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UNIT V Management and Organizational Behaviour

Syllabus:Power-Sources of Individual, Functional, Divisional Power || Organization politics || CONFLICT MANAGEMENT- Definition Causes and Consequences - Pondys Model of Organizational Conflict Conflict Resolution Strategies || Negotiation||communicating effectively in organisationscommunication process-barriers to communicationovercoming barriers to communicationp-Persuasive communication-communication in crisis situations.

Topics covered: Definition-features-sources.

DEFINITIN:Potential ability to influence the behaviour of other people. Acconding to Robbins:the capacity that A has, to influence the behaviour of B, so B does something he would not otherwise do. Features of Power:

Power can be potential that need not be actualized to be effective. It has dependency relationship. It is specific. It can be exercised by some people. Discretion: the assumption employee has some discretion over his own behaviour. Influence is a behavioural response to the exercise of power. It is based on the two-way concept of influencing others and getting influenced in the process. Power is, somewhat, elastic in nature.

Power Ability: Power is the ability of an individual to affect and influence others. Leadership: Power is generally associated with leadership. Broad: Power is a broader concept and includes authority also, in some sense. Authority is nothing but institutionalized power. Two faces: Power has two faces. Negative and positive. Personal domination at the expense of others is negative. Socialize power is a praiseworthy positive face. Authority

Right: Authority is the right to command and extract work from employees. Managership: Authority is vested with manager. Narrow: Authority is a narrow concept. A manager may have considerable authority but still may be powerless. Congruence: We cannot make such markedly distinct faces of authority. Such distinction becomes ridiculous with regard to authority.

Topics covered: Definition-Features-Consequences-Causes/reasons/sources-Managing politics or political behaviour-Techniques of organizational politics. DEFINITION:Politics refers to the way people gain and use power in organization. According to TUSHMAN: Politics refers to the structure and process of the use of authority and power to affect definition of goals, direction and the other major parameters of the organization. Decisions are not made in a rational way but rather through compromise, accommodations and bargaining According to FARRELL AND PETERSON:: Politics in an organization refers to those activities that are not regarded as part of ones formal role in the organization, but that influence or attempt to influence the distribution of advantages and disadvantages within the organization FEATURES/CHARACTERISTICS OF ORGANISATIONAL POLITICS:


Politics is inevitable in organizations. Political action begins when a member recognises that achievement of his goals is affected by the behaviour of others. Politics takes place in varying degrees in all organisatins and at all levels in an organization. Political action is characterized by power. These exists wherever people work together. Political behaviour generally begins at the top and percolates throughout the organization. Organisational members often adopt double standards in politics. Use power over others:- Organisational politics involves the use of some kind of authority, power or pressure over other person or groups ( eg: Rewards and punishment). Self Serving :- Political behaviour is self serving in nature( eg: using organizational resources for personal benefit). Not officially blessed:- Political behaviour is outside ones specified job requirements (not formally recognized practices or procedures). Not rational : - Political decisions may not be rational from the organizational point of view.

Intentional :- Political behaviour is intentional and is designed to acquire an maintain power.

CONSEQUENCES OR POLITICAL STRATEGIES AND TACTICS (TO ACQUIRE POWER): Various political strategies are pursued by individual with a view to enhance their image and gain respect from others. Some of the common strategies used be organization members of an organization to protect and enhance their interest are given below:
Maintain alliances with powerful people strong allies. Commit the uncommitted. Create a sponsor protg relationship. Develop winning power coalitions. Attack and blame others. Selective use of information : Control the flow of important pieces of

information to suit personal ends.

Scapegoating : Insuring that someone else is blamed for a failure. Image building. Net working : Insuring that one has many friends in positions of influence. Fabianism : Avoiding decisive engagement. Progress one step at a time instead of trying to push a whole major change. Persuasion which relies on both emotion and logic. Support building for ideas. Falsification or hiding of important information. Creating obligations and reciprocals. Passing the buck. Exhibit confidence. Rule manipulation (divide and rule). Employ trade-off. Control the generation and dissemination of information instrumental use of

Take counsel with caution. Build personal stature image building. Develop expertise. Withdraw from pretty disputes.

Conclusion : All these forms will result into either wastage of organizational resources or downing of morale of people in the organization. In both these cases, organizational efficiency will suffer.

CAUSES OR REASONS OF ORGANISATIONAL POLITICS:The basic reason for political behaviour is to overcome resistance or opposition. If there is no opposition, there is no need for politics. Individuals resort to politics in organizations because of the following reasons:
1. Scarcity of Resources :

Political influence plays an important role in how these limited resources will be distributed to various departments rather than rational needs.
2. Non-Programmed Decisions:

Non-programmed decisions involve unique problems which cannot be solved by known and structured methods and procedures. Eg. Ambiguous decisions, long rang strategic decisions etc.
3. Ambiguous Goals:-

The more ambiguous and complex the organizational goals become, the more politics there will be.
4. Technology and External Environment:-

The generally acceptable opinion is that the more complex the internal technology of the organization, the more politics there will be. Similarly, politics will be more if external environment is highly volatile.
5. Organisational Change:-

Whenever there are changes in the organizational structure or rearrangement of organization policies, people in the powerful positions have the opportunity to play political games.
6. Lust for Power/Competition of power:-

People want to acquire and enhance power in the organizations. They aim at increasing the area of their influence. Example : Conflict between line and staff elements.
7. Discretionary Authority:

There are some positions in the organization which have discretionary powers to be used in case of emergency. The use of power depends upon the sole judgement of the position holder. That is why, people indulge in politics to grab such positions or to be very close to such a position holder.
8. Saturation in promotion:-

People have a feeling that they have reached saturation level of promotion. When they reach the maximum level as per their talent and skills, they resort to political behaviour.
9. Saturation in Career:-

To rise in ones career, a person needs competence. But when a person does not have the requisite competence, he cannot rise above a certain level. In such cases, he may resort to political behaviour to move up in the organisational hierarchy.
10. Organisational Culture:-

Organizational culture characterized by

Low trust, Role ambiguity, Inequitable performance evaluation systems, Reward systems, Communication methods, Participative decision making processes

Will create opportunities for political activities to breed.

11. Psychological Factors: Employees who are authoritarian, have a high risking propensity or

possess external locus of control exhibit political behaviour.

An individuals investment in the organization it terms of expectations

of increased future benefits, alternatives job opportunities and expectations of future success will influence the degree to which he or she will pursue, illegitimate means of political action.
12. Subjective Evaluation of Performance: This may happen where performance cannot be measured quantitatively

( job of personnel manager or Research and Development manger).

If members may think some bias in superiors

evaluation, they may

forced into dysfunctional political behavour.

13. Joint Decision Making: Large

organizations emphasize on joint decision-making to solve

common problems.
Joint decision-making generates conflict and politics. In order to get favourable decision, people involve in politics by forming

coalitions associations.


The political behaviour in organisations is impossible to be eliminated in toto. Management may take the following steps to minimize the dysfunctions of organizational politics.
1) Ethical and positive role model:- Top management should provide a positive

and ethical role model themselves. They should make it clear to subordinates

that such political games will not be accepted which are detrimental to employees morale and organizational climate. Lower level people will accept or ignore politics only if the top management does so.
2) Open and honest communication:- If the communication system in the

organization is open and honest, political behaviour can be constrained. If necessary information is available to all the people regarding the availability and allocation of scarce resources, then it would not be necessary for people to engage in political behaviour to acquire or control the information.
3) Elimination or reduction of uncertainty:

If the overall objectives of the organization and the individual goals are ambiguous and changes are not made known to the people, then there will be more politics in the organisation. Participative decision making and provision of all the relevant information to the subordinates at the appropriate time will reduce the necessity of political game play. Employees must be clear about the organizational as well as their individual goals.

4) Study the political behaviour:

The top management should make a study of the psychology and philosophy of the political behaviour prevalent in their organization. This knowledge will help the top management in constraining the political behaviour when it occurs as well as anticipating it and taking appropriate steps to avoid it from occurring. Thus, management can minimize the effects of political behaviour by being aware of the causes and techniques of such behaviour.

Topics covered:CONFLICT MANAGEMENT- Definition Causes and Consequences types or sources Pondys Model of Organizational Conflict Conflict Resolution Strategies DEFINITION: 1 It is a perceived difference of values between two or more parties that results in mutual opposition (opposing interests or goals or opposing behavior). This definition reveals the following features of conflict:
(1) Incompatibility (2) Perception (3) Blockage (4) Scarcity (5) Latent / Overt (6)

Verbal / Non-Verbal. DEFINITION: 2

It can be defined as a disagreement between two or more individuals or groups, with each individual or group trying to gain acceptance of its view or objectives over others. -- David L. Austin DEFINITION: 3 Conflict can be defined as, the appearance of difference, difference of opinions, of interests. --- Follett FEATURES OF CONFLICT:

Conflict must be perceived by the parties to it. Conflict is dynamic process as it indicates a series of events. Conflict between two individuals implies that they have conflicting perceptions, values and goals. Conflict behavior ranging from passive resistance to over aggression Conflict is associated with situations that involve contradictory or irreconcilable interest between two opposing groups. Conflict has considerable influence on the behavior, performance and satisfaction of employees. Conflict is not an organizational abnormality. Conflict is inevitable. It is an inherent structural component in all social relations. Conflict is neither bad or good for organizations. Conflict is not always caused by trouble makers. (structural factors like career structure, physical shape of a building etc.) Conflict is integral to the nature of change. Conflict is not only inevitable but sometimes desirable.

PONDYS MODEL OF ORGANIZATIONAL CONFLICT:In 1967, Pondy developed a process model of conflict which is very useful in understanding how conflict starts and what stages it goes through. Conflict is considered as a dynamic process. Process here indicates a series of events. Pondy indentifies five stages in what he calls a conflict episode. Each conflict is made up of a sequence of interlocking conflict episodes.
1. Latent conflict 2. Perceived conflict 3. Felt conflict 4. Manifest conflict 5. Conflict aftermath







1. Latent conflict:- Each episode of conflict begins with a Latent conflict.

Latent conflict is the stage in which factors exist in the situation which could become potential conflict inducing forces. Important sources of organizational conflict such as : (i) Competition for scarce resources (ii) Drive for autonomy (iii) Divergence of goals (iv) Role conflict. Latent conflict provides the necessary antecedent conditions for conflict in organizations. Here, participants only anticipate conflict.
2. Perceived conflict: conflict may sometimes arise even if no conditions of latent

conflict exist. Here the basic sources of conflict like divergent goals, competition for scarce resources do not exist. Conflict results due to the parties misunderstanding of each others true position. Such a conflict can be resolved by improving communication between the parties.
3. Felt conflict:- X and Y working in a departmental store are

in serious

disagreement over the interpretation of the policy Customer is the king and are arguing for hours together. If this episode does not make X tense or anxious and has no effect on Xs relationship with Y then it can be safely concluded that conflict is not felt by the parties. Even though people perceive that there is a bases for conflict, conflict will not arise unless the differences become personalized or internalized (felt).
4. Manifest conflict:- This is the stage for open confrontation. It takes the form of

conflictive behaviour, including open aggression, sabotage, apathy, withdrawl, strict obedience to rules, etc., all of which reduce organisations effectiveness.

