Showing posts with label Perception. Show all posts
Showing posts with label Perception. Show all posts

20190923

PERCEPTION, COGNITION, AND EMOTION IN NEGOTIATION OUTLINE



The basic building blocks of all social encounters are:
Perception
Cognition
   Framing
   Cognitive biases
Emotion

Perception defined:

The process by which individuals connect to their environment.
A complex physical and psychological process of "sense-making"
 Perception is the process of ascribing meaning to messages and events. 
It is strongly influenced by the perceiver's 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 the information
- People develop shortcuts to process information and these shortcuts can create perceptual errors
PERCEPTUAL DISTORTION
• Four major perceptual errors:
           Stereotyping
           Halo effects
           Selective perception
           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 one's own self-concept
           People assign to others the characteristics or feelings that they possess themselves

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

TYPES OF FRAMES
•Substantive
•Outcome
•Aspiration
•Process
•Identity
•Characterization
•Loss-Gain

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

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 the basis of who is stronger

THE FRAME OF AN ISSUE CHANGES AS THE NEGOTIATION EVOLVES
                                                                 
Negotiators tend to argue for stock issues or concerns that are raised every time the parties negotiate
                                                                   
Each party attempts to make the best possible case for his or her preferred position or perspective
                                                                   
Frames may define major shifts and transitions in a complex overall negotiation
                                                                   
Multiple agenda items operate to shape issue development

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

COGNITIVE BIASES
                                                                   
Irrational escalation of commitment
Mythical fixed-pie beliefs
Anchoring and adjustment
Issue framing and risk
Availability of information
The winner's curse
Overconfidence
The law of small numbers
Self-serving biases
Endowment effect
Ignoring others' cognitions
Reactive devaluation

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 constitutes irrational behavior

Mythical fixed-pie beliefs
    Negotiators assume that all negotiations (not just some) involve a fixed pie

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 about risk in decision making and negotiation

AVAILABILITY OF INFORMATION AND THE WINNER'S 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 winner's curse
   The tendency to settle quickly on an item and then subsequently feel discomfort about a win that comes too easily

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 is actually true
   The law of small numbers
   The tendency of people to draw conclusions from small sample sizes
   The smaller sample, the greater the possibility that past lessons will be erroneously used to infer what will happen in the future                                |

SELF-SERVING BIASES AND ENDOWMENT EFFECT

Self-serving biases
   People often explain another person's behavior by making attributions, either to the person or to the situation
   The tendency, known as fundamental attribution error, is to:
      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

IGNORING OTHERS' COGNITIONS AND REACTIVE DEVALUATION


Ignoring others' cognitions
     Negotiators don't bother to ask about the other party's perceptions and thoughts
     This leaves them to work with incomplete information, and thus produces faulty results
Reactive devaluation
     The process of devaluing the other party's concessions simply because the other party made them

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
MOOD, EMOTION, AND NEGOTIATION
     The distinction between mood and emotion is based on three characteristics:
          Specificity
          Intensity
          Duration
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
     They set the stage for successful subsequent negotiations

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

• Negative emotions generally have negative consequences for negotiations
     They may lead parties to define the situation as competitive or distributive
     They may undermine a negotiator's 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


Aspects of the negotiation process can lead to negative emotions
     Negative emotions may result from a competitive mind-set
     Negative emotions may result from an impasse
     Negative emotions may result from the prospect of beginning a negotiation

Effects of positive and negative emotion
     Positive emotions may generate negative outcomes
     Negative feelings may elicit beneficial outcomes

Emotions can be used strategically as negotiation gambits







20190922

Perception, Cognition, Emotion SS 18

PERCEPTION, COGNITION, AND EMOTION IN NEGOTIATION - En 6e C7 outline t

BASICS

What

 





DEFINITION







PERCEPTION PROCESS CHART
Perception
Stimulus
Attention Recognition
Transition
Behavior
















PERCEPTUAL DISTORTION




SELECTIVE PERCEPTION AND PROJECTION






FRAMING









TYPES OF FRAMES







HOW FRAMES WORK








INTERESTS, RIGHTS, AND POWER
















CHANGING
FRAMES













ADVICE ABOUT PROBLEM FRAMING










COGNITIVE BIASES





















IRRATIONAL ESCALATION OF COMMITMENT AND MYTHICAL FIXED-PIE BELIEFS






ANCHORING AND ADJUSTMENT AND ISSUE FRAMING AND RISK







AVAILABILITY OF INFORMATION AND THE WINNER'S CURSE


















OVERCONFIDENCE AND THE LAW OF SMALL NUMBERS












SELF-SERVING BIASES AND ENDOWMENT EFFECT








IGNORING OTHERS' COGNITIONS AND REACTIVE DEVALUATION













MANAGING MISPERCEPTIONS AND COGNITIVE BIASES IN NEGOTIATION




The basic building blocks of all social encounters are:
Perception
Cognition
   Framing
   Cognitive biases
Emotion

Perception defined:

The process by which individuals connect to                           their environment.

