MAN4441 Final Exam

define Three Types of trust in Relationships

*Deterrence-based trust* - Behavior is based on threats or the promise of consequences - Expensive to develop and maintain behavioral monitoring systems - Backfiring effect (reactance theory) - Ex: • Policies- behavior, attire, etc • Rules, regulations • Monitoring or oversight systems • Contracts between parties *Knowledge-based trust* - Based on behavioral predictability from recognition of past behaviors and actions - Increases dependence and commitment among parties - Ex: • Close Friend *Identification-based trust* - Based on complete empathy with another person's desires and intentions - Means other people have adopted your preferences and sense of identity (share a common identity) - Ex: • Choosing politicians

Define primary and secondary status characteristics

-Primary status characteristics: indicators of legitimate authority (rank, degree, title) -Secondary status characteristics: cues and attributes that have no legitimate bearing on the allocation of resources or on the norms of interaction, but nevertheless exert a powerful influence on behavior (i.e., age, gender, ethnicity, cultural background)

state and describe Steps to repair broken trust

1. Arrange a personal meeting 2. Put the focus on the relationship 3. Express regret for or disappointment over the situation 4. Let them vent 5. Do not get defensive 6. Ask for clarifying information 7. Test your understanding 8. Formulate a plan 9. Think about ways to prevent a future problem 10. Do a relationship check-up

Ury's breakthrough approach and the individual steps

1. Don't react- go to the balcony - Psychologically remove yourself from the interaction 2. Disarm them- step to their side - Act counterintuitively- deflect or sidestep the other party's negativeness - Disarm them using positive, constructive communication 3. Change the game- don't reject, reframe - Change the negotiation by proactively reframing their tactics 4. Make it easy to say yes- build them a golden bridge - Entice the other party to cross over to agreement by: • Involving him or her in the design of an agreement • Satisfying his or her unmet needs • Recognizing and being empathetic to their demands and expectations • Helping him or her to save face with constituencies • Walking them through complex agreements step by step and not demanding closure until everyone is ready 5. Make it hard to say no- bring them to their senses, not their knees - Strengthen one's BATNA - Help the other party think about the consequences of not reaching agreement - If necessary, use one's own BATNA - Keep sharpening the other's choice- refer to the attractive terms and focus on the advantages of completing the deal - Fashion a lasting agreement

Three types of Power Moves

1. Incentives- draw the attention to the importance of the negotiation 2. Pressure tactics- lead the other party to realize the status quo is unacceptable 3. Enlistment of support or allies- help the other party see the advantage of negotiating

State the five strategies of building trust

1. Maximize the use of your network 2. Building rapport before negotiating 3. Set an appropriate trust default 4. Win their trust 5. Listen to and acknowledge your counterparty

Strategies that can resolve impasse

1. Reaching agreement on rules and procedures (social contracts) - Obtain mutual agreement about the rules that will govern the negotiation - Determine a site for a meeting - Set a formal agenda - Determine who may attend the meetings - Set time limits for individual meetings - Set procedural rules - Follow specific dos and don'ts 2. Reducing tension and synchronizing de-escalation of hostility - Separate the parties - Manage tension - Acknowledge the other's feelings: active listening - Synchronize de-escalation • Decide on a small concession that each side could make to signal good faith 3. Improving the accuracy of communication - Role reversal - Imaging parties engage in the following activities: • 1. How they see themselves • 2. How the other party appears to them • 3. How they think the other party would describe them • 4. How they think the other party sees themselves 4. Controlling the number and size of issues - Fractionate the negotiation • 1. Reduce the number of parties on each side • 2. Control the number of substantive issues involved • 3. State issues in concrete terms rather than as principles • 4. Restrict the precedents involved, both procedural and substantive • 5. Search for ways to divide the big issues • 6. Depersonalize issues: Separate them from the parties advocating them 5. Establishing common ground - Superordinate goals - Common enemies - Common expectations - Manage time constraints and deadlines - Reframe the parties' view of each other - Build trust - Search for semantic resolutions - Use analogical reasoning 6. Enhancing the desirability of options and alternatives - 1. Give the other party a "yesable" proposal - 2. Ask for a different decision - 3. Sweeten the offer rather than intensifying the threat - 4. Use legitimacy or objective criteria to evaluate solutions

know Two possibilities that may exist when a party is being difficult

1. The negotiator does not know any other way to negotiate, but might be responsive to suggestions for changing his or her behavior (call out the approach or behavior) 2. The other party has a difficulty personality and his or her behavior is consistent within and outside the negotiation context (call out the behavior or respond in kind or ignore)

trust

A FIRM BELIEF IN THE RELIABILITY, TRUTH, ABILITY, OR STRENGTH OF SOMEONE OR SOMETHING.

