Tag Archives: negotiation

Mindfulness Meditation Improves Decisions, Reduces Sunk-Cost Bias

Sigal Barsade

Sigal Barsade

Andrew Hafenbrack

Andrew Hafenbrack

Sunk-cost bias” is the prevalent tendency to continue unsuccessful actions after time and money have been invested.
Frequent examples include:

  • Holding poorly-performing stock market investments,
  • Staying in abusive interpersonal relationships,
  • Continuing failing military engagements.
Zoe Kinias

Zoe Kinias

In these cases, people tend to focus on past behaviors rather than current circumstances, leading to emotion-driven decision biases.

Brief meditation sessions can help decision makers consider factors beyond past “sunk costs,” reported Wharton’s Sigal Barsade, with Andrew C. Hafenbrack and Zoe Kinias of INSEAD.

Meditation practices can:

  • Enable increased focus on the present moment,
  • Shift attention away from past and future actions,
  • Reduce negative emotions.
Kirk Brown

Kirk Brown

Barsade, Hafenbrack, and Kinias asked volunteers to complete Mindful Attention Awareness Scale, a widely used assessment developed by Virginia Commonwealth University’s Kirk Brown and Richard Ryan of University of Rochester.

Richard Ryan

Richard Ryan

They also measured participants’ ability to resist “sunk cost” bias using Adult Decision-Making Competence Inventory, developed by Leeds University’s Wändi Bruine de Bruin with Baruch Fischhoff of Carnegie Mellon and  RAND Corporation’s Andrew M. Parker.

Wändi Bruine de Bruin

Wändi Bruine de Bruin

In a decision task, participants could choose to take an action or to do nothing, as a measure of sunk-cost bias.
Taking action indicated resistance to the sunk-cost bias, whereas those who took no action were seen as influenced by the sunk-cost bias.

Baruch Fischhoff

Baruch Fischhoff

Volunteers who listened to a 15-minute focused-breathing guided meditation were more likely to choose action, resisting sunk-cost bias, than those who had not heard the meditation instruction.

Andrew M Parker

Andrew M Parker

Barsade’s team noted that, “People who mediated focused less on the past and future, which led to them experiencing less negative emotion. That helped them reduce the sunk-cost bias.

Jochen Reb

Jochen Reb

Mindful attention also enables negotiators to craft better deals by “claiming a larger share of the bargaining zone” in distributive (“fixed pie”) negotiations, found Singapore Management University’s Jochen Reb, Jayanth Narayanan of National University of Singapore, and University of California, Hastings College of the Law’s Darshan Brach.
These effective negotiators also expressed greater satisfaction with the bargaining process and outcome. 

Jayanth Narayanan

Jayanth Narayanan

Mindful attention also leads to a lower negativity bias, the tendency to weigh pessimistic information more heavily than positive, reported Virginia Commonwealth University’s Laura G. Kiken and Natalie J. Shook of West Virginia University.

The team assessed negativity bias with BeanFest, a computer game developed by Shook, with Ohio State’s Russell Fazio and J. Richard Eiser of University of Sheffield.

Natalie Shook

Natalie Shook

Participants associated novel stimuli with positive or negative outcomes during attitude formation exercises.

Russell Fazio

Russell Fazio

Volunteers who listened to a mindfulness induction correctly classified positive and negative stimuli more equally, expressed greater optimism, and demonstrated less negativity bias in attitude formation than those in the control condition.

J Richard Eiser

J Richard Eiser

Mindful attention improves decision-making and enhances negotiation outcomes by reducing biases linked to negative emotions.
As a result, taking a brief mental break (“time-out”) during decision-making can improve choices and reduce the likelihood that “let the wrong emotions cloud the decision-making process.”

-*How do you reduce bias in making decisions and crafting negotiation proposals?

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 ©Kathryn Welds

Anxiety Undermines Negotiation Performance

Maurice Schweitzer

Maurice Schweitzer

Anxious negotiators make lower first offers, exit earlier, and earn lower profits  due to their “low self-efficacy” beliefs, according to Harvard’s Alison Wood Brooks and Maurice E. Schweitzer of University of Pennsylvania,

Alison Wood Brooks

Alison Wood Brooks

Brooks and Schweitzer induced anxious feelings or neutral reactions during continuous “shrinking-pie” negotiation tasks.
Compared with negotiators experiencing neutral feelings, negotiators who feel anxious typically expect to achieve lower profits, present more cautious offers, and respond more cautiously to propositions presented by negotiation counterparts.