A complex physical and psychological processA "sense-making" process


Perception
The process of ascribing meaning to messages and events is strongly influenced by the perceiver's 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 the information
- People develop shortcuts to process information and these
shortcuts create perceptual errors

PERCEPTUAL DISTORTION
• Four major perceptual errors:
           Stereotyping
           Halo effects
           Selective perception
           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 one's own self-concept
           People assign to others the characteristics or feelings that they possess themselves

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

TYPES OF FRAMES
•Substantive
•Outcome
•Aspiration
•Process
•Identity
•Characterization
•Loss-Gain

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

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 the basis of who is stronger

THE FRAME OF AN ISSUE CHANGES AS THE NEGOTIATION EVOLVES
                                                                   
Negotiators tend to argue for stock issues or concerns that are raised every time the parties negotiate
                                                                   
Each party attempts to make the best possible case for his or her preferred position or perspective
                                                                   
Frames may define major shifts and transitions in a complex overall negotiation
                                                                   
Multiple agenda items operate to shape issue development

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

COGNITIVE BIASES
                                                                   
Irrational escalation of commitment
Mythical fixed-pie beliefs
Anchoring and adjustment
Issue framing and risk
Availability of information
The winner's curse
Overconfidence
The law of small numbers
Self-serving biases
Endowment effect
Ignoring others' cognitions
Reactive devaluation

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 constitutes irrational behavior

Mythical fixed-pie beliefs
    Negotiators assume that all negotiations (not just some) involve a fixed pie

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 about risk in decision making and negotiation

AVAILABILITY OF INFORMATION AND THE WINNER'S 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 winner's curse
   The tendency to settle quickly on an item and then subsequently feel discomfort about a win that comes too easily

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 is actually true
   The law of small numbers
   The tendency of people to draw conclusions from small sample sizes
   The smaller sample, the greater the possibility that past lessons will be erroneously used to infer what will happen in the future                                |

SELF-SERVING BIASES AND ENDOWMENT EFFECT

Self-serving biases
   People often explain another person's behavior by making attributions, either to the person or to the situation
   The tendency, known as fundamental attribution error, is to:
      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

IGNORING OTHERS' COGNITIONS AND REACTIVE DEVALUATION

Ignoring others' cognitions
     Negotiators don't bother to ask about the other party's perceptions and thoughts
     This leaves them to work with incomplete information, and thus produces faulty results
Reactive devaluation
     The process of devaluing the other party's concessions simply because the other party made them

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
MOOD, EMOTION, AND NEGOTIATION
     The distinction between mood and emotion is based on three characteristics:
          Specificity
          Intensity
          Duration
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
     They set the stage for successful subsequent negotiations

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

• Negative emotions generally have negative consequences for negotiations
     They may lead parties to define the situation as competitive or distributive
     They may undermine a negotiator's 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


Aspects of the negotiation process can lead to negative emotions
     Negative emotions may result from a competitive mind-set
     Negative emotions may result from an impasse
     Negative emotions may result from the prospect of beginning a negotiation

Effects of positive and negative emotion
     Positive emotions may generate negative outcomes
     Negative feelings may elicit beneficial outcomes

