WASIM UL HAQ MBA II (DIRECT) IBA (MAIN CAMPUS)

BUSINESS COMMUNICATION AND NEGOTIATION

“HOW TO USE COMMUNICATION SKILLS EFFECTIVELY”

OVERVIEW:

Workplace today has undergone profound changes such as Global competition, flattened
management hierarchies, new works environments, diverse workforce and innovative
communication technologies. In this dynamic work place workers are expected to be
knowledgeable, that is, they deal with words, figures and data. The most important
foundation skill for a knowledge worker is the ability to communicate. Ability to
communicate properly in every situation, either good or bad is important consideration in
today’s world.
Communication is said to be life blood of any organization1. Communication is the basis
for sound decision making. Strategic decision making- pricing, costing and market
analysis, are not possible without effective communication in place.
In today’s world, success depends on how communication is used on both individual and
organizational levels. Communication skills like reading, writing, speaking, listening and
non verbal cues are to be developed and polished if a person wants to have a successful
career. Individuals should be able to differentiate between formal and informal writings,
should be able to read between the lines, should be able to hear the unsaid, and should
have the ability to use non-verbal expressions. Also, for success on the organizational
level the use of these skills is important. How to communicate with the suppliers,
consumers, competitors and workforce is an important issue which is to be handled with
care by organizations.
The starting point for any communicator who wants to become known for having impact
on an audience needs to be to understand what skills chip away at credibility.

1
Herta A. Murphy, Effective Business Communication, 7th edition.
Now we will discuss the importance of effective communication in the following fields:

1. Business
2. Negotiations
3. Microeconomics
4. Management
5. Business Mathematics and Statistics
6. Operations Management
7. Advertising
8. Sales/ Inventories
9. Manufacturing/ Materials
10. Organizational Behavior

1. BUSINESS

Business has something to do with every one. Business has an effect on not only the
people who start it but also those who indirectly benefit from it. Business needs funds,
assets, capital, and loans for its survival. Every business may it be big or small, has to
deal with customer, suppliers and vendors, shareholders, creditors, and other interested
parties.
Business as a person has to deal with all the above mentioned parties out there, has to
take them into confidence, has to build a relation which last long and provide them with
the best possible product or service. Effective communication skills are needed on part of
the businessmen to communicate with these people.
Business communication can be external or internal. Externally business people
communicate with suppliers, customers, banks, creditors etc. Internally they
communicate among themselves up, down and horizontally in the management hierarchy.
Adequate writing, speaking and listening skills are necessary on whatever level
communication is done.
Business people should be aware of the growing needs of the customers and must
constantly be in touch with them. Communication is about conveying a message which is
most probably also communicated by other businesses. But which business is successful
in conveying the message depends on how effectively the message is delivered.
What business person wouldn’t covet being thought of as a trusted advisor! Obviously,
customers would act on your recommendations and refer you to other business
acquaintances. They would turn to you first to improve the quality of their business and
sign contract after contract, earning you a lot of money and respect.1 At the heart of
being a trusted advisor is a focus on the other person, rather than one’s self. This is often
demonstrated by being an attentive listener.
Individuals in an organization should be aware of the effective presenting skills and must
be effective speakers. We speak to be understood, yet as Robert Greenleaf once said,
“Many attempts to communicate are nullified by saying too much.”

1
The Trusted Advisor by Daivid Maister, Charles Green and Robert Galford published by the Free Press.
Experts agree that if you want your message to be understood, as well as remembered, it
is important to make it simple. In fact, simplicity is the most powerful tool a
communicator has.
“Over-talking” is the Curse of the Information Era. Too much information overwhelms
listeners. Instead of persuading, it creates confusion and often delays decisions.1
Business communicators must use a proper language while conveying messages to the
interested parties. Written communication is an important aspect of this. Individuals who
write should have the ability to differentiate between formal and informal language.
When you think about expressing your points, remember that we convey ideas through
nouns and verbs. Starkly naked points can be riveting. Adjectives and adverbs often add
clutter. Demystify your ideas by stating them clearly and simply. Do not bury your points
in long sentences or over-connect your ideas with clauses.2

2. NEGOTIATIONS

Negotiations occur when there is a conflict among two or more people or parties.
Negotiations occur when there is no fixed or established set of rules, procedures, or
system for resolving a conflict, or when the parties prefer to work out side of the system
to invent their own solution to the conflict. Negotiation is a give and take situation,
whereby we expect that both sides will modify or give in somewhat on their opening
statements, requests, or demands.
Negotiation is never possible if there is a communication gap between the parties on
negotiation table. Negotiation has to be skillfully tackled through appropriate use of
communication variables, like speaking, listening and writing etc.
Other people can be your personal hell according to the author and playwright, Jean Paul
Sartre. Those of us that make client presentations or host meetings know just how true
that is. As speakers, difficult people are a nightmare. They need to be controlled, but yet
the challenge is how to do it without destroying the relationship. While there is always
the temptation to put annoying people “in their place,” fighting fire with fire leaves only
ashes according to Anne Landers.
There are three key things that will help to navigate the shark invested waters of
troubling situations. They are: 3
1. Be prepared mentally and emotionally.
2. Listen between the lines and respond intentionally.
3. Follow-up as necessary.

