Media Effects on the Formation of Negotiator Satisfaction: The Example of Face-to-Face and Text Based Electronically Mediated Negotiations

Recently, scholars have highlighted the importance of subjective negotiation outcomes such as negotiator satisfaction for future negotiations and the relationship between negotiators. This study considers the major antecedents of satisfaction formation in negotiation and analyses how the communication medium, i.e. the face-to-face (FTF) and the text based electronically mediated (TBEM) mode, influence satisfaction formation. Drawing on grounding in communication (Clark and Brennan in Perspectives on socially shared cognition. American Psychological Asociation, Washington DC, pp 127–149, 1991), hypotheses are developed and tested in an experimental gaming simulation in which graduate students negotiated in n = 52 dyads. The empirical analysis supports the notion that the communication medium has a mediated and a moderating effect on negotiator satisfaction. Aspirations, individual profit and positive relational messages mediate the medium’s effect on satisfaction. Furthermore, the impact of contentious behaviour and positive relational messages on negotiator satisfaction is stronger in TBEM than in FTF negotiations. This study also contributes to the wider negotiation literature by employing a context-rich gaming simulation for experimental purposes.     

An empirical study of an interactive,session-oriented computerized Negotiation Support System (NSS)

Negotiating is one of the four major decisional roles played by managers. In fact, resolving conflict is said to occupy 20% of a manager's working hours. This growing frequency of negotiation scenarios coupled with the increasing complexity of the issues which need to be resolved in a negotiation make the possibility of computer enhancement for negotiation very appealing. Implementations of computerized Negotiation Support Systems (NSS) in the business world, international affairs, labor law, and environmental and safety disputes have demonstrated their potential for making negotiation problems more manageable and comprehensible for negotiators. Still, pioneers in NSS research have expressed their dismay at the lack of rigorous empirical research and evaluation of NSS. In particular, research is needed which will determine how and under what circumstances negotiation processes can be enhanced by NSS support.This article describes empirical research on the effects of a highly structured, interactive NSS on the outcome of face-to-face issues resolution and the attitudes of negotiators in both low- and high-conflict situations. In a laboratory experiment, bargaining dyads played the roles of manufacturers negotiating a four-issue, three-year purchase agreement for an engine subcomponent in conditions of high and low conflict of interest. The results of the study showed that NSS support did help bargainers achieve higher joint outcomes and more balanced contracts, but that the NSS support increased negotiation time. Satisfaction was greater for NSS dyads in both conflict levels, and perceived negative climate was reduced in low conflict.One primary implication of the results of this study is that NSS developers should keep in mind the importance of providing users with a system with interactive qualities which not only enhance the decision-making process but also provide them with a sense of participation in reaching the solution, as was done in this study.     

Negotiation protocol based on ordered weighted averaging and Fuzzy metrics

ABSTRACT

Negotiation Support Systems are used to exchange offers and to improve the negotiation process. Some methods are based on perspectives like heuristics in order to bring the negotiation protocol gradually closer to reality. These approaches can be important in real negotiation as they can help to improve skillsespecially in distributive bargaining. This paper proposes a Negotiation Support framework to provide the negotiator with recommendations on making decisions in a negotiation process. To input this idea into negotiation protocols, this paper suggests that some concepts based on OWA (Ordered Weighted Averaging) and some of its metrics (Orness, Dispersion) be included in the heuristics of a structured negotiation schedule. It is expected that the support provided will aid the negotiator to make decisions during the negotiation process, to learn from the elicitation and his own behavior the results obtained can help the negotiator improving his skills in the negotiation process.     

Data-based negotiator allocation management

Negotiation abilities are difficult to assess, and negotiation outcomes are difficult to predict. This leads to possible deficiencies in resource allocation for negotiation tasks. In this article, we discuss the merits of a data-based approach for the allocation of negotiators to negotiation tasks. We provide a framework for negotiation allocation management that includes a method for assessing negotiator strength. The negotiator strength measure compares observable negotiation outcomes relative to similar outcomes in similar situations. We provide examples for using our framework and show evidence for its appeal when using industry data. We discuss implications for managers and provide key takeaways.     

