Business Commons^™

Why Employees Accept Lower Pay At Mission-Oriented Companies, Insiya Hussain, Marko Pitesa, Stefan Thau, Michael Schaerer

Research Collection Lee Kong Chian School Of Business

Today’s companies are likely to tout how their work benefits human welfare or “makes the world a better place.” Recent research suggests that this may come with a potential financial drawback for workers, as it can inhibit them from negotiating for higher pay. Over five studies, job candidates consistently reported that they worried asking for higher pay from these companies would be seen as greedy or inappropriate. This suggests they are aware of a common bias, known as motivation purity bias, where managers believe employees interested in material rewards of work (such as pay) are less motivated than those motivated …

Pay Suppression In Social Impact Contexts: How Framing Work Around The Greater Good Inhibits Job Candidate Compensation Demands, Insiya Hussain, Marko Pitesa, Stefan Thau, Michael Schaerer

Research Collection Lee Kong Chian School Of Business

Past research suggests that when organizations communicate the benefits of their work for human welfare—that is, use a social impact framing for work—job candidates are willing to accept lower wages because they expect the work to be personally meaningful. We argue that this explanation overlooks a less socially desirable mechanism by which social impact framing leads to lower compensation demands: the perception among job candidates that requesting higher pay will breach organizational expectations to value work for its intrinsic (rather than extrinsic) rewards, or constitute a motivational norm violation. We find evidence for our theory across five studies: a qualitative …

Going Far Together By Being Here Now: Mindfulness Increases Cooperation In Negotiations, Theodore Charles Masters-Waage, Jared Nai, Jochen Reb, Samantha Sim, Jayanth Narayanan, Noriko Tan

Research Collection Lee Kong Chian School Of Business

Integrating theorizing across the mindfulness and negotiation literatures, we hypothesize that mindfulness increases cooperation in negotiations. We further propose that processes of self-transcendence, self-regulation, and self-awareness mediate this effect. We test these hypotheses in five studies across different forms of cooperation, in both distributive and integrative negotiation contexts, and for both measured and experimentally induced mindfulness. In Study 1a, individuals higher on measured state mindfulness displayed greater cooperative orientation measured as preference for pareto-optimal agreements. In Study 1b, experimentally induced mindfulness led to greater cooperative orientation measured as the recall of cooperative heuristics. In Study 2, a distributive (fixed-sum) negotiation, …

Power And Negotiation: Review Of Current Evidence And Future Directions, Michael Schaerer, Laurel Teo, Nikhil Madan, Roderick I. Swaab

Research Collection Lee Kong Chian School Of Business

This review synthesizes the impact of power on individual and joint negotiation performance. Although power generally has positive effects on negotiators’ individual performance (value claiming), recent work suggests that more power is not always beneficial. Taking a dyadic perspective, we also find mixed evidence for how power affects joint performance (value creation); some studies show that equal-power dyads create more value than unequal-power dyads, but others find the opposite. We identify the source of power, power distribution, and competitiveness as critical moderators of this relationship. Finally, we suggest that future research should move beyond studying alternatives in dyadic deal-making, identify …

Win-Win In Distributive Negotiations: The Economic And Relational Benefits Of Strategic Offer Framing, Michael Schaerer, Martin Schweinsberg, Nico Thornley, Roderick I. Swaab

Research Collection Lee Kong Chian School Of Business

In distributive negotiations, people often feel that they have to choose between maximizing their economic outcomes (claiming more value) or improving their relational outcomes (having a satisfied opponent). The present research proposes a conversational strategy that can help negotiators achieve both. Specifically, we show that using an offer framing strategy that shifts offer recipients’ attention to their reservation price (e.g., “How does my offer compare to your minimum price?”) leads to both (a) an assimilation effect whereby recipients make more favorable counteroffers (economic benefit) as well as (b) a contrast effect whereby recipients feel more satisfied with the negotiation (relational …

Financial Vulnerability And The Reproduction Of Disadvantage In Economic Exchanges, Tianyu He, Rellie Derfler-Rozin, Marko Pitesa

