MGT 4390S Exam 3
dividing resources
When multiple parties are at the bargaining table, concerns about dividing the pie of resources loom large. Each party advocates in a self-serving fashion for their own interests and multiple definitions of fairness exist.
Shaming is a common form of social control
in collectivistic cultures
Process of deal-making comes first
in direct cultures
The relationship comes first and provides a context for making deals
in indirect cultures
Intergroup negotiation
involves everyday life as well as complex political and international relations. 115 For example, members of a student council and university administrators, union and management negotiators, and groups of students from rival universities are all examples
Circular logrolling
involves trade-offs that require each group member to offer another member a concession on one issue while receiving a concession from yet another group member on a different issue.
Negotiating across cultures..
is a necessity for success in the business world
Cross-cultural negotiations frequently result in
less effective pie expansion than intracultural negotiations with part of the problem being a lack of understanding cultural differences
Biggest threat to effect negotiation in non face-to-face settings
loss of rapport and less consciousness of social norms
Negative campaigning
"I let 80,000 criminals out early. Vote for me"
Structural strategies
-align incentives -monitor behavior -regulation -privatization -tradable permits
Advice for cross-cultural negotiations
-anticipate differences in strategy and tactics that may cause misunderstandings -cultural perspective taking -recognize that the other party may not share your views -avoid attribution errors -find out how time is perceived in the other culture -know your options for change -acknowledge differences at the individual and societal levels -trade off differences in preferences and abilities -ask questions to ensure understanding of the other party's perspective -understand the norms and their underlying meanings -avoid arguing the inherent legitimacy of a social system -be prepared to manage bureaucratic interactions with governments
Tacit negotiations
-any negotiators are conducted by actions and pledges, in the absence of a binding contract -negotiators are interdependent with respect to outcomes, but make independent decisions -negotiators' outcomes are determined by the actions they take and the actions taken by others -people can behave either in a cooperative fashion or competitive fashion
Place time model of social interaction
-based on the four modes of interaction that negotiators have when doing business across different locations and times. -examines how the medium of communication affects negotiation
Challenges in constituent relationships
-behind the table barriers -accountability -conflicts of interest
Factors that affects the trust game
-binding vs nonbinding contracts -social networks and reputations -relationship threat -self-blame and regret -restoring broken trust
Traditional
-born before 1946 -values personal sacrifice and setting aside self-interest -prefer face-to-face -spoken word for trust -negotiation beliefs are personal sacrifice, compromise, and persistence
Boomers
-born between 1946 and 1964 -"me generation" -values personal achievement, mastery, and achieving work goals through commitment -prefer face-to-face and phone -handshake for trust -negotiation beliefs are win-win and everything is negotiable
Generation X
-born between 1965 and 1985 -"Latchkey generation" -values transparency -prefer face-to-face and e-negotiation -transparent, knowledge and information for trust -negotiation beliefs are transactional, immediate, and short term
Generation Y
-born between 1981 to 1997 -"first digitals"; "echno boom" - values speed -prefer texting -social networks for trust -negotiation beliefs are must be well informed
General Z
-born between 1998 and now -"millennials" "I-Generation" -values multitasking and working anywhere at anytime -prefer virtual communication -vast but not deep for trust -negotiation beliefs are avoid direct confrontation
Questions that potential home buyers should ask real-estate agents
-can you represent me as a buyer's agent? -how will you find me homes? -how can you leverage my down payment, interest rate, and monthly payment?
Egalitarian/hierarchical power relationship implications for negotiations
-choose your representative carefully -understand the network of relationships -understand "face" concerns -understand the proper conduct of negotiations for that culture
Strategies for constituent relationships
-communicate with your constituents -doo not expect homogeneity of constituent views -educate your constituents on your role and limitations -help your constituents do horizon thinking
Factors determining the likelihood that the responder will accept the offer made by the proposer
-complete vs incomplete information -framing -deadlines -feeling and emotions -social identity
Information technology and its affects on social networks
-computerized interaction increases resources of low-network people -some companies need to rely on electronic modes of communication for employees to form connections with other -email provides alternate routes to letting people have a voice if they are low contributors in face-to-face meetings
Variety of paradoxes can affect groups aggregating the preferences of team members through voting, such as:
-condorcet paradox -impossibility theorem -strategic voting -consensus agreements
Cooperative negotiations
-contract is explicit -mutual understanding -people negotiate via proposals and counterproposals and can use words to explain and justify their offers -people usually come to the table voluntarily
Collectivistic culture
-culture rooted in social groups and individuals are viewed as members of groups -people are concerned about how the results of their actions affect members of their in-group -resources are shared with in-group members -emphasis is placed on the importance of adjustment, harmony, and the sacrifice of personal needs for the greater good
Strategies for negotiators who want to work effectively with agents
-discuss ratification -use your agent to help save face -use your agent to buffer emotions
Challenges of multiparty negotiations
-dividing resources -coalitions -formulating trade-offs -voting and majority rule.
