Chapter 8 - Summary The Mind and Heart of the Negotiator (5th Edition) PDF

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Patrick Leddin...

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Power  4 vantage points: 1. Potential power--underlying capacity of the negotiator to obtain benefits from an agreement  A function of the counterparty's dependence on you 2. Perceived power--a negotiator's assessment of each party's potential power, which may or may not align with reality  Perceived power affects the integrativeness of outcomes 3. Power tactics--refer to the behaviors designed to use or change the power relationship 4. Realized power--the extent to which negotiators claim benefits from an interaction Sources of power  French and Raven's model (6 forms): coercive, reward, legitimate, expert, information, referent  Galinsky (4 sources): power of alternatives, information, status, social capital BATNAs as power  More attractive BATNA means more power  Therefore, imperative that negotiators cultivate and improve BATNAs prior to negotiating by…  Keep your options open  Signaling  Signal that you have a BATNA without revealing its exact value  Misrepresentation--alluding to options you do not actually have (unethical)  Research the counterparty's BATNA  Use multiple sources  Negotiators who think about counterparty's BATNA do better slicing the pie (distributing) Symmetric vs. asymmetric power  Asymmetry--one party has significantly more power  Symmetric high power dyads--integrative outcomes associated with mutual accommodation  Low-power dyads--value creation associated with greater contentiousness  Asymmetric power dyads--maximized value creation when neutral stance was adopted (not over-using or under-using accommodation or contentiousness) Perspective-taking  When powerful negotiators engaged in perspective-taking, negotiators shared more information, developed more accurate judgments, and negotiated better outcomes Powerlessness  Having no power may be more advantageous than little power (having nothing to lose) Status  In some negotiations, less about the strength of a BATNA and more about status and rank  Status--rank in social-organizational system  Power (status)--potential a person holds to influence others successfully  Status may be formal or informal  High power without status is considered "low warmth"  High status and high power judged to be warm  **high status people, regardless of actual power, perceived positively Status and negotiation performance  Role-based power (status) facilitates performance, but only when negotiation is diagnostic in ability and pressure-filled  Groups of high-power individuals performed worse because they focused more on fighting over relative status

Primary status characteristics  Two types of status:  Primary status characteristics--refer to indicators of legitimate authority  High status will talk more even when they know less  Low-status person will defer to high-status  Secondary status characteristics--cues and characteristics that have no legitimate bearing on the allocation of resources, but nevertheless exert a powerful influence on behavior  Also called pseudostatus characteristics (sex, age, ethnicity, etc.)  Men over women; old over young; white over others  Posture also a pseudostatus characteristic  Typically come into play when everyone is on the same level in terms of primary status characteristics  Self-fulfilling prophecy--even when these secondary characteristics are not regarded as significant, they can play into performance Negotiation ethics  Negotiation creates incentives to violate  Often people believe that they are behaving ethically (well-meaning people engage in unethical behaviors without meaning to do so)  Seven factor model of ethically-questionable behavior  Lewicki and colleagues  Traditional competitive bargaining  Attacking opponent's network  False promises  Misrepresentation  Inappropriate information gathering  Strategic misrepresentation of positive emotion  Strategic misrepresentation of negative emotion [some deemed more acceptable than others; pg. 167]  Actual behavior  Indicating attitudes vs. actual behavior  Personality differences  Predictors of extent to which someone will engage in ethically-questionable behaviors  Empathy often deters (deters better than perspective-taking)  People who have entity views (believe that traits and skills are fixed) vs. incremental views (believe that traits and skills are malleable) less morally engaged and more likely to participate in unethical behaviors  Cultural differences  Individualism positively related to pretending, deceiving, and lying  Collectivism negatively related to all 3  Gender differences  Women more ethical  Male pragmatism hypothesis--suggests that men are motivationally-biased in setting ethical standards; more egocentric in ethical reasoning and exhibit more moral hypocrisy  Women perceived as easier to mislead as well Lying  **more than anything else, regarded as unethical  Key aspects to lying:

 Speaker aware of misrepresentation  Information is regarded as fact  Other party relies on fact  And is damaged in some way because of it (emotionally or economically)  Summary/review of key concepts  Positions--stated demands made by one party to another  Under no obligation to truthfully state, but usually wise to do so  Interests--underlying "whys" behind positions  Generally assumed that people are self-interested  Priorities and preferences--lying about these is not misrepresenting a material fact  Passive misrepresentation--occurs when a negotiator does not mention true preferences and allows the other party to arrive at an erroneous conclusion  Active misrepresentation--deliberately misleading counterparty  BATNAs--material and therefore subject to litigation  Therefore, don't make up offers that do not exist  Bluffing  Reservation prices--quantification of BATNA  Not material fact per se, so while not encouraged to lie, it is not legally unethical  Key facts--falsification of this is unethical and subject to punishment  Situational influences  Social context shapes willingness to behave ethically  Pg. 171  Examples of things that lead to deception: power, anger, lure of temptation, uncertainty, anonymity of victims  More you have to gain by lying, more likely to lie  More uncertainty about material facts, more likely to lie  Being in a team may increase tendency to lie  Perspective-taking may actually lead to lying (when task is competitive)  Costs of lying  Liar can be caught and face charges  Reputation and trustworthiness damaged  Perceptions of liars  Trust is surprisingly robust  Incremental theories--more likely to lose trust in negotiator following deception  Entity theories--maintain first perceptions of people, even after caught in lie (do not view lying as ethical violation) Bad-faith bargaining  Term used to refer to negotiators who make offers, and then either retract or fail to follow through  Unwritten rule not to retract Good-faith bargaining  Term used to refer to people who promise to honor verbal promises Sins of omission and commission  Lying by omission--passive omission of relevant information  Lying by commission--active use of false statements; regarded as more unethical  Paltering--active use of truthful statements to convey a misleading impression; regarded as particularly unethical Bidding wars

 Situation in which multiple negotiators compete against one another  Incentive to maximize self-interest, but all may potentially suffer  Prospect of closing a deal is often enticement for negotiators to agree to terms of other party Detecting deception in negotiation  Difficult  Physiological cue: pupil dilation (bigger perceived positively)  Linguistics (higher word count for omission) Making ethical decisions  Bounded rationality--well-intentioned managers may make unethical decisions due to cognitive errors  Bounded ethicality--refers to limits of people to make ethical decisions because they are either unaware of or fail to fully and deliberately process information (ex. business; overconfidence)  Resisting temptation  Consider several decisions simultaneously and think about future self to reduce dishonest behavior  Best practices 1. The front-page test--would you be comfortable if actions were printed on front page? 2. Role modeling--would I advise others to do this? 3. Third-party advice--consult a third party to check 4. Strengthened bargaining position--adequate preparation makes you less likely to lie Responding to unethical behavior  Neutralizing (12 behaviors, pg. 178)  Suspicion  Might serve you well  Signal risk  Many risks associated with lying and unethical behavior; so signal these to others Reputation  Want to protect  Reputation--socially-constructed labels that provide representations that organize perceptions of people  First-hand and second-hand information impact  Halos and forked-tails  Reputations can be summed up by four words:  Judgmental, consistent, immediate, inferential  Halo effect--propensity to believe that people we trust and like are also intelligent and capable  Forked-tail effect--once we form a negative impression of someone, we tend to view everything else about them in a negative fashion  **difficult to recover from making a bad impression Reputations in negotiation communities  People who are more socially networked more likely to develop reputations quickly that are difficult to change  Reputations classified (least cooperative to most; pg. 180):  Liar-manipulator  Tough but honest  Nice and reasonable

 Cream puf [people use tough or manipulative tactics in a defensive fashion with liars and tough negotiators, and they use them in an opportunistic way with cream puffs] Distributive vs. integrative reputation  Having an integrative reputation (even against novices) resulted in higher joint gains  Having a distributive reputation (even against novices) resulted in higher joint gains BATNAs and reputations  Higher BATNA means can afford to be tougher and make fewer concessions; might be regarded as tougher  Investigation found that negotiators are more likely to make dispositional attributions and develop negative impressions of counterparties when the counterparty had an attractive alternative  This judgment is not quite accurate because aggressive behavior reflective of situation (BATNA) and not personality/disposition  **negotiators too quick to attribute behavior to disposition rather than situational factors Reputations and self-serving views  Self-perceived reputations more favorable that actual reputation due to self-serving bias...