Emotions can be used strategically as    [
negotiation gambits
















20150618

Perception, Cognition and Emotion EN C5

Chapter 5: Perception, Cognition and Emotion

Perception is the process by which individuals connect to their environment. In layman’s terms, it is a sense-making process where people interpret their environment so to respond appropriately. As perception depends on the perceiver’s current state of mind, role and comprehension, here could always be errors in the interpretation and subsequent communication. Some forms of such distortions are as follows;
I. Types of Perceptual Distortions
–          Stereotyping
  • Assign attributes to one solely on the basis of the membership to a particular large group or category (social, racial, religious or sexual orientations).
  • Eg: He is an Italian so he must know so much about Rome.
  • Very common, highly resistant to change once formed
–          Halo effect
  • Generalize many attributes based on the knowledge of one attribute of the individuals without any consistent relationship between them
  • Positive effect à good attribute, negative effect à bad attribute
  • Reasons for occurrence
    • Very little experience with the other party
    • When the person is well known
    • When the qualities have strong moral implications
    • Eg: He is smiling so he must be telling the truth!
–          selective perception
  • Singles out certain information that supports a prior belief and filters out information that does confirm the belief.
–          Projection
  • Assign to others the characteristics or feelings that they possess themselves.
  • Eg: I feel upset to postpone things, so he also will probably get frustrated if I tell him to delay our meeting.
Framing
Frame is the subjective mechanism through which people evaluate and make sense out of situations based on their own experiences, leading them to pursue or avoid subsequent actions.
Type of Frames Used in Disputes
Substantive
  • Disposition about key issue and concern in the conflict
  • Neglects how parties will resolve the dispute
Outcome
  • Predisposition to achieving a specific result or outcome from the negotiation
  • Primarily used by distributive negotiators
Aspiration
  • Predisposition to a broader set of interests, needs and concern other than a specific outcome.
  • Primarily used by integrative negotiators
Process
  • Procedure on how parties will resolve their dispute.
  • Does not care much about specific key issues and concern in the conflict
Identity
  • Definition of oneself, based on membership of a number of different social groups such as gender, religion, ethnic origin, etc
  • Used to differentiate themselves from others and tend to be positive
Characterization
  • One’s definition of the other parties, shaped by prior or early experience and knowledge about others.
  • Tend to be negative in conflicts
Loss/ Gain
  • Definition of risk and reward associated with different outcomes
  • Can frame the outcome as loss or reward based on risk preference of other parties
  • For instance, a car buyer can view the transaction as a monetary cost of the purchase (loss) or the value (gain) of the item.
How frames work in Negotiation
  • Negotiators can use more than one frame
  • Mismatches in frames between parties are sources of conflict
  • Different types of frames or content from the two parties can cause misunderstanding and conflict escalation
  • Can reframe the conflict into the frame that is more compatible for both parties3. Particular types of frames may lead to particular types of agreements
    1. Aspiration frames lead to integrative agreement
    2. Outcome or negative frames can lead to distributive agreement
  • Specific frames may be likely to be used with certain types of issues
    1. People discussing salary may be likely to use outcome frame.
    2. People discussing relationship may be likely to use characterization frame
  • Parties are likely to assume a particular frame because of various factors
    1. Differences in personality
    2. Value differences
    3. Power differences
    4. Differences in background
    5. Social context
Different approach on how frames work in negotiation
  1. Interests
    1. Frame the conflicts based on interest, not on their positions and demands
  2. Rights
    1. Use some standards and rules to decide who has legitimacy, who is correct and fair in resolving the problem
  3. Power
    1. Create win-lose situation
    2. Resolve the conflict based on power – ability  to coerce the other by imposing other types of forces – economic pressures, expertise, legitimate authority, etc
II. Cognitive Biases in Negotiation
  • Irrational Escalation of Commitment – stick with a failing course of action
    • Eg: a country continues to pour resources into an unwinnable war because the conflict has already happened.
  • Mythical Fixed-Pie Beliefs – assume that all negotiations are win-lose
  • Anchoring and Adjustment – effect of standard against which subsequent adjustments are made during negotiation
  • Issue Framing and Risk – more risk averse when a decision problem is framed as gain, and risk seeking when framed as a loss
  • Availability of Information- depends on how easily information can be recalled and used
  • The Winner’s curse – tendency to settle quickly and subsequently feel discomfort about a win that comes easily
    • Eg: the other party gives in too easily, so there might be something wrong with the outcome or I could have done better.
  • Overconfidence – tendency to believe their ability to be correct or accurate is greater than for real.
  • The Law of Small Numbers- tendency to draw conclusions from small sizes
    • Eg: assuming all negotiations as distributive based on a number of past negotiations or prior experiences
  • Self-Serving Biases- explain behaviors by making attributions to the person or situation
    • Eg: If I mess up, it’s bad luck. If you mess up, it’s your fault!
  • Endowment Effect – tendency to overvalue something you posess
  • Eg: One is likely to pay $3 for a mug if he is to buy from others, but values $7 on the same mug he owns.
  • Ignoring Others’ Cognitions – ignoring the other party’s perceptions and thoughts hence working with incomplete information
  • Reactive Devaluation- devaluing the other party’s concessions simply because the other party made them
Managing Misperceptions and Cognitive Biases in Negotiation
  • Be aware that misperceptions and cognitive biases can occur as negotiators gather and process information and discuss them in a structured manner within their team and with their counterparts
  • Careful discussion of the issues and preference can reduce the effects of perceptual biases
III. Mood, Emotion and Negotiation
  • Mood and emotion are different in specificity (emotion is directed at more specific targets), intensity (mood is less intense) and duration (mood is more enduring)
  • Negotiations create both positive (happiness)and negative (dejection-related, agitation-related) emotions
  • Positive emotions generally have positive consequences for negotiations (lead parties to integrative process)
  • Negative emotions generally have negative consequences for negotiations (lead parties to competitive or distributive process or escalate conflicts)
  • Emotions can be used strategically as negotiation gambits
  • The effect of positive and negative emotion in negotiation
1)      Positive feelings may have negative consequences
  • More susceptible to a competitive opponent’s deceptive tactics
  • Less focus on arguments of other party, leading to less-than-optimal outcomes
  • Create strong positive expectations, experiencing the defeat more strongly and treating other more harshly if an satisfying integrative agreement is not found
2)    Negative feelings may create positive outcomes
  • Negative emotion has information value
  • Motivate people to either leave the situation or resolve the problem
  • Alerting other party of a problem in relationship, leading both to work on fixing the problem


from