enterprises case.

Format. The memo format was chosen because:

1. The reader needs the details for immediate and repeated reference.
2. The memo was selected since the reader is within the organization and the
information is brief (two pages or less). Because of the large number of employees
and their need for repeated reference to the instructions, an oral presentation did not
seem appropriate as an effective means of communicating the instructions.

Another point you may want to consider when deciding on the format is that there may be
times when a combination written/oral communication is desirable. Cost of the format used
should be assessed. The amount of resources devoted to the action should be proportional to
the problem - a $200 report to address a $50 problem is a waste.

============================================================
DATE: May 10, 20__
TO: Henderson Albert G. Foner
FROM: Albert G. Foner
SUBJECT: Request for approval to purchase an executive desk,
17
 Administrative Division, Nyack

Re: Requisition 82093; copy attached

Administration Division, Nyack, requests the purchase as

specified in the attached requisition form.

May we have approval to proceed with the purchase?

Enclose Requisition from Administrative Division

==================================================================

Figure 3.14 – Handwritten note reply

PART 4 – TRANSATIONAL ANALYSIS, ASSERTIVENESS, AND

CONFLICT RESOLUTION
4.1 Transactional Analysis

18
 Ego States
Types of Transactions
Life Positions and Stroking
4.2 Assertiveness
Passive Behavior
Aggressive Behavior
Passive-Aggressive Behavior
Assertive Behavior
4.3Conflict Management
Types and Sources of Conflict
Conflict Management Styles
Resolving Conflicts with the Collaborating Style

The chapter name may appear that we will be discussing three unrelated topics.
However, this is not the case. The major theme of these topics is the development of
interpersonal dynamic skills. This chapter focuses on dealing with our emotions and those
of others in an effective way. When we interact with people, we respond (transactional
analysis); we can let people push us around or we can stand up for our rights
(assertiveness). When we are in disagreement with others (conflict) we can decide to
ignore or resolve our differences. Being able to transact with people on the appropriate
level, assertively stand up for our rights, and resolve our conflicts without hurting human
relations will improve our effectiveness in organizations and in our personal lives. Let's
begin our interpersonal development skills learning with transactional analysis.

4.1. Transactional Analysis

Eric Berne developed transactional analysis (TA) back in the 1950s, and it became
popular in the 1960s when he published best-selling books on the topic in 1961 1 and 19642.
Thomas Harris published a TA book in 19693.
Transactional analysis is a method of understanding behavior in interpersonal
dynamics. It is the study of social transactions and communications. A transaction occurs
when we interact. When we talk to someone about anything, we are involved in
interpersonal dynamics, and a series of transactions can take place.
Organizations have trained their employees in TA to improve their ability to handle
difficult personal situations. Studying TA can help you to better understand people's behavior,
and how to deal with emotions in a more positive way. With the aid of TA, you should be
better able to maintain a positive attitude and keep communications open.
In this section we will discuss the three ego states, types of transactions, and life positions
and stroking.

4.1.1 Ego States

According to Berne, we all have three major ego states that affect our behavior or the
way we transact. The three ego states are the parent, child, and adult.
We change ego states throughout the day, and even during a discussion a series of
transactions can take place between different ego states. Your parent, child, and adult ego
states interact with other people's parent, child, and adult ego states. Understanding the ego
state of the person you are interacting with can help you to understand his or her behavior
1
Eric Berne, Transational Analysis in Psychoterapy, New York: Grove Press, 1961
2
Eric Berne, Games People Play, New York, Grove Press, 1964
3
Thomas Harris, I`am OK-You`re OK: A Practical Guide to Transational Analysis, New York, Harper & Row,
1969.
19
and how to transact in an effective way. We will discuss the three ego states separately.

[Link] Parent Ego State

When the parent ego state is in control people behave from one of two
perspectives:
1. Critical parent. When we behave and respond with evaluative responses that are
critical, judgmental, opinionated, demanding, disapproving, disciplining, etc., we are in the
critical parent ego state. People in the critical parent ego state use a lot of "do's" and
"don'ts." Managers using the autocratic style tend to be in the critical parent ego state
because they use high task/directive behavior.
2. Sympathetic parent. On the other hand, we can also be a different type of parent.
When we behave and respond with reassuring responses that are protecting, permitting,
consoling, caring, nurturing, etc., we are in the sympathetic parent ego state. Managers
using the consultative and participative styles tend to be in the sympathetic parent state
because they are using high supportive/relationship behavior.

[Link] Child Ego State

When the child ego state is in control, people behave from one of two perspectives:
1. Natural child. When we behave and respond with probing responses that show
curiosity, intimacy, fun, joyfulness, fantasy, impulsiveness, etc., we are in the
natural child ego state. Successful managers do not tend to continuously operate
from the natural child ego state.
2. Adapted child. When we behave and respond with confronting responses that
express rebelliousness, anger, fear, anxiety, inadequacy, procrastination, blaming others,
etc., we are in the adapted child ego state. Managers should avoid behaving from the
adapted child ego state because this type of behavior often leads to the employee
becoming emotional and behaving in a similar manner. When managers are transacting
with an employee in this ego state they should be aware of it and not react with similar
behavior. They should be in the adult ego state.

[Link]. Adult Ego State

When the adult ego state is in control, people behave in a thinking, rational,
calculating, factual, unemotional manner. The adult gathers information, reasons things out,
estimates probabilities, and makes decisions with cool and calm behavior.
Generally, the most effective behavior, human relations, and performance come from
the adult ego state. However, there are times when everyone is out of the adult ego state.
When interacting with others, we should be aware of their ego state. Are they acting like a
parent, child, or adult? When identifying ego states we must not only listen to the verbal
message, we must read the nonverbal communication as well. Identifying their ego state will
help us understand why they are behaving the way they are and determine which ego state
we should use during the interaction. For example, if the person is acting like an adult, we
most likely should, too. If the person is acting like a child, it may be appropriate to act like a
parent rather than an adult. And there are times when it is appropriate to act out of the child
ego state and have a good time.

20
4.1.2 Types of transactions

Within ego states we can make three different types of transactions. The three types
of transactions are complementary, crossed, and ulterior. We will discuss each separately.

[Link] Complementary transactions

A complementary transaction occurs when the sender of the message gets the intended
response from the receiver. For example, an employee makes a mistake and, wanting some
sympathy, apologizes to the boss. Employee-"I just dropped the thing when I was almost
done. Now I have to do it all over again. I'm sorry." Supervisor-"It happens to all of us; don't
worry about it." This complementary transaction is illustrated below.

Supervisor Employee

P
P

A A

C C

Another example of a complementary transaction is a supervisor who wants a job

done and delegates it, expecting the employee to do it. The supervisor behaves on an adult-to-
adult level. Supervisor-"Please get this order ready for me by two o'clock." Employee-'I`ll
have it done before two o'clock, no problem." This complementary transaction is illustrated
below.

Supervisor Employee

P
P

A A

C C

Generally, complementary transactions result in more effective communications with

fewer hurt feelings and arguments. In other words, they help human relations and
performance. Exceptions would be if an employee uses an adapted child or critical parent
ego state and the supervisor does, too. These complementary transactions can lead to
problems.

[Link] Crossed transactions

Crossed transactions occur when the sender of a message does not get the
21
expected response from the receiver. Returning to our first example: Employee- "I just
dropped the thing when I was almost done. Now I have to do it all over again. I'm sorry."
Supervisor-"You are so clumsy." This crossed transaction is illustrated below.

Supervisor Employee

P
P

A A

C C

From our second example: Supervisor-"Please get this order ready for me by two
o'clock." Employee-"Why do I have to do it? Why don't you do it yourself? I'm busy." This
crossed transaction is illustrated below.