5. Conflict Aftermath:- The aftermath of a conflict may be either positive or

negative for the organisation depending on how the conflict is resolved. If the conflict is genuinely resolved, it can lead to a more enduring and cooperative relationship between organizational participants. If the conflict is merely suppressed but not resolved, the latent conditions of conflict may be aggravated and explode in more violent and serious forms. This legacy of conflict is called conflict aftermath.

CAUSES AND CONSEQUENCES: CAUSES OF CONFLICT:The causes can be restructured and placed into three distinct categories. These categories deal with the following aspects.
1. Communicational Aspect of Conflict: Lack of proper communication can be a

cause of conflict. If due to the poor communication, partial or misunderstood information is passed from the sender to the receiver of communication, it can make a difference between the success and failure of the task. The following problems of communication process may be due to:

Too much or too little communication. Filtering of communication which means that information is passed through many levels or through many members. Semantic problems arise due to difference in background, training, selection perception and inadequate information about others. Problems of noise.

All these problems may tend to stimulate misunderstanding among members, which if not resolved will result in conflict. Accordingly, adequate, complete and correctly understood communication is very important in orderly completion of tasks, thus reducing the chances of conflict.
2. Behavioural Aspect of Conflict :- The behavioural aspect of conflict arises out

of human thoughts and feelings, emotions and attitudes, values and perceptions and personality traits. Some of the important causes of this aspect of conflict are:

Some peoples values or perceptions of situations are particularly likely to generate conflict with others. This conflict may also be based on personal biases regarding religion, race or sex. Some of these conflicts are not about issues but about persons. This conflict may also arise due to differing viewpoints about various issues.

The widening gap between have and have not also causes considerable sconflict ( bcz of frustration in their mind). From an organisational point of view, there is conflict between the goals of the formal organisations and the psychological needs of the individual, because both of these are inconsistent with each other.

3. Structural aspect of conflict: - These conflicts arise due to the structural

design of the organizations. Some of these factors are :

The larger the size of the organization, more will be the chances of conflict. Frequent and continuous source of conflict is distinction between line and staff units within the organisation. Participation of the subordinates in the decision making process is a cause of conflict. If greater participation opportunities are provided to the subordinates, the level of conflict will be even higher, because participation will create awareness about the individual difference.

Role ambiguity is also a cause of conflict ( role is not clearly defined). Poorly designed work flow structure and poorly planned coordination requirements specially where tasks are interdependent. Scarcity of resources like capital, facilities, staff assistance etc, causes conflict among the people and units.

(If you get only causes of conflict as an essay question, write the following types or sources as causes of conflict). TYPES OR SOURCES OF ORGANISATIONAL CONFLICT:- ( Read from C.B.GUPTA)

CONSEQUENCES OF CONFLICT : POSITIVE (FUNCTIONAL) CONSEQUENCES : 1. Major stimulant for change: Conflict spotlight the problems that demand

attention, forces clarification of their nature and channelizes organizational efforts towards findings better solutions. It initiates a search for ways to polish and refine objectives, methods and activities.

Group think is avoided: - Without strong vocal disagreement, group think could overpower a highly cohesive group, preventing it from making rational decisions based on facts.

3. Conflict fosters creativity and innovation :

It prevents stagnation. It stimulates interests and curiosity. In an atmosphere of open confrontation, people tend to put forward more imaginative solutions to problems.

A climate of challenge compels individuals to think through their own ideas before airing them out. Conflict can help individuals to test their capacities to learn and develop.

4. Cohesion and Satisfaction : -

Inter-group conflict and competition drives groups closer together. Under conditions of mild inter-group conflict, group membership can be very satisfying to members. In the face of a common enemy, group members close ranks and put aside former disagreement. Example: petty conflicts between cricket team members are generally put aside before the big game.
5. A minimum level of conflict is optimal : -

Conflict is necessary for the internal stability of organisations. The occasional flare-up of inter-group conflict serves to balance power relationships between departments. It also helps individual in reducing accumulated ill-feelings and tensions between them. A good fight clears the air. NEGATIVE (DYSFUNCTIONAL) CONSEQUENCES :1. Conflict creates stress in people :

Conflict exact its toll on the physical and mental health of the combatants. Intense conflicts generate feelings of anxiety, guilt, frustration and hostility. Winners try to injure the feelings of the defeated. Losers feel defeated and demeaned. The distance between people increases. A climate of mistrust and suspicion develops. Division replaces cohesion. Losers indulge in non-cooperation and pay scant attention to the needs and interests of other group members.