Negotiators who achieved more effective bargaining outcomes managed emotions with cognitive strategies including:

Julie Norem

Julie Norem

  • Strategic optimism, indicated by expecting positive outcomes without anxiety or detailed reflection, according to University of Miami’s Stacie Spencer and Julie Norem of Wellesley,
  • Reattribution, by considering alternate interpretations of events to increase optimism and self-efficacy beliefs.

Cognitive strategies with both performance benefits and liabilities include:

  • Andrew Elliot

    Andrew Elliot

    Self-handicapping, avoiding anxiety-provoking situations, and creating self-defeating obstacles to explain poor outcomes and preserve self-esteem, according to University of Rochester’s Andrew Elliott and Marcy Church of St. Mary’s University,

  • Defensive pessimism, marked by high motivation toward achievement coupled with negative expectations for future challenges, leading to increased effort and preparation, according to Wellesley College’s Julie Norem and Edward Chang of University of Michigan.
Edward Chang

Edward Chang

Norem and Cantor concluded that defensive pessimists performed worse when “encouraged by telling them that that based on their academic performance, they should expect to perform well on anagram and puzzle tasks.

Among university students, defensive pessimism was related to lower self-esteem, self-criticism, pessimism, and discounting previous successful performances when they began university studies, according to Norem and Brown’s Jasmina Burdzovic Andreas.

Jasmina Burdzovic Andreas

Jasmina Burdzovic Andreas

However, their longitudinal study demonstrated that self-esteem increased to almost the same levels as optimists during their four years of university study.
Pessimists’ precautionary countermeasures may have resulted in strong performance, which built credible self-esteem.

Defensive pessimism’s positive performance outcomes suggest that this cognitive strategy is an effective, if uncomfortable, approach to managing anxiety and performance motivation.

-*How do you manage anxiety in high-stakes negotiations?

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©Kathryn Welds

Ask for What You Want: You Have More Influence Than You Think

Most people underestimate the likelihood that requests for help will be granted, particularly after experiencing previous refusals, according to Stanford’s Daniel Newark and Francis Flynn with Vanessa Lake Bohns of University of Waterloo.

Francis Flynn

Help-seekers were more likely to believe that a previous refusal would be followed by another refusal to a similar request. 
However, help-seekers underestimated the compliance rate of potential helpers who previously refused assistance.
This suggests that most people agree with a subsequent request, often to reduce discomfort of rejecting others’ overtures for help.

Vanessa Bohns

Vanessa Bohns

Participants estimated they would need to ask 10 people to have three agree to lend their mobile phones for brief calls.
In fact, these volunteers had to ask only six people for help before it was given, 40% fewer than expected.
Most people have a pessimistic bias about the likelihood that others will provide assistance, they concluded.

Volunteers requested two favors of strangers:  Complete a brief survey and take a letter to a nearby post office.
Help seekers predicted that people who refused the first request to complete the survey would be less likely to take the letter to the post office.

More people agreed to the second request than to the first request, showing that after people refused a request, they were more likely to agree the second time.
Requesters tended to “anchor” on the first refusal, and hesitated to make a second request.
However, this finding suggests that requesters have a greater chance of success after initial refusal, so it’s advisable to muster resilience and persistence.

Requesters and help-seekers analyzed requests using different criteria:  Requesters focused on the magnitude of the “ask,” whereas potential helpers receiving the request considered the inconvenience costs of saying “yes” compare with the interpersonal and self-image costs of saying “no.”

Requesters benefit from expanding the pool of those they ask, not just those who reliably and consistently agree.
These individuals are typically overburdened by requests, and those who are more selective in their assistance are underutilized and may be willing to assist.

Potential helpers underestimated help-seekers’ discomfort and embarrassment in asking for assistance, in previous studies by the team.
This may result in less willingness to help underutilized formal support programs.
The most effective way to increase help-seeking is to encourage helpers to focus on reducing help-seekers’ subjective discomfort in asking rather than advocating the practical benefits of asking for help.

Mahdi Roghanizad

Mahdi Roghanizad

Bohns extended this focus on the impact of interpersonal discomfort in deciding whether to commit an unethical act in research with University of Waterloo colleagues Mahdi Roghanizad and Amy Xu.

People who observed the unethical act but didn’t participate (“instigators”) underestimated their influence over those who committed the asocial acts.

