Tag Archives: negotiation

Mindfulness Meditation Improves Decisions, Reduces Sunk-Cost Bias

Sigal Barsade

Sigal Barsade

Brief meditation sessions can reduce the tendency to base current decisions on past “sunk costs,” reported Wharton’s Sigal Barsade, with Andrew C. Hafenbrack and Zoe Kinias of INSEAD.

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.

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 trait-mindfulness scale 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 vulnerability to sunk-cost bias.
Propensity to take 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 and resist the sunk-cost bias than those who had not heard the meditation instruction.

Andrew M Parker

Andrew M Parker

Barsade’s team controlled for participants’ age and trait self-esteem, noting 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     negotiation process and outcome. 

JAYANTH NARAYANAN

JAYANTH NARAYANAN

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

They 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

This task asks participants to associate 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 evoke reduce bias in making decisions and crafting negotiation proposals?

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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.

Anxious negotiators who achieved poor bargaining outcomes did not manage 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, identified by considering alternate interpretations of events to increase optimism and self-efficacy beliefs,
  • 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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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 had 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 needed to ask only six people for help, 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.
Requestors tended to “anchor” on the first refusal, and hesitate to make a second request.
However, this finding suggests that requestors have a greater chance of success after initial refusal, and that this is the time to muster resilience and persistence.

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

Requestors 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 five variables:

  • 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 asking for what you want, even after rejection.
In addition, 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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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 to 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 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 tangible and 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.

Although volunteer plaintiffs in Robbenholt’s study responded favorably to apologies, another of her studies demonstrated that lawyers express concern that apologies are an admission of guilt that can be used to leverage bigger settlements.
The power of apology has been acknowledged in at least thirty-five U.S. states, where statutes make 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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“Feminine Charm” as Negotiation Tactic

Charlotte Brontë

Charlotte Brontë

Jane Austen

Jane Austen

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

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

George Eliot

George Eliot

Madeleine Albright

Madeleine Albright

Their investigation led to an operational definition of “feminine charm” as characterized by:

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

Like ingratiation, “the aim of feminine charm is to make an interaction partner feel good to gain compliance toward broader interaction goal,” according to Kray, Van Zant, and Locke.

Laura Kray

Laura Kray

Alex Van Zant

Alex Van Zant

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.

Connson Locke

Connson Locke

Hannah Riley Bowles

Hannah Riley Bowles

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

Deborah Gruenfeld

Deborah Gruenfeld

Linda Babcock

Linda Babcock

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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Have You Agreed to Every Bad Deal You’ve Gotten?

Facebook COO Sheryl Sandberg wasn’t inclined to negotiate her proposed salary until she was emphatically urged by her late husband and brother-in-law.

Accenture

Accenture

In contrast, most respondents to Accenture’s 2016 online survey of 4,100 business executive women and men across 33 countries said they had asked for a pay increase.

Almost as many women as men asked for more salary, and the number of women who negotiated increased by 10% from earlier surveys.
These negotiation efforts were effective: Four out of five respondents who negotiated said they received a pay increase, confirming the mantra “Just Ask” while being prepared for “No.”

Linda Babcock

Linda Babcock

This result is more encouraging than Linda Babcock’s earlier finding that women tend not to ask for raises, and are less likely to receive salary increases when they do ask.

The Accenture study also found that nearly half of women and men respondents reported asking for a promotion to greater job responsibility, suggesting willingness to advocate for themselves to achieve monetary rewards.

Emily Amanatullah

Emily Amanatullah

Gender differences in negotiations reflect women’s “contextually contingent impression management strategies,argued University of Texas’s Emily Amanatullah and Michael Morris of Columbia University.
Translated, this means that women’s assertive bargaining behavior is judged as congruent with female gender roles in some contexts.

As a result, many women consider this “contextual variation” and potential “backlash” against perceived incongruity when negotiating.
They adjust bargaining behavior to manage social impressions in contexts where assertive bargaining behavior is seen as incongruent with female gender roles.

Michael Morris

Michael Morris

Women who advocated for themselves reduced assertive behaviors and competing tactics, resulting in poorer negotiation outcomes.
In contrast, women advocated for others achieved better outcomes because they did not reduce assertive behaviors or engage in “hedging.”

Margaret Neale

Margaret Neale

Negotiation is interdependent process – every bad deal you’ve gotten, you’ve agreed to,” argued Margaret Neale of Stanford Graduate School of Business.
If true, this outcome can be counteracted by adopting a mindset that “everything is negotiable.

Her empirical research informed her recommended structure to achieve more effective negotiation outcomes, summarized by the acronym APAP:

–          What are the Alternatives or fall-backs to negotiating?

–          What are the Aspirational goals for the best possible outcomes?

-How realistic are these goals?
-What’s the “walk-away bottom line“?

–          Assess: How much influence do you have?
– How might the benefits of negotiating outweigh the costs?

–          Prepare: What are your interests (not positions, or proposed outcome)?
– What are the other person’s interests?

–          Ask: Propose a solution that packages issues with benefits to the other, the group, and you
Share information.

–          Package:  Avoid issue-by-issue negotiation by trading among issues.
Use If-then statements for counter-proposals,
Bundle alternative proposals.

Deborah Kolb

Deborah Kolb

An alternate model of three types of negotiation maneuvers was proposed by Simmons College’s Deborah Kolb and Carol Frohlinger of Negotiating Women, Inc.:

Power Moves attract others to participate in negotiation discussions:

  • Offer incentives,
  • Raise the cost of not negotiating,
  • Enlist support.

      Process Moves structure the negotiation interaction:

  • Take control of the agenda,
  • Seed ideas.

    Appreciative Moves
     enable the negotiation conversation to continue:
  • Solicit new perspectives,
  • Enable the conversation to continue,
  • Help others “save face.
Carol Frohlinger

Carol Frohlinger

Kolb and Frohlinger advocated:

-Skill building (including mutual inquiry to co-construct solutions to replace traditional Distributive Exchange and Integrative Exchange models),

-Organizational development to overcome structural barriers to women’s advancement.
These interventions may also reduce unconscious bias that excludes women from developmental assignments and advancement.

A counterpoint argument is that women can control their self-development, but they have less control over their organization’s willingness to transform its culture, practices, and awareness of bias.

-*How likely are you to ask for a salary increase or promotion?

-*What factors do you consider before making a request for more money or an expanded role?

-*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?

-*How do you ask for what you want at work?

-*What power tactics do you employ to influence your negotiation outcomes?

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

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Women Balance on the Negotiation Tightrope to Avoid Backlash

Linda Babcock

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

Hannah Riley Bowles

And when women asked for higher salaries in a laboratory simulation, they were negatively evaluated by both men and women participants, reported Harvard’s Hannah Riley Bowles and Lei Lai.
In addition, other volunteers reported less desire to work with women who asked for more money.

Lei Lai

Lei Lai

Both male and female evaluators responded negatively to perceived “demandingness” among women who negotiated, preferring the “nicer” non-negotiators.
However, reducing women’s degree of assertiveness did not improve evaluators’s perceptions of women negotiators.

These finding 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 with 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.
Therefore, women benefit from 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:  Asking questions, “positivity,” and an optimistic “explanatory style,”

Clarity:  Helping others freshly re-assess situations to identify unrecognized needs that can be addressed by the negation 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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