Supervisor Employee

P
P

A A

C C

Generally, crossed transactions result in surprise, disappointment, and hurt feelings

for the sender of the message. The unexpected response often gets the person emotional,
which often results in him or her changing to the adapted child ego state, which causes the
communication to deteriorate further. Crossed transactions often end in arguments and hurt
human relations.
Crossed transactions can be helpful when the negative parent or child ego response
is crossed with an adult response. This crossover may result in the preferred adult-to-adult
conversation.

[Link] Ulterior transactions

Ulterior, or hidden, transactions occur when the words seem to be coming from one
ego state, but in reality the words or behaviors are coming from another. For example, after a
training program, one of the participants came up to the author asking advice on an adult ego
state. When the author gave advice the participant twice had quick responses as to why the
advice would not work (child rather than adult behavior). The author realized that what the
participant actually wanted was sympathetic understanding for his situation, not advice. The
author stopped making suggestions and listened actively, using reflective responses. The
author changed from the adult to the sympathetic parent ego state in order to have a
complementary transaction.
Sometimes people don't know what they want or how to ask for it in a direct way, so
22
they use ulterior transactions. When possible, it is best to avoid ulterior transactions because
they tend to waste time. Avoid making people search for your hidden meaning. Plan your
message before you send it. When receiving messages look for ulterior transactions and turn
them into complementary transactions, as stated above.

4.1.3 Life position and stroking

[Link] Life positons

Within the transactional analysis framework, we have attitudes toward our self and
toward others. Attitudes affect our behavior and human relations. Positive attitudes are
described as OK, and negative attitudes are described as not OK. The four life positions are
illustrated in Exhibit 4.1.

I'm OK- I'm OK-

You're not OK You're OK

I'm not OK- I'm not OK-

You're not OK You're OK

Exhibit 4.1 – Life positions

The most desirable life position is in the upper right-hand box: "I'm OK - You're
OK." With a positive attitude toward oneself and others, there is greater chance for
having adult-to-adult ego state communications. You can change your attitudes and you
should if they are not positive.

[Link] Stroking

Stroking is any behavior that implies recognition of another's presence. Strokes can be
positive and make the person feel good about himself, or they can be negative and hurt the
person in some way.
We all want praise and recognition. Giving praise (positive strokes) is a powerful
motivation technique that is easy to use and costs nothing. We should all give positive
strokes and avoid giving negative strokes.
We should be aware of the child within us and recognize how we express our
feelings, while not letting our emotions control our behavior. We should be aware and
sensitive to the child ego state in others. As a sympathetic parent, we should talk to that
child, protect that child, appreciate the child's need for expression, and stroke the child in
others in positive ways. The role of the critical parent is appropriate at times, but a parent
should correct a child with the use of positive strokes when possible. Through work and
effort we can learn to control our emotional behavior and transact on an adult-to-adult level
in most situations.

4.2 Assertiveness

23
 In the late 1960s Arnold Lazarus published the first paper on what is popularly
known as assertiveness. Assertiveness training became popular in the 1970s; Lazarus wrote
an article in 19734, and others went on to write books on assertiveness.
Assertiveness is the process of expressing thoughts and feelings while asking for
what one wants in an appropriate way. We need to present our message without falling
into stereotypical "too pushy" (aggressive) or "not tough enough" (passive) traps.
Being assertive is generally the most productive behavior. However, there are times
when most of us use passive or aggressive behavior. There are situations in which passive or
aggressive behavior is appropriate. We will discuss these situations in the section on conflict
resolution. In this section, we will describe passive, aggressive, passive-aggressive, and
assertive behavior.

4.2.1 Passive behavior

Passive or nonassertive behavior comes primarily through the obedient child or

supportive parent ego state. They are in an '"I'm not OK" life position. Passive behavior is
an avoidance of behavior or an accommodation of the other party's wishes without standing
up for one's own rights. It involves self-denial and sacrifice.
Nonverbal communication of the passive person includes downcast eyes, soft voice,
helpless gestures, and slouched posture. Passive people tend to deny the importance of
things. They rationalize things -"It doesn't matter to me"-and take an "it's not my
responsibility, let someone else do it" attitude. Passive people are often internally distressed
and in pain.
When people know someone is passive they tend to take advantage of him or her.
They make unreasonable requests, knowing the person cannot say no, and refuse to meet
the passive person's rare mild request. When the passive person does speak, others tend not
to listen and interrupt him or her. In fact, research by sociologists has revealed that men
freely interrupt women and dismiss women's ideas-and many women tolerate this!
Passive people often have a poor self-concept and are unhappy. Passivity is often
based on fear: fear of failure, fear of rejection, fear of displeasing others, fear of retaliation,
fear of hurting others, fear of being hurt, fear of getting into trouble, etc. Some women are
passive due to a lifetime of conditioning in which they were taught to serve others and to
give way to men. Many men are also passive; you may know some.
Continued passive behavior is usually unproductive for both the individual and the
organization. If you are continuously passive, determine what really is important, and
stand up for your rights in an assertive way.

4.2.2 Aggressive behavior

Aggressive behavior comes primarily through the adapted child and the critical
parent ego state. Aggressive people are demanding, tough, rude, and pushy. They insist on
getting their own way and use force to gain control. They are very competitive and hate to
lose to the point of cheating. They tend to violate the rights of others to get what they want.
Nonverbal communication used by aggressive people includes glaring and
frowning to convey coldness. Aggressive people tend to speak loudly and quickly with
threatening gestures and an intimidating posture.
When aggressive behavior is used, the other party often retaliates with aggressive
behavior (fight back) or withdraws and gives in (flight). People often avoid contact with the

4
Arnold Lazarus, “On assertive behavior: A Brief Note”, Behavior Therapy, Oct. 1973
24
aggressive person or prepare themselves for the fight when transacting.
Aggressive people seem to be self-confident, but their behavior is more often the result
of a poor self-concept. They are in an ''I'm not OK" life position, but consistently try to prove
they are OK by beating and controlling others. They must win to prove their self-worth and,
because they violate others' rights, they are often unhappy and feel guilty. They seem to have
a complaint about everything. Some women become aggressive because they feel it is
behavior necessary to compete in the business world. No one should feel as though he or she
has to be aggressive to be taken seriously; assertiveness is more effective.
Continuous use of aggressive behavior is usually destructive to the individual and
the organization. If you are continually aggressive, work at becoming more sensitive to the
needs of others. Learn to replace aggressive behavior with assertive behavior.

4.2.3 Passive-Aggressive behavior

Passive-aggressive behavior is displayed in three major ways:

1. The person uses both types of behavior sporadically. For example, a manager may be
very aggressive with subordinates, yet passive with superiors. Or the person may be passive
one day or moment and be aggressive the next. This type of person is difficult to work with
because one doesn't know what to expect.
2. The person uses passive behavior during the situation, then shortly after uses
aggressive behavior. For example, an employee may agree to do something, then leave and
slam the door or yell at the next person he or she sees.
3. The person uses passive behavior, but inside is building up hostility. After the repeated
behavior happens often enough the passive person becomes aggressive. Too often the person
who was attacked really doesn't understand the full situation and blames everything on the
exploder, rather than examining his or her self-behavior, and changing. The person who
becomes aggressive often feels guilty. The end result is usually hurt human relations and no
change in the situation. For example, during a meeting, Carl interrupted June three times
when she was speaking. June said nothing each time, but was building up hostility. The
fourth time Carl interrupted June; she attacked him by yelling at him for being so
inconsiderate of her. He simply said, "What's wrong with you?" It would have been better for
June to assertively tell Carl not to interrupt her the first time he did it.
If you use passive-aggressive behavior, try to learn to be assertive on a consistent
basis and you will be easier to work with, and you will get the results you want more often.