Lying and Smiling: Informational and Emotional Deception in Negotiation

This study investigated attitudes toward the use of deception in negotiation, with particular attention to the distinction between deception regarding the informational elements of the interaction (e.g., lying about or misrepresenting needs or preferences) and deception about emotional elements (e.g., misrepresenting one’s emotional state). We examined how individuals judge the relative ethical appropriateness of these alternative forms of deception, and how these judgments relate to negotiator performance and long-run reputation. Individuals viewed emotionally misleading tactics as more ethically appropriate to use in negotiation than informational deception. Approval of deception predicted negotiator performance in a negotiation simulation and also general reputation as a negotiator, but the nature of these relationships depended on the kind of deception involved.     

The Relationship of Cognitive Effort,Information Acquisition Preferences and Risk to Simulated Auditor–Client Negotiation Outcomes

The auditor–client relationship is a legally-mandated relationship in which one party, the auditor, is hired and paid by the auditee (client) to inform third party stakeholders as to whether the client firm’s financial statements are presented in conformity with national financial accounting standards. When these statements do not meet the criteria for acceptable financial statements, a negotiation situation may arise in which the auditor is presumed to act in the best interests of shareholders and creditors who have no independent knowledge of the auditor’s findings. The client management may then feel forced to defend its numbers. The result is a negotiation between the auditor and client (e.g., Salterio in Account Financ 52:233–286, 2012; Brown and Wright in Account Horiz 22(1):91–109, 2008). This study examines cognitive factors and risk preference factors that may impact the negotiation both in the setting of each side’s negotiation position and on the outcomes of that negotiation using simulated auditor–client negotiations. Questionnaire and simulated auditor–client negotiations were used to generate the data, with MBA and MS in Accounting students playing the role of client CEOs and auditor partners. We further explore the use of a tool, Structural Equation Modeling, to test the data, in the process highlighting its usefulness in auditor–client negotiation research. We find that the cognitive characteristic of need for cognition is significantly and positively related to achievement of the negotiator’s desired income objectives and reported willingness to argue strongly for his/her position. Actively open-minded thinking, a second cognitive variable studied, was not significantly related to success in the negotiations, nor to a reported willingness to argue strongly for his/her position. Finally, we find that perceived aggressive tactics by the other party to the negotiation had a negative impact on the counterpart negotiator’s success in the negotiation, and satisfaction with it. As expected, risk assessment-related variables were not related to outcomes of interest.     

Labor-management contract negotiations in an electronic meeting room: A case study

We present perhaps the first case study of labor-management contract talks conducted in an electronic meeting room supported by a computer Negotiation Support System (NSS). The organization's union and management representatives spent a total of 57 hours (13 sessions) in the electronic meeting room; their efforts resulted successfully in a contract ratified by both sides. The NSS described comprised three tools from theGroup Systems electronic meeting system and three ad hoc tools. Besides the NSS, three other intervention factors were introduced in tandem with the NSS: new negotiation process techniques, the active involvement of third party mediators, and a unique negotiation setting. The new process techniques were introduced based on the goals of integrative bargaining and the Win-Win techniques. The negotiation process was divided into three distinct stages: strategy, issues, and bargaining.     

Batten down the anchors: Responding to another negotiator’s first offer

Drawing from a wealth of negotiation research, my previous installment of Negotiating Life advised negotiators to make the first offer if they can. But sometimes they can’t. Sometimes, despite a negotiator’s best efforts, the other side moves first. In this article, I provide a framework for responding to another negotiator’s first offer, suggesting that the appropriate response varies markedly depending on the quality of the offer. This provides a more comprehensive strategy for making and managing early offers in a negotiation.     

Computer-Aided Tools in Negotiation: Negotiable Issues,Counterfactual Thinking,and Satisfaction

Negotiations research has identified both economic and social-psychological outcomes are important for negotiations. Despite the economic advantages of having multiple issues to negotiate, inconsistencies exist between objective economic outcomes and negotiator satisfaction. Although having more negotiable issues yields better objective payoffs, it can result in more thoughts about different possible outcomes. Such counterfactual thoughts about different outcomes can reduce overall satisfaction due to increased cognitive complexity and thoughts about different outcomes. In this study, we explore how information technology can influence negotiator satisfaction and better manage counterfactual thoughts and post-negotiation satisfaction. Results support the prediction that having a computer aid to better manage cognitively complex issues, even a relatively simple one, reduces participants’ counterfactual thoughts about better possible outcomes. As a result, the use of some type of technology—even a simple technology such as a spreadsheet—may improve overall negotiator satisfaction, while maintaining desirable economic outcomes.     

