In Chap 005

8/6/2019 In Chap 005

1/28

5-1

McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc., All Rights Reserved

CHAPTER FIVE

Perception, Cognition,

and Emotion

8/6/2019 In Chap 005

2/28

5-2


Perception, Cognition, and

Emotion in Negotiation

The basic building blocks of all social

encounters are: Perception

Cognition

Framing Cognitive biases

Emotion

8/6/2019 In Chap 005

3/28

5-3


Perception

Perception is:

The process by which individuals connect to

their environment.

A complex physical and psychological process

A sense-making process

8/6/2019 In Chap 005

4/28

5-4


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

8/6/2019 In Chap 005

5/28

5-5


Perceptual Distortion

Four major perceptual errors:

Stereotyping Halo effects

Selective perception

Projection

8/6/2019 In Chap 005

6/28

5-6


Stereotyping and Halo Effects

Stereotyping: Is a very common distortion

Occurs when an individual assigns attributes to anothersolely on the basis of the others membership in 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

8/6/2019 In Chap 005

7/28

5-7


Selective Perception

and Projection

Selective perception:

Perpetuates stereotypes or halo effects The perceiver singles out information that supports a prior

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

8/6/2019 In Chap 005

8/28

8/6/2019 In Chap 005

9/28

5-9


Types of Frames

Substantive

Outcome

Aspiration Process

Identity

Characterization

Loss-Gain

8/6/2019 In Chap 005

10/28

5-10


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

8/6/2019 In Chap 005

11/28

5-11


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 on thebasis of who is stronger

8/6/2019 In Chap 005

12/28

5-12


The Frame of an Issue Changes as

the Negotiation Evolves

Negotiators tend to argue for stock issues or concernsthat are raised every time the parties negotiate

Each party attempts to make the best possible case forhis or her preferred position or perspective

Frames may define major shifts and transitions in acomplex overall negotiation

Multiple agenda items operate to shape issuedevelopment

8/6/2019 In Chap 005

13/28

5-13


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 beable to control

Certain frames are more likely than others to lead to

certain types of processes and outcomes

8/6/2019 In Chap 005

14/28

5-14


Cognitive Biases in Negotiation

Negotiators have a tendency to make

systematic errors when they process

information. These errors, collectively labeledcognitive biases, tend to impede negotiator

performance.

8/6/2019 In Chap 005

15/28

5-15


Cognitive Biases

Irrational escalation of

commitment

Mythical fixed-pie

beliefs

Anchoring and

adjustment

Issue framing and risk Availability of

information

The winners curse

Overconfidence

The law of smallnumbers

Self -serving biases

Endowment effect

Ignoring otherscognitions

Reactive devaluation

8/6/2019 In Chap 005

16/28

5-16


Irrational Escalation of Commitment

and Mythical Fixed-Pie Beliefs

Irrational escalation of commitment

Negotiators maintain commitment to a course of actioneven when that commitment constitutes irrational behavior

Mythical fixed-pie beliefs

Negotiators assume that all negotiations (not just some)

involve a fixed pie

8/6/2019 In Chap 005

17/28

5-17


Anchoring and Adjustment

and Issue Framing and Risk

Anchoring and adjustment

The effect of the standard (anchor) against which

subsequent adjustments (gains or losses) are measured

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 aboutrisk in decision making and negotiation

8/6/2019 In Chap 005

18/28

5-18


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

8/6/2019 In Chap 005

19/28

5-19


Overconfidence and

The Law ofSmall Numbers

Overconfidence The tendency of negotiators to believe that their ability to

be correct or accurate is greater than is actually true The law of small numbers

The tendency of people to draw conclusions from smallsample sizes

The smaller sample, the greater the possibility that pastlessons will be erroneously used to infer what will happenin the future

8/6/2019 In Chap 005

20/28

5-20


Confidence or Overconfidence?

We came to Iceland to advance the cause of peace. . .andthough we put on the table the most far-reaching armscontrol proposal in history, the General Secretaryrejected it.

President Ronald Reagan to reporters,

following completion of presummit arms control discussions

in Reykjavik, Iceland, on October12, 1986.

I proposed an urgent meeting here because we hadsomething to propose. . .The Americans came to thismeeting empty handed.

Secretary General Mikhail Gorbachev,

Describing the same meeting to reporters.

8/6/2019 In Chap 005

21/28

5-21


Self-Serving Biases

and Endowment Effect

Self -serving biases People often explain another persons behavior by making

attributions, either to the person or to the situation The tendency, known as fundamental attribution error, isto:

Overestimate the role of personal or internal factors

Underestimate the role of situational or external factors

Endowment effect The tendency to overvalue something you own or believe

you possess

8/6/2019 In Chap 005

22/28

5-22


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 made them

8/6/2019 In Chap 005

23/28

5-23


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

8/6/2019 In Chap 005

24/28

5-24


Mood, Emotion, and Negotiation

The distinction between mood and emotion is

based on three characteristics:

Specificity Intensity

Duration

8/6/2019 In Chap 005

25/28

5-25



Negotiations create both positive and negative

emotions

Positive emotions generally have positiveconsequences 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

8/6/2019 In Chap 005

26/28

5-26



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

8/6/2019 In Chap 005

27/28

5-27



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

8/6/2019 In Chap 005

28/28

5-28



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 as negotiationgambits

Documents

In Chap 005