Negotiation and Conflict Management Class 3 Influence Agenda ▪ Recap • Questions? (packages, scoring system, sharing information..) • Hardball tactics, diffusing them • HBR – 15 Rules of Job Negotiation ▪ 12 Angry Men ▪ Influence Announcement ▪ Created assessment submission folders in Canvas • Do take note of the submission deadlines ▪ Forum • Created the headings for sharing Negotiation videos, anecdotes ▪ Revised Module Outline • I have revised the topics for week 5 and 6. It should not impact you. Recap Takeaways from class 2 (Lion City) ▪ ▪ ▪ ▪ Create and utilize scoring system Focus on interests not positions Give away information selectively (priorities, not alternatives) Package offers ▪ Things to discuss • Hardball tactics Hardball Tactics Hardball Tactics ▪ Good cop/bad cop ▪ Highball/lowball (outrageous opening offers) ▪ Bogey (pretending an issue is important when it is not) ▪ The nibble (asking for a little more towards the end of the negotiation) ▪ Intimidation/aggressive behavior ▪ Chicken (using a large bluff plus a threat to force the other party to concede) ▪ Snow job (inundating the other party with information) Defusing Hardball Tactics Defusing Hardball Tactics ▪ Discuss them • Explicitly acknowledge that the other party is tough and you can be tough too • Offer to change to more productive methods • Agree on rules and procedures ▪ Ignore them • Not responding to a threat is often the best way of dealing with it • Take a break and switch topics ▪ Respond in kind • Can result in chaos, hard feelings • Most useful when dealing with another party who is testing your resolve ▪ Co-op the other party • Befriend them, more difficult to attack a friend than an enemy • Find a common enemy (system, foreign competition) • Improve the accuracy of communication – take perspective, invite them to take yours Suggested Readings ▪ Thompson, Leigh L (2022) The mind and heart of the negotiator. Chapter 2 “Preparation: What to do before negotiation” - LIB EBOOK ▪ Lewicki, R.J (2021) Essentials of negotiation. Chapter 2 “Strategy and tactics of distributive bargaining” LIB EBOOK ▪ Malhotra, D., & Bazerman, M. (2007). Negotiation genius: How to overcome obstacles and achieve brilliant results at the bargaining table and beyond. Bantam. Chapter 1 (Claiming Value in Negotiation) – LIB EBOOK ▪ HBR article – “How to see through these 3 hardball negotiation tactics” by Deepak Malhotra, 2016 • HBR article – “15 Rules for Job Negotiation” by Deepak Malhotra, 2014 Influence 12 Angry Men 1. Foreman 12. Ad Man (thick rims on glasses) 2. Bank Teller (has glasses) 11. Watchmaker (mustache; has accent) 3. Messenger Service (excitable; has son) 10. Garage Owner (has a cold) 4. Stock Broker (glasses) 9. Elderly Man 5. Man from Slums 8. Henry Fonda 6. Painter (white shirt, no tie) 7. Salesman (baseball fan) Influence, Power, Trust Work in groups to answer the following: In a Negotiation setting.. 1) What are the key influence tactics that you can use? (think about persuasion, biases, and how you can use them to your advantage) 2) What are your sources of power, or how you can project power? 3) How about trust? (think about the attitude/mindset to take for negotiation, build/not build trust) I want to hear your general insights and takeaways from 12 Angry Men Influence Tactics for Negotiation? 1. Central Route direct, mindful, information based 2. Peripheral route seemingly automatic response to subtle cues Influence Tactics for Negotiation? 1. Central Route (direct, mindful, information based) • • • • Power of options (MESOs) Power of contrast (showing expensive cars and prices before showing the mid range cars) Framing effect (We treat risks involving perceived gains differently from risks involving perceived losses) Time pressure 2. Peripheral route (seemingly automatic response to subtle cues) Influence Tactics for Negotiation? 1. Central Route (direct, mindful, information based) 2. Peripheral route (seemingly automatic response to subtle cues) • Status Legitimate authority Pseudo status characteristics – gender, age, ethnicity • Social network, boundary spanners • Physical Appearance • Cialdini’s 7 principals of influence • Reciprocity, social proof, consistency, liking, authority, scarcity, unity Social Media and Negotiations Social Media and Negotiations Influence https://www.influenceatwork.com/ Seven Principles of Persuasion Seven Principles of Persuasion Trust Trust ▪ The Mindset you take to the negotiation table can influence the way you perceive the other party! • If you are sceptical about the other party, you will doubt every information the other party gives. You may end up giving up a good deal. Trust ▪ The Mindset you take to the negotiation table can influence the way you perceive the other party! • If you are sceptical about the other party, you will doubt every information the other party gives. You may end up giving up a good deal. • Cuban missile crisis (1962) • Soviet Union to announce that ships near Cuba did not carry any arms. • US to not invade Cuba • US secretly agreed to remove all missiles from Turkey. The closest the cold war came to escalating into a full scale nuclear war John F Kennedy Nikita Krushchev Trust ▪ The Mindset you take to the negotiation table can influence the way you perceive the other party! • If you are sceptical about the other party, you will doubt every information the other party gives. You may end up giving up a good deal. • Cuban missile crisis (1962) • And now the Russia - Ukraine War • What happens now? Trust ▪ Build trust by “sharing information” • Could be about hobbies, personal concerns, hopes • Taps on to reciprocity argument Power Power ▪ People with power may have an illusion of control ▪ BATNA is your real source of power ▪ Project Power through body language Former FBI Agent Scenario Scenario ▪ A $20 Affair • Which of these would make you happier? • Scenario A: you are