2. Diversion of energy : One of the most dreadful consequences of conflict is the diversion of the

groups time and effort toward winning the conflict rather than toward achieving organizational goals.
Parties focus on their own narrow interests and tend to put their own aims

above those of the organization.

Long-term goals begin to suffer as short term problems

become more

Much energy is drained off in trying to put out the fires.

In extreme cases, sabotage and even illegal activities occur. 3. Instability and chaos: Under intense conflicts, collaboration across individuals, groups and

departments decreases or vanishes.

Tensions will continue to mount up and each new conflict will split

organization sub-units further apart leading to communication breakdowns.

The normal work-flow is disrupted. The moral fabric of the group torn apart and the whole system is skewed

out of balance.
4. Disequilibrium:-

Conflict disturbs the equilibrium in the organization. The contributions of individuals do not match their inducements because some of their energies are used in conflicting behaviour.
5. Rigidity:-

Authority and responsibility relationships among members become more clearly defined. As a result, the organization structure becomes more rigid. Groups becomes more task-oriented and leadership becomes more directive.
6. Distorted communication:-

Perceptions get distorted because each group develops negative perceptions toward the other, when in conflict members avoid interactions with each other. As a result, communication ceases to exist.

CONFLICT RESOLUTION STRATEGIES :Conflict is destructive in nature and it should be resolved as soon as possible after it has developed, but all efforts should be made to prevent it from developing. There may be two approaches/strategies for managing or resolving the organizational conflict i.e (A)Stimulating Conflicts (B) Preventive measures (C) Curative measures. (B) STIMULATING CONFLICTS : - Conflicts may be stimulated when there is too much lethargy and conformity in an organization. The following methods may be used to stimulate conflict: (1) Reorganising : - Changing the structure of an organization is an effective method of stimulating conflict. When work groups and departments are reorganized, new entrants and responsibilities arise. Members try to readjust themselves and in this process improved methods of operations may develop. (2) Communication:- Conflicts can be stimulated by redirecting messages and altering channels of communication.

(3) Encouraging Competition:- Healthy competition between individual and groups may be stimulated through properly administered incentives, bonuses, awards for excellent performance can foster competitive spirit in the organization. (4) Bringing in Outsiders:- Management may shake up a stagnant organization by bringing in people whose attitudes, values and style differ significantly from the prevailing norms. When such heterogeneous persons join an organization, status quo is disturbed. Divergent opinions, innovative ideas and originally can be developed. (B) PREVENTIVE MEASURES : - In the preventive measures, the management tries to create a situation or environment where dysfunctional aspects of conflict do not take place. Some of the preventive measures which the management can take to manage the organizational conflicts are :
(1) Establishing common goals : The major reason for the development of conflict is the incompatible goals. This is particularly true in case of conflict among groups and between

individuals and organization.

The basic strategy of reducing the conflict should be to find common

goals upon which groups can agree and to reestablish valid communication between the groups.
The mutual dependence of groups can be brought through the super

ordinate goals
Super ordinate goals are those that take precedence over other goals that

may separate the conflicting parties.

Group conflicts can also be reduced through the use of incentive systems

designed to reward the activities that benefit the larger system.

(2) Reduction in Interdependence : The main reason for inter-group conflict is interdependence among them

e.g. line and staff managers.

As such, less the interdependence, less will be the amount of conflict

among them.
In organizations, such interdependence cannot be altogether avoided. Instead of separating the units organizationally, they can be separated

Even the physical separation is not a permanent measure of managing

(3) Reduction in Shared Resources : -

Another reason of inter group conflict is sharing of the scarce resources by

the groups.
The management of conflict suggests reducing the sharing. One technique for this can be increasing the resources, so that each unit is

independent in using them.

But as the resources are scarce, they cannot always be increased. Thus, the best possible alternative is optimum allocation of the scarce

(4) Trust and Communication : The greater the trust among the members of the unit, the more open and

honest the communication will be.

Individuals and groups should be encouraged to communicate openly with

each other, so that misunderstandings can be removed and they are in a position to understand the problems of each other when necessary.
(5) Coordination : After communication, the next step should be proper coordination. Proper coordinated activities reduce the conflict. Wherever there are problems in coordination, a special liaison office should

be established to deal with these problems.

(6) Exchange of Personnel : Another method of reducing and managing conflict is that personnel of

conflicting groups may be exchanged for a specified period.

Exchange of people is very similar to role reversal. It is aimed at greater understanding between people by forcing each to

present and defend the others position.

(7) Use of Superior Authority : If conflict cannot be resolved by two organizational members or by two

groups, it may be referred to a common superior, who will resolve the conflict by giving a decision.
Such a decision may not necessarily bring agreement, but it will usually be

accepted because of the recognized superior authority of high ranking official.

(8) Reorganization of Groups : A manager can prevent the occurrence of many conflicts by reorganization

the groups.
People who have got something in common will be placed in one group.

Because of something in common, these people tend to see things in the

same perspective, to have common interest and objective, to approach problems in much the same way.
The behaviour of such groups is more predictable and it is easy for the

manager to avoid conflicts. (B) CURATIVE MEASURES : - The curative measures include the resolution of conflicts when they take place and become dysfunctional in the organization. Two questions are involved in this : (i) What are the different conflict resolution modes ? (ii) How can the manager know which type of conflict resolution style should be adopted under what kinds of circumstances?
(1) Avoiding (withdrawn): An avoiding style may appear to have no value as a mode of managing

An avoiding style may reflect a failure to address important issues and a

tendency to remain neutral when there is a need to take a position.