4.2.4 Assertive behavior

Assertive behavior comes through the adult ego state, with an ''I'm OK - You're
OK" life position. As stated earlier, the assertive person expresses feeling, thoughts, and
asks for things without aggressive behavior. The person stands up for his or her rights
without violating the rights of others.
The nonverbal communication of the assertive person includes positive facial
expressions like smiling and eye contact, pleasant voice qualities, firm gestures, and erect
posture.
People who use assertive behavior tend to have a positive self-concept. They are not
threatened by others, and they do not let others control their behavior. When others are out of
the adult ego state, people using assertive behavior continue to transact in an adult ego state.
Assertive people project a positive image of being confident, friendly, and honest. Using
assertive behavior wins the respect of others. Use it on a consistent basis.

25
4.3 Conflict Management

In this section we will begin by defining conflict and stating why managing conflict
skills are important. Then we will discuss types and sources of conflict, and the five conflict
management styles.
Conflict exists whenever two or more parties are in disagreement. Some of the
reasons why conflict management skills are important include:
Complex organizations are marked with chronic episodes of conflict.
You cannot avoid conflict. Coping with it successfully is one of the most important skills
you can acquire.
Inability to handle conflict effectively may well be the single greatest barrier to
managerial job satisfaction and success.
Unresolved conflicts can last for years, decreasing the productivity of the department and
the organization.
Conflict is familiar to every supervisor. One survey revealed that managers spend about
20 percent of their time resolving conflicts, and that conflict management skills are
becoming more important.
Understanding how to confront and resolve conflict can lead to both organizational
productivity and better interpersonal relationships
People often think of conflict as fighting and view it as disruptive. Conflict can be
creative and beneficial. The question today is not whether conflict is good or bad but rather
how supervisors should manage conflict to benefit the organization. A balance of conflict is
essential to all organizations. Too little or too much conflict usually is a sign of management's
unwillingness or inability to adapt to a changing environment. Challenging present methods
and presenting innovative change causes conflict, but can lead to improved performance.
While performing any of the management functions (planning, organizing, staffing,
leading, and controlling), a supervizor may encounter conflict.

4.3.1 Types and sources of conflict

In this part of the section, we will first discuss the two types of conflict, followed by four sources
of conflict.

[Link] Types of conflict

There are at least two ways to classify conflict. One method of classifying conflict is to
determine if it is constructive or destructive. Constructive (also called functional) conflict
helps the department achieve its objectives, while destructive (also called dysfunctional)
conflict hinders the department in achieving its objectives. The supervisor's job is to either
eliminate destructive conflict or change it into constructive conflict.
A second method of classifying conflict is by the people involved:
1. Conflict within the individual. This is common when faced with conflicting
priorities. If you are asked to work overtime and have another commitment what do you do?
2. Interpersonal conflict, when two people disagree. When people interact over any period of
time there is bound to be conflict.
3. Conflict between an individual and a group (intragroup conflict). When a group member
breaks the group's norms, conflict occurs.
4. Intergroup conflict. A conflict between two different groups/departments. Conflict is
26
common when groups/departments have different objectives and are dependent on each other
to meet their objectives.
5. Conflict between organizations. Competing in a free enterprise system often leads to
conflict.

[Link] Sources of conflict

There are at least four major sources of, or reasons for, conflict:
1. Personal differences. People have different needs, beliefs, and values. Our
perceptions and expectations can also vary. Value differences often result in
conflicts that are difficult to resolve. Personal differences are often incorrectly
called personality clashes. Don't generalize. Determine if the conflict is due to
different needs, beliefs, values, perceptions, or expectations, and resolve them.
2. Information. People tend to use different sources of information. At times the sources do
not agree, or the same information is interpreted differently. Information conflicts tend to be
factual and can usually be resolved through clarification of the information with a minimum
of resentment. The more effective you are at communicating, the less information conflicts
you will have to resolve.
3. Different objectives. Individuals and groups sometimes have different objectives with
incompatible roles. For example, the salesperson's objective is to sell as much as possible,
while the credit person's objective is to only give credit to good credit risk. These two
groups are known to have their conflicts. Conflict also can arise when priorities are not
clear. Employees can be in conflict over what should be done and when.
4. Environmental factors. When developing future plans for changes in the environment
there is often conflict over the forecast. Employees and departments often have to compete
for scarce organizational resources. Conflict is common during the budget process. People
are also territorial; conflict can occur if people try to infringe on another's turf. Clearly
defining an employee's authority and responsibility helps to prevent territorial disputes.

4.3.2 Conflict Management Styles

There are different styles of conflict management. There is no one best conflict style in
all situations. Like situational supervision and communications, the best style depends upon
the situation. The five conflict management styles - forcing, avoiding, accommodating,
compromising, and collaborating - will be discussed in the following parts of this section.
[Link] Forcing Conflict Styles

The forcing conflict style user attempts to resolve the conflict by using aggressive
behavior. The forcer uses the critical parent or adapted child ego state, with aggressive
behavior. The forcing approach uses an uncooperative, autocratic attempt to satisfy one's
own needs at the expense of others, if necessary. A win-lose situation is created. Forcers
use authority, threaten, intimidate, and call for majority rule when they know they will
win. This is believed to be the most commonly used style by managers.
Advantages and Disadvantages of the Forcing Style: The advantage of the forcing
style is that better organizational decisions will be made (assuming the forcer is correct)
rather than less effective compromised decisions. The disadvantage is that overuse of this
style leads to hostility and resentment toward its user.
Appropriate Use of the Forcing Style: The forcing style is appropriate to use when:

27
(1) the conflict is of personal differences (particularly values which are hard to change); (2)
when maintaining close, supportive relationships is not critical; and (3) when the conflict
resolution is urgent.

[Link] Avoiding Conflict Styles

The avoiding conflict style user attempts to passively ignore the conflict rather
than resolve it. The avoider uses the obedient child or sympathetic parent ego state,
with passive behavior. Its user is unassertive, uncooperative, using avoidance attempts
to satisfy the need to avoid or postpone confrontation. A lose-lose situation is created
because the conflict is not resolved. People avoid the conflict by refusing to take a
stance, physically leaving it, or escaping the conflict by mentally leaving the conflict.
Advantages and Disadvantages of the Avoiding Conflict Style: The advantage of the
avoiding style is that it may maintain relationships that would be hurt through conflict
resolution. The disadvantage of this style is the fact that conflicts do not get resolved. An
overuse of this style leads to conflict within the individual. People tend to walk all over the
avoider. Supervisors use this style when they allow employees to break rules without
confronting them. Avoiding problems usually does not make them go away; the problems
usually get worse.
Appropriate Use of the Avoiding Conflict Style: The avoiding style is appropriate to
use when: (1) one's stake in the issue is not high, (2) confrontation will damage a critical
working relationship, and (3) a time constraint necessitates avoidance. Some people use the
avoiding style out of fear that will handle the confrontation poorly, making the situation
worse rather than better.

[Link] Accommodating Conflict Styles

The accommodating conflict style user attempts to resolve the conflict by passively
giving in to the other party. The user is in the obedient child or sympathetic parent ego state,
using passive behavior. The accommodating approach is unassertive and cooperative. It
attempts to satisfy the other party while neglecting one's own needs. A win-lose situation is
created, with the other party being the winner.
Advantages and Disadvantages of the Accommodating Conflict Style: The advantage of
the accommodating style is that relationships are maintained. The disadvantage is that giving
in to the other party may be counterproductive. The accommodated person may have a better
solution. An overuse of this style leads to people taking advantage of the accommodator.
When using this style the relationship the accommodator tries to maintain is often lost.
Appropriate Use of the Accommodating Conflict Style: The accommodating style is
appropriate when: (1) maintaining the relationship outweighs all other considerations; (2) the
changes agreed to are not important to the accommodator, but are to the other party; and (3)
the time to resolve the conflict is limited. This is often the only style one can use with an
autocratic boss.