Research Collection Lee Kong Chian School Of Business

Integrative value generation through negotiated business deals is a fundamental way in which organizations and economic systems attain economic benefits. It is also an important way in which individuals can improve their financial situation. We propose that individuals most in need of improving their financial standing, those in a financially vulnerable situation, are least likely to reap the benefits of integrative value generation. We theorize that financial vulnerability induces a more zero-sum construal of success, or a view that success for one person must come at another person’s success. A more zero-sum construal of success, in turn, hampers negotiators’ ability …

Ch 16 Kulik Trainingchapter 2019-05-23 Final.Pdf, Carol T. Kulik, Mara Olekalns, Ruchi Sinha

Mara Olekalns

The Business Meeting: A Cross-Cultural Experiential Learning Activity, Arpita Joarder, Konrad Jamro, Ram Ravi

Organization Management Journal

This paper presents a simulation designed to help students learn about the challenges and necessary skills for conducting business in cross-cultural settings. The exercise involves assigning participants to two fictitious cultural groups, each with its own norms and expectations. Participants interact with members of the other culture in accordance with the instructions provided in order to negotiate successfully. This experiential learning activity allows students to reflect on their cross-cultural skills in a simulated business setting. An assessment of the exercise conducted in classroom setting indicated evidence of its effectiveness.

Gender, Emotional Displays And Negotiation Outcomes, Horacio Arruda Falcao Filho

Dissertations and Theses Collection (Open Access)

This paper examined whether positive and negative emotional displays influenced negotiation outcomes (value creation and claiming) differentially for female and male negotiators. Also considered was how negotiation dyad gender composition might affect value creation and claiming. I examined recordings from a negotiation exercise (N = 194). Results revealed that when females expressed negative emotions significantly reduced value claiming on the part of those female negotiators. However, the effects of expressing positive emotions on negotiation outcomes did not vary by negotiator gender. The findings suggest that female negotiators do not need to be positive but only need not be negative to …

Understanding Emotions In The Workplace: A Critical Examination Of The Role Of Emotions In Justice And Negotiation, Annika Hillebrandt

Theses and Dissertations (Comprehensive)

The central role of emotions in organizations, once underrecognized and underappreciated by organizational scholars, has attracted a great amount of research interest in recent years. Despite this important development, I argue that a number of critical questions have remained unaddressed, which limits our ability to predict the outcomes of emotions for individuals and organizations as well as describe employees’ subjective experiences at work. In this dissertation, I contribute to the understanding of the role of emotions in the workplace by identifying critical gaps in the emotions literature, integrating theories from different literatures to address these gaps, empirically comparing the interpersonal …

Imaginary Alternatives: The Impact Of Mental Simulation On Powerless Negotiators, Michael Schaerer, Martin Schweinsberg, Roderick I. Swaab

Research Collection Lee Kong Chian School Of Business

The present research demonstrates that negotiators can act powerfully without having power.Researchers and practitioners advise people to obtain strong alternatives prior to negotiating toenhance their power. However, alternatives are not always readily available, often forcingnegotiators to negotiate without much, or any, power. Building on research suggesting thatsubjective feelings of power and objective outcomes are disconnected and that mental simulationcan increase individuals’ aspirations, we hypothesized that the mental imagery of a strongalternative could provide similar psychological benefits to having an actual alternative. Ourstudies demonstrate that imagining strong alternatives causes individuals to negotiate moreambitiously and provides them with a distributive advantage: negotiators …

Power Dependence And Power Paradoxes In Bargaining, Samuel B. Bacharach, Edward J. Lawler

Edward J Lawler

[Excerpt] What this article (and our larger program of work) is designed to demonstrate is that these very simple ideas represent a particularly suitable starting point for understanding the power struggle between parties who regularly engage in negotiation. Specifically, in this article we show that the approach contains certain paradoxes regarding the acquisition and use of power in an ongoing bargaining relationship. The dependence framework treats the ongoing relationship as a power struggle in which each party tries to maneuver itself into a favorable power position.

