The basic building blocks of all social encounters are:
Perception
Cognition
Framing
Cognitive biases
Emotion
Perception defined:
The process by which individuals connect to their environment.
A complex physical and psychological process of "sense-making"
Perception is the process of ascribing meaning to messages and events.
It is strongly influenced by the perceiver's current state of mind, role, and comprehension of earlier communications.
- People interpret their environment in order to respond appropriately
- The complexity of environments makes it impossible to process all of the information
- People develop shortcuts to process information and these shortcuts can create perceptual errors
PERCEPTUAL DISTORTION
• Four major perceptual errors:
■ Stereotyping
■ Halo effects
■ Selective perception
■ Projection
Selective perception:
■ Perpetuates stereotypes or halo effects
■ The perceiver singles out information that supports a prior belief but filters out contrary information
Projection:
■ Arises out of a need to protect one's own self-concept
■ People assign to others the characteristics or feelings that they possess themselves
FRAMING
Frames:
■ Represent the subjective mechanism through which people evaluate and make sense out of situations
■ Lead people to pursue or avoid subsequent actions
■ Focus, shape and organize the world around us
■ Make sense of complex realities
■ Define a person, event or process
■ Impart meaning and significance
TYPES OF FRAMES
•Substantive
•Outcome
•Aspiration
•Process
•Identity
•Characterization
•Loss-Gain
HOW FRAMES WORK IN NEGOTIATION
•Negotiators can use more than one frame
•Mismatches in frames between parties are sources of conflict
•Particular types of frames may lead to particular types of arguments
•Specific frames may be likely to be used with certain types of issues
•Parties are likely to assume a particular frame because of various factors
INTERESTS, RIGHTS, AND POWER
Parties in conflict use one of three frames:
• Interests: people talk about their "positions" but often what is at stake is their underlying interests
• Rights: people may be concerned about who is "right" - that is, who has legitimacy, who is correct, and what is fair
• Power: people may wish to resolve a conflict
on the basis of who is stronger
THE FRAME OF AN ISSUE CHANGES AS THE NEGOTIATION EVOLVES
Negotiators tend to argue for stock issues or concerns that are raised every time the parties negotiate
Each party attempts to make the best possible case for his or her preferred position or perspective
Frames may define major shifts and transitions in a complex overall negotiation
Multiple agenda items operate to shape issue development
SOME ADVICE ABOUT PROBLEM FRAMING FOR NEGOTIATORS
•Frames shape what the parties define as the key issues and how they talk about them
Both parties have frames
Frames are controllable, at least to some degree
Conversations change and transform frames in ways negotiators may not be able to predict but may be able to control
Certain frames are more likely than others to lead to certain types of processes and outcomes
COGNITIVE BIASES
Irrational escalation of commitment
Mythical fixed-pie beliefs
Anchoring and adjustment
Issue framing and risk
Availability of information
The winner's curse
Overconfidence
The law of small numbers
Self-serving biases
Endowment effect
Ignoring others' cognitions
Reactive devaluation
IRRATIONAL ESCALATION OF COMMITMENT AND MYTHICAL FIXED-PIE BELIEFS
Irrational escalation of commitment
Negotiators maintain commitment to a course of action even when that commitment constitutes irrational behavior
Mythical fixed-pie beliefs
Negotiators assume that all negotiations (not just some) involve a fixed pie
ANCHORING AND ADJUSTMENT AND ISSUE FRAMING AND RISK
Anchoring and adjustment
The effect of the standard (anchor) against which subsequent adjustments (gains or losses) are measured
The anchor might be based on faulty or incomplete information, thus be misleading
Issue framing and risk
Frames can lead people to seek, avoid, or be neutral about risk in decision making and negotiation
AVAILABILITY OF INFORMATION AND THE WINNER'S CURSE
Availability of information
Operates when information that is presented in vivid or attention-getting ways becomes easy to recall.
Becomes central and critical in evaluating events and options
The winner's curse
The tendency to settle quickly on an item and then subsequently feel discomfort about a win that comes too easily
OVERCONFIDENCE AND THE LAW OF SMALL NUMBERS
•Overconfidence
The tendency of negotiators to believe that their ability to be correct or accurate is greater than is actually true
The law of small numbers
The tendency of people to draw conclusions from small sample sizes
The smaller sample, the greater the possibility that past lessons will be erroneously used to infer what will happen in the future |
SELF-SERVING BIASES AND ENDOWMENT EFFECT
Self-serving biases
People often explain another person's behavior by making attributions, either to the person or to the situation
The tendency, known as fundamental attribution error, is to:
The tendency, known as fundamental attribution error, is to:
Overestimate the role of personal or internal factors
Underestimate the role of situational or external factors
Endowment effect
The tendency to overvalue something you own or believe you possess
IGNORING OTHERS' COGNITIONS AND REACTIVE DEVALUATION
Ignoring others' cognitions
Negotiators don't bother to ask about the other party's perceptions and thoughts
This leaves them to work with incomplete information, and thus produces faulty results
Reactive devaluation
The process of devaluing the other party's concessions simply because the other party made them
MANAGING MISPERCEPTIONS AND COGNITIVE BIASES IN NEGOTIATION
The best advice that negotiators can follow is:
Be aware of the negative aspects of these biases
Discuss them in a structured manner within the team and with counterparts
MOOD, EMOTION, AND NEGOTIATION
The distinction between mood and emotion is based on three characteristics:
Specificity
Intensity
Duration
Negotiations create both positive and negative emotions
Positive emotions generally have positive consequences for negotiations
They are more likely to lead the parties toward more integrative processes
They also create a positive attitude toward the other side
They promote persistence
They set the stage for successful subsequent negotiations
Aspects of the negotiation process can lead to positive emotions
Positive feelings result from fair procedures during negotiation
Positive feelings result from favorable social comparison
• Negative emotions generally have negative consequences for negotiations
They may lead parties to define the situation as competitive or distributive
They may undermine a negotiator's ability to analyze the situation accurately, which adversely affects individual outcomes
They may lead parties to escalate the conflict
They may lead parties to retaliate and may thwart integrative outcomes
Aspects of the negotiation process can lead to negative emotions
Negative emotions may result from a competitive mind-set
Negative emotions may result from an impasse
Negative emotions may result from the prospect of beginning a negotiation
Effects of positive and negative emotion
Positive emotions may generate negative outcomes
Negative feelings may elicit beneficial outcomes
Emotions can be used strategically as negotiation gambits
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