MIDTERM 2
What are some of the advantages and disadvantages to the ways in which we assign reputation to others? What are some of the ways that repairing a 'bad reputation' is similar to repairing broken trust?
Advantages - (halo effect) propensity to believe that people we trust & like are also intelligent & capable. Disadvantages - (forked-tail effect) once we form a negative impression of someone, we tend to view everything else about them in a negative fashion Similar ways repairing a 'bad reputation' to broken trust is that it requires a change of perception, in order to regain that trust. Especially if you were prone to being perceived negatively then perception is everything in this case.
What are some of the advantages and disadvantages to negotiations between businesspeople and how do they differ from purely personal negotiations?
Advantages - use of exchange norms. Market pricing - method by which everything is reduced to a single value or utility metric that allows for comparison of many qualitatively & quantitatively diverse factors. Market pricing allows people top negotiate by making reference to ratios of this metric (percentage shares, money, capitalism) Disadvantages - often deal with people we not like, may regard as offensive. Difficult to separate their feelings about someone as a person from the business Business relationships often have status & rank issues associated with them.
What are some of the advantages of creating contingency contracts? What are some of the characteristics that ensure the viability and usefulness of contingency contracts?
Advantages: a. Allows negotiators to build on their differences, rather than arguing about them. Do not argue over the future. Bet on it b. Allow negotiators to manage decision-making biases. c. Allows negotiators to solve problem of trust, when on party has information that other party lacks. d. Allows negotiators to diagnose the honesty of the counterparty. e. Allows negotiators to reduce risk through risk sharing. f. Increase the inventive of the parties to perform at or above contractually specified levels. Viability: a. Require some degree of continued interaction between the parties, some amount of future interaction between parties is necessary, thereby allowing them to assess the terms of their agreement b. Parties need to think about the enforceability of the contingency contract c. Contingency contracts require a high degree of clarify and measurability. If an event is ambiguous, non-measureable, or of a subjective nature, overconfidence, egocentric bias, & a variety of other self-serving biases can make the objective appraisal of contingency contract a matter of some opinion.
What are some of the reasons that people are uncomfortable negotiating with friends, and what are some of the advantages and disadvantages to negotiating with friends?
Communal norms - we should take care of people we love, respond to their needs, & not "keep track" of who has put in what. We should be sensitive to the needs of people we love or like & attempt to meet those needs, rather than try to maximize our own interests. Exchange norms - people should keep track of who has invested in a relationship & be compensated based on their inputs Advantages - friends are less competitive with each other than they are with strangers. Friends exchange more information, make more concessions, make fewer demands, & are more generous to one another. Disadvantages - friends and lowers are too willing to compromise. Friends are reluctant to engage in the firm flexibility maxim that is often required to reach integrative agreements. Compromise happens too often, so they want to avoid conflict & minimize the threat of impasse, likely to leave money on the table.
1) Recall the "iceberg model" of culture. How does a limited definition of culture (or the "tip of the iceberg") contribute to cross-cultural negotiation problems?
Cultural iceberg is behaviors, artifacts, & institutions that characterize a culture. Portion includes traditions, customs, habits, & other immediately visible stimuli. Behaviors & artifacts are an expression of deeper-held values, beliefs, & norms. Driving these values & norms are fundamental assumptions about the world & humanity. The artifacts & customs that characterize a culture are not arbitrary; rather, they are manifestations about fundamental values & beliefs about the world.
How do differences between direct and indirect communication cultures affect how negotiators share information?
Direct Communication - messages are transmitted explicitly & directly, communications are action oriented & solution minded Indirect Communication - messages are transmitted indirectly, implicitly, & communication is elusive. Meaning of communication is inferred rather than directly interpreted.
What is an embedded relationship? Provide an example of embedded relationships (personal or historical). What were some of the pitfalls associated with these relationships?
Embedded relationships - where friends and family do business, these relationships are more complex Pitfalls: Emotional potential is higher - can often be overwhelming & interpersonal can result Internal value conflict - Competence and liking are at battle with one another Myopia - People are reluctant to move beyond their own networks
In what ways do different types and methods of feedback affect the performance of negotiators on subsequent negotiations?