1. Be prepared mentally and emotionally.

Speakers should not be caught blind-sighted. They should do their homework and take
the time to understand their audience, particularly the attitude listeners might have of
them, their topic, or their organization. They should also understand exactly where there
might be objections or questions and be prepared with how they will handle these

1
Dan and Chip Heath, Made to Stick
2
By Judith Filek –President Impact Communications, Inc
3
Judith Filek- Navigating the Shark Invested Waters of Conflict
difficult issues. In fact, it is a good idea to brain storm all possible questions or issues and
practice responding out loud.
In addition to preparing mentally, speakers should prepare emotionally. This means that
before any meeting or presentation, they need to place themselves in the right zone or
mental frame of mind for understanding so that they can respond effectively and not react
on an emotional level. To do this, speakers need to make a commitment with them selves
to be fully aware of the levels of need of individuals in their audience—whether those
needs are business, social or personal. Then, they must commit to speak from that place
and to that place. This is no easy task. It requires tremendous discipline.

2. Listen “between the lines and respond intentionally.

Peter Drucker, the author, says the most important thing in any communication is to hear
what isn’t being said. Thus, speakers must listen “between the lines.” Then, they must test
the waters with what they think is the real issue. They should also ask questions and
empathize. They should assume nothing. They cannot judge or label the person. They
must not assume their solution or idea is the best. They discipline themselves to focus
only on what the individual must want and need to behave in this manner, not on them
selves and how they feel. They recognize that their words can be “windows or walls.”
When they respond, they do so as if to their grandmother- respectfully, patiently.
If speakers have the right internal focus, they will be able to choose from a variety of
options before responding. They will not “shoot from the hip.” This will give them an
advantage or an edge. It will allow them to stay in control of the hostile or annoying
person and give a response that will be intentional and not reactive. Because they have
their internal compass pointed in the right direction, committed speakers do not argue,
defend, “put down” or “gloss over.” They do not download data. Instead, they respond
appropriately, bearing in mind the needs of the individual.

3. Follow-up

In a perfect world, speakers can resolve all troubling situations. The reality is that
sometimes people are not as effective as they would like. Sometimes speakers have to
“take things off line” for the good of the group. Amazingly, later follow-up with a
difficult person often works wonders because it allows for a cooling down of emotions. It
also offers greater exploration of issues since time is no longer an issue. Often a sense of
mutual agreement results, and, even if it doesn’t, the follow-up attempt clearly
demonstrates to the other person you respect his opinions and are concerned enough
about his feelings to want to continue to articulate.
Handling difficult people in a meeting situation is challenging. Being successful should
not be a crapshoot. With proper mental and emotional preparation, and by listening
and responding with finesse, these difficult situations can be minimized.
3. MICRO ECONOMICS

Speaking in a broadest sense, Micro Economics studies consumer behavior, market

structures, costs and prices and the likes. Consumer behavior takes into account the
consumer choices and decision making process. Market structures talk about the different
markets like perfect competition, monopoly, monopolistic competition and cartels etc.
Economists’ workout the problems related to above mentioned areas. In doing so, they
frequently encounter communication problems. For instance, economists work on the
consumer tastes and choices they make in their daily life. Heavy research is done on how
consumers communicate with other people and sellers while deciding to buy something.
Researchers have to make questionnaires and take interviews from consumers. Again the
effectiveness of communication will be the decider for the appropriate response of the
consumers. If economists and researchers are unaware of the writing, and speaking skills
then all their efforts to collect the necessary information about consumer behavior will go
in vain.
Take another example; pricing, which is the most important factor for any organization.
Pricing is done through different methods. Say, markup pricing, cost based pricing, and
demand based pricing. Economists are concerned with demand based pricing where
prices are set by the intersection of market demand and supply. Demand and supply
depend on various variables and these variables are what cause the fluctuation in prices.
For a perfect analysis of these variables information regarding them is necessary. Again
communication comes into play. The purpose of this analysis is mainly to provide
information to general public and the government. Economists have to communicate the
results of their findings through written work and oral presentations. They should be
equipped with the communication skills so that they can make understand the general
people of what is going on in the markets. Graphs and other figures are usually used to
explain the structures. If these graphs are not drawn appropriately then they can mislead
the readers. Such information is usually used to make policies on the government level,
and its misinterpretation will be ominous.

