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 …

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 …

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 …

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.

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 …

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.

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.

A Moral Contractual Approach To Labor Law Reform: A Template For Using Ethical Principles To Regulate Behavior Where Law Failed To Do So Effectively, Zev J. Eigen, David S. Sherwyn

Faculty Working Papers

If laws cease to work as they should or as intended, legislators and scholars propose new laws to replace or amend them. This paper posits an alternative—offering regulated parties the opportunity to contractually bind themselves to behave ethically. The perfect test-case for this proposal is labor law, because (1) labor law has not been amended for decades, (2) proposals to amend it have failed for political reasons, and are focused on union election win rates, and less on the election process itself, (3) it is an area of law already statutorily regulating parties' reciprocal contractual obligations, and (4) moral means …

Anticipating Happiness In A Future Negotiation: Anticipated Happiness, Propensity To Initiate A Negotiation, And Individual Outcomes, Dejun Tony Kong, Ece Tuncel, Judi Mclean Parks

Jepson School of Leadership Studies articles, book chapters and other publications

We examined the role of anticipated happiness in negotiation settings. Anticipated happiness is the happiness that individuals expect to experience in the future if certain events do or do not occur. In two studies, we tested the argument that anticipated happiness initiates an approach goal, leading individuals to promote economic interests. Study 1 revealed that anticipated happiness was positively related to the propensity to initiate a negotiation, mediated by an approach goal. In Study 2, we found that anticipated happiness about reaching the target value increased the individual negotiation outcome, mediated by actual target value. Our studies provide insight into …

Reading Your Counterpart: The Benefit Of Emotion Recognition Accuracy For Effectiveness In Negotiation, Hillary Anger Elferbein, Maw Der Foo, Judith White, Hwee Hoon Tan, Voon Chuan Aik

Research Collection Lee Kong Chian School Of Business

Using meta-analysis, we find a consistent positive correlation between emotion recognition accuracy (ERA) and goal-oriented performance. However, this existing research relies primarily on subjective perceptions of performance. The current study tested the impact of ERA on objective performance in a mixed-motive buyer-seller negotiation exercise. Greater recognition of posed facial expressions predicted better objective outcomes for participants from Singapore playing the role of seller, both in terms of creating value and claiming a greater share for themselves. The present study is distinct from past research on the effects of individual differences on negotiation outcomes in that it uses a performance-based test …

A Winning Solution For Youtube And Utube? Corresponding Trademarks And Domain Name Sharing, Jacqueline D. Lipton

Articles

In June of 2007, the United States District Court for the Northern District of Ohio ruled on a motion to dismiss various claims against the Youtube video-sharing service. The claimant was Universal Tube and Rollform Equipment Corp ("Universal"), a manufacturer of pipes and tubing products. Since 1996, Universal has used the domain name utube.com - phonetically the same as Youtube's domain name, youtube.com. Youtube.com was registered in 2005 and gained almost-immediate popularity as a video-sharing website. As a result, Universal experienced excessive web traffic by Internet users looking for youtube.com and mistakenly typing utube.com into their web browsers. Universal's servers …

Agenda: Natural Resource Development In Indian Country, University Of Colorado Boulder. Natural Resources Law Center

Natural Resource Development in Indian Country (Summer Conference, June 8-10)

Conference organizers and/or faculty included University of Colorado School of Law professors David H. Getches, Charles F. Wilkinson, Lawrence J. MacDonnell and Richard B. Collins.

Indian reservations constitute about 2.5% of all land in the country and 5% of all land in the American West. During the last two decades, Indian natural resources issues have moved to the forefront as tribal governments have dramatically expanded their regulatory programs, judicial systems. and resource development activities. This major symposium will address current developments and assess likely future directions in the areas of tribal, federal, and state regulation; tribal-state intergovernmental agreements; financing; mineral …