Feedback: Positive-ability feedback - "What a skilled negotiator you seem to be" outward perception of ability as a negotiator Negative-ability feedback - "What an unskilled negotiator you seem to be" least competitive, worst individual performance Positive-ethicality feedback - "What an ethical negotiator you seem to be" most cooperative Negative-ethicality feedback - "what an unethical negotiator you seem to be" most honest Methods: Analogical Training - compare several different value-creating strategies, such as logrolling & contingent contracts, to learn underlying value-creating principles than more narrow training, in which negotiators are only exposed to one type of pie-expanding strategy Counterfactual Reflection - process of thinking about the past Incubation - (multi-step process) place problem aside to reach high quality, integrative agreements achievable through breaks being taken Rational Problem-Solving Model - deliberate & systematic 1. Understand the problem - negotiator asks himself "What is known? What is unknown?" 2. Devising a plan - negotiator asks himself whether past experience is profitable means of finding a solution method, engaging in a search for similar problems, or perhaps restating the goal of the problem. 3. Carrying out the plan - carries out the plan & tests it 4. Looking back - negotiator asks himself whether he or she can obtain the result by using another method & looks at how it all fits together. Brainstorming - maximize the quantity & quality of ideas Deductive Reasoning - process of drawing logical conclusions Inductive Reasoning - form of hypothesis testing, or trial & error
What are some of the effects of status on the conduct of bargaining? What are some of the disadvantages to paying attention to secondary status characteristics in negotiation?
High-status individuals talk more, even when they do not necessarily know more. High-status person will also generally control when he or she speaks in a conversation. Furthermore, a low-status person will defer to the high-status person in terms of turn taking in the conversation. Status is the relative social position or rank given to negotiators or groups by others, rank title degrees. Secondary status, cues or attributes that have no legitimate bearing of allocation of resources. Age ethnicity gender. Disadvantages - exert a powerful influence on behavior; include sex, age, ethnicity, status in other groups & cultural background. People notice pseudo status characteristics immediately, which could affect decisions made at the bargaining table.
What are some key differences between individualistic and collectivist cultural values? What are the implications for negotiation?
Individualism - Cultural style that epitomizes the individualistic motivational orientation. People in individualistic cultures give priority to their personal goals even when these goals conflict with those of their family, group, or country. Collectivism - Rooted in social groups & individuals are viewed as members of groups. People in collectivist cultures give priority to in-group goals. Implications: Social Networks - members of different cultures differ in terms of the density of their work friendships, the overlap of instrumental & socioemotional ties, the closeness of the tie, the longevity of the tie, & whether the network relationships are directed upward, laterally, or downward. Cooperation - engage in more cooperative behavior & place greater emphasis on needs and goals of their group, and are more likely to sacrifice their personal interest for the attainment of group goals. In-Group favoritism - strong tendency to favor the members of one's own group more than those in other groups, even when one has no logical basis for doing so. More prevalent in collectivist cultures. Social loafing - tendency for people to work less hard & contribute less effort & resources in a group context than when working alone. Occurs less in collectivist cultures Social Striving - collectivist concerns for the welfare of the group - increased people's motivation & performance. More prevalent in individualistic cultures. Emotion & Inner Experience - collectivists & individualists differ in the ways they describe emotional experience. Dispositionalism - tendency to ascribe the cause of a person's behavior to his or her character or underlying personality Situationalism - tendency to ascribe the cause of person's behavior to factors outside the person's control
Why is a negotiator's BATNA the most important source of power in negotiation? Why should a negotiator constantly cultivate and improve his or her BATNA prior to negotiating?
It brings other resources into the conversation, can approve or negate other agreements based on their BATNA. It allows you to keep your options open, you can signal your BATNA but do not reveal it, & you can use yours to assess the other party's BATNA. BATNAs are dynamic, you want to invest time in assessing current data, researching the other party's BATNA, will do better in terms of slicing the pie vs. those who don't
What are some examples of acceptable and taboo trade-offs in negotiation? How does the trade-off principle operate within systems of sacred and secular values?