walking down the street and find a $20 bill. • Scenario B: you are walking down the street and find a $10 bill. The next day, as you are walking on a different street, you find another $10 bill. Scenario ▪ A $20 Affair • Which of these would make you happier? • Scenario A: you are walking down the street and find a $20 bill. • Scenario B: you are walking down the street and find a $10 bill. The next day, as you are walking on a different street, you find another $10 bill. • Which of these would make you unhappier? • Scenario A: you open your wallet and discover you have lost a $20 bill. • Scenario B: you open your wallet and discover you have lost a $10 bill. The following day, you lose another $10 bill. Scenario ▪ Strategy: Aggregate their Loses and Disaggregate their Gains • Prospect Theory (Amos Tversky and Daniel Kahneman) • We evaluate gain or losses (differently) relative to salient reference points • Joy of X amount of gain is less than pain of X amount of loss Scenario ▪ Strategy: Aggregate their Loses and Disaggregate their Gains • We evaluate gain or losses (differently) relative to salient reference points • Disaggregate their Gains • If you have good news to share, try and parcel the information into smaller “gems” that will give other party more occasions to smile • If you have benefits or rewards to offer, separate these into instalments that can be made over time Scenario ▪ Strategy: Aggregate their Loses and Disaggregate their Gains • We evaluate gain or losses (differently) relative to salient reference points • Disaggregate their Gains • If you have good news to share, try and parcel the information into smaller “gems” that will give other party more occasions to smile • If you have benefits or rewards to offer, separate these into instalments that can be made over time • Aggregate their Losses • If you are requesting or demanding that other side make concessions, make one comprehensive demand. • If you have bad news to share, share it all at once • If you have costs or burdens to impose, combine them all 7 Elements of Negotiation 7 Elements of Negotiation 1. 2. 3. 4. 5. 6. 7. Interests Options Criteria (legitimacy, fairness) Alternatives Communication Relationship Commitment 7 Elements ▪ https://www.pon.harvard.edu/daily/negotiation-skills-daily/whatis-negotiation/ Suggested Readings • Cialdini , R. B. (2001). Harnessing the Science of Persuasion. (cover story). Harvard Business Review, 79(9), 72–79. • Kosfeld, Michael, et al. "Oxytocin increases trust in humans." Nature, vol. 435, no. 7042, 2005 • Heath & Heath ( 2007) Made to stick: why some ideas work in the world and others don’t • Thompson, Leigh L (2015) The mind and heart of the negotiator. Chapter 7 “Power, Persuasion, and Ethics” Next Class Cookbook ▪ Before class • Roles sheets will be mailed • Do your individual planning ▪ During class • • • • Find your partner of the same role Finalize your planning document and submit (as a 2 member team) to Canvas Negotiate with the counter party (2 vs 2) Debrief Appendix Seven Principles of Persuasion ▪ ▪ ▪ ▪ ▪ ▪ ▪ Reciprocity Commitment and Consistency Social Proof Liking Authority Scarcity Unity Reciprocity ▪ We try to repay in kind what another person has provided us • An overpowering rule that enforces uninvited debts ▪ Examples: • “free” gifts • Reciprocal concessions in negotiation (watch the size of concessions) ▪ Defence • Reject gift (not easy) • Accept, but be wary; if a trick, redefine relationship • Have a ready excuse or say “let me think about your offer” Commitment and Consistency ▪ Once we make a choice or take a stand, we will encounter personal and interpersonal pressures to behave consistently with that commitment • Commitments are most effective when they are active, public, voluntary • Align with people’s clear commitments ▪ Example: • Residents were asked to sign a petition for establishment of recreation centre for the handicapped. (good cause, small request) • Later, residents were approached to donate for the cause. 92% of those who signed petition earlier, donated! Social Proof ▪ The greater the number of people who find any idea correct, the more we will perceive the idea to be correct • We use others’ actions to decide on proper behaviour for ourselves when uncertainty reigns and when the others are similar to us ▪ Examples: • Laugh tracks • Bystander • Boss trying to sell new corporate initiative to a group of veteran employees resisting the initiative – ask an old employee who supports the initiative to speak up in the team meeting. Liking ▪ We prefer to say yes to the requests of people we know and like. ▪ We tend to like people who are • Physically attractive, similar to us, compliment us, are associated with positive things ▪ Examples: • Weatherperson who predicts good weather • Salespeople • Finding commonalities, even trivial ones Authority ▪ We tend to defer to (obey) authorities in a mindless fashion • There is a tendency to respond to the mere symbol of authority rather than to its substance. E.g. titles, uniforms ▪ Examples: • Milgram’s shock experiments • Indicate your expertise/authority (e.g. jargon) • Alanna Shaikh’s TED talk on Coronavirus (7 mill+ views), how she starts by talking about her credentials. Scarcity ▪ We tend to assign more value to opportunities when they are less available • Scarcity seems to be particularly potent when they are newly scarce and when we compete with others for them • Limited numbers and time limits ▪ Examples: • “Buy now! Supplies are limited!” and “Limited time offer!” • Auction fever (competition, scarcity, and time pressure) Unity ▪ The more you feel part of a group, the more you allow yourself to be influenced by that group ▪ Instead of saying: “300 people have downloaded this e-book” (social proofing) ▪ Say this for shared identity: “Already 1500 people who want to get rid of obesity, just like you, have downloaded this e-book”
