Chapter 5 Perception, Cognition, And Emotion

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    Perception, Cognition, and Emotion

    CHAPTER FIVE

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    Perception, Cognition, and

    Emotion in Negotiation

    The basic building blocks of all social

    encounters are:

    Perception

    Cognition

    Framing Cognitive biases

    Emotion

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    Perception

    Perception is:

    The process by which individuals connect

    to their environment.

    A sense-making process

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    The Role of Perception

    The process of ascribing meaning to messages and events is strongly influenced

    by the perceivers current state of mind, role, and comprehension of earlier

    communications

    People interpret their environment in order to respond appropriately

    The complexity of environments makes it impossible to process all of theinformation

    People develop shortcuts to process information and these shortcuts create

    perceptual errors

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    Perceptual Distortion

    Four major perceptual errors:

    Stereotyping

    Halo effects

    Selective perception

    Projection

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    Stereotyping and Halo Effects

    Stereotyping: Is a very common distortion

    Occurs when an individual assigns attributes to

    another solely on the basis of the others membershipin a particular social or demographic category

    Halo effects:

    Are similar to stereotypes Occur when an individual generalizes about a variety

    of attributes based on the knowledge of one attribute

    of an individual

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    Selective Perception

    and Projection

    Selective perception: Perpetuates stereotypes or halo effects

    The perceiver singles out information that supports aprior belief but filters out contrary information

    Projection:

    Arises out of a need to protect ones own self-concept People assign to others the characteristics or feelings

    that they possess themselves

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    Framing

    Frames: Represent the subjective mechanism through which

    people evaluate and make sense out of situations

    Lead people to pursue or avoid subsequent actions Focus, shape and organize the world around us

    Make sense of complex realities

    Define a person, event or process

    Impart meaning and significance

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    Types of Frames

    Substantive

    Outcome

    Aspiration Process

    Identity

    Characterization

    Loss-Gain

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    How Frames Work in Negotiation

    Negotiators can use more than one frame

    Mismatches in frames between parties are sources

    of conflict

    Particular types of frames may lead to particular

    types of arguments

    Specific frames may be likely to be used with

    certain types of issues Parties are likely to assume a particular frame

    because of various factors

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    Interests, Rights, and Power

    Parties in conflict use one of three frames:

    Interests: people talk about their positions but

    often what is at stake is their underlying interests

    Rights: people may be concerned about who is

    right that is, who has legitimacy, who is

    correct, and what is fair

    Power: people may wish to resolve a conflict onthe basis of who is stronger

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    Approaches to Negotiation

    Goal

    Interests Rights Power

    Approach

    Self-interest

    Dispute resolution

    Understanding othersconcerns

    Fairness

    Justice

    Winning

    Respect

    Temporal focus

    Distributive

    strategies (pie

    slicing)

    Integrative

    strategies (pie

    expansion)

    Implications for

    future negotiations

    and relationship

    Present (what needs and

    interests do we have rightnow?)

    Past (what has been dictated

    by the past?)

    Future (what steps can I

    take in the future tooverpower others?)

    Compromise Often produces a winner

    and a loser; thus, unequal

    distribution

    Often produces a

    winner and a loser;

    thus, unequal distribution

    Most likely to expand the pie

    via addressing parties

    underlying needs

    Difficult to expand the pie

    unless focus is on interests

    Difficult to expand the

    pie unless focus is on

    interests

    Resentment

    Possible retaliation

    Revenge

    Possible court action Greater understanding

    Satisfaction

    Stability of agreement

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    The Frame of an Issue Changes as

    the Negotiation Evolves Negotiators tend to argue for stock issuesor

    concerns that are raised every time the parties

    negotiate Each party attempts to make the best possible

    casefor his or her preferred position orperspective

    Frames may define major shifts and transitionsin a complex overall negotiation

    Multiple agenda itemsoperate to shape issuedevelopment

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    Some Advice about Problem

    Framing for Negotiators Frames shape what the parties define as the key

    issues and how they talk about them

    Both parties have frames Frames are controllable, at least to some degree

    Conversations change and transform frames in

    ways negotiators may not be able to predict but

    may be able to control

    Certain frames are more likely than others to

    lead to certain types of processes and outcomes

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    Cognitive Biases in Negotiation

    Negotiators have a tendency to make

    systematic errors when they process

    information. These errors, collectively

    labeled cognitive biases, tend to impede

    negotiator performance.