[Link] Compromising Conflict Styles

The compromising conflict style user attempts to resolve the conflict through
assertive give-and-take concessions. Its user is in the adult ego state, using assertive
behavior. The compromising approach is intermediate in assertiveness and cooperation. It
attempts to meet one's need for harmonious relationships. A win-lose or lose-lose situation
may be created through compromise.

28
 Advantages and Disadvantages of the Compromising Conflict Style: The advantage, of
the compromise style is that the conflict is resolved quickly, and relationships are
maintained. The disadvantage is that the compromise often leads to counterproductive results
(suboptimum decisions). An overuse of this style leads to people playing games such as
asking for twice as much as they need in order to get what they want. It is commonly used
during management and labor collective bargaining.
Appropriate Use of the Compromising Conflict Style: The compromise style is
appropriate to use when: (1) the issues are complex and critical, and there is no simple
and clear solution; (2) all parties have a strong interest in different solutions; and (3) time
is short.

[Link] Collaborating Conflict Styles

The collaborating conflict style user assertively attempts to jointly resolve the
conflict with the best solution agreeable to all parties. It is also called the problem-
solving style. Its user is in the adult ego state, using assertive behavior. The collaborating
approach is assertive and cooperative. The collaborator attempts to fully address the
concerns of all. The focus is on finding the best solution to the problem that is
satisfactory to all parties. Unlike the forcer, the collaborator is willing to change if a
better solution is presented. This is the only style that creates a win-win situation.
Advantages and Disadvantages of the Collaborating Style: The advantage of the
collaborating style is that it tends to lead to the best solution to the conflict using assertive
behavior. One great disadvantage is that the time and effort it takes to resolve the conflict is
usually greater and longer than the other styles.
Appropriate Use of the Collaborating Conflict Style: The collaborating style is
appropriate when: (1) maintaining relationships is important; (2) time is available; and (3) it
is a peer conflict. To be successful, one must confront conflict. The collaborating conflict
style is generally considered to be the best style because it confronts the conflict assertively,
rather than passively ignoring it or aggressively fighting one's way through it.
The situational perspective states that there is no one best style for resolving all
conflicts. A person's preferred style tends to meet his or her needs. Some people enjoy
forcing, while others prefer to avoid conflict, and so forth. As with all supervisory functions,
success lies in one's ability to use the appropriate style to meet the situation. Of the five styles,
the most difficult to implement successfully (and probably the most underutilized when
appropriate) is the collaborative style.

PART 5 - INTRODUCTION TO NEGOTIATIONS

Negotiation is a part of normal everyday life. Still, many people feel that they are not
experienced negotiators. Perhaps they do not realize that there are many types of contracts to
be negotiated. Not all are complex written agreements. Most contracts are oral agreements
which may or may not involve the exchange of monetary consideration.

5.1 The general framework of negotiation

29
 Without realizing it, you have probably been involved in a variety of contract
negotiations every day of your life. In fact, we constantly bargain with other people to fulfill
both our monetary and non-monetary needs.
 At work, we are involved in continuing negotiations with our superiors, subordinates, and
coworkers concerning a variety of personal and professional issues. They may be as minor as
deciding who will make the next pot of coffee or as major as the rating on your annual
performance evaluation.
 At home, you are probably involved in continuing negotiations with your family over a wide
variety of issues. They may be as minor as the time for dinner or as major as where you will
live. A child crying for a favourite toy can be a formidable negotiator.
 You have likely been involved in numerous negotiations that will have a long-term affect on
the course of your life, including: the terms of your current employment; an automobile
purchase contract or lease agreement; or your home mortgage or apartment rental
agreement.
In fact, you must negotiate for most things you want in life. You can only avoid
negotiation if you have no desire for anything held or controlled by someone else. Regardless
of your profession, skill as a negotiator is essential to your success.

5.1.1 Description of negotiation.

Negotiation is a process of communication by which two parties, each with its own
viewpoint and objectives, attempt to reach a mutually satisfactory result on a matter of
common concern.
In negotiation, a mutually satisfactory result is vital, because even though the parties
may have opposing interests they also are dependent on each other. Labor and management,
for example, need each other to produce products efficiently and effectively. Likewise, buyers
and sellers need each other to transact business. Both sides must be willing to live with the
result. Negotiation is not one party dictating or imposing terms on another. When that
happens, the outcome will rarely produce mutual satisfaction. The result can only be mutually
satisfactory if both differences and common interests are considered.
To obtain agreement, you must generally sacrifice something in order to get something
in return. In other words, you must give to get. But as long as the anticipated benefit is greater
than your sacrifice, a negotiated agreement is beneficial. The limit is reached when one party
believes that concessions would be more costly than the benefits of agreement.
While negotiation is often a process of mutual sacrifice, it should also be a process of
finding ways whereby both parties will have their interests optimized under the
circumstances. Negotiations should not just be aimed at how to split the pie. Instead they
should be aimed at finding optimal solutions - ways to make the pie larger for all concerned.
For example, both parties benefit when negotiators find that a change in buyer requirements
will enable the seller to deliver a higher-quality standard product instead of a specially built
product. The seller realizes lower risks or perhaps more profit from the sale of a standard
product. The buyer pays a lower price for a product that meets the buyer's real needs.

5.1.2 Negotiation Success.

A successful negotiation is a product of many factors. Factors that contribute to

success in any negotiation always include:
 The specific circumstances surrounding each negotiation. This may be viewed as the bargaining
leverage available to each party involved. For example, the circumstances often favour the Seller
when the Buyer is bargaining for a high-demand product in short supply.

30
 The skill of the negotiators. Highly skilled negotiators will have a greater probability of
negotiation success than negotiators who do not have the requisite skills. Good negotiators can
often obtain favourable deals under adverse circumstances. Conversely, negotiators with poor
bargaining skills sometimes fail to obtain satisfactory agreements even when the circumstances
favour their bargaining position.
 The motivation and fairness of each party. The greater the motivation and fairness on each
party, the more likely it is that the negotiations will end with a satisfactory agreement. Successful
outcomes are more likely when one or both parties are willing to make fair concessions. The
likelihood of successful negotiation decreases when either party is poorly motivated or unfair.
Achieving negotiation success becomes particularly difficult when one party is unwilling to
compromise or show any flexibility.

5.1.3 Negotiator Abilities.

The best negotiators exhibit the ability to:

 Plan carefully. Planning begins with requirement development and continues through
negotiation. It includes market research, solicitation preparation, and proposal evaluation.
You must know the product, the rules of negotiation, and your alternatives.
 Gain management support. Management support is vital to your success as a negotiator. If
seller personnel know that management does not support your objectives, the seller's
negotiators may simply tolerate you until they can escalate the negotiation to management.
 Effectively apply bargaining techniques. Good negotiators are capable of employing
bargaining techniques which facilitate negotiation success.
 Communicate effectively. Good negotiators:
o Sell others on their bargaining position by speaking in an articulate, confident, and
businesslike manner.
o Disagree with others in a cordial and non-argumentative manner.
o Listen effectively. Many otherwise good negotiators begin to concentrate on their
answer almost as soon as the other party begins speaking. As a result, they miss the
true meaning of the communication.
 Tolerate conflict while searching for agreement. Most contract negotiations involve some
conflict. After all, no two people on earth agree on everything all the time. Negotiators who:
o Can agree to disagree in a polite and respectful manner will be able to search for
ways to achieve a mutually satisfactory outcome.
o Will give anything to avoid conflict are often not able to secure satisfactory results for
their side.
o Who display a tendency for arguing will increase the conflict and make a satisfactory
outcome all the more difficult to attain.
 Project honesty. Good negotiators are honest and they make others believe that they are
honest. Securing trust is vital to securing a mutually satisfactory outcome. Concessions are
difficult to obtain when other do not trust you.
 Foster team cooperation. All members of the negotiation team may not agree on every issue.
Disagreements must be resolved in a manner that fosters team cooperation and the
appearance of team unity during contract negotiations.
 Apply good business judgment. Good negotiators are able to evaluate every change in a
negotiating position based on its overall effect on attaining a mutually satisfactory result.