Power and Perspectives on Power

An actor... has power in a given situation (situational power) to the degree that s/he can satisfy the purposes (goals, desires, or wants) that s/he is attempting to fulfill in that situation o Two perspectives - Power use to dominate and control the other- "power over" - Power used to work together with the other- "power with"

Know the difference between the cognitive and affective routes to build trust

Cognitive Route- Based on rational and deliberate thoughts and considerations - Transform relational (personal) conflict into task conflict - Agree on a common goal or shared vision - Capitalize on network connections - Find a shared problem or a shared enemy - Focus on the future Affective Route- Based on intuition and emotion - Similarity, Mere Exposure, Physical Presence, Reciprocity, Schmoozing, Flattery, Mimicry and mirroring, Self-affirmation

Process Moves (Indirect lever)

Designed to influence the negotiation process itself through adjustments to the agenda, sequencing, decision rules, how ideas will be heard, approaches to build consensus

state Particularism

How much utility or use we derive from the resource

Forked-Tail Effect

Once we form a negative impression of someone, we tend to view everything else about them in a negative fashion

Appreciative Moves

Open communication, collaborative exchanges to build trust and candor; designed to break cycles of contentiousness that may have led to deteriorating communication, acrimony, or even silence

Social Power

Power people have over other people

Condorcet Paradox

Power/leverage changes as alternatives are proposed (ex: Legislative bill development)

Recognize that preparation is essential for any negotiation and what is necessary to be clarified in team and multiparty negotiations

Preparation is essential for any negotiation, but even more so for team negotiations The team needs to clarify: •Goals (what you want) •BATNAs •Agenda •Role of each member •Responsibilities before, during, and after agreements are made

define Halo Effect

Propensity to believe that people we trust and like are also intelligent and capable

define Reputation

Reputation- The beliefs or opinions that are generally held about someone or something - A negotiator needs to protect their reputation

know diff between Tactical Impasse and Genuine Impasse

Tactical Impasse-Parties deliberately refuse to proceed as a way to gain leverage Genuine Impasse-Parties feel unable to move forward without sacrificing something important

Personal Power

The freedom people have from other people in terms of decreasing their dependency on others

Know what the social contract defines

The resultof the shadow negotiation is a social contract regarding the following: ◦ How the negotiation will proceed ◦ What interests are important ◦ Who has influence and power (i.e., whose opinions matter) ◦ The boundaries of the negotiation -will the negotiation be adversarial or cooperative?

state Concreteness

The tangibility of the resource

Win-win negotiation

The true definition of a "win-win" in an agreement is one that allows negotiators to fully maximize whatever negotiators care about, which can include the following resources: - Relationships - Love - Money - Services - Goods - Status/Power - Resources - Information

know How does a person build trust through cognitive means of influence?

Transform relational (personal) conflict into task conflict. -Agree on a common goal or shared vision. -Capitalize on network connections. -Find a shared problem or a shared enemy. -Focus on the future

Describe conditions that can lead to unethical tactics or deception and how to respond to unethical behavior

UNDER WHAT CONDITIONS DO NEGOTIATORS ENGAGE IN DECEPTION? ◦The lure of temptation ◦Uncertainty ◦Powerlessness ◦Anonymity of victims ◦Perspective-taking in a competitive context Responding to Unethical Behavior • Ask probing questions • Phrase questions in different ways • Force the other party to lie or back off • Test the other party • "Call" the tactic • Ignore the tactic • Discuss what you see and offer to help the other party change to more honest behaviors • Respond in kind

Strategic Voting

Voting for purposeful positioning (ex: Survivor)

6 levels of Multiparty negotiation analysis

o 1. Multiparty o 2. Coalitions o 3. Principal-agent o 4. Constituencies o 5. Team Negotiation o 6. Intergroup

Impasse

o A condition or state of the conflict in which there is no apparent quick or easy resolution - Not necessarily bad or destructive - Does not have to be permanent - Can be tactical or genuine

decsribe Situations that can lead to Mistrust

o Breaches or defections o Miscommunication o Dispositional attributions o Focusing on the "bad apple"

know How to handle hard distributive tactics

o Call them on it o Ignore them o Respond in kind o Offer to change to more productive methods

know Components of an Exploding Offer (Ultimatum form)

o Components of an exploding offer include: - Specific time limit or deadline attached to it - Clear asymmetry of power between the parties - Pressure-inducing test of faith for the receiver - Restricted set of options - Lack of consideration and respect for the offerer by the respondent - Apparent lack of good faith on the offerer's part o Can be defused by "embracing it"

recognize four types of challenges to multiparty negotiations

o Dividing resources o Coalitions/Alliances formation o Formulating trade-offs o Negotiation Decisions through voting and majority rule

know Five Major Types of Power

o Expert Power- Someone is an expert in the field (Has the most knowledge on a project) • Reward Power- You have the power over the rewards someone gets (Boss giving a promotion/pay raise, more likely to help the friend with more gadgets/fun stuff such as four wheelers) o Coercive Power- Someone can hold stuff over you/restrict you from things if you don't comply with their requests • Legitimate Power- Responsibilities and authority (manager/supervisor at a workplace) o Referent Power- Someone who is respected/you seek out their guidance and opinion (Someone who has wisdom/experience) Most impactful type of power