Volunteers enlisted people they didn’t know to tell a small untruth or to commit a small act of vandalism after predicting the ease of enlisting others in these acts.
In related investigations, online participants responded to hypothetical vignettes about buying alcohol for children, and taking office supplies home for personal use.

Bystanders underestimated their impact on others when they suggested engaging in unethical acts.
Further, interpersonal discomfort caused participants to commit the asocial act to avoid conflict.

These results suggest that most people inaccurately estimate their influence, particularly in situations that can evoke interpersonal discomfort.
At the same time, Bohns and Flynn reported that employees’ systematically underestimate their influence over others in the workplace.
Most employees expect their efforts to be futile.

This pessimistic bias can limit employees’ willingness to:

  • Lead business transformation initiatives,
  • Recognize personal contributions to others’ performance issues,
  • Voice concerns about unethical workplace practices.

This underestimation bias may be mitigated by variations in:

  • Comparative judgments,
  • Objectifying an influence target,
  • Actual degree of personal influence compared to perceived influence,
  • Means of influence, ranging across incentives, suggestions, reinforcements, punishments,
  • Organizational culture. 

These findings suggest the benefit of asking for what you want, even after rejection and that you have more influence over others than you expect.

-*How do you assess your likelihood of getting what you want when you ask?

-*How likely are others to influence you by evoking social discomfort to increase your compliance?

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©Kathryn Welds

Apologies: Repairing Relationships, Creating Interpersonal Peace

Jennifer Robbennolt

Jennifer Robbennolt

Apologies can resolve legal disputes ranging from personal injury cases to wrongful firings, according to University of Illinois’s Jennifer Robbennolt.

She found that admissions of guilt and remorse provide plaintiffs and “wronged” parties a sense of satisfaction, fairness, and forgiveness that enable settlement and reduce monetary damage awards.

Robbbenolt asked more than 550 volunteers to serve as “plaintiffs” in an experimental scenario, then report their reactions to “settlement levers” including:

  • Reservation prices,
  • Aspirations,
  • “Fair” settlement amounts.

Apologies enabled injured parties to modify their perceptions of the situation and of the “offender,” and to become more willing to participate in settlement discussions.
In addition, apologies changed the values injured parties’ assigned to settlement levers, so there was increased likelihood of settling the “case.”

The type of apologies and situational context affect the likelihood of case settlement.
Apologies that acknowledge responsibility and “blame” are more influential than apologies that express only sympathy.
Acknowledging accountability reduces the injured party’s anger, increases willingness to accept a settlement, and moves toward emotional “closure.”

Janelle Barlow

Janelle Barlow

Apologies are a well-known tactic to handle complaints in customer service settings, where “every complaint is a gift,” according to Janelle Barlow of TMI and Claus Møller.

Claus Møller

Claus Møller

They view complaints as valuable feedback that points out a gap between customer requirements and business performance.
In addition, complaints indicate needed changes in products, services, and market focus.

Benjamin Ho

Benjamin Ho

Medical settings have found that apologies have averted medical malpractice cases, sped settlement, and reduced financial awards, according to Cornell’s Benjamin Ho.

However, lawyers in other of Robbennolt’s studies expressed concern that admission of guilt may lead to larger settlements.
This concern led to at least thirty-five U.S. states making some apologetic statements inadmissible at trial.

-*How do you determine when apologies are likely to repair a relationship and lead to “closure”?
-*What are the signs that apologies can deepen an interpersonal rupture?

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©Kathryn Welds

“Feminine Charm” as Negotiation Tactic

Charlotte Brontë

Charlotte Brontë

Jane Austen

Jane Austen

“Feminine charm” was once one of the few available negotiation tactics for women and has been portrayed in novels by Charlotte Brontë, Jane Austen, and George Eliot.

United States Secretary of State Madeleine Albright conceded to interviewer Bill Maher that she used “charm” in negotiations with heads of state, inspiring University of California, Berkeley’s Laura Kray and Alex Van Zant with Connson Locke of London School of Economics to investigate “feminine charm” in negotiation situations.

Madeleine Albright

Madeleine Albright

Laura Kray

They found that “the aim of feminine charm is to make an interaction partner feel good to gain compliance toward broader interaction goal,” and is characterized by:

  • -Friendliness (concern for the other person),
  • -Flirtation (concern for self and self-presentation).

Hannah Riley Bowles

They found that “feminine charm” (friendliness plus flirtation) created positive impressions that partially buffered the social penalties or “backlash” against negotiating, identified by Harvard’s Hannah Riley Bowles and her colleagues.