5.1.4 Negotiation Outcomes.

In general, there are three possible outcomes to every negotiation. These outcomes are
known as "win/win," "win/lose," and "lose/lose." Any negotiation can conceivably result in
31
any of these outcomes, but different negotiation styles can make one or the another more
likely.

 Win/Win Outcomes
A win/win outcome occurs when both sides achieve long-term satisfaction with
negotiation results. Negotiations emphasize developing a mutually beneficial agreement. For
example, awarding a contract at a fair and reasonable price is in the best interest of both the
seller and buyer.
Commercial businesses are emphasizing win/win negotiations because of the
increasing importance of long-term business relationships. Each side has a vested interest in
mutual long-term satisfaction. Any short-term advantage achieved by wringing out every last
concession is usually not as important a long-lasting business relationship.

 Win/Lose Outcomes.
When a negotiation results in a win/lose outcome, one side is perceived as having
done significantly better at the expense of the other. This type of negotiation tends to be
highly competitive, with a large degree of mistrust on both sides.
In commercial business, win/lose outcomes often occur when the negotiators do not
anticipate additional business beyond the initial transaction. There is no motivation to ensure
long-term satisfaction for the other side. Examples of win/lose outcomes abound in everyday
life, such as private home and auto sales where the negotiators generally do not anticipate
additional negotiations with the other party.
 Both sides often feel that they are the losers in a win/lose negotiation because of the
competitiveness and mistrust that characterized the negotiation.
 The losing side might feel good at the conclusion of the win/lose negotiation because of their
immediate perception that they obtained the best deal possible under the circumstances.
 In the long run, the losing party often regrets the agreement after discovering that the deal
was not a good one after all.
 The losing party becomes even more mistrustful of the other party and reluctant to continue
any sort of business relationship.

 Lose/Lose Outcomes.
When there is a deadlock, the negotiating outcome is known as a lose/lose outcome. A
deadlock occurs when final agreement cannot be obtained. Since both parties had a stake in a
successful outcome of the negotiation (or they would not have been negotiating in the first
place), both sides lose when negotiations stalemate and deadlock occurs.
Sometimes, avoiding a deadlock is very difficult when the other party is unfair or
uncompromising. The negotiator must decide on the better alternative: deadlocking or being
on the losing end of a win/lose outcome. Considerable effort should be made to avoid a
deadlock because the negotiator may suffer a loss whenever one occurs.

5.2 Managing the negotiation process

There are a number of ways to describe the various procedures followed by

negotiators; however, we believe that most negotiations can be seen as a loosely
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ordered sequence of six distinct stages or phases which can be presented in the
following simple format:

1. Preparation: In which the negotiators identify the issues and range of objectives
for each issue.
2. Developing a strategy: In which each party decides what strategy and style to
adopt.
3. Getting started: In which each side presents their initial demand or case.
4. Building understanding: In which the negotiators justify their position and try to
weigh up the other's position.
5. Bargaining: In which each party tries to get concessions.
6. Closing: In which final agreement is reached or the negotiations are terminated
short of an agreement.

Some of these stages are more relevant to formal negotiations between teams
or organizations than to informal discussions between individuals. However, even in
a more informal situation, the six steps provide a simple and practical framework for
managing your negotiations, and identify the skills and strategies involved in this
process. We recommend you use this six-step approach in all your negotiations, as,
whilst it is not guarantee for success, it will help you to assess the situation accurately,
select the best means of persuasion and implement your strategy effectively. It will also
protect you from making some of the most common and costly mistakes, and help you set
objectives and time limits that work for, not against, you.

The six-steps approach

1. Preparing for negotiation.

2. Developing your strategy.
3. Getting started.
4. Building understanding.
5. Bargaining.
6. Closing.

The following sections deal in some detail with the skills, and activities associated
with each stage of this approach (such as assessing relative strengths and weaknesses,
setting the agenda, and getting and making concessions) and provide hints for improving
your performance as a negotiator in each stage.

5.2.1 Step 1: Preparing for negotiation

Good preparation is essential in negotiation. A poorly prepared negotiator

demonstrates sooner or later that she/he does not know what she/he is talking about.
There are three basic elements in any preparation:
1. Setting bargaining objectives.
2. Assessing the other side's case.
3. Assessing relative strengths and weaknesses.
Let us consider each element in turn.
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 [Link] Setting bargaining objectives

In negotiating like many other activities, it is vital to understand that 'if you don't
know where you are going, you are liable to end up some place else'. What you need to
do, therefore, is to think carefully and prior to the actual negotiation about what you are
trying to achieve.

 How to set objectives

When preparing, identify a range of objectives, rather than a single target point.
This range includes:
1. A top line objective - the best achievable outcome.
2. A bottom line objective - the lowest, still acceptable, outcome.
3. A target objective - what you realistically expect to settle for.
Bargaining normally takes place between the top line objectives of the two
negotiators, whereas agreement takes place between the parties' bottom line objectives. If
the bottom line positions do not overlap, an agreement cannot normally be reached.
On the other hand, not all issues and disputes lend themselves to a range of
objectives. For example, when some matter of principle is involved, the top and bottom
lines may not really exist. Where this is the case, you should at least establish a realistic
bargaining objective. It is crucial to have a clear goal in mind while negotiating.
While the most likely outcome of a negotiation is a compromise, this does not
mean that the final agreement must be 'down the middle' of the negotiators' respective
target objectives. In fact, better preparation, more skilful bargaining or more power
usually means that one of the parties will finish closer to his/her target point.

 How to define your bargaining range

A considerable amount of information is required to establish your objectives for
the negotiation. Some of it will be available during your preparation, other information
will have to be gathered during the early stage of the discussion.
As you decide your bargaining objectives, try not to get so wrapped up in
contemplating what you can win that you forget to calculate what you can lose. Ask
yourself 'What is the most I can lose in this negotiation?'. This is your best alternative to no
agreement (commonly referred to by its acronym BATNA) and it will help you define and
decide on your target objective in a realistic way. It also determines your degree of
generosity and the level of your 'walk-away' position. If you have little to lose, your
downside risk is small. You can afford to be generous. On the other hand, if you stand to
lose a great deal, you must choose and use your objectives with great care.
In defining your BATNA, ask yourself:
 How far can I go? When should I stop negotiating?
 What will happen if I stop negotiating?
 Do I need the other party for implementing my solution?
 Do they need me?
Normally, the better your BATNA, the stronger your bargaining position, and the
more demanding you can afford to be. However, to assess bargaining power, you also
need to consider the other party's best alternative to non-agreement.
If possible, one of your bargaining objectives should be to help the other party to
feel satisfied with the outcome.
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 Finally, in negotiation, firmness and clarity are a strength. Therefore, as a rule,
your BATNA and bargaining objectives should not be altered unless the underlying
assumptions change.

[Link] Assessing the other side's case

To plan your negotiation, you may have to make assumptions about the other
side's likely reactions to your demands. Assumptions are best guesses, and must be
tested. If you act without testing your assumptions you may inadvertently spend a lot of
energy in resisting something the other party is not demanding or demanding
something the other is not resisting.
As early as possible in your preparation and negotiation, you need to carry out
the following activities:
1. Try to establish what the other party's claims are and what they are seeking to
achieve.
2. Probe whether specific problems or concerns lie behind their questions or claims.
3. Exchange factual data in advance of negotiations.
4. Consider what facts and arguments the other party is likely to use in support of
their claim.
5. Consider the possible existence of a hidden agenda. Look for underlying issues
which may influence the conduct and outcome of the negotiations or cause delay
and confusion during negotiation.