An avoider exhibits detachment from the conflict and a readiness to comply or

conform, based on indifference. Avoiding is advisable in the following situations:

When you desire that people should cool down. When more information is needed to make a good decision. When someone else can resolve the conflict more effectively. (2) Competing (dominance) : A competing style is high on assertiveness and low on cooperativeness. This style is power oriented and approaches conflict in terms of WIN-LOSE

On the negative side, a competitor may suppress, intimidate or coerce other

parties into conflict.

On the positive side, a competing style may be necessary when a quick,

decisive action is required.

Competing may be required when you know you are right is an issue. (3) Collaborating (win win) : Collaborating involves an attempt to work with the other person to find

solutions that would be satisfying to both parties.

The collaborating style is high on both cooperation and assertion. It is possible only

if the parties to a conflict recast it as a problem solving

situation. A problem solving approach requires the following conditions : - There is an attempt to depersonalize the conflict.

- The goals, opinions, attitudes and feelings of all parties are accepted as legitimate concerns, and all parties play a constructive role. - The parties realize that a conflict issue can make a constructive contribution to the quality of human relationships.
(4) Accommodating (smoothing): The accommodating style is low in assertiveness and high in cooprativeness. Showing too little concern for personal goals. Such a lack of concern may lead to lack of influence and recognition. These conflicts are resolved without each party to the conflict presenting his

or her view in a forceful and meaningful way. It is useful in the following situations:
A conflict issue is more important to the other person. Another styles disadvantages outweigh those of the accommodating

Maintaining harmony is important. It is advantageous to allow the other person the experience of winning

and lastly when.

An element of self sacrifice in this mode. (5) Compromising (lose-lose) : -

A compromising style results in each conflict participant sharing in some degree of winning and losing. It is useful in the following situations:
Compromise is an expedient mode to settle complex issues in the short run till

a more thorough and permanent solution to the problem can be found.

It is useful, when solutions have to be arrived at under extreme time

It can also be used as a backup mode when both collaboration and

competition fail to work effectively in resolving the conflicts.










Topics covered:Negotiation-Definition-types of approaches/strategies-process-issues-guidelines.

DEFINITION: Negotiation ma be defined as a process in which two or more parties exchange goods or services. It includes bargaining strategies, the process of negotiation and issues in negotiation. According to Neale and Bazerman : Negotiation is a decision making process among interdependent parties who do not identical preferences. It is through negotiation that the parties decide what each will give and take in their relationship. According to Alan Fowler : Negotiation is any form of meeting or discussion in which you and/or the persons you are in contact with use argument and persuasion to achieve an agreed decision or action.


There are two general approaches to or strategies of negotiation.
A) Distributive Bargaining and B) Integrative Bargaining. A) Distributive Bargaining:-

Where two or more parties negotiate over price, it is known as distributive bargaining. It operates under zero-sum conditions. One person wins at the cost of other. The essence of this is negotiating over who gets what share. For example: Labour-mangement negotiations over increases in wages indicates that labour gets higher wages at the cost of loss of profit to the organization. Both the parties negotiate with their target and resistance points. Both the parties focus on the others area. Both parties agree to intervene in each others area. In this case, one party gains an the other loses. Settlement can be achieved only if there is some overlap between the two parties aspiration ranges.
B) Integrative Bargaining.

Integrative bargaining is a win-win strategy where both the parties win. It builds long term relationships and helps to create a congenial atmosphere. Sale on credit and salesman bargaining with customers (salesman is able to sell whereas the customers are getting goods and services), increasing wages on the condition of increasing production are the examples of integrative bargaining. It is not very common in organizations. It requires that both the parties should be

open with information and candid about their concerns, sensitive to each others needs, able to trust one another and willing to maintain flexibility.

The above 4 conditions, generally, do not exist in organizations. Conclusion: the negotiations instead of having a win-win situation, often takes on a win-at any-cost dynamic.







THE NEGOTIATION PROCESS He negotiation process is made up of five steps. 1. Preparation and Planning : - Before the process of negotiation begins, he will have to seek answers to some questions e.g.

Nature of the conflict Causes of negotiation Parties involved and their perceptions Goals an planning of the negotiation process Goals of the other party etc.

Once the negotiator has got the answers to the questions, he becomes ready to prepare a strategy. He must decide the Best Alternative to Negotiated Agreement (BATNA). 2. Definition of Ground Rules :

Once the planning is done and strategy is decided, the management should decide the ground rules and procedures for negotiation. The person who will do the negotiation, the time and place of negotiation, the procedures to be followed etc. should be decided by the management. The parties will also exchange their initial proposals or demands. When initial positions have been exchanged, both the parties explain, amplify, clarify and justify their original demands.

3. Clarification and Justification :

These procedures should not be confrontational, but should be completed in a healthy atmosphere. It is the stage for both the parties to understand each other. They are being educated on each others problems and potential solutions. Certifications and documentation are used to put forth each others point.

4. Bargaining and Problem Solving : -

The essence of negotiation is the actual give and take process. Both the parties will undoubtedly make some concession and agree on problem solving. Some dealings are avoided and others are taken up. Good agreements are arrived at if both the parties work coolly and calmly. The final step in the negotiation process is formalizing the agreement that has been worked out. The agreed solutions are implemented in this stage. The monitoring and implementing process is decided upon. For major problems, this step will require converting the specifics in a formal contract. It is nothing more formal than a handshake. The problem is solved and new agreement is arrived at for developing the employees and the organization.

