In an increasingly competitive, dynamic and ambiguous business

environment, negotiation is critically important to the success and,

ultimately, to the survival of companies. Consequently, managers need to
possess and constantly improve their negotiating capabilities. Among the
most important traits needed to negotiate successfully are several
communication skills. The main objective of our study is to identify and
analyze the importance that managers and executives of the 500 largest
Portuguese companies attribute to some communication characteristics,
necessaries to negotiate effectively and efficiently in uncertain and complex
business environments. The 231 answers received demonstrate that the
studied communication skills are regarded as requirements of the highest
importance in a superior negotiator. However, we find some discrepancies
when we cross-analyze the results with demographic characteristics of those
surveyed. For example, the most experienced executives and those who
have formal negotiation training recognize a greater importance to the ability
to listen, while women give a greater emphasis to non-verbal communication
(body language, posture, etc.). In addition, the negotiating styles
(collaborative vs. competitive) and the ethical behavior in negotiation of
those surveyed seem to cause significantly statistical differences concerning
the importance they attribute to some of the referred communication traits.

Key Aspects of Communication in Negotiation

Verbal Communication
1. Communication varies according to the formality of the negotiation
situation. As the rules and procedures of negotiation, become increasingly
detailed and specific, the impact of communication becomes less significant.
2. Rules govern communication in negotiation interaction.
In informal negotiations, many of the rules are generated through the
negotiation interaction.
In formal negotiations, rules and procedures structure communication.
Rules may be generated in a pre-negotiation stage.

 Within certain negotiation "cultures," rules may become ritualized.

3. Communication functions to:
coordinate outcomes.
exchange information, intentionally and unintentionally; overtly and
covertly.
express strategic intentions and tactical actions.
identify patterns of behavior.
alters perceptions and expectations concerning the bargaining situation,
relationship, process, and outcomes.
4. Communication in negotiation focuses on:
Substantive issues.
Offers and counteroffers; proposals, demands, interests.
Procedural issues.
The interpersonal negotiation relationship.
Intangible issues (e.g., face, respect).
5. Intentional communication behaviors are tactics reflecting a negotiator's
strategic orientiation.
Nonverbal Communication
Nonverbal communication certainly affects the resolution of conflicts and
disputes, yet little research has considered nonverbal communication within
dispute resolution contexts. Some speculations follow, gleaned from
experiences of practitioners and the nonverbal behavior literature.
1. Negotiation practitioners place great importance on nonverbal behavior
(probably too much importance).

2. Nonverbal behavior in negotiation is culture-bound; the cultural

identification of negotiators and the cultural context of negotiation will
influence what nonverbal behavior is appropriate and how nonverbal
behavior
should be interpreted. Yet some negotiators may regard certain
nonverbal behaviors as culturally univeral (transcending differences).
3. Some nonverbal behavior "categories" relevant to negotiation:
Chronemics (time): American negotiators place great importance on
time; being prompt, meeting deadlines, and using time efficiently. This
emphasis on time may translate into impatience.
Proxemics (space and distance): American negotiators prefer
maintaining secondary relationship distance when negotiating; they
prefer negotiating in environments that ensure distance (e.g., sitting on
opposite sides of a table).
Kinesics (body): American negotiators prefer environments that support
formal, controlled behavior (e.g., sitting vs. standing).
Facial and eye expression: Face and eye behaviors are often trusted
greatly by negotiators from a variety of cultures.
Physical appearance and dress: Negotiators may rely on appearance
attributes to indicate respect for the negotiation situation.
Paralanguage: Like face/eye expression, negotiators may trust
judgments based on vocal tone, rate, etc.
Environment/architecture: See Negotiation, Chapter 6.
Social/cultural rituals, manners, and conventions: These areas may be
particularly critical in the pre-negotiation phase.
4. Contrary to some trainers' writings and seminar presentations, nonverbal
behavior does not communicate in isolation, and particular behaviors do not
have specific meanings.
5. Nonverbal behavior must be interpreted in context, including the sequence

in which it occurs.
6. Negotiatiors need to avoid over-interpreting nonverbal behaviors (e.g.,
always trusting nonberbal cues over verbal cues) and falling victim to
nonverbal ethnocentrism (like cultural ethnocentrism).
7. Nonverbal behaviors are particularly significant when they are inconsistent
with verbal messages. Negotiators should check their perceptions of
inconsistency with the other negotiator if the inconsistency is significant.
8. Nonverbal attentiveness may be particularly important in negotiation
situations which may involve deception.