[Link] Assessing relative strengths and weaknesses

Strength is the power or influence you can exercise over the actions of the other
party.
Power and influence may take many forms, for example:
 Decision-making authority (you're the boss).
 Superior knowledge of the issues in dispute.
 Superior financial resources.
 More time to settle the case.
 The moral strength of the actual case.
 The determination or persistence of the negotiator.
 Better preparation.
 More experience in negotiating.
When assessing your strengths and weaknesses, you should bear in mind that
power in negotiation has some characteristics:
 Power is of no use unless both parties know about it and have a similar view of its
extent. If you are stronger than the others but they do not know, then you have no
effective power. If you are weak and they do not know, you are stronger than you
think you are.
 If you are stronger and both parties know it, then your basic use of this advantage in
the negotiation will be to remind them of the consequences of not conceding to your
suggestions. The skilled negotiator uses or threatens to use his/her power to
influence and persuade the other party rather than to defeat them.
 You may be the weaker of the two parties but you are never totally powerless. When
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 your case is really hopeless, plan to minimize your losses rather than to defend the
case.
 Experienced negotiators will think very carefully before they take full advantage of the
other side's weaknesses. Recognizing the need to `live together`, however uncomfortably,
gives each side some negotiating strength.
 Negotiating skill is no substitute for lack of negotiating strength. Skill can only offer
short-lived advantages.
Your own negotiation position can sometimes be strengthened by identifying and
tactfully reminding the other party of sanctions which are available if negotiations fail. These
sanctions may be financial, legal or emotional, or may relate to the effect of a particular
outcome on an organization's or on an individual's reputation, image or self-esteem. Displays
of emotion may occasionally be beneficial provided that they are sincere and used
consciously. However, try to avoid emotional outbursts.

5.2.2 Step 2: Developing a strategy

Planning your overall strategy is an important part of preparing to negotiate. Yet, at

the same time it is important not to make over-elaborate strategic plans beforehand because if
the negotiation takes a direction that you had not anticipated then you will need to adjourn to
re-examine your approach.

[Link] The key points in developing a strategy

The key points in developing your strategy are:

 What questions should we ask in the first session?
 What questions are they likely to ask?
 How will we answer these questions?
 What is our opening position?
 Do we have enough factual data and information to support this position?
 If not, what extra information could be available?
When you are negotiating as a team, also consider the following questions:
 Who will lead the discussion?
 Who will check understanding (verify facts)?
 Who will ask what questions?
 Who answers the other side's questions?
 Who will work to reduce tension and show concern for people?
In addition to determining your strategy, there are two questions to be answered before
entering the negotiation:
 What style will I adopt? Although you may not often think of it this way, everyone has his
or her own characteristic approach, or style, when it comes to managing conflict. For
example, a particular person may be characterized as being more (or less) aggressive,
dominating, inflexible, dishonest, constructive, compliant, co-operative, competitive
and so on. Let us remember the different styles of conflict management, namely the five
styles discussed in Part 4 - forcing, avoiding, accommodating, compromising, and
collaborating. There is no one best conflict style in all situations: the best style depends
36
 upon the situation.
 What tactics will I use? There are a number of additional aspects of the negotiation
which need to be considered and require decisions to be made during the
preparation. These include:
 Where to negotiate? Most negotiators feel more confident on home ground,
but for major, formal negotiations, the use of a neutral location may be
desirable.
 When to negotiate? Timing is a crucial factor in negotiation. Ensure sufficient
time is allocated to allow adequate preparation and negotiation. In particular,
avoid starting negotiations on the spur of the moment.
 How to start the first meeting? Careful attention to how the first meeting is
conducted is an important preparatory tactic. Consider the goals and
objectives of the first meeting seriously, because they have the ability to
shape the climate and outcome of the negotiation process.

[Link] Negotiation styles

We discussed about negotiation outcomes – win/win, win/lose and lose/lose. Another

issue is the negotiation styles that may lead to these results.

 Win/Win Negotiation Style.

The win/win negotiation style is to negotiate based on the merits of the situation to
obtain a satisfactory result. Generally, you will find that win/win negotiators:
 Attack the problem not each other. The differences between the two sides are a mutual
problem. In a win/win negotiation, discussions center on identifying and resolving these
differences, not attacking the messenger. Negative personal comments can add nothing to
attaining a mutually satisfactory result. Ideally, negotiators should think of themselves as
working side-by-side to resolve differences in a cordial and businesslike manner.
 Focus on long-term satisfaction and common interests. Many negotiators become so
involved with their objectives in a particular negotiation that they lose sight of the bottom
line -- long-term satisfaction. Winning a particular point in a negotiation may mean losing a
chance to achieve a mutually satisfactory result.
 Consider available alternatives. Your solution may not be the only right solution to a
particular point in the negotiation. The same may be true of the other side's position.
Attempt to identify other solutions for consideration. The final solution may not be any better
than the original solution offered by one side or the other. However, it is perceived as better,
because it was reached through mutual cooperation.
 Base results on objective standards whenever possible. Negotiators are more likely to be
satisfied with a particular result, when it is based on an objective standard. Do not refuse to
compromise simply because "that's the auditor's recommendation." What was the standard
used by the auditor in developing that recommendation? There may be many standards to
consider including: historical experience, industry practice, or projections developed using
quantitative analysis.
 Focus on positive tactics to resolve differences. Do not rely on deceptive behavior or
bargaining ploys. Tricking another negotiator may win an apparently favorable result, but the
results during contract performance or in the next negotiation may be devastating.
 Emphasize the importance of a win/win result. Remain positive during and after the
negotiation. Never gloat about winning the negotiation, even as a joke.
o The perception of the result by each side determines whether an outcome is win/win
or win/lose. In other words, the same contractual result could be viewed as being
either win/win or win/lose depending on the eyes of the beholder. For example, a
37
 $700,000 contract price could be considered a win/win or win/lose outcome
depending on how the seller views that price.
o The negotiator's behavior during and after negotiation is often the primary influence
on the other side's perception.
o Regardless of the negotiation result, the seller is more likely to perceive a win/win
outcome when the buyer negotiator exhibits win/win behavior.
o The seller is more likely to perceive a win/lose result when the buyer side appears to
have a win/lose attitude.
o You should exhibit a win/win attitude before, during, and after negotiation.

 Win/Lose Negotiation Style.

The win/lose negotiation style is to negotiate based on power and using that power to
force one negotiator's will on the other. That power could be real or only perceived by the
other negotiator. Generally, win/lose negotiators tend to:
 Use deceptive negotiation tactics to increase or emphasize their relative power in the
negotiation. These deceptive tactics may work, but once identified by another negotiator,
their use can actually jeopardize the possibility of a mutually satisfactory result.
 Focus on negotiating positions rather than long-term satisfaction. Focusing on the
legitimacy of a single position (rather than the reasons for differences between positions)
emphasizes disagreement rather than agreement.
 Be argumentative. Focusing on positions leads to arguments over whose position is better,
instead of how to reach agreement.
 Show reluctance to make any meaningful concessions. Focusing on positions also makes
them unwilling to make meaningful concessions. Any concession might lead to questions
about the legitimacy of their position. Such questions may weaken their actual or perceived
power in the negotiation.
 Be highly competitive and mistrustful of other negotiators. They do not share information
unless it is absolutely necessary. Alternatively, they may try to hide relevant information by
overloading the other negotiator with irrelevant information.

 Spectrum of Negotiation Styles.

