Organizational Behavior Negotiation
October 30, 2014
Definition & types Cognition/Perception Motivation Individual differences Culture E-negotiations
Next Class
Affect/Emotions, Multi-party, Power, Trust & Ethics.
Negotiation is a process in which two or more parties exchange goods or services and attempt to agree upon the exchange rate for them (Robbins & Judge).
The process by which people with conflicting interests determine how they are going to allocate resources or work together in the future (Brett, 2007).
Negotiations are also useful for: conflict management and dispute resolution. multi-party and team decisionmaking. social dilemmas. Examples of negotiations you’ve been involved in or have observed?
Parties – those whose interests are involved. Issues – concerns or disputes of being addressed. Positions, & interests ◦ Position = what negotiators say they want ◦ Interest = why negotiators want what they want
BATNA = Best Alternative To a Negotiated Agreement ◦ best option outside the current situation ◦ source of power; better your BATNA, the more you can ask for.
Reservation price (bottom-line) ◦ most you are willing to give or least you are willing to get and still reach an agreement.
Distributive deals - parties assume a fixed pie of resources and negotiate about how to “cut up the pie” (distribute resources) or claim value.
Example: buying a car. What are some things you can do to succeed during a distributive negotiation?
• Integrative deals - concerns how the negotiators expand the pie of resources or create value.
• Example? • Why don’t we see more integrative bargaining in organizations?
Social Perception
Most negotiators enter negotiations expecting the other party’s interests to be completely opposed to their own. Accuracy in perception of the other party’s interests lead to better negotiation performance. The two types of judgment errors are : ◦ 1) Fixed Sum errors ◦ 2) Incompatibility errors
Thompson & Hastie, 1990
First-Mover Disadvantage
Suggests that making the first offer will backfire and result in the person making the offer receiving less value in the negotiation. Why might this be?
Social Motives
Cooperation Theory ◦ Negotiators have different social motives or preferences for outcomes—self and other (i.e., egotistic or prosocial). ◦ Individuals with a prosocial motive engage in more problem solving behaviors, less contentious behaviors and achieve higher joint outcomes than those with egoistic motives. De Dreu et al., 2000
Goal Setting (meta-analysis)
Proposed that the goal-performance relationship in the goal setting literature can be generalized to negotiations. Found that: ◦ optimal goals had a significant impact on the profit achieved. ◦ negotiators with goals were significantly more profitable than those with no goals Zetik & Stuhlmacher, 2002
Personality
Five factor model ◦ Agreeableness - may be easily manipulated; desirable in integrative situations. ◦ Extraversion - desirable in situations requiring active involvement (e.g., joint problem solving or open discussion) Self-monitoring ◦ ability to adapt can be useful in many situations Self-efficacy ◦ high self-efficacy = higher outcomes Stuhlmacher & Adair, 2011
Emotional intelligence
Creativity
Any other individual differences you think might also be important in negotiations?
◦ valuable set of capabilities for the negotiator but not much research. ◦ greater creativity in both the dyad and the individual increases the integrative potential of the negotiation without influencing distributive outcomes.
Elfenbein, 2013
Gender
Role congruity theory (Eagly & Karau, 2002) ◦ when a role and a person’s attributes match, that person is more likely to be perceived as successful in the role. ◦ When there is a mismatch, that person is perceived as less successful and may be subject to prejudice.
Gender
Effective negotiators may draw on behaviors that are agentic (masculine-typed) or communal (feminine-typed). However, there is convincing evidence that key elements of negotiating are more consistent with the masculine role. ◦ When might elements of the feminine gender role be effective in negotiations?
Stuhlmacher & Linnabery , 2013
Gender
Men initiate negotiations more frequently. Cuing women to “ask” rather than to “negotiate” enables women to initiate more.
Small et al., (2007).
What might be some differences between negotiators from Western vs. Eastern cultures?
◦ What other cultural factors are important in negotiations?
Cultural Intelligence (CQ)
An individual’s capability to adapt effectively to situations of cultural diversity.
Those who are high on CQ have higher cooperative motives and engage in more integrative behaviors. ◦ Also receive more joint gains.
The medium by which a negotiation takes place affects outcomes by influencing the parties’ perceptions of each other and of the interaction they are participating in.
These perceptions are referred to as social awareness. ◦ the degree of consciousness of and attention to the other(s) in a social interaction.
Face-to-Face negotiations ◦ less hostility ◦ higher profit
Virtual negotiators ◦ more hostile
Why do you think this is?