Linda Babcock

Women who were perceived as flirtatious achieved superior economic deals in negotiations compared with women who were seen as friendly, validating suggestions by Carnegie Mellon’s Linda Babcock, that women achieve better negotiation outcomes when they combine power tactics with warmth.

Their findings expose “a financial risk associated with female friendliness:…the resulting division of resources may be unfavorable if she is perceived as ‘too nice’.”

-*How do you mitigate the “financial risk associated with female friendliness”?

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©Kathryn Welds

Women Balance on the Negotiation Tightrope to Avoid Backlash

Linda Babcock

Women less frequently negotiate initial salaries than men, leading to a long-term wage disparity, argued Carnegie-Mellon University’s Linda Babcock.

Hannah Riley Bowles

In addition, women who negotiate were negatively evaluated by both men and women participants in a laboratory study, reported Harvard’s Hannah Riley Bowles and Lei Lai.
Likewise volunteers reported less desire to work with women who asked for more money.

Lei Lai

Lei Lai

Both male and female evaluators said they disliked “demandingness” among women who negotiated, and said they preferred the “nicer” non-negotiators.
However, reducing women’s degree of assertiveness did not improve evaluators’s perceptions of women negotiators.

These findings support Babcock’s original results:   When male and female volunteers asked for salary increases using identical scripts in laboratory situations, participants  liked the men’s style, but disliked the same words from women.
Women negotiators were considered “aggressive” unless they smiled, or displayed a warm, friendly manner.

The social reaction others had to women negotiators, but not the negotiation outcome, was improved when female participants:

  • Justified the salary request based on a supporting “business case,”
  • Communicated concern for organizational relationships.

However, neither of these tactics used alone or together, improved women’s negotiation outcomes.

Another approach was more effective in improving both social and negation outcomes:

  • Justifying the salary request based on the relationship.

Women who smile and focus on the interpersonal relationship enact role-based expectations, leading to greater comfort with these women negotiators and more favorable assessments by male and female observers.

Kathleen McGinn

Kathleen McGinn

Bowles, with Harvard colleague Kathleen McGinn and Babcock, suggested that “situational ambiguity” and “gender triggers” modify women’s willingness to negotiate.

However, when women have more information about the potential salary range and are told that the salary is negotiable, they are more likely to negotiate.
This suggests that women can improve their negotiation outcomes by asking:

  • the salary range,
  • which elements of the compensation package are negotiable.
Daniel Pink

Daniel Pink

Effective negotiation is a survival skill, according to Dan Pink:
The ability to move others to exchange what they have for what we have is crucial to our survival and our happiness.
It has helped our species evolve, lifted our living standards, and enhanced our daily lives.

Effective persuaders and “sellers” collaborate in “inspecting” a negotiation and “responding” to the negotiation through “interpersonal attunement.”

Foundational skills for negotiation include Pink’s ABCs:

Attunement: Harmonizing actions and attitudes with others,

Buoyancy:  “Positivity,” optimistic “explanatory style,” asking questions,

Clarity:  Helping others re-assess situations to identify unrecognized needs that can be fulfilled by the negotiation proposal.

Joan Williams

Joan Williams

UC Hastings College of the Law’s Joan Williams offered strategies to address documented wage discrepancies.

As more women negotiate salaries, managers may view this as an expected practice.

  • What is the best negotiation pitch you’ve heard for a job-related salary increase or role promotion?
  • How did the person overcome objections?
  • How did the person manage the relationship with the negotiating partner?

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©Kathryn Welds

“Everything is Negotiable”: Prepare, Ask, Revise, Ask Again

Anna Beninger

Anna Beninger

Alixandra Pollack

Alixandra Pollack

Women’s tendency to negotiate salaries less frequently than men may be associated with persistent compensation gaps for women MBA graduates from 26 leading business schools in the United States, Canada, Europe, and Asia, reported Catalyst’s Anna Beninger and Alixandra Pollack.

Women still make about 80 percent of their male peers in a study of salaries in academic medicine by Harvard’s Catherine DesRoches, Sowmya Rao, Lisa Iezzoni, and Eric Campbell with Darren Zinner of Brandeis.

Catherine DesRoches

Likewise, Carnegie Mellon’s Linda Babcock reported that women MBAs earn USD $500,000 – USD $2 million less than their male classmates over the course of a career because because men are four to eight times more likely to negotiate both salary and promotions, and achieve better results in most negotiations.