Negotiation styles are rarely pure win/win or win/lose. Instead, they cover a wide
spectrum between the two extremes. You should strive for a pure win/win style, but many
negotiators exhibit a combination of win/win and win/lose traits during the course of a
negotiation.
For example, mildly deceptive behavior is sometimes exhibited by even the best
win/win negotiators. The use of some win/lose traits may even be justified, particularly when
dealing with a win/lose negotiator. Similarly, win/lose negotiators often exhibit some win/win
traits even though this behavior may only be intermittent or a ploy to deceive the other
negotiator.
No negotiation style or combination of styles assures a win/win outcome. In fact,
following a particular style does not even guarantee that others will perceive that you are
following that style. Behavior that is 60 percent win/win and 40 percent win/lose may be
perceived as win/lose by the opponent and may even result in deadlock. Likewise, there is
always a possibility that a negotiating style that is 30 percent win/win and 70 percent win/lose
may be perceived as win/win by the opponent.
While the proportion of win/win behavior needed to produce a win/win outcome
varies by negotiation and is never certain, the probability of a win/win outcome typically
increases in proportion to the win/win behavior exhibited by the negotiators. Conversely, the

38
probability of either a win/lose or lose/lose outcome increases in proportion to the win/lose
behavior exhibited by the negotiators.

5.2.3 Step 3: Getting started

The very beginning is probably the most important part of any negotiation,
because it will set the tone for all that follows.
There are two key elements for getting started:
1. Opening the negotiation.
2. Setting the agenda.

[Link] Opening the negotiation

The progress of a negotiation is influenced significantly by the opening

statement of the two parties, for a number of reasons:
 It conveys information about a party's attitudes, aspirations, intentions and
perceptions of the other party and the issues in dispute.
 It has the ability to shape the climate of the negotiation. The typical period in
forming this effect is short - very short: it takes usually a matter of seconds at the
beginning of the negotiation, certainly not more than minutes. Within this very short
period, from the parties coming together at the outset of negotiations, you have the
opportunity to create either a positive and constructive atmosphere or a hostile,
tough, distrustful and/or uncompromising atmosphere. Once created, the latter is
likely to be very durable and almost impossible to improve subsequently.
 It may be used by the parties to explore the other side`s overall posture before
deciding on their own.
 It can be used by the parties to establish the negotiation range.

 Who should speak first?

For the reasons noted above, it may be to your advantage to get the other party to
make their opening statement first. This will avoid a serious miscalculation as their
style may be significantly more co-operative or competitive than you expected. One
way of securing this opening position is to volunteer a brief rehearsal of the
background before full negotiations begin. Then ask them to give an idea of their
current position.
In most negotiations, the first position of either side has more effect on the final
outcome than any of the later moves. The skill comes in setting yours at the right level
and responding to theirs in the right way.

 Where should you pitch your opening position?

The convention is that you always demand more than you expect to get and offer
less than you expect to give. Therefore, your opening position should in general be
launched 'well away' from where you hope to settle. 'Well away' openings give you
time and space to negotiate for your target settlement.
There also is plenty of evidence to show that the more you ask for, the more you
get. However, the real gains from an extreme opening position must be weighed against
the considerable loss of face that results from a big 'climb down' which may be
necessary to avoid a breakdown in the negotiation.

39
  How do you respond to the other's opening position?
If it is convention to ask for more than you want, then it must also be convention
to reject first and other early offers. Thus, never accept a first offer, however attractive
it may seem. If you ignore this opening convention and make your 'best offer first', the
other party is unlikely to do the same. Instead, they will reject what you propose and
use that as a starting place for their negotiation.

[Link] Setting the agenda

To be effective, the negotiators need a common understanding of what is to be

discussed and why. The subject, scope and purpose, therefore, need to be agreed before
negotiations commence.
For formal negotiations, this definition of the agenda should be in writing,
providing the other party with time to prepare arguments and responses. However, do
not be bound by the assumed `legitimacy` of a written agenda. The agenda always
remains negotiable.

5.2.4 Step 4: Building understanding

This phase of the negotiation has three components:

1. Getting information.
2. Testing arguments and positions.
3. Using timing and adjournments.

[Link] Getting information

In negotiation, information is power. The more information you call get from the
other side the better.
It seems obvious that to gain information, you should ask questions. However, in
real negotiations it is remarkably easy to get so wrapped up in presenting your own
case that you forget to ask questions at all.
The quality of the information provided by the other party depends largely on the
type of questions asked. To maximize the amount of information provided by the other
person, you should ask the following types of questions: open, probing, closed, or
hypothetical questions.
In addition to asking questions, there are a number of other techniques which
can be useful for getting the other side to tell you more about their case, such as:
 lubricators (such as 'Yes', 'Go on', 'mm', and 'Ah-ha' indicating to the other
party that you are listening and want them to continue),
 comparisons (e.g. `What are the relative merits of this proposal?`)
 silences,
 bridges (e.g. `I think that is all we need to say on that topic, now let`s turn to…
`)
 repeating or paraphrasing (e.g. `What you seem to be telling me is that…`),
 summaries (e.g. `What we seem to have discussed and decided so far is…`).

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 [Link] Testing arguments and positions

Having obtained more information from the other party, their case should be
tested. In particular, when testing the other side`s case, you should look for the
following flaws or distortions in the arguments of the other negotiator:
 Factual errors or omissions.
 Faulty logic.
 Selective use of statistics.
 Hidden agenda.
 Misinterpretation of priorities.
In this phase of the negotiation it is extremely important that you allow the other side
to make their case fully before you reply. This means that you:
 Do not interrupt the other party's responses to your questions.
 End each statement with a direct question.
 Say only what is necessary. Remember that professional negotiators spend a lot more
time listening than talking.
 Summarize regularly what has been said. Be careful to use your own words rather than
mimicking or parroting what has been said by the other party.
 Avoid being side-tracked. New issues may be introduced into the negotiation as a
diversion, or to provide opportunities for trade-offs between parts of a bargaining
package.
 Above all, never give information unless you get something useful in return.

[Link] Using timing and adjournments

In planning and conducting negotiations, positive attention should be paid to the

duration of bargaining sessions, formal presentations and individual contributions to the
discussion. Some authors recommend that one individual session should rarely exceed two
hours, a formal presentation 15 to 20 minutes, and an informal contribution 2 to 3 minutes.
Longer discussions often lend to boredom, loss of attention, fatigue and/or unproductive
exchanges related to a 'random walk' syndrome.

 How to use adjournments?

Adjournments can be used as powerful aids to negotiation. You should use them
whenever you find yourself in a situation with the following conditions:
 You need a few moments to absorb and consider the impact of important new
information that has an effect on your strategy or position.
 You recognize an important change in climate or style on the part of the other
party.
 A strategy or a particular tactic being followed proves ineffective, and a new
strategy or tactic needs to be developed.
 You need time to think through new claims or proposals being put forward by the
other party.
 You would like the other party to give proper consideration to your new proposal
or concession.
 You notice that the conflict is escalating and you need a 'cooling off' period.
 You need to get approval for a decision from your constituents; or you need to get

41
 their viewpoint.
 The discussion has been going on for too long and everybody is getting hungry
and tired. You need a break.
 You feel it may be useful to provide an opportunity for informal, exploratory talks
with the other party, away from the bargaining table.

 Who should call an adjournment?

The time to call for an adjournment is when the need first becomes apparent.
Failure to do so for fear it may be perceived as a disruption or a waste of time by the
other party is self-defeating.
Always summarize progress made so far before leaving the negotiation room.
Recapping is especially important in negotiations where topics discussed are complex.
Following the summary, get explicit agreement on what you and the other party will
discuss in the next meeting. Otherwise, the other may well succumb to a temptation to
start over from the beginning or reopen the discussion of an item that has already been
settled.
Finally, remember that the need for an adjournment is not negotiable. There is no
need to ask permission for an adjournment. You have but to announce that you need time
to adjourn and leave the bargain table.