Key concepts of Negotiation in which individuals can engage in lying or unethical behavior

o Falsifying: - Positions - Interests - Priorities and preferences - BATNAs - Reservation prices - Key facts

Multiparty Negotiations

o Group of three of more individuals, each representing his or her own interests, attempting to resolve perceived differences of interest

Five sources of Power

o Informational sources of power - Most common source of power - Based on the ability to assemble and organize data to support his or her position, arguments, or desired outcomes - A tool to challenge the other party's position or desired outcomes o Personal sources of power - Personal Orientation - Cognitive Orientation • Ideologies about power - Motivational orientation • Specific motives to use power - Disposition and skills • Orientation to cooperation/competition - Moral orientation • Philosophical orientation to power use o Power based on position in an organization - Two Major Sources • Legitimate Power o Grounded in the title, duties, and responsibilities of a job description and "level" within an organization hierarchy o Power based on the control of resources associated with that position - Important resources: Money, supplies, human capital, time, equipment, critical services, interpersonal support o Relationship-based sources of power - Social Power • Goal interdependence • Referent power • Networks - Networks • Key Aspects: o Relationship strength o Network content o Network structure o Centrality, Criticality and relevance, Flexibility, Visibility, Coalitions o Contextual sources of power - Power is based in the context, situation, or environment in which negotiations take place - BATNAS - Culture • Often contains implicit "rules" about use of power - Agents, constituencies and external audiences

recognize Strategies that can be used to enhance the outcomes of negotiation

o Know who will be at the table o Manage the information and systematize proposal making o Brainstorm options (make sure to engage everyone) o Develop and assign process roles o Stay at the table o Strive for equal participation o Allow for some points of agreement, even if only on process o Avoid the "equal shares" bias (split the middle) o Avoid the agreement bias (satisficing) o Avoid sequential bargaining, when appropriate

know Difference between Omission and Lying

o Lying- A given statement may be defined as fraudulent when the speaker makes a knowing misrepresentation of a material fact on which the victim reasonably relies, and it causes damage o Omission - Withholding information (Leaving information out) - Sometimes not considered unethical (depends if the information is material to what is at hand)

Benefits and disadvantages of voting (including unanimous voting)

o Majority rule fails to recognize the strength of individual preferences o Consequently, majority rule does not promote integrative tradeoffs among issues o Groups negotiating under unanimous rule reach more efficient outcomes than groups operating under majority rule o Unanimity rule encourages group members to consider creative alternatives to expand the pie and satisfy all group members

know Fundamental Mistakes that cause impasse

o Neglecting the other side's problem o Too much of a focus on price o Positions over interests o Too much focus on common ground o Neglecting BATNAs o Not adjusting perceptions during the negotiation

Strategies utilized in dealing with powerful people

o Never do an all-or-nothing deal o Make yourself bigger; make the other party smaller o Build momentum through doing deals in sequence o Use the power of competition to leverage power o Constrain yourself o Good information is always a source of power o Ask many questions to gain more information o Do what you can to manage the process

Shadow Negotiation and the resulting social contract

o Occurs before or in parallel with the substantive negotiation and is concerned with how the negotiation will proceed - Typically, does not cover what ground the negotiation is going to cover o Resulting Social Contract regarding the following: - How the negotiation will proceed - What interests are important - Who has influence and power (i.e., whose opinions matter) - The boundaries of the negotiation- will it be adversarial or cooperative?