Egalitarian power culture
-everyone expects to be treated equally -relationships do not mean that everyone is of equal status, but that status differences are easily permeated -members are empowered to resolve conflict themselves -BATNA and information are key sources of power. -a negotiator's BATNA and information are key sources of power
Challenges in intercultural negotiation
-expanding the pie -dividing the pie -sacred values and taboo trade-offs -biased punctuation of conflict -ethnocentrism -affiliation bias -faulty perceptions of conciliation and coercion -naïve realism
Advantages when using agents to represent one's interests in a negotiation
-expertise -substantive knowledge -networks and special influence -emotional detachment -ratification -face-saving
Information technology and its affects on risk taking
-framing effect -groups make riskier decisions than individuals, given the same choices -paradoxically, groups that communicate electronically are risk-seeking for both gains and losses
Team negotiation improvement strategies
-goal and strategy alignment -preparing together for the negotiation -plan scheduled breaks -assess accountability
Hierarchical power culture
-great deference is paid to status -status implies social power and is not easily permeated or changed -social inferiors are expected to defer to social superiors who are obligated to look out for the needs of social inferiors -conflict between members of the same social rank in this culture is more likely to be handled by deference to a superior than by direct confrontation between social equals
Team negotiation advantages
-increased size of negotiating pie -increased information exchange amongst negotiating parties -increased information exchange which leads to greater judgement accuracy about parties' interest -integrative agreements are promoted
Three dimensions of culture
-individualism v collectivism -egalitarianism v hierarchy -direct v indirect communication
Strategies for enhancing technology-mediated negotiation
-initial face-to-face experience -one-day videoconference / teleconference -schmoozing -humor
Why is face-to-face communication important
-it is easier and more likely to occur than other forms of communication -people primarily rely on nonverbal signals to help them conduct social interaction -important behavioral, cognitive, and emotional processes are set into motion when people meet face-to-face
How to encourage cooperation in multiparty social dilemmas when the negotiating parties should not collude
-keep your strategy simple -signal via actions -do not be the first to defect -focus on your own playoffs, not your payoffs relative to others -be sensitive to egocentric bias
Strategies negotiators can use to enhance their ability to expand and slice the pie in multiparty context
-know who will be at the table -manage the information and systemize -proposal making -brainstorm options -develop and assign process roles -stay at the table -strive for equal participation -allow for some points of agreement -avoid "equal shares" and agreement bias -avoid sequential bargaining
Challenges of same time, different place
-loss of information communication -lost opportunity -separation of feedback -negotiation timing
How can an escalating spiral of defection be brought to an end?
-make promises -make situational attributions -take one step at a time -getting even and catching up -make your decisions at the same time
Interpersonal strategies for effectively navigating coalitions and maximizing theireffectiveness
-make your contacts early -seek verbal commitments -use unbiased-appearing rationale to divide the pie.