Negotiating is first and foremost about communications. It is a dialogue in which each

person explains his or her position and listens to what the other person is saying. During
this exchange of views, proposals are made and concessions are explored. The end result
is intended to create added value for both parties. Key to this is establishing credibility
from the outset if the negotiations are to progress smoothly.
Communication between two negotiators tends to be even more difficult and complex when it
involves individuals from diverse cultures than when it includes people with similar backgrounds.
For example, negotiators from traditional cultures often attach more importance to the way in
which a proposal is made than to what is being said. In such discussions, what is not said may
be just as important as what was said.
Negotiators discussing in a language other than their mother tongue should rely to a great
extent on visual aids, printed materials, samples, and references to facts and figures. The old
saying A picture is worth a thousand words is most appropriate in this context. Furthermore,
these negotiators should use simple, clear language with frequent questioning to ensure that the
other person is following the discussions. Idioms, colloquialisms, and words with multiple
meanings should be avoided. Similarly, certain words or phrases that can irritate the other party
should be omitted. For example, phrases such as To tell the truth, Ill be honest with you, Ill
do my best, and Its none of my business but or dont worry convey a sense of distrust and
make the other person more apprehensive and possibly less cooperative. Likewise, a negotiator

should avoid stating or accepting from the other party the reply No problem when discussing a
specific point. The negotiator should explain what he or she means or seeks clarification about
what the other party means.
In addition, one cannot assume that a message has been received and understood in the same
way as the person speaking meant it to be. A typical example is when someone answers with a
yes or no. In some cultures, yes means Yes, I understood the question or Yes, I will consider
it or Yes, I heard you. In certain cultural environments, the word no is rarely used and is
replaced by a number of expressions to convey the message in an ambiguous indirect or
neutral manner.
In cultures in which conflict avoidance is predominant, the negotiator is unlikely to receive
straightforward refusals to proposals, but will get vague responses instead. An inexperienced or
unprepared negotiator may interpret these messages as relatively positive, may be led to
believe that the other party is not ready to negotiate or is not in a position to make decisions.
Vague replies should be followed by more discussions until it becomes clear what the problem
is all about.
Listening
A major weakness of inexperienced negotiators is their inability to listen carefully to what the
other person is saying. Their main concern is usually to present their case and then to counter
objections made by the other party.
The perception that good negotiators talk a lot and dominate the discussions to achieve
optimum results is erroneous. In reality, skilled negotiators spend more time listening and asking
questions to ensure that they fully understand the other side than they do talking. The ability to
listen effectively is fundamental to the success of any negotiation.
In the context of listening, a major mistake is concentrating on what to say next instead of
listening to what the other person is saying. Much useful information can be lost this way.
Negotiators are thus prevented from exploring new options and identifying possible
concessions, thereby slowing down the momentum of the discussions. Furthermore, reading
between the lines is necessary to understand what the other person is saying, particularly
among negotiators from different cultures. A negotiator should encourage the other party by
indicating his or her willingness to listen longer by saying Yes or Please go on or by asking
questions for clarification.
Good listening habits include observing body language. For example, movements such as
nodding ones head, inspecting a sample, taking notes, and moving the chair forward indicate
interest in what is being said.
Asking Questions
In any negotiations, one of the most important skills is the ability to ask lots of questions. During
the preparatory phase, negotiators collect information, but not all data and facts may be
available; negotiators need to supplement this information during the discussions. A negotiator
should not ask questions to show his or her knowledge of the subject or to impress the other
party. Questions must be prepared in advance, used selectively and timely to ensure the other
party will provide information, exchange concessions, and move toward agreement.

Broadly, questions can be classified as openended questions, and probing or conditional

questions. Open questions allow negotiators to express freely about their needs, for clarifying
specific points, for seeking details, for obtaining missing information, as well as for validating
assumptions.
In a business negotiation, a typical question a seller is likely to hear after stating a price is, Can
you do better than that? This type of question should be answered with another question
instead of giving away a concession. For example, the seller should reply by asking for
clarification, such as, What is meant by better? or Better than what? At that stage, the buyer
may say that a competitor is offering better terms. Again, the seller should ask for more details
about the conditions and terms offered by competition. These questions should continue until
the seller has a clear understanding of what the buyer is looking for.
After a series of questions that give both the parties a clear idea of what each other wants, the
discussions enter into an exchange of proposals and counterproposals. This requires shifting
from open questions to conditional questions. Some of the most useful questions are, What
if and if then. For example, the seller can say, If we expedite delivery by one week, will
then your firm absorb the extra costs? This question permits one party to make a proposal
subject to the acceptance of one or more conditions. The other party can accept the offer, make
a counterproposal, or reject the offer. No harm is done in case of rejection. The other negotiator
can continue making further conditional offers until common ground is reached.
Another advantage of using conditional questions is that they do not bind either party to a
specific offer as well as indirectly supplying valuable information that can be put to good use in
succeeding phases of the discussions.
In conclusion, to negotiate a person must communicate. Communication between negotiators is
more complex when the negotiators belong to different cultures even if the discussion takes
place in the same language. This requires a thorough understanding of the other partys cultural
context, negotiating style and prevailing economic conditions. As experience shows that most
negotiations fail due to poor communications, negotiators can consider reaching mutually
beneficial outcomes by improving their listening skill and encouraging the exchange of
information through questioning.

