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8/17/2019 Ana Negotiation w7
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NEGOTIATION 7eLewicki ▪ Saunders
▪ Barry
RM 2053
Negotiation
Techniques
DR HJH AIDA NASIRAH ABDULLAH
UNIVERSITI PERTAHANAN NASIONAL MALAYSIA
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Week 7
COGNITIVE BIASES INNEGOTIATION
© 2015 by McGraw-Hill Education. This is proprietary material solely orauthori!ed instructor use. "ot authori!ed or sale or distribution in any
manner.
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COGNITIVE BIASES IN NEGOTIATION
# Negotiators have a tendency to makesystematic errors when they process
information. These errors, collectivelylabeled cognitive biases, tend to impedenegotiator performance.
© 2015 by McGraw-Hill Education. This is proprietary material solely or
authori!ed instructor use. "ot authori!ed or sale or distribution in any
manner.5-$
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COGNITIVE BIASES
# Irrationalescalation ofcommitment
# Mythical ed-piebeliefs
# !nchoring and
ad"#stment# Iss#e framing
and risk
# !vailability ofinformation
# The winner$sc#rse
# %vercondence# The law of smalln#mbers
# &elf-servingbiases
# 'ndowmente(ect
# Ignoring others$
cognitions# )eactive© 2015 by McGraw-Hill Education. This is proprietary material solely or authori!ed instructoruse. "ot authori!ed or sale or distribution in any manner. 5-%
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IRRATIONAL ESCALATION OFCOMMITMENT AND MT!ICALFI"ED#$IE BELIEFS
# Irrational escalation of commitmentNegotiators maintain commitment to a co#rse
of action even when that commitmentconstit#tes irrational behavior
# Mythical ed-pie beliefsNegotiators ass#me that all negotiations *not
"#st some+ involve a ed pie
© 2015 by McGraw-Hill Education. This is proprietary material solely orauthori!ed instructor use. "ot authori!ed or sale or distribution in any
manner.
5-5
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ANC!ORING AND AD%&STMENT
AND ISS&E FRAMING AND RIS'
# !nchoring and ad"#stment The e(ect of the standard *anchor+ against
which s#bse#ent ad"#stments *gains orlosses+ are meas#red
The anchor might be based on fa#lty orincomplete information, th#s be misleading
# Iss#e framing and risk rames can lead people to seek, avoid, or bene#tral abo#t risk in decision making andnegotiation
© 2015 by McGraw-Hill Education. This is proprietary material solely orauthori!ed instructor use. "ot authori!ed or sale or distribution in any
manner.
5-&
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AVAILABILIT OF INFORMATION
AND T!E (INNER)S C&RSE
# !vailability of information%perates when information that is presented
in vivid or attention-getting ways becomeseasy to recall.
ecomes central and critical in eval#atingevents and options
# The winner$s c#rse The tendency to settle #ickly on an itemand then s#bse#ently feel discomfort abo#ta win that comes too easily
© 2015 by McGraw-Hill Education. This is proprietary material solely orauthori!ed instructor use. "ot authori!ed or sale or distribution in any
manner.
5-'
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OVERCONFIDENCE
AND T!E LA( OF SMALL N&MBERS
# %vercondence The tendency of negotiators to believe that
their ability to be correct or acc#rate isgreater than is act#ally tr#e
# The law of small n#mbers The tendency of people to draw concl#sions
from small sample si/es The smaller sample, the greater thepossibility that past lessons will beerroneo#sly #sed to infer what will happen inthe f#t#re
© 2015 by McGraw-Hill Education. This is proprietary material solely or
authori!ed instructor use. "ot authori!ed or sale or distribution in anymanner.
5-(
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SELF#SERVING BIASES
AND ENDO(MENT EFFECT
# &elf-serving biases 0eople often eplain another person$s
behavior by making attrib#tions, either to theperson or to the sit#ation The tendency, known as f#ndamentalattrib#tion error, is to%verestimate the role of personal or internal
factors2nderestimate the role of sit#ational or eternal
factors
# 'ndowment e(ect The tendency to overval#e something yo#own or believe yo# possess© 2015 by McGraw-Hill Education. This is proprietary material solely or
authori!ed instructor use. "ot authori!ed or sale or distribution in anymanner.
5-)
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IGNORING OT!ERS) COGNITIONS
AND REACTIVE DEVAL&ATION
# Ignoring others$ cognitionsNegotiators don$t bother to ask abo#t the
other party$s perceptions and tho#ghts This leaves them to work with incomplete
information, and th#s prod#ces fa#lty res#lts
# )eactive deval#ation The process of deval#ing the other party$sconcessions simply beca#se the other partymade them
© 2015 by McGraw-Hill Education. This is proprietary material solely orauthori!ed instructor use. "ot authori!ed or sale or distribution in any
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MANAGING MIS$ERCE$TIONS AND
COGNITIVE BIASES IN NEGOTIATION
The best advice that negotiators canfollow is
# e aware of the negative aspects ofthese biases
# 3isc#ss them in a str#ct#red manner
within the team and with co#nterparts
© 2015 by McGraw-Hill Education. This is proprietary material solely orauthori!ed instructor use. "ot authori!ed or sale or distribution in any
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MOOD* EMOTION* AND NEGOTIATION
# The distinction between mood andemotion is based on three
characteristics &pecicity
Intensity
3#ration
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MOOD* EMOTION* AND NEGOTIATION
# Negotiations create both positive andnegative emotions
# 0ositive emotions generally havepositive conse#ences for negotiations They are more likely to lead the partiestoward more integrative processes
They also create a positive attit#de towardthe other side
They promote persistence
© 2015 by McGraw-Hill Education. This is proprietary material solely orauthori!ed instructor use. "ot authori!ed or sale or distribution in any
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MOOD* EMOTION* AND NEGOTIATION
# !spects of the negotiation process canlead to positive emotions
0ositive feelings res#lt from fair proced#resd#ring negotiation
0ositive feelings res#lt from favorable socialcomparison
© 2015 by McGraw-Hill Education. This is proprietary material solely orauthori!ed instructor use. "ot authori!ed or sale or distribution in any
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MOOD* EMOTION* AND NEGOTIATION
# Negative emotions generally havenegative conse#ences for negotiations
They may lead parties to dene the sit#ationas competitive or distrib#tive
They may #ndermine a negotiator$s ability toanaly/e the sit#ation acc#rately, which
adversely a(ects individ#al o#tcomes They may lead parties to escalate the con4ict
They may lead parties to retaliate and maythwart integrative o#tcomes
© 2015 by McGraw-Hill Education. This is proprietary material solely orauthori!ed instructor use. "ot authori!ed or sale or distribution in any
manner.5-15
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MOOD* EMOTION* AND NEGOTIATION
# !spects of the negotiation process canlead to negative emotionsNegative emotions may res#lt from acompetitive mind-set
Negative emotions may res#lt from animpasse
Negative emotions may res#lt from theprospect of beginning a negotiation
# '(ects of positive and negativeemotion 0ositive emotions may generate negativeo#tcomes
Negative feelings may elicit benecial© 2015 by McGraw-Hill Education. This is proprietary material solely or authori!ed instructor 5-1&