Cultures with direct communication norms
-messages are transmitted explicitly and directly -communications are action-oriented and solution-minded -information is provided without nuance and is context free -negotiators often ask direct questions about interests and alternatives
Different time, different place communication
-negotiators communicate asynchronously from different places -text message, e-mail, and voice mail -the most ubiquitous type is email
Different time, same place communication
-negotiators interact asynchronously, but have access to the same physical document or space -facebook, single-text editing, dropbox, and shiftwork -example: shift workers who pick up the task left for them by the previous shift worker
The "tit-for-tat" strategy-why it maximizes overall gains
-not envious (never aims to beat its opponent) -nice (always begins the interaction by cooperating -tough (conveys the message that the negotiator cannot be taken advantage of -forgiving (the negotiators response will never be greater than what it received) -simple (counterparty quickly figures out what to expect from a player who follows it)
Same time, different place communication
-parties negotiate in real time, but are not physically in the same place -telephone, videoconference, and skype
Cultures with indirect communication norms
-people avoid direct confrontation when conflict occurs -the meaning of communication is inferred rather than indirectly interpreted -the context of the message stimulates pre-existing knowledge that is then used to gain understanding -people prefer sharing information indirectly, telling stories to influence their opponents, and gleaning information from proposals
Information technology and its affects on intergenerational negotiation:
-people of different generations ascribe to different norms of behavior, often unknowingly violating norms held by members of differing generations. - younger generations have grown up communicating with everyone using information technology; as a result, they prefer using information technology over face-to-face communication.
Information technology and its effect on social behavior
-people who negotiate online trust each other less before beginning the negotiation and trust each other even less after the online interaction -After negotiating online, people report less desire for future relationships, less confidence in their performance, and less satisfaction
Personality characteristics that predict a negotiator's success in intercultural interactions
-people who think in terms of conceptual complexity and broad categories -empathy -sociability acceptance of stereotypes -openness to different points of view -interest in the host culture -task orientation -cultural flexibility -social orientation -willingness to communicate -patience -intercultural sensitivity -tolerance for differences among people -sense of humor -skills in collaborative conflict resolution
Psychological strategies
-psychological contracts -economics -communication -personalize others -social sanctions -focus on benefits of cooperation
Individualistic culture
-pursuit of happiness and regard for personal welfare paramount -people give priority to their personal goals, even when those goals conflict with those of their group -individual happiness and expression are valued more than collective and group needs
Voting and majority rule
-recognize the strength of individual presences -does not promote integrative tradeoffs among issues -groups negotiating under unanimous rule -reach more efficient outcomes than groups operating under majority rule.
Face-to-face communication
-relatively "rich" whereas written messages are "lean" -crucial in the initiation of relationships and collaborations -encourages cooperation in negotiators -fosters the development of interpersonal synchrony and rapport -the incidence and frequency of face-to-face communication is determined by how closely people are located to one another
Strategies for optimizing intergroup negotiations
-separate conflict of interest from symbolic conflict -search for common identity -avoid the out-group homogeneity bias -conditions required before contact -the GRIT model strategy
Ways to avoid escalation of commitment in negotiations
-set limits -avoid decision myopia -recognize sunk costs -diversify responsibility and authority redefine the situation
Intergroup negotiation challenges
-shared versus individuality identity -in-group bias -extremism
Strategies for negotiators who want to work efficiently with agents
-shop around -know your BATNA before meeting with your agent -communicate your interests to your agent without giving away your BATNA -capitalize eon the agent's expertise -tap into your agent's sources of information -use agent networks
Disadvantages when using agents to represent one's interests in negotiation
-shrinking ZOPA -incompatible incentive structure -loss of control -agreement at any cost
Information technology and its affects on status and power
-status predicts domination -when negotiators interact via info tech, ___________ differences/cues are minimized -people who would normally not approach others in person are more likely to initiate email exchange -email acts as an equalizer because it is difficult for high-status people to dominate the discussion
Team negotiation challenges
-team selection -number of people on the negotiating team -communication on the team -team cohesion -information processing
Key biases that affect e-mail negotiations
-temporal synchrony bias -exit bias -flaming bias -sinister attribution bias
Trust game
-the first move is made by the proposer's partner, the trustor, who must decide how much of his or her initial endowment to trust the proposer with, in hopes of receiving some of it back -the rules of the game specify the gift that the trustor makes to the trustee will be increased by some factor -behavior in trust games involves possible deception if the partner is trusting
Coalition's challenges
-the formation and size optimization -trust formation and maintenance -the complex distribution of resources among members.
