MGMT 4320 test 2
Substantive
Next 7 cards are filters or biases substance of the negotiation
Christian Ethics
Avoiding deception and using truth telling as a standard while keeping eye toward honesty and fairness to others.
Parties can open up
Caucus in separate rooms advantage?
Can't see other parties reaction
Caucus in separate rooms disadvantage?
Anchoring and Adjustment
Choosing an anchor and sticking to it, even if it proves to be invalid
Class 13 slides
Class 13 Slides
Class 14 slides
Class 14 slides
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Class 15 slides
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Class 17 slides
Class 20 slides
Class 20 slides
coalitions
Collection of 2 or more parties who intentionally work together to pursue mutually desirable goals Often informal and disband quickly include some parties and exclude others
1.False representation of a material fact 2.Knowledge of its falsity 3. Intent to have the other party rely on the false fact 4.Reliance by the injured party on the false fact 5.Damage to the innocent party
Common law fraud definition from article...(5)
Seek overwhelming agreement Does not have to be unanimous Maximizes interests of all stakeholders
Consensus Building...
1. Build on their differences 2. Diagnose the honesty of the other side 3. Reduce risk through risk sharing 4. Increase incentive for parties to perform 5. Manage decision-making biases (such as overconfidence) 6. Solve problems of trust
Contingent Contracts allow negotiators to:
Power With
Developed jointly and shared with the other party
decisions outcomes
Different levels of bias affect many managerial and negotiator ______ and ________
Pretend you are negotiating for someone else Avoid discussing salary until they make an offer Keep your interests on the table Do not reveal your BATNA or reservation point Be clear - "Here is what it will take. . .
During the Negotiation of a job offer?
educate Purpose senses, knees both
Integrative use for power is to ______ Focus on "Power With A _______" Use power to bring them to their ______, not to their _____ Teach them the only way for them to win is for _____ of you to win together
Parties can vent
Joint Session Advantage?
- Emotions can take control
Joint Session disAdvantage?
Attempt at fairness Gives a more timely firm decision But can produce an unhappy minority
Majority Rule From Robert's Rules of Order....
The social environment The process The choice of strategy
More complexity in multi-party negotiations in:
agreements
Multiparty negotiation rarely leads to more integrative ______
worth, salary ranges appropriate contingent contract promotion issues
Negotiating salary suggestions Know what you are _____ and current_____ ______ Gauge whether negotiating salary is ______ Suggest a _____ ______based on performance Negotiate salary at the next _______ date Negotiate______ other than salary
Takes longer Less "schmoozing" to build rapport Less likely to ask diagnostic questions Less sharing of interests, less truth-telling and trust More direct language that can be misinterpreted Less satisfaction with outcome
Problems with email negotiations...
1. Is your threat based on emotion? 2. Will your threat incite a counter-threat larger than your own? 3. Will the threat cost you more than the other side?
Questions to ask yourself before making a threat?
Don't dwell on the past Use an advisor
Solution to Escalation of Commitment...
Consider the opposite Listen to others' feedback Balance between optimism and overconfidence
Solution to Overconfidence bias...
Open discussion Integrative strategies
Solution to Self-Serving Bias....
Prepare your first offer well Aim high
Solution to Winner's curse?
60%
_____% of newly introduced individuals lie to one another within minutes simply to create a favorable impression.
Expert power
• Based on expertise, knowledge, and talent
Reward power
• Based on the ability to allocate desirable outcomes
Coercive Power (Leverage)
• Based on the ability to allocate undesirable outcomes
Alternative Power (BATNA)
• Based on the ability to make another choice
" - Abraham Lincoln
Who said this? "It is better to keep your mouth shut and be thought a fool than to open it and remove all doubt."
Referent power
• Admired and held in high esteem without prompting
Legitimate power
• Holding position of authority
ethics
A set of principals or moral standards that differentiate right from wrong.
25%
According to most conservative estimates of human resources managers, ___% of all resumes contain significant lies.
1 Allows you to strategize between messages 2 More equality in power between partners 3 less social cues
Advantages of Negotiating via Email...
Outcome
result of the negotiation
Loss-Gain
risks vs. rewards of an outcome
Encourage self-determination Be impartial Maintain confidentiality Ensure competence
role of mediator
A Wise Threat
satisfies your interests and targets the other side's interests
Reject anchors Prepare well Write down your opening offer
solution to Anchoring and Adjustment bias?
Seek overwhelming agreement Motivates group to meet interests of all parties Brainstorm ways to maximize joint gains Consensus encourages logrolling Take suggestions from minority group members to achieve best results
what are the benefits of consensus building...
encourage and validate restate reflect summarize clarify
what are the listening techniques?
- Salary - Stock - Bonus - Benefits - Chance for Promotions and Timeframe
what are the main ISSUES when negotiating salary?
1. Its unpleasant 2. lack of confidence 3. Lack of negotiating skills
what are the top 3 reasons people don't negotiate to improve salaries?
conflict
State of discord caused by actual or perceived opposition of needs, values and interests Clash of interests, values, actions or directions
integrity Organizational single, long
Surround yourself with peers of ______ if possible. _______ culture is important in driving decisions. Choose wisely. A _____ unethical decision can have _____ ranging implications for your reputation, your job and your career. Think carefully about your decisions as you make them in the area of ethics.
Power Over
Used to dominate and control others for your own advantage
Filters can define outcomes Filters shape communication and discussion of key issues Filters evolve over time
What are the effects of filters in negotiation?