“I Need That Week Off!”: An Experiential Exercise On Conflict And Negotiation, Melanie A. Robinson

Organization Management Journal

This article presents an experiential exercise designed to provide students with an opportunity to develop their knowledge of ways in which conflict may be managed (using the framework proposed by Thomas, 1976) and types of negotiation. Students form pairs and are presented with a scenario in which they have both requested the same week of vacation to attend events. Unfortunately, they are informed that they are unable to take the time off simultaneously. Participants are asked to discuss among themselves, using assigned modes of managing conflict, to determine how the time will be allocated. The target audience is composed of …

The Differential Identity Activation & Integration Mechanism (Diaim): A Model Linking Female Businesspersons’ Identity Integration And Identity Activation To Negotiation, Yi Wen Tan

Dissertations and Theses Collection

Women play an important role in business management (female businesspersons) but yet they face constraints in the workplace, such as in negotiations. As female businesspersons seem to be facing seemingly conflicting gender and business identities, the level of the integration between these identities, as captured by the construct gender-professional identity integration (G-PII), can be a critical factor that influences female businesspersons in negotiations. It is expected that the level of G-PII influences female businesspersons’ negotiation behaviors when their different identities (i.e., female identity, business identity or dual identities) are activated. Hence, a DIAIM model that depicts how female businesspersons with …

Building Negotiation Capital, Michael Benoliel

Asian Management Insights

Today, unlike the marketing or supply chain tasks, the negotiation task remains unstructured, sporadic, often improvised, and rarely analysed critically in the post-deal stage.

Organizational Conflict Navigation: Building A Comprehensive Conflict Management Course, Beth Polin

EKU Faculty and Staff Scholarship

Conflict situations are unfortunately a naturally occurring phenomenon in the workplace. Whether it is an employee not voicing concerns because of fear of retaliation, team members not trusting one another, or companies negotiating terms of an agreement, conflict situations are ubiquitous. Because no organization is immune to conflict, employees must enter the workplace equipped with the knowledge, skills, and abilities (KSAs) to appropriately navigate such situations. Companies recognize this need and call for graduates to possess this unique set of soft skills (e.g. Buhl, nd), as much efficiency can be lost when employees are focused on conflict and not its …

What Are The Determinants Of Interpersonal Trust In Dyadic Negotiations? Meta-Analytic Evidence And Implications For Future Research, Serena Changhong Lu, Dejun Tony Kong, Donald Lee Ferrin, Kurt T. Dirks

Research Collection Lee Kong Chian School Of Business

Given the practical importance of interpersonal trust in dyadic negotiations, scholars have increasingly turned their attention to the study of determinants of trust in negotiations. However, research in this area has not been well connected or integrated, which limits the ability of scholars and practitioners to ascertain the state of current scientific knowledge and identify questions for future research. Based on attribution theory and social exchange theory, we present a conceptual framework for understanding how a variety of factors combine to influence the development of interpersonal trust in dyadic negotiations. Then, to verify the conceptual framework, we identified and meta-analysed …

The Too-Much Precision Effect: When And Why Precise Anchors Backfire With Experts, David D. Loschelder, Malte Friese, Michael Schaerer, Adam D. Galinsky

Research Collection Lee Kong Chian School Of Business

Past research has suggested a fundamental principle of price precision: The more precise an opening price, the more it anchors counteroffers. The present research challenges this principle by demonstrating a too-much-precision effect. Five experiments (involving 1,320 experts and amateurs in real-estate, jewelry, car, and human-resources negotiations) showed that increasing the precision of an opening offer had positive linear effects for amateurs but inverted-U-shaped effects for experts. Anchor precision backfired because experts saw too much precision as reflecting a lack of competence. This negative effect held unless first movers gave rationales that boosted experts’ perception of their competence. Statistical mediation and …

Self-Esteem And Women’S Performance In Mixed-Gender Negotiations, Serena Changhong Lu, Elizabeth Layne Paddock, Jochen Reb