Secular Values - are opposite of sacred values, which are issues and resources that can be traded & exchanged Taboo Trade-offs - proposals to exchange sacred values (ex. Body organs) for secular ones (money, time, or convenience) The tradeoff principle is ideal of handling scarce resource conflicts containing issues that are fungible (easily replaced)
What are some behaviors that are generally regarded to be unethical in negotiation? Under what conditions do people usually engage in this kind of behavior?
Lying, Traditional competitive bargaining, manipulation of.opponents network, reneging on negotiated agreements, retracting an offer, nickel and diming. Fraudulent - When the speaker makes a knowing misrepresentation of a material fact, on which the victim reasonably relies and the fact causes damage Positions - stated demands made by one party to another, negotiators are under no obligation to truthfully state their position. Passive misrepresentation - occurs when a negotiator does not mention their true preferences and allows the other party to arrive at an erroneous conclusion. Bluffing - offers that do not exist Key Facts - the falsification of information is unethical (subject to punishment) People have boundaries of ethics, illusions of superiority, illusion of control- gamblers fallacy overconfidence all lead to unethical behavior. Traditional competitive bargaining - hiding one's real bottom line, making very high or low opening offers & gaining information by asking one's contacts.
What are some of the things people might care about maximizing in a negotiation that are not necessarily monetary in nature?
Maximization of utility: includes trust, security, happiness, & peace of mind EX. - Fiancé, services, the information sessions in coffee contract, status- title, information
Define power distance and collectivism and give an example of a country that is high on each of these cultural dimensions. How is power distance correlated with individualism and collectivism?
Power distance - refers the way in which power is distributed & the extent to which the less powerful accepts that power is distributed unequally Slovakia - larger power distance, more individualistic Costa Rica - smaller power distance, more collectivist Collectivism and Power distance are positively correlated
Why is it so difficult to pinpoint "ethical" or "unethical" behavior? How does this relate to the concept of determining "fairness" (discussed in Chapter 3)? What are some strategies a negotiator can use to determine whether a given behavior is ethical?
Several predictors of the extent to which a negotiator will engage in unethical behavior; including their attitude toward competitive-unethical tactics, the early use of competitive unethical tactics, & behavior of the counterparty. a. Front-page test - Ask the following "Would you be complete comfortable if your actions & statements were printed in full on the front page of the local newspaper or reported on the evening news?" b. Reverse golden rule - "Do unto others as you would have them do unto you"; "If the tables were turned, how would I feel if my opponent did this to me?" c. Role modeling - "Would I advise others to do this?" d. Third-party advice - Wise to consult a third party (impartial view) to see how that person regards your planned behavior. e. Strengthen your bargaining position - Negotiators who have prepared adequately will be less tempted to lie
What is "stereotype regeneration"? Explain how this affects the negotiation process.
Stereotype regeneration - recognizing & confronting stereotypes Refers to the process by which members of traditionally stereotyped groups redefine their own beliefs about their group. Affects - stereotypes can be exploited, negative stereotypes would need to be exposed so they can be attacked mentally, skillset should contain skills required for successful negotiation, which are consistent with gender stereotypes.
Why creativity is often downplayed or ignored in the process of negotiation?
The creative aspect of negotiation is often ignored by negotiators, who fixate on the competitive aspect of negotiation. Driven by pervasive fixed-pie perception or the belief that negotiation is a win-or-lose enterprise.