Simplify Negotiations with the Six Rules of Effective Communication

To negotiate effectively, you must be able to communicate
effectively. Unfortunately, most salespeople and business people
dont realize the importance of solid communication skills to the
negotiation process. As a result, they lose sales or dont get the
best possible deal.
However, as a salesperson, you are not doomed to the mixed messages and meanings
characteristic of poor communication skills. With a conscious effort, all business and

sales professionals can overcome the communication barriers that block understanding
in negotiation. With a little extra effort, you can improve the delivery of your message to
your counterparts and work together toward a mutually beneficial agreement.
Use the following six rules for effective communication to connect with others at the
negotiating table and in all forms of communication:
Rule 1: Organize Your Thoughts
Throughout the negotiation process, always allow yourself time to organize your
thoughts to avoid conveying the wrong message or confusing the issues. Before you
start the negotiation process, and even after it starts, take notes and plan what youre
going to say.
To help you express your thoughts clearly when the negotiations begin, outline in
advance the main points you want to cover. Planning the gist of what youre going to
say is the most effective way to avoid sending mixed messages, but dont stop with that.
As the negotiations commence, continue to take notes and plan your responses as you
go through the entire process. And remember, no law exists that says every statement
must be met with a response within five seconds. Take your time. In fact, silence can be
one of your most powerful negotiating tools.
Stop talking whenever you feel like you need to reorganize yourself and before you
respond to anything thats said. And make sure everything you say reflects the true
meaning of your thoughts. This tactic not only helps you organize what youre going to
say, but it also helps you digest what your counterpart proposes.
Rule 2: Dont Think About It; Think Through It
Thinking about something leads to confusion, but thinking through something leads to
clarity. The difference between these two processes is a crucial distinction in
communication. Many times, people approach negotiations with a mindset of, Tell it like
it is, then let the chips fall where they may. But by processing an idea through to its
logical conclusion, you can evaluate the possible responses you may get from the other
side.
For example, if you make an offer and say, Take it or leave it, what kind of response
would that produce? The other party may say, Okay, well take it. They could say,
Thanks, but no thanks. They could say, We wont take it, but heres what we will
accept. Or they might say, No one talks to us that way! and walk out of the room.
A range of possibilities exists, and this tactic requires careful reading of the other
persons reactions. But if you feel from your experiences with the person that they will
either accept your offer or your counteroffer, it makes sense to speculate and take the

chance. So give some thought to your counterparts possible reactions to your points
before you actually make them.
Rule 3: Recognize that Actions Speak Louder than Words
Experts say that seventy-five percent of communication is nonverbal. This means that
the messages negotiators convey have more to do with their looks, their actions, and
the way they say things, than with the actual words they say.
The best negotiators practice saying and doing things in ways that send precisely the
message they want to send. The bottom line is that the better you become at using
nonverbal communication and reading the nonverbal messages others send, the more
effective you can be as a negotiator. Realize that everything you do at the bargaining
table is part of the communication and negotiation process. So make sure you dont
send the wrong messages by doing something that conflicts with what you want to say.
Rule 4: Be Concise
Most people tune out a majority of what they hear, so you should always be concise and
get right to your point. Say what you mean in as few words as possible, without being
blunt. If you drone on, people will stop listening to you. To ensure your message
reaches your counterpart, always oversimplify your message, and then elaborate as
they ask questions. Repeat your main point several times to emphasize whats most
important.
To boost your negotiating power even more, practice saying everything clearly and
concisely, then repeat your key points to yourself again and again. One main problem
with negotiation communication occurs when your counterpart gets too wrapped up in
what they want to say, that they dont pay attention to what you say. This is why it is so
important to organize your thoughts, and say your main points in a concise, compelling
way.
Rule 5: Always Translate Your Message into Benefits for the Other
Party
People always listen more carefully when they believe some benefit exists in your
message for them. In negotiations, focus on that benefit, even when the underlying
purpose of the message is in your favor.
For example, when you interview for a new job, you dont talk about the huge salary the
company can offer you. You talk about all the great skills you can bring to the company,
for their benefit. You try to convince them that theyll be ahead of everyone else by
hiring you, regardless of the cost.