1. Schmooze and ask questions in person or over phonefirst 2. Set ground rules and manage the process 3. Finalize agreement in person or over phone 4. Check spelling and grammar carefully!
What can you do to improve email negotiations?
Perceptual Distortion Your needs, desires, motivations, and experiences (your filters) give you a predisposition that distorts your perceptions and can obstruct your outcomes
What causes perfectly good negotiations not to turn out successfully?
When you need a binding resolution Helps parties avoid cost of a prolonged, unresolved dispute Several negative consequences - "Chilling Effect"
What is Arbitration?
Parties themselves develop and endorse agreement High settlement rate - 60-80% Greater satisfaction
What is mediation?
neutral, behaviors Describe opinions interests consequences
When mediating.... Use _____ language - focus on _____ _______, don't evaluate or judge Help parties move to the present/future (not past) Facilitate, but no advice or ______ Identify _______ behind positions Define the problem without including parties' positions May need to ask questions about possible _______ Let parties choose their best agreement Listen, listen, listen
Overconfidence bias
Overestimate your abilities
Trust
"An individual's belief in and willingness to act on the words, actions, and decisions of another"
winner's curse
An outcome comes too quickly and too easily Buyer's remorse "Should I have bid less?" "What's wrong with this item?"
Personalistic Ethics
Choose a course of action based on my personal convictions (conscience)
Duty Ethics
Choose a course of action based on rules and principles
Social Contract Ethics
Choose a course of action based on the norms and values of the local community
End Result Ethics
Choose a course of action based on the results I expect to achieve (maximizing profits)
Self-Serving Bias
Define "fairness" in your favor Not purposefullly unfair, but we struggle to interpret information in an unbiased manner
BATNA options numbers or terms party's
Keep trying to improve your _____ Keep your ______ open Refer to your BATNA without revealing specific ______ or _______ Assess the other ______ BATNA
Third side safe atmosphere responsibility risks dialogue timekeeper listen, question, probe
Mediator brings "____ ____" perspective Mediation environment creates a _____ space Mediation changes the ______ - optimism to make a bad situation into good Parties accept _______ for resolving the conflict Causes parties to be willing to take ______ to reach agreement Provides the value of respectful _______ ("talking may prevent violence or going to court") Provides a _________. Mediator may be the only one willing to_____, _____, _____
Escalation of Commitment
Pursue a failing course of action Rivalry Time Pressure Audience Scrutiny Beyond what is rational Actions can exacerbate losses
Mediator may NOT impose his/her judgment Mediator must remain neutral
2 critical rules for mediation?
pre-conflict confrontation crisis
3 steps of escalation?
1. End Result Ethics 2. Duty Ethics 3. Social Contract Ethics 4. Personalistic Ethics
4 Types of Ethical Standards...
outcome post-conflict MEDIATION Mutual understanding and agreements
4 steps of de-escalation?
1. Prepare, Prepare, Prepare! 2. Stay Calm 3. Be Observant 4. Don't Rush to Judgement 5. Be Creative!
5 Things You Should Take Away From This Course
Escalation of Commitment Anchoring and Adjustment Overconfidence Winner's Curse Self-Serving Bias
5 common mistakes when using filters?
opening ventilation clarification generating options agreement and closure
5 stages of mediation?
Convene Clarify responsibilities Deliberate and brainstorm Reach decision Implement agreement
5 steps in consensus building...
1. Reward power 2. Legitimate power 3. Referent power 4. Expert power 5. Alternative Power (BATNA) 6. Coercive Power (Leverage)
6 types of power?
Research the other party Set ground rules Look for behavior that does not match their typical behavior Ask questions in different ways Ask questions you already know the answer to Get it in writing Use contingent agreements for protection
7 ways to protect yourself from lies?
Mediation
Forum in which an impartial person facilitates communication between parties to promote reconciliation, settlement, or understanding among them.
openness suspicion, information
High trust leads to _______, low trust leads to ______ and withholding _______
1 Ask for more time to make a decision, but reply in a timely manner 2 Be gracious and enthusiastic! 3 Get the offer in writing 4 It's not over until it's over
Once You Have an Offer....
tone of voice quiet, mute Prepare writing
Phone/web conference negotiations: Set the tone - use ____ __ ___ wisely Choose____ location and use ______ as needed _______! Define agenda up front Confirm agreement in _______ ASAP
individual situation/context
Power comes from both the______ and the ______/_______
influence resist unwanted influence
Power is the ability both to ______ the conduct of others and to _____ ______ _______ in return
Bring about outcomes you desire Get things done the way you want them to be done Induce another to do what they would otherwise not do
Power is the ability to...(3)
Take action Are protected from behavior of opponents (?) Are creative risk takers
Powerful negotiators....
may choose to lie, cheat, steal if end result is good
Problem with end result ethics?
developments, outcomes pitfalls
There are several mistakes you can make during the negotiation process. In preparing for negotiation, think through potential ________ and ________ and be prepared to avoid the_____
Parties with insufficient resources individually can combine to potentially control the outcome
benefit of coalitions....
An ethical dilemma
can exist when an individual faces a decision between profit maximization and obligations to other human beings
class 18 slides
class 18 slides
class 23 slides
class 23 slides
What do you really want? Determine your BATNA Determine your target/reservation point on each issue Practice "What if. . ." scenarios Practice "selling" your strengths and weaknesses List the issues (more than just salary)
preparation in Negotiating a Job Offer?
Process
how the negotiation proceeds
Characterization
how you define the other party
Identity
how you define who you are
Aspiration
meeting interests
perspective
powerful negotiators sometimes lose _______!