Outline the process for repairing broken trust. Are there ways in which these steps might be modified to apply to different types of relationships?
a. Arrange a personal meeting - Target should suggest a face-to-face meeting with the party as quickly as possible b. Put the focus on the relationship - focus on what both people care about the relationship c. Apologize - apologies should be offered later in a conflict which are more impactful & effective than those offered immediately d. Let them vent - important to express anger, rage, disappointment & feelings of betrayal over an event. Talking about negative events can be the cure. e. Do not get defensive - no matter how misinformed or wrong you believe the other party is. It is appropriate to tell the other person you view the situation differently & point out it can be viewed in many ways. f. Ask for clarifying information - targets should invite the party to provide clarifying information in a non-defense fashion. g. Test your understanding - Chances for rebuilding trust greatly increase if a person feels understood. Empathy for their perspective. h. Formulate a plan - Ask the harmed what he/she needs can go a long way to rebuilding trust. i. Think about ways to prevent a future problem - do not try to just remedy the past; think about a way to make sure this problem & others does not happen in the future. j. Do a relationship checkup - wise to book time to discuss how each party is feeling about the situation & occurrences since breach of trust occurred. Ensures parties will have a reason to meet on a later date.
Compare and contrast the different types of trust. Provide an example of each
Trust - expression of confidence in another person or group of people that you will not be put at risk, harmed or injured by their actions. Deterrence-Based (Calculus) This is based on consistency of behavior, meaning people follow through on what they promise to do. Consequences: punishments, sanctions, incentives, rewards, & legal implications EX: landscaper, costs of staying in relationship and breaking the relationship, alternatives, BATNA. Continuous trust sustained through deterrence (very low level). Grounded in the rewards for being trusting and fear of the consequences of not being trusting Knowledge-Based (Information) - Grounded in behavioral predictability, and it occurs when a person has enough information about others to understand them and accurately predict their behavior. Ex: Grounded in gaining information about the other to enhance precise ability of their behavior. Comes from repeated interaction and better information. Know more information than the other, regular communication- learn about the other, how they think reason, eventuate. Courtship- relationships development, can we work together effectively? Identification- Based - Grounded in complete empathy with another person's desires & intentions. Trust exists between people because each person understands, agrees with, empathizes with, & takes on other's values because of the emotional connection between them. Ex: Internalizes others desires and intentions, fully understand what the other really cares about, cognitive and emotional empathy, able to act for the other. Shared goals, shared values, creation of joking products.
What are the indices by which creativity is measured? What are some of the methods by which to enhance your own creativity (along these indices)?
a) Fluency, flexibility, and originality b) Brainstorming c) Convergent versus divergent thinking d) Deductive reasoning e) Inductive reasoning f) Flow (autotelic experience)
List and define five influence tactics and provide an example of each
a. Assertiveness - Use of a direct & forceful approach, describing the reason for being dependent & requesting help from high-power target EX: setting up a meeting with manager when he/she is against you moving to another department & explaining why it is important for you b. Ingratiation - Use of impression, management, flattery, creation of goodwill; Offering concession or favor to the high-power target to achieve what is desired. EX: I will take a peer to lunch if in return she helps me get information needed for a project. c. Alternatives - Searching for an alternative person or route to obtain what is needed. EX: getting to work @ 6am, outside of regular work hours, to use a machine that is used by another department during regular work hours d. Coalition formation - Gaining the support of others, joining with at least one other individual to put pressure of the target to achieve the goal; may include an appeal to a higher authority. EX: asking the manager of the position, you are transferring to, to speak to your current manager & convince him to let you move e. Coercion - Using threats to put pressure on the high power target EX: telling your manager that if, he doesn't let you move over to the other department your are going to quit
What are the five types of mental model of negotiation? Which one is most related to the ability to create win-win outcomes?
a. Haggling - in which negotiator tries to obtain the biggest share of the bargaining zone b. Cost-benefit analysis - rational decision making model, in which negotiators compute a cost-benefit analysis & attempt to maximize their returns c. Game Playing - each person has his or her own interest in mind d. Partnership - treat clients as partners; ascribe to build rapport, nurture long-term relationship & make sacrifices in the name of creating long-term goodwill. Promotes a more constructive & interests-based approach e. Problem Solving - Model focuses on the collaborative or cooperative aspects of the tasks & involves a great deal of creativity, reframing, & out-of-the-box thinking
Explain the four key reasons that act as barriers for women asking for what they want in negotiations.
a. They don't feel a given situation is negotiable b. They think they will be given things when they "deserve" them c. They do not establish aggressive goals d. They do not want to damage the relationship