5. Closure and Implementation :

ISSUES IN NEGOTIATION : 1. Biases Hindering Negotiation:

Biases prevent people from negotiating rationally and getting the most they can out of a situation.

Common biases or mistakes can be summarized as under : People tend to be overly affected by the frame or form of presentation of information in a negotiation. People tend to assume that they will gain at the cost of the other party. The Judgments of people tend to be anchored upon irrelevant information such as initial offer. People have a tendency to rely on readily available information. People tend to fail to consider information that is available by focusing on the opponents perspective. People tend to be over confident. The negotiating parties view each others personalities and guess what may happen in negotiation. The personality negotiation relationship has no significant impact on outcomes. Parties should concentrate on the issues and the situational factors in each negotiation process and not on the opponents personality.

2. Role of Personality Traits :

3. Gender Differences:

Comparison between experienced male and female managers find that there is not much difference in them as negotiators. People who believe women are softer than men in negotiations probably confuse gender. Gender may not be relevant in terms of negotiation outcomes. Outcomes of negotiations achieved by women are similar to men. Managerial is complete. women demonstrate less confidence in anticipation of negotiating and are less satisfied with their performance after the process

4. Cultural Differences :

Negotiation is influenced by cultural differences. Negotiation styles clearly vary across national cultures. Cultural traits have a positive or negative influence. In India, certain castes are submissive, they accept negotiation where as some castes are always hostile. This requires variable treatment with different castes and culture. It also influences the amount and type of bargaining, the relative emphasis on task vs interpersonal relationships, the tactics used and even where the negotiation should be conducted.

5. Third Party Negotiations : Sometimes, however, both the parties are unable to

negotiate. They reach a statement so that they are unable to solve their differences. In such a case, the role of a third party is realized. There are four basic third party roles. a). Mediator : A mediator is a neutral third party. He uses persuasions and suggestion. Mediator is acceptable to both the parties as he is unbiased. Ex : mediators are widely used in labour management relations and in civil court disputes. b). Arbitrator: An Arbitrator is a person who has been given authority for negotiation.

Arbitration can be voluntary or compulsory. The decision of the arbitrator is binding on both the parties. He dictates the agreement which results in settlement.

c). Conciliator: A conciliator is a trusted third party who is adjudicating the case. The decision is accepted by both the parties. Labour tribunals, Panchayats etc. are examples of conciliators. Conciliators engage in fact finding, interpreting messages and persuading disputants to develop agreements.

d). Consultant: A consultant is a skilled and neutral third party who attempts to negotiate through communication and analysis, aided by his knowledge of conflict management. His role is not only to settle the issues but rather to improve the relations between the conflicting parties so that they can reach a settlement themselves.

GUIDELINES FOR EFFECTIVE NEGOTIATION : Some important guidelines relating to effective negotiation are :

Consider and respect the other Partys / Opponents situation and view point. Have a well laid down strategy. Emphasise on the win-win strategy. Try and create a climate of trust. Concentrate on the issues and the situational factors rather than on the opponents personality. Adapt to cultural differences. Communicate effectively so that conflicts are kept to the minimum. Give reasonable concessions to the other party.

COMMUNICATION COMMUNICATION PROCESS:BARRIERS TO COMMUNICATION:OVERCOMING BARRIERS TO COMMUNICATION:(note : the above three read from L.M.PRASAD) PERSUASIVE COMMUNICATION: Persuasive communication may be defined as the process through which people attempt to

influence the beliefs or actions of others.

In many cases persuasive communication involves people who are important to each other

parents influence children, children influence parents, and friends influence each other.
Persuasive communication such as advertising frequently involves strangers. Those

involved in designing ads or producing commercials will attempt to know the target audience, but this is generally limited to a few important details about potential customers, such as where they live or how much money they are expected to spend on certain items in a given year. Since persuasive communication is complex, learning about it is a lifelong process. Much of that learning can begin by participating on school debate teams and studying rhetoric.

Persuasive communication plays a central role in a number of professions. Lawyers, salespersons, advertising specialists, public relations experts, and politicians must use persuasive communication. While persuasive communication may not be the central ingredient in many careers, most people need to be able to influence others in work-related settings. The most prominent form of persuasive communication in contemporary life is advertising. Consumers are confronted by advertisements from a variety of directions. Most business people see persuasion as a straightforward process. They think it comprises:

a strong statement of your position an outline of the supporting arguments, followed by a highly assertive, data-based entering into discussion with others and obtaining their ready agreement


Use logic, persistence and personal enthusiasm to get others to buy a good idea. persuasion as a process rather than as a single event. Effective persuasion becomes a negotiating and learning process through which a persuader leads colleagues to a problems shared solution. It is a difficult and time-consuming process. Congers research indicated that effective persuasion comprises four distinct and necessary steps: 1. Establish your credibility

In the workplace, credibility comes from expertise and relationships. People are considered to have high levels of expertise if they have a history of sound judgment or have proven themselves knowledgeable and well informed about their proposals. They have demonstrated over time that they can be trusted to listen and to work in the best interests of others. 2. Frame your goals in a way that identifies common ground with those you intend to persuade. It is a process of identifying shared benefits in which it is critical to identify your objectives tangible benefits to the people you are trying to persuade. The best persuaders closely study the issues that matter to their colleagues. They use conversations, meetings and other forms of dialogue to collect essential information. They are good at listening. They test their ideas with trusted contacts and question the people they will later be persuading. Often this process causes them to alter or compromise their own plans before they even start persuading. It is through this thoughtful, inquisitive approach they develop frames that appeal to their audience.


