Effective Communication, Negotiation, Decision Making & Change
Ch 11 — Communication & Negotiation
Mehrabian’s Rule
Communication impact: 7% words, 38% tone, 55% body language — nonverbal cues dominate when messages are emotional or ambiguous.
York’s Experiment (Nonverbal Tactics)
Students detected confidence, dominance, and competence from posture, movement, and eye contact even without hearing words. This shows nonverbal cues strongly shape judgments.
Definition and Basic Model of Communication
Definition: The process of sending, receiving, and interpreting information between people.
Basic model:
- Encoding — put the message into words or symbols.
- Medium — the channel used (e.g., email, phone, face-to-face).
- Decoding — the receiver interprets the message.
Verbal vs. Nonverbal Communication
- Verbal — Advantages: clear, fast, direct.
- Verbal — Disadvantages: can be misinterpreted or incomplete.
- Nonverbal — Advantages: conveys emotion, attitudes, and honesty.
- Nonverbal — Disadvantages: easily misread and varies across cultures.
Lean vs. Rich Media
Rich media: face-to-face, video; best for complex or ambiguous messages.
Lean media: email, text; best for simple, routine messages.
Directions of Communication
- Downward: managers → employees.
- Upward: employees → managers.
- Lateral: peer-to-peer.
Formal vs. Informal Channels
Formal: official, structured, documented channels.
Informal: casual “grapevine,” social networks; fast but can distort information.
Barriers to Communication
High-context vs. low-context cultures (implicit vs. explicit), ethnocentrism, stereotypes, language differences, and selective perception.
Stages of Negotiation
- Preparation
- Relationship building
- Exchange information
- Persuasion
- Agreement
Cultural Differences in Negotiation
U.S.: direct, fast, task-focused, individualistic.
Asia: indirect, slower, relationship-focused, group orientation, harmony.
Strategies to Improve Negotiations
- Know your goals.
- Research the other side.
- Listen actively.
- Separate people from the problem.
- Focus on interests, not positions.
Ch 12 — Individual & Group Decision Making
Rational / Classical Decision Model (7 Steps)
- Identify the problem
- Set objectives
- Generate alternatives
- Evaluate alternatives
- Choose an alternative
- Implement
- Evaluate results
Assumptions, Weaknesses, and Inhibiting Factors
Assumptions: clear problem definition, full information, no time limits, and rational choice.
Weaknesses: unrealistic assumptions and cognitive limits; time pressure reduces effectiveness.
Inhibiting factors: stress, uncertainty, cognitive complexity, and selective perception.
Bounded Rationality Model
This decision-making model assumes people try to be rational but are limited by time, information, and cognitive capacity, so they select a satisficing (good-enough) solution rather than the optimal one.
Assumptions: limited time, limited information, limited processing ability.
Heuristics: simple rules of thumb.
Satisficing: choosing a “good enough” solution instead of the optimal one.
Retrospective Decision Model
People often rationalize decisions after the fact to make them appear logical.
Programmed vs. Non-Programmed Decisions
Programmed: routine, repetitive, rule-driven.
Non-programmed: new, unstructured, require judgment.
Gresham’s Law of Planning
Routine or low-value activities tend to push out important planning work.
Steps to Make Better Decisions
- Be analytical.
- Gather relevant information.
- Use creativity to generate alternatives.
- Avoid biases.
- Evaluate outcomes after implementation.
Group Decision-Making: Assets and Liabilities
Assets: more information, more alternatives, better understanding, and higher acceptance.
Liabilities: time-consuming, potential for conflict, and pressure to conform.
Group Decision Problems
Groupthink: pressure for unanimity and suppression of dissent.
Escalating commitment: continuing to support a losing course of action.
Strategies to Improve Group Decision-Making
- Encourage dissent and critical evaluation.
- Bring in outside opinions.
- Evaluate options objectively.
- Use structured decision techniques.
Ch 15 — Organizational Change & Development
Andy Grove’s Ideas
Andy Grove noted that fear can motivate change. He described strategic inflection points as major shifts that require significant adaptation.
Managerial Perspectives on Change
Some managers see change as a threat; others see it as an opportunity.
Forces for Change
Internal: low performance, morale issues, new leadership.
External: technological shifts, competition, economic changes, and customer demands.
Relative Cost of Change
Early change is typically cheaper; late, crisis-driven change is more costly.
Lewin’s Three-Stage Model
- Unfreezing: loosen old habits and assumptions.
- Movement: implement new behaviors and practices.
- Refreezing: make new behaviors stick through reinforcement.
Why Change Fails
Poor communication, lack of vision, no sense of urgency, insufficient leadership support, resistance, and poor execution.
What Are Mental Maps?
Deeply held assumptions and beliefs that shape how people perceive the world.
Sources of Resistance to Change
Habit, fear of the unknown, loss of control, economic concerns, and lack of trust.
Strategies to Overcome Resistance
- Communicate clearly and frequently.
- Involve employees in the process.
- Provide training and support.
- Offer incentives and build early wins.
Case Study: Netflix and the Subscription Model
60 Min Netflix: The idea: what if video rentals worked like a gym membership — a flat fee for unlimited use? Netflix’s initial model was DVDs by mail, with no late fees and a flat monthly subscription. The company built a huge logistics system to ship and process millions of DVDs quickly. Netflix used a strong recommendation algorithm to help users find movies, including niche titles. Reed Hastings predicted that streaming would replace DVDs and prepared accordingly. He emphasized that CEOs must keep learning — the future of entertainment was uncertain but full of opportunity. He saw strong competition ahead and believed Netflix had to adapt early to survive.