Stuhlmacher & Citera, 2005
Definition & types Cognition/Perception Motivation Individual differences Culture E-negotiations
Next Class
Affect/Emotions, Multi-party, Power, Trust & Ethics.
Negotiation is a process in which two or more parties exchange goods or services and attempt to agree upon the exchange rate for them (Robbins & Judge).
The process by which people with conflicting interests determine how they are going to allocate resources or work together in the future (Brett, 2007).
Negotiations are also useful for: conflict management and dispute resolution. multi-party and team decisionmaking. social dilemmas. Examples of negotiations you’ve been involved in or have observed?
Parties – those whose interests are involved. Issues – concerns or disputes of being addressed. Positions, & interests ◦ Position = what negotiators say they want ◦ Interest = why negotiators want what they want
BATNA = Best Alternative To a Negotiated Agreement ◦ best option outside the current situation ◦ source of power; better your BATNA, the more you can ask for.
Reservation price (bottom-line) ◦ most you are willing to give or least you are willing to get and still reach an agreement.
Distributive deals - parties assume a fixed pie of resources and negotiate about how to “cut up the pie” (distribute resources) or claim value.
Example: buying a car. What are some things you can do to succeed during a distributive negotiation?
• Integrative deals - concerns how the negotiators expand the pie of resources or create value.
• Example? • Why don’t we see more integrative bargaining in organizations?
Social Perception
Most negotiators enter negotiations expecting the other party’s interests to be completely opposed to their own. Accuracy in perception of the other party’s interests lead to better negotiation performance. The two types of judgment errors are : ◦ 1) Fixed Sum errors ◦ 2) Incompatibility errors
Thompson & Hastie, 1990
First-Mover Disadvantage
Suggests that making the first offer will backfire and result in the person making the offer receiving less value in the negotiation. Why might this be?
Social Motives
Cooperation Theory ◦ Negotiators have different social motives or preferences for outcomes—self and other (i.e., egotistic or prosocial). ◦ Individuals with a prosocial motive engage in more problem solving behaviors, less contentious behaviors and achieve higher joint outcomes than those with egoistic motives. De Dreu et al., 2000
Goal Setting (meta-analysis)
Proposed that the goal-performance relationship in the goal setting literature can be generalized to negotiations. Found that: ◦ optimal goals had a significant impact on the profit achieved. ◦ negotiators with goals were significantly more profitable than those with no goals Zetik & Stuhlmacher, 2002
Personality
Five factor model ◦ Agreeableness - may be easily manipulated; desirable in integrative situations. ◦ Extraversion - desirable in situations requiring active involvement (e.g., joint problem solving or open discussion) Self-monitoring ◦ ability to adapt can be useful in many situations Self-efficacy ◦ high self-efficacy = higher outcomes Stuhlmacher & Adair, 2011
Emotional intelligence
Creativity
Any other individual differences you think might also be important in negotiations?
◦ valuable set of capabilities for the negotiator but not much research. ◦ greater creativity in both the dyad and the individual increases the integrative potential of the negotiation without influencing distributive outcomes.
Elfenbein, 2013
Gender
Role congruity theory (Eagly & Karau, 2002) ◦ when a role and a person’s attributes match, that person is more likely to be perceived as successful in the role. ◦ When there is a mismatch, that person is perceived as less successful and may be subject to prejudice.
Gender
Effective negotiators may draw on behaviors that are agentic (masculine-typed) or communal (feminine-typed). However, there is convincing evidence that key elements of negotiating are more consistent with the masculine role. ◦ When might elements of the feminine gender role be effective in negotiations?
Stuhlmacher & Linnabery , 2013
Gender
Men initiate negotiations more frequently. Cuing women to “ask” rather than to “negotiate” enables women to initiate more.
Small et al., (2007).
What might be some differences between negotiators from Western vs. Eastern cultures?
◦ What other cultural factors are important in negotiations?
Cultural Intelligence (CQ)
An individual’s capability to adapt effectively to situations of cultural diversity.
Those who are high on CQ have higher cooperative motives and engage in more integrative behaviors. ◦ Also receive more joint gains.
The medium by which a negotiation takes place affects outcomes by influencing the parties’ perceptions of each other and of the interaction they are participating in.
These perceptions are referred to as social awareness. ◦ the degree of consciousness of and attention to the other(s) in a social interaction.
Face-to-Face negotiations ◦ less hostility ◦ higher profit
Virtual negotiators ◦ more hostile
Why do you think this is?
Stuhlmacher & Citera, 2005