Reinforce your positions using vivid language and compelling evidence.

Persuasive people supplement data with examples, stories, metaphors and analogies to make their positions come alive. Vivid word pictures lend a compelling and tangible quality to the persuaders point of view. 4. Connect emotionally with your audience.

Good persuaders are aware of the primacy of emotions and are responsive to them in two important ways. Firstly, they show their own emotional commitment to the position they are advocating (without overdoing it, which would be counter-productive). Secondly, they have a strong and accurate sense of their audiences emotional state, and they adjust their tone and the intensity of their arguments accordingly. Avoid the four big errors of persuasion Conger concluded that the big four mistakes in major persuasion projects are: 1. Attempting to make your case with an up-front hard sell.

Setting out a strong position at the outset actually gives potential opponents something to grab on to and to fight against. Its far better not to give opponents a clear target at the start. 2. Resisting compromise.

Too many people see compromise as surrender, but compromise is essential to constructive persuasion. Before people buy into a proposal they want to see that the persuader is flexible enough to respond to their concerns. Compromises can often lead to better, more sustainable, shared solutions. 3. Thinking the secret of persuasion lies in presenting great arguments.

The persuaders credibility and their ability to create a mutually beneficial position for themselves and their audience (win:win), to connect on the right emotional level and to communicate through vivid language that makes arguments come alive. 4. Assuming persuasion is a one-time effort.

Persuasion is a process, not an event. Shared solutions are rarely reached on the first try. More often than not, persuasion involves listening to people, testing a position, developing a new position that reflects input from the group, more testing incorporating compromises, and then trying again. If this sounds like a slow and difficult process, thats because it is. But the results are worth the effort.

COMMUNICATION IN CRISIS SITUATIONS: What Is Corporate Crises Communication? Almost all corporations face crisis situations, but these situations can actually serve to build the public's trust with the company if they are handled correctly. A company builds this trust by how it communicates to the public about the situation. This kind of communication is called corporate crisis communication. Definition Corporations use crisis communication when an event causes the company to receive negative media attention. These situations could be as diverse as a legal dispute or some kind of disaster --man made or natural. Objective Corporate crisis communication seeks to minimize the damage that might be done as a result of the negative press that follows an event of this scope. Keys to Success The key to mastering crisis communication is to tell the whole truth about the situation and tell it right away. People Involved The company's CEO as well as the public relations team should be notified when a crisis breaks out. These people should come up with a plan of action to divert the crisis and handle communication of the company's position to the media. Famous Example The Tylenol Scare of 1982 is an example of corporate crisis communication in action. When it was discovered that bottles of Tylenol had been laced with cyanide, which killed seven people, steps were taken by Tylenol's parent company to limit the effect of the event on the company's public image.

Effective Crisis Communication

Crisis occurs when critical events threaten a company's reputation or causes a disturbance in an organization or community. Creating an effective crisis communication plan requires a sensitive approach to the public and stakeholders. Companies can use public relations personnel to construct a crisis communication plan. However, this is not the case for all organizations. Government and non-government organizations can delegate a communication task force to handle distribution of information during emergency events, such as weather evacuations or violent attacks. Small- to mid-size businesses might not be able to afford public relations teams or firms, but can incorporate these strategies in their business plans.

Prepare a Strategy 1. You wouldnt wait until a fire broke out to tell your employees about the evacuation plan. Effective crisis communication also requires preparation with clear instructions, strategies and procedures before an occurrence. Training executives for public presentations, keeping staff current on media protocol and building rapport with key organizations are all proactive strategies designed to handle situations with a beneficial outcome. Partnerships with key organizations can include non-profit agencies such as the chamber of commerce, industry associations and community outreach centers. Handling Requests for Information 2. At the onset of a crisis, assign and guide personnel to properly handle inquiries from the media, employees/partners and consumers. Media directors should immediately post a proactive message to online forums. Initial messages should state that the crisis is being investigated and media personnel will be notified with a statement within a certain period of time. This message should be consistent whether the requests are handled by phone, fax, social media, on-site interviews or other means of communication. If critical events have or can become publicly known, share key messages with employees as quickly as possible. The entire staff should be alerted, prepared and ready to serve as advocates for the company. Fact Finding 3. Collect all the facts about the incident or crisis. Determine if the crisis is due to company negligence or an affiliation with an event. Obtain witnesses and statements, if necessary. This shapes the tone of the message and helps guide decisions toward a resolution. Crisis Resolution

Meet with legal counsel and company executives to determine how the crisis will be

effectively reconciled and communicated. If the crisis cannot be resolved within a few hours of the first public announcement, designate an action plan for resolution. This meeting should establish which information should be released to the public. Spokesperson Delegation 5. Designate a chief spokesperson to effectively communicate with the stakeholders involved. The spokesperson should have a relationship with or understand the people they address. For example, if there is an economic or financial crisis, the Chief Financial Officer should be designated as spokesperson to address the investment community.