4. MANAGEMENT

Management is planning, organizing, leading and controlling of resources within an

organization. It involves decision making at each level of the hierarchy.
May it be planning; controlling, leading or organizing, communication is the essence of
each step in managing. While planning managers have to communicate with the CEO of
the organization. Deciding on different strategies is not an easy task. Managers come up
with different scenarios of the future and have to present them and convince the top
management so that they take up the strategy they have proposed. If appropriate skills
related to report writing are not known to the managers, they might not be able to put a
favorable impression on the top management.
There are various departments in organizations and management has to organize those
departments in ways that the form a cohesion towards the achievement of the ultimate
goal of the organization. For example they have to organize the finances of the marketing
and the production departments. For this they have to work in collaboration with the
finance department. To bring all these departments together and strong communication
network needs to be implemented. Negotiations must take place between the departments
on various issues and so on.
Human resource in organizations should be properly organized for their success.
Managers usually work as the mentors of the employees and thus constantly remain in
contact with them and communicating with them. Today’s diverse workforce can only be
handled when they are properly dealt with. Thus communication catches its importance
when employees are to be given good or a bad news. If they are to be given good news
communication method would a rejoicing one with all happy thing in the message either
verbal or written. On the other hand, when bad is to be given, buffer must be used to
reduce the impact of the bad news which follows. These methods of communication must
be constantly used to handle the human resources in organizations.
Strategic messages are important to any company. Key initiatives have to be
implemented. The challenge facing global corporations today is making these messages
understood by all. There are seven keys to making cross-cultural communication
successful.1
1. Recognize that differences exist.
2. Demonstrate curiosity.
3. Error on the part of being overly courteous.
4. Keep it simple.
5. Be warm and friendly.
6. Speak slowly and pause often.
7. Get help.
Cross cultural communication can be challenging, as well as tiring. Any small misstep
can be disastrous. Without the ability to communication globally, business professionals
will miss opportunities to grow their business and deepen relationships. But as Lee
Iococca mentioned, if you do a good job of communicating, people anywhere will follow
you to the death.

5. ADVERTISING

Remember the old song by the Beatles, “All We Need Is Love?” Well, that’s the tune
your customers are singing. If you don’t show you “love” them, someone else surely will.
In fact, your competitors are eager to do just that.
In today’s day and age, there are a lot of products that are very similar and do virtually
the same thing. The more similar in price and features your product is to the competition,
the more likely the differentiator will be relationships and service. Demonstrating you
“love” your customers as you respond to your customer’s needs insures their loyalty.2
How can you show love to the customers and win their hearts is the basic question. These
days, advertising tide has taken the globe away with itself. Where ever you see, you see
the product in front of you. It’s a good thing that we become aware of various new
coming products but the problem is that some companies are not able to communicate

1
Lee Iococca
2
Josh Gordon, Presentations That Change Minds
properly with their customers through advertising. Intention to show their love is there
but the element which attracts the customers towards the ad is never there.
Companies should be aware of the fact that if they don’t communicate properly with their
customers, they will lose them to the competitors.
Ads must have the element of beauty in them, the element that conveys the message in
few words. While making ads companies should emphasize on the consumers mind, his
thinking and intellect. Either he is able to grasp the message or not is solely dependent on
how well the ad is made. An ad should speak the language of the customer in fewer
words.
It’s important to talk to people in their own language. If you do it, well, they’ll say, “God,
he said exactly what I was thinking.” When they begin to respect you, they’ll follow you
to the death.
—Lee Iococca

6. SALES/ INVENTORIES

Part of the job description of any business professional should be “Must Have Ability to
Sell Ideas.” Whether you are speaking to a client, updating your boss on a product,
addressing a conference or hosting a meeting with your direct reports, persuading others
is what you have to do on a daily basis. In addition, people make instantaneous decisions.
Literally, you have two minutes to score with an audience. Within the first two minutes,
people decide whether they like it, want it, or need it. It is essential, then, for you to have
immediate impact.
A person who is able to sell his ideas is also able to sell the products and ideas of the
organization he works for. Sales refer to the selling of good to the customers, and are
mainly dependent on the inventory level. Both sales level and the inventory level should
go together.
Communication skills are used by sales people mostly. They must have the necessary
skills to attract customers and gain their trust.
People buy your products or accept your recommendations based on trust. It’s a key
factor in any decision making process. There are three key factors1 that help listeners
determine whether to trust you or someone else. They are verbal, vocal and visual factors.
Verbal factors relate to your message. Does your approach or recommendation make
sense? Are your ideas well supported? Do they answer the listener’s problems or issues?
Are your points clearly expressed or filled with jargon and acronyms that only insiders
understand?
Vocal factors take into consideration the voice. Does it sound confident, sincere and
professional? Is it clear? Can I understand it? Is it too soft? Is it too fast? Are there lots of
non-words, such as “um,” “ah,” “you know,” “like” or “so?”
Visual factors refer to anything listeners can see with their own two eyes, such as
gestures, eye contact, movement or facial expression. In essence, it is a speaker’s body
language. In fact, Albert Mehrabian was the first person to coin the word “body
language.” Thus while selling products sales people must take into consideration verbal,
vocal and visual impact of communications.

1
Albert Mehrabian; Silent Messages.