Costs associated with lying

o One's reputation and trustworthiness can be damaged o It can lead to a culture in which everyone in the organization lies and general suspicious increases o A negotiator who lies about his or her reservation price effectively decreases the size of the bargaining zone, and increases the probability of an impasse o The liar can be caught and face criminal charges

Effects of Power on those with Less Power

o People with less power are highly accurate in perceiving the behaviors and attitudes of those with higher power o Those low in power may exhibit signs of paranoia o Low-power negotiators are particularly susceptible to the emotions of the other party and consequently lose focus and yield ground when they face a powerful, emotional counterparty

know Strategies that can help in handling conversations with difficult people

o Points to Remember 1. Everyone can exhibit difficult behaviors or be difficult to deal with at times; some people are invariably difficult 2. What is difficult behavior to one person may not be difficult for another 3. Difficult people behave the way they do because it achieves results for them 4. Difficult people may continue their behavior because they honestly are not aware of the long-term costs to people and organizations that must contend with them o Understand one's own comfort level and know how one reacts to different difficult conversations o Three elements to manage the conversation: - Clarity- Use language that is precise as possible (CLR behaviors, clarify, listen, respond) - Tone- Strike a neutral tone when having a difficult or stressful conversation - Temperate phrasing- Choose language carefully to deliver a message that will not provoke the other side o Three steps people can take once they have an awareness of their likely response to an upcoming difficult conversation: 1. Visualize in your mind how the conversation will go 2. Practice the upcoming difficult conversation with a neutral party 3. Construct a team that has broad experience in dealing with difficult others

Four Power Viewpoints

o Potential Power- Potential power based on perceived dependence of other parties o Perceived Power- What I think they have and what they think I have power-wise o Power tactics o Realized Power- Claimed/realized value of amount of dependence other parties have

know Four effects relating to the use of Power

o Power has a number of social and cognitive effects on the power-user, such as: - Power decreases social awareness (and accuracy) - Power increases feelings of control - Power increases risk-taking - Power is triggered by situations and stimuli

Power vs. Status

o Power- The potential a negotiator holds to influence others or the course of events o Status- The relative social position or rank given to negotiators or groups by others o Relevant Status in Negotiations - Primary status characteristics- indicators of legitimate authority (rank, degree, title) - Secondary status characteristics- Cues and attributes that have no legitimate bearing on the allocation of resources or on the norms of interaction, but nevertheless exert a powerful influence on behavior (i.e., age, gender, ethnicity, cultural background)

Factors that can lead to unethical tactics and how to respond to unethical behavior

o Tactics - Demographic Factors - Personality Differences - Moral development and personal values - Contextual or situational influences on unethical conduct o Responding to Unethical Behavior - Ask probing questions - Phrase questions in different ways - Force the other party to lie or back off - Test the other party - "Call" the tactic - Ignore the tactic - Discuss what you see and offer to help the other party change to more honest behaviors - Respond in kind

know Why people behave more competitively in multiparty versus two-person negotiations

o The costs of defection are spread out or consolidated (i.e., risk is a strategic factor to consider) o Multiparty dilemmas can be risker due to the issues of complexity o People in multiparty dilemmas have less control over the situation

Escalation of Commitment

o The unfortunate tendency of negotiators to persist with a losing course of action, even in the face of clear evidence that their behaviors are not working and the negotiation situation is quickly deteriorating

Unethical strategies used in Negotiations

o Traditional competitive bargaining- Ex: Hiding one's real bottom line, making very high or low opening offers, and gaining information by asking one's contacts (Not considered unethical usually) o Manipulation of an opponent's network- An attempt to weaken an opponent's position by influencing his or her associate or constituency o Reneging on negotiated agreements- Many contracts allow a party to pull out of a contract (rescission) a short time after signing. Legal but questionable, especially if only a handshake or something non-binding occurs o Retracting an offer- Retracting an offer after putting it on the table o Nickel-and-diming- Continually asking for "just one more thing" after a deal has been closed (annoying to most people)

Utimatums and the three components

o Ultimatums attempt "to induce compliance or force concessions" - 1. A demand - 2. An attempt to create a sense of urgency, such that compliance is required - 3. A threat of punishment if compliance does not occur

define Reciprocity Principle

o We feel obligated to return in kind what others have offered or given to us o All human societies subscribe to this o People feel upset and distressed if they have received a favor from another person and are prevented from returning it

Power of Alternatives

o When Negotiators have a great BATNA, they have power o Negotiators must attempt to cultivate and improve upon their BATNA prior to negotiating o To fully capitalize on your BATNA, use the following info: - Keep your options open - Signal your BATNA, but do not reveal it (Signal you have options but without revealing their exact value) - Assess the other party's BATNA

Differences in negotiation between males and females in negotiation

o Women set lower aspirations (and therefore asked for less) in their opening offers than do men o Four key factors that serve as barriers for women asking for what they want - Definitions of what is negotiable may differ - Rationale for negotiation outcomes is based on a belief in the concept of being "deserving" - Less likely to establish aggressive goals - Relationships are more important o Strategies that can help female negotiators attain better outcomes at the negotiation table - Stereotype regeneration - Remove ambiguity from novel-appearing situations - Negotiate on behalf of a constituency