It is acceptable to have more than one spokesperson. Keep in mind that spokespersons do not

always have to be public orators. They can be writers as well. Company bloggers, for instance, can serve as grassroots level spokespersons reaching multiple audiences. Design and Deliver Statements

Design key messages to address specific audiences. Effective crisis communication

statements should be clear, direct, relevant and brief. Highlight three to five key messages in the statement and distribute them to appropriate channels. The specific channels of communication depend on the audience. For example, if the incident affects college students, post the message on social media forums, broadcast text messages and distribute email updates about the crisis. Key messages should at least include a statement of regret, empathy or apology, an explanation of the crisis, and the action plan or resolution. It is your responsibility to know key factors about your audience; where they look for information, what is important to them and their cultural nuances. Follow-up 7. Use marketing and advertising messages to demonstrate improvements that reflect good decisions toward the proposed resolution. Also include a series of timely, follow-up messages about the progress of the resolution.

How to Manage Crisis in Business Communication

In a world where unethical business practices and natural disasters place increased scrutiny on today's companies, the ability to communicate effectively with employees, shareholders and the public during a crisis has become a critical aspect of any successful company's survival and continued prosperity.

1. Communicating After the Crisis: To regain trust from customers, make good customer service a priority. Maintain contact with media, if appropriate. Put together a plan to rebuild your positive reputation in the community Quickly and cautiously communicate with your employees and customers, as well as Appoint a spokesperson to communicate with the media. Be clear and consistent with Communicate about crisis in as many ways as possible - print, telephone, radio, Assemble a group of employees, if appropriate, to be part of a crisis team. Put your plan into action - hesitancy and delay will spur rumors and increase anxiety

2. Communicating During Crisis the community. your message. television or mailings. Focus on any positive outcomes.

and despair.

3. Preparing for a Crisis Create a plan for how you would handle a variety of business crises, such as theft, fire, Talk with others in your industry about how they handle certain business crises. Work at building a positive relationship with the community and customers, in case key employee illness or death, loss of a primary supplier or regional catastrophe.

you need their support in the future.

Business Crisis Communication Strategies

"Crisis is any situation that is threatening or could threaten to harm people or property, seriously interrupt business, damage reputation or negatively impact share value," The best way to deal with a crisis is to have a plan in place before one occurs. Planning will allow your organization to react quickly and wisely to lessen the potential damage to the company's reputation. Plan for a Crisis in Advance Assess the situation before reacting.
Create an internal Crisis Communications team, designate a person to make the final

decisions and designate someone to serve as the company's spokesperson. The spokesperson does not need to be the CEO; it should be the person who is the most effective communicator. It is important that only the spokesperson speak on behalf of the company so that no misinformation is given to the public or to the media.
The team should decide on holding statements for different scenarios, a brief message about

the emergency to deliver to the public and stakeholders so that they feel informed until further notice. React Smartly to the Crisis Assemble the Crisis Communication team. Get correct data about the situation. Give a holding statement to stakeholders and press. Establish a line of communication whereby information can be shared, such as an exclusive 800 number. Solve the crisis at hand by consulting with experts and consultants who specialize in that area. If need be, contact outside counsel for assistance. Solve the situation as quickly as possible to prevent further damage.

Have the communications manager monitor the news to make sure accurate information is

being shared. If there are any errors, contact the right parties quickly and brief them on the verifiable facts. Prevent Another Crisis Review and report on the crisis from beginning to end. Note alternative strategies that could have been implemented to prevent the crisis from occurring. This information could prove helpful in the future in helping to maintain equilibrium within the agency. Follow up with the stakeholders and the media to reassure them that the emergency has been remedied and that preventive measures are in place to prevent a future mishap. If necessary, offer employees or other members of the public counseling to deal with the emotional aftermath of the crisis.

How to Manage a Corporate Reputation During a Crisis

All kinds of events can affect your business negatively, including internal scandals, leaked information and campaigns against your products or policies. There are several ways to manage your corporate reputation during a crisis and prevent long-term damage to your company. 1. Send out a press release to respond to media inquiries and give yourself time to prepare to manage your corporate reputation. This release does not need to address the specifics of the crisis, but it should at least acknowledge it and explain that you are working on a solution.
2. Meet with your legal department to find out if your actions during the crisis are within the law and

company policies. Work out the company's liability due to an employee action and find out which courses (dismissal, legal action or otherwise) are available to you. 3. Prepare yourself for all kinds of questions from the press. Have your external communication department brainstorm possible questions and help you come up with replies that explain the situation without digging yourself deeper into a hole. Ask a spokesperson to meet the press if you don't feel comfortable in the hot seat, but remember that some crises require the CEO to speak in public. 4. Pay close attention to issues raised in local newspaper editorials, the nightly news and local blogs. As the story continues to develop, you may need to hold additional media sessions or release more statements to address these concerns. Focus on consumer issues instead of media questions to help mange the corporate reputation and brand name. 5. Exonerate yourself before the corporate crisis breaks to help manage reputation damage. The media will lose its chance to be the first to have the story if your company announces it first and you will also have

more control of the situation. Meet with your advisers to decide if this course of action will be best for your particular case. 6. Expect to work overtime during the handling of your crisis. Ask members of your external communications department to make an extra effort to respond to customer phone calls and emails to retain your loyal clients.