As a salesperson, you should always highlight the value of your product or service,
rather than the cost. Always talk in terms of what benefits the other party receives as a
result of the negotiation terms.
Rule 6: Listen Carefully to the Other Party
If you want to reach a mutually beneficial agreement, you must make sure your
message are heard and understood. But dont get so caught up in your own message
that you dont hear and understand what the other party needs to reach an agreement.
Use the following tips for listening more effectively:
Open your mind and be receptive to the other partys message.
Make a commitment to listen, and follow through with this commitment as soon as they
start to talk.
Listen for feelings, as well as facts, and consider the other partys concerns.
Eliminate distractions. Close your door, turn of the radio, and tune in to the other
person.
Respond to the other party with questions that stimulate conversation and clarify your
understanding of his or her message.
Take notes on the important points the other party makes, and keep these points in
mind as you formulate your responses.
As you improve your listening skills, you increase your negotiating effectiveness by
collecting more information to use in your search for solutions.
Communication is the Key to Effective Negotiation
Communication is a two-way street that requires everyone involved to exchange
messages. To negotiate more effectively, you must relate to the other party with strong
communication skills. By using these six rules for effective communications, you can
overcome barriers, reach a higher level of satisfaction every time you negotiate, and win
more sales in the process.

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Chapter 6: Communication During Negotiation

March 5, 2010 by nego4biz

Offers, Counteroffers, and Motives

-The communicative framework for negotiation
1). the communication of offers is a dynamic process
2). the offer process is interactive

3). various internal and external factors drive the interaction and motivate a bargainer to change his
or her offer.

Information about Alternatives

Negotiators with an attractive BATNA should tell the other party about it if they expect to receive its
full benefits.
-The style and tone used to convey information about an attractive BATNA
1).Politely making the other party aware of ones good alternative can provide leverage without
alienating the other party.
2).Waving a good BATNA in the other partys face in an imposing or condescending manner may be
construed as aggressive and threatening.

Information about Outcomes

Negotiators should be cautious about sharing their outcomes or even their positive reactions to
outcomes with the other party, especially if they are going to negotiate with that party again in the
future.

Social Accounts

Three explanation types:

1).Explanations of mitigating circumstances
2).Explanations of exonerating circumstances
3).Reframing explanation

Communication about Process

How well it is going or what procedures might be adopted to improve the situation.
Consider: Is More Information Always Better?

Information-is-weakness Effect: Negotiators who know the complete preferences of both parties may
have more difficulty determining fair outcomes that negotiators who do not have this information.
l How People Communicate in Negotiation

Use of Language

-Two levels of language operation: Logical level & Pragmatic level: The meaning conveyed by a
statement or proposition is combined with a logical surface message and several pragmatic levels.
Parties whose statements communicated interests in both the substance of the negotiation and the
relationship with the other party achieved better, more integrative solutions.

Use of Nonverbal Communication

1).Make Eye Contact

When listening: show others you are paying attention and listening that you consider them important
When delivering: emphasize the importance of the message that is being sent
2).Adjust Body Position
Ones body position indicates whether one is paying attention to the other party.
To show you are attentive: hold your body erect, lean slightly forward, and face the other person
directly
To show strong rejection or disapproval: crossing arms, bowing the head, furrowing the brow, and
squeezing eyebrows together.
3).Nonverbally Encourage or Discourage What the Other Says
Indicate encouragement: brief eye contact, a smile, or a nod of the head.
Indicate discouragement: a frown, a scowl, a shake of the head, or a grab of ones chest in mock pain

Selection of a Communication Channel

Face-to-face negotiators are more easily to develop personal rapport, more inclined to disclose
information truthfully, increasing their ability to attain mutual gain.
What e-mail negotiations lack is schmoozingoff-task or relationship-focused conversations.
l How to Improve Communication in Negotiation

The Use of Questions

Questions in Negotiation:
1).Manageable: cause attention or prepare the other persons thinking for further questions, get
information, generate thoughts
2).Unmanageable: cause difficulty, give information, bring the discussion to a false conclusion
collect and diagnose information, assist the other party in addressing and expressing needs and
interests
pry or lever a negotiation out of a breakdown or an apparent dead end

Listening

1). Passive listening

Receive the message while providing no feedback to the sender about the accuracy or completeness of
reception. (Can be used as the best strategy when the counterpart is talkative)
2).Acknowledgment:
Receivers occasionally nod their heads, maintain eye contact, or interject responses like I see, mmhmm. interesting, really, and the like.
3).Active listening
Restate or paraphrase the senders message in their own language

Role Reversal

Gain an understanding of the other partys perspective or frame of reference: allow negotiators to
understand more completely the other partys position by actively arguing these positions until the
other party is convinced that he or she is understood.
l Special Communication Considerations at the Close of Negotiations

Avoiding Fatal Mistakes

Achieving Closure

avoid surrendering important information needlessly, and to refrain from making dumb remarks
that push a wavering counterpart away from the agreement
recognize the other partys faux pas and dumb remarks for what they are and refuse to respond or
be distracted by them