5.2.5 Step 5: Bargaining

This phase can also be separated into three components:

1. Getting and making concessions.
2. Breaking deadlocks.
3. Moving towards an agreement.

[Link] Getting and making concessions

A concession is a revision of a previous position you have held and justified

publicly. Concessions are always expected in negotiations, but the parties nevertheless
try to move as little as possible.
Any concession presents you with three problems:
1. Should I make it now?
2. How much ground should I give?
3. What am I going to get in return?
There are a number of approaches you can use to deal with these problems. One
approach is to make conditional offers. By attaching conditions to your concessions, you
get something for something rather than something for nothing. So whenever possible
look for something in return for every move you think of making. When making
conditional offers, introduce the condition first and do not give details of the
concessions until the other party shows some willingness to negotiate on the condition.
In addition, when considering concessions, keep in mind that:
 A good concession usually is a small one. Major shifts make it difficult for the
negotiator to maintain a credible position and will almost certainly encourage further
pressure from the other party to move even more.
 You may sometimes be in a position where you have little or no room to manoeuvre;
but generally, it is a disaster to go into any negotiation with no concession in mind or
possible.
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 You should always try to promote in the other party a willingness to make
concessions. You can do this by:
- Convincing them that they cannot hold to their present position.
- Showing them how they can move without loss of face.
- Indicating that you too will move at some time.

[Link] Breaking deadlocks

As part of planning for negotiation, it is essential to think about the situation

which would occur if the negotiations failed to achieve agreements.

 Why do deadlocks arise?

Deadlock or stalemate can arise for a number of reasons, including the following:
 Both parties have widely divergent objectives.
 One party mistakes firmness for rigidity and will not make concessions even to
keep the negotiation 'alive'.
 As a deliberate tactic during a negotiation to force the other party to reconsider its
position and make concessions.

 How do you handle deadlocks?

It is unwise to allow a negotiation to fail if the probable outcome, whether
because of action by the other party or through third-party, is worse than the position
reached when breakdown occurs.
Several devices can be used to break a deadlock in negotiations, such as promises
of future negotiations on a related topic, or making the introduction of a new condition
subject to later review.
However, the main options for handling deadlocks are to take unilateral action to
enforce an outcome, or to seek third-party intervention.

 What types of third-party intervention are there?

The least extreme form of third-party assistance is conciliation, in which a
conciliator works with the two parties to help them reach agreement.
Mediation is a more direct form of help. Here both parties agree to consider (but
are bound to accept) a solution suggested by the outsider.
Arbitration is the most powerful and risky form of third-party intervention. This
is where both parties bind themselves in advance to accept the third-party's solution.

[Link] Moving towards agreements

The purpose of negotiation is to reach agreement, not to score points in argument.

However, in most circumstances, quick settlements should be avoided. They tend to
result in extreme outcomes (high or low) and favour the more experienced negotiator.
The closer a negotiation is to reaching agreement, the more sensitively the
discussion needs to be handled. A variety of tactics can be used to facilitate progress
towards agreements, such as:
 Advice and suggestions. For example 'You may be able to deal with this issue by ...',
'The disadvantage of that is . . .'.
 Promises to indicate that compliance with what you want will benefit the other
party. For example 'If you give us ... then we may be able to help you with ... '.
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 Threats to indicate that failure to comply with your wishes will have adverse
consequences as far as the other party is concerned. For example 'If you do this . . .
then we shall be forced to... '.
 Explanations to tell the other party exactly why you want him/her to take certain
actions. For example, their effects on organizational performance and on other
people within the organization.
 Praise to let the other party know what kinds of things you value and therefore are
likely to be appreciated in future. For example 'I think that was a valuable
comment ... ', 'We appreciate your frankness... '.
 Criticism to let the other party know that you are highly dissatisfied with his/her
behaviour. For example 'Please do not interrupt me'.
 Leading questions to gain compliance or acceptance by signaling quite clearly the
response which the other party is expected to give. For example 'You must agree
that ... ', 'Don't you think that…`, `You do see the point why…`.
 Apologies can help to stop a `perceived` emotion inhibiting rational discussion,
particularly if combined with a constructive discussion of ways of avoiding similar
reactions in future. For example `First of all I must apologize for…`, `I`m very sorry,
I didn`t realize…`.
 Adjournments are probably more useful than any other technique as means of
handling high emotions.
 Humour can reduce tension and help create a bond between the parties.
 Proposals may initially be put as hypothetical suggestions. This makes it easier for
both parties to avoid the pressure of immediate acceptance or withdrawal. Remember
that fear of losing face can severely inhibit progress. So, there is a positive advantage
in making it easy for the other side to move, rather than challenging them on a win-
lose basis. Remember also that proposals are best sold on their advantages to the
other party, not to your own benefits.

5.2.6 Step 6: Closing

Normally, the closing phase of a negotiation comprises three stages:

1. Formulating an agreement.
2. Ensuring implementation.
3. Reviewing your negotiating experience.

[Link] Formulating an agreement

To get an agreement, the other party needs to be convinced that she/he cannot push
you any further. She/he may believe this if:
 Your final offer is tabled with conviction.
 Your final offer is not seen as yet another in a chain of final offers.
 The nature of your concessions has become minimal and they won with increasing

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 difficulty.
 Your previous willingness to move is no longer apparent despite pressure being
applied.
 You suggest that the other party refers your 'final offer' to his/her members for
consideration.
 How do you make final offers?
 Your final offer and agreement needs to be timed to with a period of constructive
discussion – not during a combative phase.
 It is important to achieve credibility for any statement about an offer being final – the
tone and style of such statement may be as important as its substance.
 How to formulate an agreement?
Before formulating an agreement, check that all aspects have been agreed, particularly
dates for implementation, reviewing or completion, and definitions of terms. Ensure full
understanding of what has been agreed by final summaries and by producing written
confirmation. Some record of the outcome of negotiations, however informal, is desirable.
Unresolved issues should not be 'fudged' by producing vague or ambiguous forms of words in
order to achieve apparent agreement.
 How can you identify a `good deal`?
Regardless of what is agreed, both parties will always express their satisfaction with
the final deal. You should expect the other party to 'broadcast' their satisfaction with the deal
to which she/he has agreed (as you no doubt will yourself!) to show to those she/he
represents that a good job has been done on their behalf. She/he is judged and rewarded by
them on what is 'delivered'.
While both parties may win, it is rarely a 50/50 split finish. The better share goes
either to the party which has the power, and knows how to use it, or the party which plans
and conducts its negotiation better, when power is equal.

[Link] Ensuring implementation.

An agreement is not successful until it has been effectively implemented. It is

therefore often helpful to include an implementation programme as an integral part of a
negotiated agreement. Such a programme will define what has to be done, when and by
whom.
For some agreements, implementation may be best effected by a joint team. Those
affected by, or required to apply, an agreement need information and explanation, even
though they are not involved in the actual negotiation. This communication should be based
on defining who needs to know what, how and by whom this information should be given and
by what methods and what time-scales.

[Link] Reviewing your negotiating experience

After closing the negotiation, you should review your experience. Ask yourself
the following questions:

 How satisfied are you with the outcome of the negotiations?

 Who was the most effective negotiator? Who conceded most?
 What strategies and actions helped the discussions most?
 What actions hindered the discussion?
 Did you trust the other party? What affected this feeling most?
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 How well was time used? Could it be used better?
 How well did people listen to each other? Who talked most?
 Were creative solutions suggested? What happened to them?
 Did you have a good understanding of the underlying issues and concerns of the
other party? Did the other party understand yours?
 How adequate was your preparation? How did this affect the negotiation?
 What were the strongest arguments put forward by the other party? How receptive
was the other party to your arguments and ideas?
 What are your main learning points from this negotiation? What would you do
differently next time?

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