Research Collection Lee Kong Chian School Of Business

Past research shows gender stereotype threat effect negatively affects women's economic negotiation outcomes, but little is known about moderators of this effect. The present research investigated self-esteem (SE) level and social contingent self-esteem (SCSE) as potential buffers to the gender stereotype threat effect. Based on the contingencies of self-worth model (Crocker & Wolfe, 2001), we hypothesized that SE level interacts with SCSE to determine women's outcomes at the bargaining table such that high SE women with low SCSE do not confirm gender stereotypes and achieve higher performance in mixed-gender negotiations. Drawing on the integrated process model of stereotype threat effects …

Affect, Emotion And Emotion Regulation In The Workplace: Feelings And Attitudinal Restructuring, Michele Williams

Michele Williams

[Excerpt] Almost 40 years after publishing A Behavioral Theory of Labor Negotiations in 1965, the fields of negotiations and organizational behavior experienced an “affective revolution” (Barsade, Brief and Spataro 2003). Although Walton and McKersie could not have predicted the widespread academic and public interest in emotion and emotional intelligence, they foreshadowed this affect-laden direction in the section of their book on attitudinal structuring, which identified the dimension of friendliness-hostility as a critical aspect of the relationship between negotiating parties in the workplace and other settings.

Anchors Weigh More Than Power: Why Absolute Powerlessness Liberates Negotiators To Achieve Better Outcomes, Michael Schaerer, Roderick I. Swaab, Adam D. Galinsky

Research Collection Lee Kong Chian School Of Business

The current research shows that having no power can be better than having a little power. Negotiators prefer having some power (weak negotiation alternatives) to having no power (no alternatives). We challenge this belief that having any alternative is beneficial by demonstrating that weak alternatives create low anchors that reduce the value of first offers. In contrast, having no alternatives is liberating because there is no anchor to weigh down first offers. In our experiments, negotiators with no alternatives felt less powerful but made higher first offers and secured superior outcomes compared with negotiators who had weak alternatives. We established …

Hazards To Effective Due Diligence, Michael Benoliel

Research Collection Lee Kong Chian School Of Business

It is not surprising that many business deals fail to realize their expected future value because some deal makers fail to perform effective due diligence. Successful deal makers, however, know that due diligence is one of the most important tasks in successful deal making. Thus, they avoid the psychological and contextual traps that cause poor due diligence. In this article, I describe the hazards – the psychological biases and contextual factors – that might affect the due diligence task. These hazards include information availability bias; confirmation bias; overconfidence bias; time pressure; self-interested agents; deal fever; narrow focus; and complexity. Following …

Interpersonal Trust Within Negotiations: Meta-Analytic Evidence, Critical Contingencies, And Directions For Future Research, Dejun Tony Kong, Kurt T. Dirks, Donald L. Ferrin

Research Collection Lee Kong Chian School Of Business

Trust has long been recognized by scholars and practitioners alike as an important factor for negotiation success. However, there has been little effort to date to empirically review or theoretically synthesize the research on trust in the context of negotiations. We present a social exchange framework that describes the processes through which trust influences negotiation behaviors and outcomes. We identified three critical contingencies that modified the effects of trust on negotiation behaviors and outcomes. A meta-analysis on a sample of 38 independent studies provided considerable support for the model and also confirmed the importance of the three contingencies for understanding …

The Role Of Simmelian Friendship Ties On Retaliation Within Triads, Kenneth T. Goh, David Krackhardt, Laurie R. Weingart, Tat Koon Koh

Research Collection Lee Kong Chian School Of Business

We examine the effect of friendship in triads on retaliatory responses to unfair outcomes that originate from a group member. Drawing on Simmel's classic discussion of relationships in social triads versus dyads, we hypothesized that the effect of unfairness on retaliation between friends is stronger when the third party in the triad is a mutual friend, rather than a stranger. We also draw on social categorization theory to hypothesize that the effect of unfairness on retaliation between strangers is stronger when the third party is a friend of that stranger than when the triad consists of all strangers. Hypotheses were …