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    Cognitive Biases

    Irrational escalation

    of commitment

    Mythical fixed-pie

    beliefs Anchoring and

    adjustment

    Issue framing andrisk

    Availability of

    information

    The winners curse

    Overconfidence

    The law of small

    numbers Self-serving biases

    Endowment effect

    Ignoring otherscognitions

    Reactive devaluation

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    Irrational Escalation of Commitment

    and Mythical Fixed-Pie Beliefs

    Irrational escalation of commitment

    Negotiators maintain commitment to a course of

    action even when that commitment constitutesirrational behavior

    Mythical fixed-pie beliefs

    Negotiators assume that all negotiations (not just

    some) involve a fixed pie

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    Anchoring and Adjustment

    and Issue Framing and Risk Anchoring and adjustment

    The effect of the standard (anchor) against which

    subsequent adjustments (gains or losses) aremeasured

    The anchor might be based on faulty or incomplete

    information, thus be misleading

    Issue framing and risk Frames can lead people to seek, avoid, or be neutral

    about risk in decision making and negotiation

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    Availability of Information

    and the Winners Curse Availability of information

    Operates when information that is presented in vivid

    or attention-getting ways becomes easy to recall. Becomes central and critical in evaluating events and

    options

    The winners curse

    The tendency to settle quickly on an item and thensubsequently feel discomfort about a win that comes

    too easily

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    Overconfidence and

    The Law of Small Numbers Overconfidence

    The tendency of negotiators to believe that their

    ability to be correct or accurate is greater than isactually true

    The law of small numbers The tendency of people to draw conclusions from

    small sample sizes

    The smaller sample, the greater the possibility thatpast lessons will be erroneously used to infer whatwill happen in the future

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    Confidence or Overconfidence?

    We came to Iceland to advance the cause of peace.. .and though we put on the table the most far-reaching arms control proposal in history, theGeneral Secretary rejected it.

    President Ronald Reagan to reporters,following completion of presummit arms control discussions

    in Reykjavik, Iceland, on October 12,1986.

    I proposed an urgent meeting here because we had

    something to propose. . .The Americans came to thismeeting empty handed.Secretary General Mikhail Gorbachev,

    Describing the same meeting to reporters.

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    Self-Serving Biases

    and Endowment Effect Self-serving biases

    People often explain another persons behavior bymaking attributions, either to the person or to the

    situation

    Endowment effect The tendency to overvalue something you own or

    believe you possess

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    Ignoring Others Cognitions

    and Reactive Devaluation Ignoring others cognitions

    Negotiators dont bother to ask about the other partys

    perceptions and thoughts This leaves them to work with incomplete information,

    and thus produces faulty results

    Reactive devaluation The process of devaluing the other partys

    concessions simply because the other party madethem

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    Managing Misperceptions and

    Cognitive Biases in Negotiation

    The best advice that negotiators can follow

    is: Be aware of the negative aspects of these

    biases

    Discuss them in a structured manner within the

    team and with counterparts

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    Mood, Emotion, and Negotiation

    The distinction between mood and

    emotion is based on three characteristics:

    Specificity

    Intensity

    Duration

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    Mood, Emotion, and Negotiation

    Negotiations create both positive and negative

    emotions

    Positive emotions generally have positive

    consequences for negotiations

    They are more likely to lead the parties toward more

    integrative processes

    They also create a positive attitude toward the other

    side

    They promote persistence

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    Mood, Emotion, and Negotiation

    Aspects of the negotiation process can lead to

    positive emotions

    Positive feelings result from fair procedures during

    negotiation Positive feelings result from favorable social

    comparison

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    Mood, Emotion, and Negotiation

    Negative emotions generally have negative

    consequences for negotiations

    They may lead parties to define the situation as

    competitive or distributive They may undermine a negotiators ability to analyze the

    situation accurately, which adversely affects individual

    outcomes

    They may lead parties to escalate the conflict They may lead parties to retaliate and may thwart

    integrative outcomes

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    Mood, Emotion, and Negotiation

    Aspects of the negotiation process can lead tonegative emotions Negative emotions may result from a competitive

    mindset

    Negative emotions may result from an impasse

    Effects of positive and negative emotion Positive emotions may generate negative outcomes

    Negative feelings may elicit beneficial outcomes

    Emotions can be used strategically asnegotiation gambits