Babcock, with Sara Laschever, outlined precursors of these negotiation differences based on differences in typical gender socialization.

Linda Babcock

They posited that many parents encourage boys to take risks, earn money in part-time jobs, and participate in competitive team sports.
In contrast, parents are more likely to encourage girls to play collaboratively and value interpersonal affiliation.

These differences enable boys to practice negotiating and competing, and to tolerate disrupted interpersonal relationships, according to Babcock and Laschever.

John List

John List

Their suggestion was supported by findings that the gender-based wage gap is associated with women’s tendency not to negotiate salaries and to avoid competitive work roles, in research by University of Chicago’s John List, Andreas Leibbrandt, and Jeffrey Flory.

They posted two identical job ads on internet job boards with different wage structures:  One offered hourly pay whereas the other had pay dependent on performance compared with coworkers.
More women than men applied to the hourly wage role.

Andreas Leibbrandt

Andreas Leibbrandt

Men were 94 percent more likely than women to seek and perform well in competitive work roles in a study of nearly 7,000 job seekers across 16 large American cities.
This gender gap “more than doubled” when the reward for performance rose.
Women were significantly more likely to walk away from a competitive workplace if they saw alternate employment options.

Jeffrey Flory

Jeffrey Flory

In contrast, women were more likely to apply if the performance relied on teamwork, not on individual accomplishment, or if the salary was a flat fee independent of their performance.

Men were also more likely to negotiate when there was no explicit statement that wages are negotiable.
However, this difference reversed when women had explicit “permission” to ask for higher salaries and job titles.

Negotiation practices that are generally judged “acceptable” for men are frequently assessed as “overly aggressive” when women use them, according to Babcock.
To counteract this stereotype, she and Laschever advised women to:

  • Define personal goals, acknowledging that “everything is negotiable,”
  • Research personal “market worth” in comparative job using online resources like Salary.com and Glassdoor.com,
  • Reconsider low sense of entitlement to higher salaries and job roles,
  • Challenge potential anxiety about negotiation,
  • Plan negotiation rationale, citing specific accomplishments, results, value to the organization,
  • Practice a positively-stated, confident negotiation “pitch,” offer timing, set an advantageous anchor point, and provide counterarguments to mitigate objections,
  • Plan counter-offers and self-supporting thoughts to manage anxiety while maintaining negotiation position and interpersonal rapport.

Collaborative negotiation by cooperative bargaining enables both people to derive value from the negotiation conversation.
They suggest building negotiation courage, comfort, skill, stamina, and strength while focusing on the negotiation goal and delivering value for all parties through a “Negotiation Gym” program.

Foundational negotiation principles were summarized in Getting to Yes: Negotiating without Giving In by Harvard’s Roger Fisher and William Ury.
More recently, Ohio State’s Roy Lewicki, David Saunders of Queen’s University, and Vanderbilt’s Bruce Barry of Vanderbilt detailed their research-based guide to Negotiation.

Leigh Thompson

Leigh Thompson

More than 90% of all negotiators fail to ask “diagnostic questions” that uncover the negotiation partner’s most important needs, priorities, preferences, and even fears, found Leigh Thompson of Northwestern.
Eliciting this information is associated with significantly improved negotiation outcomes, she found.

Knowing Your ValueTelevision journalist Mika Brzezinski echoed Babcock and Laschever’s recommendations based on interviews with prominent women and men about the persistent gender wage gap.
She distilled disconcerting labor statistics and suggested a model for negotiation:

  • Research,
  • Leverage,
  • Negotiate,
  • Re-negotiate.Hardball for Women
Pat Heim

Pat Heim

Women’s reluctance to negotiate may be related to gender differences in attributions of success and failure, suggested Pat Heim.
Women attribute failures to themselves (“internalizing,” “taking it personally) whereas men identify external factors (“blaming”, “rationalizations”) associated with their shortcomings.
In contrast, women attribute success to external factors (“deflection of merit”). Men typically attribute their effective performance to to themselves (“self-bolstering”).

Men are often promoted because they are seen to have “potential,” whereas women are  promoted based on their results and accomplishments, noted Heim.
Even factors like attire can influence perception of authority:   Men judged women but not other men as less authoritative when wearing “business casual” attire.

Women can systematically develop skills and behaviors required to close the well-documented wage gap between professional women and men.

-How do you prepare for negotiations and overcome objections during negotiations?

©Kathryn Welds