The Influence Of Mindful Attention On Value Claiming In Distributive Negotiations: Evidence From Four Laboratory Experiments, Jochen Reb, Jayanth Narayanan

Jochen Reb

We examined the effect of mindful attention on negotiation outcomes in distributive negotiations across four experiments. In Studies 1 and 2, participants who performed a short mindful attention exercise prior to the negotiation claimed a larger share of the bargaining zone than the control condition participants they negotiated with. Study 3 replicated this finding using a different manipulation of mindful attention. Study 4 again replicated this result and also found that mindful negotiators were more satisfied with both the outcome and the process of the negotiation. We discuss theoretical and practical implications, limitations, and future directions.

Does Consistency Pay? The Effects Of Information Sequence And Content On Women’S Negotiation Outcomes, Carol T. Kulik, Mara Olekalns, Emma T. Swain

Mara Olekalns

Women are usually perceived as warm or competent, but rarely both. This research investigates how the sequence and content of warmth-relevant relational information and competence-relevant performance information affects female negotiators’ social (perceptions of their warmth and competence) and economic outcomes. Female employers (but not male employers) rated a negotiating female employee as high warmth when they received relational information first and were able to discount the employee’s competence with a team-based relational attribution (E1) or when they received performance information first and were convinced the employee’s warm behavior was genuine (E2). The sequence and content of warmth-relevant and competence-relevant information …

Sweet Little Lies: Social Context And The Use Of Deception In Negotiation, Mara Olekalns, Carol T. Kulik, Lin Chew

Mara Olekalns

Social context shapes negotiators’ actions, including their willingness to act unethically. In this research, we test how three dimensions of social context – dyadic gender composition, negotiation strategy, and trust – interact to influence one micro-ethical decision, the use of deception, in a simulated negotiation. To create an opportunity for deception, we incorporated an indifference issue – an issue that had no value for one of the two parties – into the negotiation. Deception about this issue was least likely to be affected by trust or negotiation strategy in all-male dyads, suggesting that dyads with at least one female negotiator …

The Influence Of Mindful Attention On Value Claiming In Distributive Negotiations: Evidence From Four Laboratory Experiments, Jochen Reb, Jayanth Narayanan

Research Collection Lee Kong Chian School Of Business

We examined the effect of mindful attention on negotiation outcomes in distributive negotiations across four experiments. In Studies 1 and 2, participants who performed a short mindful attention exercise prior to the negotiation claimed a larger share of the bargaining zone than the control condition participants they negotiated with. Study 3 replicated this finding using a different manipulation of mindful attention. Study 4 again replicated this result and also found that mindful negotiators were more satisfied with both the outcome and the process of the negotiation. We discuss theoretical and practical implications, limitations, and future directions.

The Influence Of Past Negotiations On Negotiation Counterpart Preferences, Jochen Reb

Jochen Reb

Choosing the right counterpart can have a significant impact on negotiation success. Unfortunately, little research has studied such negotiation counterpart decisions. Three studies examined the influence of past negotiations on preferences to negotiate again with a counterpart. Study 1 found that the more favorable a past negotiated agreement the stronger the preference to negotiate with the counterpart in the future. Moreover, this relation was mediated through liking of the counterpart. Study 2 manipulated the difficulty of achieving a favorable agreement in the negotiation and found a significant effect of this situational factor such that subsequent counterpart preferences were less favorable …

Negotiating Successfully In Asia, Michael Benoliel

Research Collection Lee Kong Chian School Of Business

Cross-cultural negotiations are complex, challenging, and difficult to navigate because much of the Asian culture is unstated, implicit, and internalized in subtle behavioral patterns. It is like an iceberg; more is invisible and less is visible. To understand how the Asian negotiation values and practices are different from those in the West, I describe briefly the Asian cultural roots, highlight the major dimensions that differentiate cultures, explore the factors that influence the Asian negotiation processes and outcomes, and provide a list of practical suggestions for negotiating successful deals with Asian negotiators.