Information technology and its affects on rapport
-the greater the face-to-face contact and _____ between negotiators, the more integrative their outcomes are likely to be -_____ is more difficult to establish with impoverished mediums of communication -independent observers judged face-to-face negotiators to be more "in sync" with each other
Types of social dilemmas
-the prisoner's dilemma -the ultimatum dilemma -the dictator game -the trust dilemma -the volunteer dilemma -multiparty dilemmas -escalation dilemma
Dictator game
-the proposer makes a suggested split of resources for herself and the responder -the responder must accept the split -on the surface, I would seem that in such a situation the proposer would keep everything for herself, given that the responder has no say in the matter -a striking number of proposers choose to give the responder a non-zero allocation
Volunteer dilemma
-this is a schema in which one person in a group must sacrifice their interests to benefit the group -communication increases volunteering and the act of volunteering strengthens group ties -feelings of obligation to one's group, expectation of extrinsic rewards, and identifying with one's organization all significantly increase volunteerism
Information technology's affect negotiation performance
-trust and deception -status and power -social networks -risk taking -rapport and social norms -paranoia -intergeneration negotiations
Information technology and its affects on social norms and paranoia
-when technological change creates new social situations, people invent new ways of behaving. -when we use information technology, we "talk" to other people, but we do so alone. -as a result, our messages are likely to display less social awareness, ignore social boundaries, show less concern for others, disclose too much about the self, and are too blunt.
Negotiations across cultures..
are not only commonplace but a requirement for effective management in multinational and international companies
Comparative advertising
company comparing better prices to other companies
Same time same place
face-to-face
John Nash
famous mathematician who distinct the two different types of negotiation situations, explicit and tacit.
Multiparty negotiation
group of three or more individuals, each representing his or her own interests, attempting to resolve perceived differences of interest. Require all of the pie-slicing and pie-expanding skills of two-party negotiations
Coalition
group of two or more individuals who combine their resources to affect the outcome of a decision in a mixed-motive situation involving at least three parties.
Tripartite model of culture
identifies individualism-collectivism, egalitarianism-hierarchy, and direct-indirect communication as key dimensions of cultural differences
Intergenerational negotiations are a special challenge because...
negotiators have a strongly differing norms or communication and behavior
Constituent
on the "same side" as a principal but exerts an independent influence on the outcome through the principal. Constituents can be used to exert pressure on the other side of the table.
Ultimatum dilemma
one person (the proposer) makes a final offer (an ultimatum). if the other party (the responder) accepts the offer, then the proposer receives the demand and the responder agrees to accept what is offered to him or her. if the offer is refused, then no settlement is reached and the negotiators receive their respective reservation points
schmoozing
our name for non task-related contact between people, which has a psychological effect of having established a relationship with someone
Multiparty dilemmas
people behave more competitively in groups than in two-person situations because the cost of defection are spread out, multiparty social dilemmas are riskier than prisoner's dilemmas, multiparty social dilemmas provide anonymity that prisoner's dilemmas do not, and people in multiparty social dilemmas have less control over the situation
Information technology and its affects on trust and deception
people who negotiate online trust each other less before beginning the negotiation, and trust each other even less after the online interaction. people who negotiate online trust each other less before beginning the negotiation, and trust each other even less after the online interaction.
Cultures that use direct information-sharing or a combination of direct and indirect strategies
reach the most integrative and pie-expanding agreements
Exit bias
refers to the perception that negotiation is unstable and should be terminated
Sinister attribution bias
refers to the tendency for e-communicators to ascribe diabolical intentions to the other party
Escalation of commitment
refers to 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
Two major forms of social dilemmas
resource conservation dilemmas (aka collective traps) and public goods dilemmas (aka collective fences)
Explicit negotiations
situations in which people seek to reach mutual agreement via binding contract
Approaches for maximizing cooperation in social dilemmas
structural strategies and psychological strategies
Flaming bias
tendency for negotiators to adopt a demanding, negative emotional style when communicating via e-mail
Temporal synchrony bias
tendency for negotiators to behave as if they are communicating synchronously when in fact they are not
Team negotiation
the presence of at least one team at the bargaining table increases the incidence of integrative agreements
Social dilemma
the situation results when people engage in behaviors that maximize self-interests but lead to collective disaster; examples are a bidding war, negative campaigning, and greenhouse gases
Culture as an iceberg
top- behavior, artifacts, and institutions middle- values, beliefs, and norms top- assumptions
Five different generations currently in the U.S. workforce
traditionals, boomers, generation x, y, and z
The Prisoner's Dilemma
when each person in the prisoner's game pursues the course of action that is most rational from their point of view and in their individual self-interest, the result is mutual disaster. the choices that players make in this game are either cooperation or defection
