Saturday, June 29, 2013

A632.4.5.RB_MedinaM.


After reading Chapter 11 of the Wharton text, I realized that there are many subjects of information on a negotiation that negotiators tend to lie or misrepresent during the negotiation. The difference between lies and misrepresentation depend on the outcome or purpose for which the information was withheld. Telling lies by omission means that negotiators will not reveal information to the opposite party during a negotiation, while telling lies by commission is the act of actively misrepresenting information to the negotiating party (Hoch, Kunreuther & Gunther, 2001). There are 4 classified types of information that can be misrepresented during a negotiation: reservation prices, interest, intentions, and material facts.

            A reservation price is another term for “bottom line” of a company. Basically, negotiators of a company misrepresent the information of the actual “bottom line” of the company in order to make the decision more lucrative or appealing to the opposite negotiating party. Interest is referred to as the misrepresentation of the seller or buyer’s true interests. During negotiating efforts offers are made and more often than not one of the party’s involved will misrepresent their true interests in order to make the sale or make the sale happen quicker. An intention in this case is referred to as having a hidden agenda, where one of the involved parties has other intentions with the gain of the sale or result of the negotiation. If the other party has an idea of the negotiating party’s hidden agenda, they can call their bluff and force them to act appropriately. The last classified type of information is the most serious of all misrepresentations, material facts. These types of lies or misrepresentation of information on material facts actually constitute to a level of fraud during the negotiation. Typically, the events of the negotiation and the “knowing of misrepresentation of material facts” help determine the gravity in which fraud was conducted and authorities tend to get involved as well to determine the outcome of the situation.

            Authors Hoch, Kunreuther & Gunther provide various alternatives and/or tips for: the preparation of a negotiation, what to look for during the negotiation, and what to do after the negotiation. During the negotiation it is important for the negotiator to ask direct questions to the opposite negotiating party. By asking direct questions the negotiator ensures that the opposite negotiating party is not lying or misrepresenting the information in order to win on the negotiation. A second important tactic for the negotiator is to listen carefully to the person making the negotiation. It is important to pay attention to what is being said and what is not being said on the negotiating table. Negotiators who feel like they may get caught misrepresenting information will begin choosing their words more carefully and begin to leave certain details out of the negotiating table in order to keep their advantage.

            The third most important tip used for during the negotiation is to pay attention to nonverbal cues. Humans communicate more clearly and more often in nonverbal cues. Paying attention to these cues will reveal to the negotiator if the opposite negotiating party is anxious, nervous, lying, or misrepresenting information. In my opinion, certain individuals tend to talk on a higher pitch when lying or when feeling caught sort of speak. These and more are the types of cues to pay attention for in order to figure out if you are being deceived during a negotiation. The last important tip is to keep records and get things in writing. During the negotiation, it’s important to keep written records of the demands, accusations, claims, results of what is being negotiated. Written records will help avoid any misunderstandings during the negotiation and each party will have a clear idea which item or product is being negotiated on.

            During a recent small negotiation between one of the coworkers and me, I was asked by the coworker to stay until her regular end shift time as she would be leaving during my regular shift end time in order to go to the doctors. I was mislead by this coworker as later that night I found through Facebook that this coworker had left work early to go to the casino.

            An example of an event in which I overstated a claim, would be when negotiating with my supervisor on who should be working the late shift whenever an employee from the night shift calls out. Typically, before my position, I was always involuntarily made to stay the extra shift in order to help cover the empty position. Now with my position, I do volunteer from time to time to stay behind for an extra shift. But, when others do not volunteer my supervisor automatically tries to count me in to fill the position. At this time, I begin to overstate the many times that I have helped her by staying behind for an extra shift even though I had school early the next day or assignments due that same night. Reflecting back on the times that I have overstated my claim, I realize that I have only gone as far as misrepresenting certain doctor appointment information in order to only stay my regular shift. In other words, in certain occasions my doctor appointments were not until 5pm, I would tell my supervisor my appointment time was 4pm so I was only be able to stay an extra 30 minutes after my shift. Even though I misrepresented or lied of commission, on this type of information it allowed me more time for me to finish or start part of my assignments before leaving for the doctors.

Source:

Hoch, S. J., Kunreuther, H., & Gunther, R. E. (2001). Deception in Negotiations.
            Wharton on Making Decisions (pp. 188 – 197). New York: Wiley.

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