Transcript ba 322 ppt chapter 7

CHAPTER 7
Power, Persuasion, and
Ethics
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CHAPTER 7
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Your BATNA is Your Most Important
Source of Power in Negotiation
• Negotiators must attempt to cultivate and improve
upon their BATNAs prior to negotiating
• To fully capitalize on BATNA:
– Keep your options open
– Signal your BATNA, but do not reveal it
– Assess the other party’s BATNA
• Other sources of power
Instructor’s Manual with Overheads to accompany
The Mind and Heart of the Negotiator 5/e (Thompson)
Copyright ©2012 Pearson Education,
Inc. publishing as Prentice Hall
CHAPTER 7
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Central Route Persuasion Tactics
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The power of agenda
The power of alternatives
The power of options
Attitudinal structuring
The power of contrast (the psychological contrast effect)
Commitment and consistency (the consistency principle)
Framing effects: capitalizing on the half-full or half-empty glass
Fairness heuristics: capitalizing on egocentric bias
Time pressure
Instructor’s Manual with Overheads to accompany
The Mind and Heart of the Negotiator 5/e (Thompson)
Copyright ©2012 Pearson Education,
Inc. publishing as Prentice Hall
CHAPTER 7
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Peripheral Route Persuasion Tactics
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Status
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Gender
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Cultural stereotypes and mental roadblocks
Exposing those negative stereotypes
Social networks
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Primary status characteristics
Secondary status characteristics (or pseudostatus characteristics)
Self-fulfilling prophecy
Stereotype threat
Social capital
Boundary spanners
Physical appearance
Delayed liking
To err is human
Priming the pump
Reciprocity versus complementarity
Social proof
Reactance technique
Foot-in-the-door technique
Door-in-the-face technique (or rejection-then-retreat tactic)
That’s-not-all technique (or sweetening the deal)
Instructor’s Manual with Overheads to accompany
The Mind and Heart of the Negotiator 5/e (Thompson)
Copyright ©2012 Pearson Education,
Inc. publishing as Prentice Hall
CHAPTER 7
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Ethical Negotiation: Questionable Strategies
• Lying (and its effects on negotiation issues)
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Positions
Interests
Priorities and preferences
BATNAs
Reservation prices
Facts
• Other questionable negotiation strategies
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Traditional competitive bargaining
Manipulation of an opponent’s network
Reneging on negotiated agreements
Retracting an offer
Nickel-and-diming
• Sins of omission and commission
• Costs of lying
Instructor’s Manual with Overheads to accompany
The Mind and Heart of the Negotiator 5/e (Thompson)
Copyright ©2012 Pearson Education,
Inc. publishing as Prentice Hall
CHAPTER 7
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Exhibit 7-5: Conditions under which Negotiators Say They
Would Engage in Deception (i.e., Lying) in Negotiations
100%
Review of Categories (Left to Right on X-Axis):
90%
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Lie-for-a-lie: When I suspect the other party is
deceiving me
80%
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One shot: In a one-shot situation, with no
potential for a long-term relationship
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Personal gain: If there was a gain to be had
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Not getting caught: If I felt I could get away
with it
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Life or death: If the situation was “life or
death”
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Low power: If the other party had more power
(i.e., to “level the playing field”)
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Protecting reputation: When I would not have
to worry about my reputation
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Dislike: If I did not like the other person
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Fixed pie: If the situation was purely
distributive
70%
60%
50%
43%
38%
40%
30%
21%
19%
20%
15%
15%
13%
10%
9%
4%
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Instructor’s Manual with Overheads to accompany
The Mind and Heart of the Negotiator 5/e (Thompson)
Copyright ©2012 Pearson Education,
Inc. publishing as Prentice Hall
CHAPTER 7
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Psychological Bias and
Unethical Behavior
• Human biases that give rise to ethical problems in
negotiation
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Bounded ethicality
Illusion of superiority
Illusion of control
Overconfidence
• How can negotiators calibrate ethical behavior?
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The front page test
Reverse golden rule
Role modeling
Third-party advice
Strengthen your bargaining position
Instructor’s Manual with Overheads to accompany
The Mind and Heart of the Negotiator 5/e (Thompson)
Copyright ©2012 Pearson Education,
Inc. publishing as Prentice Hall
CHAPTER 7
• All rights reserved. No part of this publication may be
reproduced, stored in a retrieval system, or transmitted, in any
form or by any means, electronic, mechanical, photocopying,
recording, or otherwise, without the prior written permission
of the publisher. Printed in the United States of America.
• Copyright ©2012 Pearson Education,
Inc. publishing as Prentice Hall
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