Two-Party Negotiation Modeling: An Integrated Fuzzy Logic Approach

Game theoretic models attempted to predict unique equilibrium outcomes of negotiations with limited success. The imprecise character of negotiation is often altered to fit the game theorist's exacting approach. Alternative models deviated from the formal game theoretic approach and attempted to accommodate concepts such as negotiator power and time pressure. In this paper, we introduce a model which uses a fuzzy logic approach to deal with the imprecision in the negotiation process and to integrate several negotiation theories. The new model is used to simulate multiple-issue, two-party negotiations and results are consistent with established negotiation theories.     

Negotiator affect: the state of the art (and the science)

Negotiation, once regarded by researchers as essentially a cognitive process through which parties with non-identical preferences allocate resources through joint decision making, is now understood to have a significant affective component. I discuss in this essay the evolution of research exploring the role of affect in negotiation, consider the interplay of affect and cognition that underlies the papers in this issue, and comment on methodological developments and challenges in the study of negotiator affect. Attention to the role of affect is no longer a peripheral pursuit in negotiation research, but it does remain an elusive one.     

Clinical Assessment Methods in Negotiation Research: The Study of Narcissism and Negotiator Effectiveness

Field studies suggest that individual differences are strong determinants negotiator effectiveness, but their impact has yet to be adequately documented (Thompson 1990). We argue that the lack of empirical confirmation is attributable to methodological limitations of the dominant paradigm. This paper shows the usefulness of psychodynamically-oriented constructs and clinical assessment methods. The study contrasts the negotiation experience of individuals high and low in narcissistic functioning, a core psychodynamic variable, and the deep-seated character trait that underlies the interpersonal orientation construct. Implications of this approach for the design of personality assessment and negotiation research are explored.     

The Hidden Persuader: The Role of the Advisor in Negotiations and Group Decision Making—Perspectives from the European Union

Theoretical models of negotiation and group decision making often overlook or at least do not fully account for the important role played by persons who advise negotiators and participants in group decision making. Sight unseen, advisors are often “hidden persuaders,” important but unrecognized sources of influence on the negotiation dynamic. This article explores the roles and methods of advisors in the negotiation process, drawing on survey research conducted in 2013 among approximately seventy advisors at the European Union Council of Ministers. Defining advice as “\(\ldots \)a communication from one person (the advisor) to another (the client) for the purpose of helping that second person determine a course of action for solving a particular problem\(\ldots \)”, the author considers the nature of advice and the range of relationships that may exist between advisors and their clients. He argues that advising is much more than the mere transmittal of information from advisor to negotiator and that for advice to be effective a relationship must exist between the two parties. The author identifies three models of the advisor–negotiator relationship. Model I is the advisor as director, wherein the advisor tends to take control of the negotiating process, directing the negotiator in actions that the negotiator should take to achieve success at the negotiation. Model II is the advisor as servant in which the advisor merely responds to the demands of the client for help and guidance in the negotiation. Model III is the advisor as partner, wherein advisor and negotiator jointly manage the advising process and together take co-ownership of the problem to be solved. The author then explores the factors that lead advisors and negotiators to adopt each of these three models, the various advising styles that advisors adopt, and the differing effects on the negotiation process that these elements may have, drawing on historical examples as well as survey data from the EU Council of Ministers. He concludes by offering advice about advising to three important professional groups—scholars, negotiators, and advisors—on ways to carry out their respective functions more effectively.     

Culture and negotiation

Negotiation has three elements: predisposing factors, process, and outcomes. Process is the art and outcomes is the science of negotiation. Culture adds a new consideration that affects each element. Culture's effects on negotiation are studied using Geert Hofstede's dimensional model of culture. The negotiation process and Hofstede's culture model are combined in four settings. The settings are defined by two factors, if the negotiation is within or between cultures and the role of the participant as a negotiator or intervener. The predicted effects of culture on the process and outcome are detailed for each setting. Then the outcomes of the negotiation decision are discussed in terms of Hofstede's model, especially “Uncertainty Avoidance” and “Masculinity-Femininity” dimensions. Culture clearly influences each aspect of negotiation. Understanding culture can make the participants more effective negotiators and interveners.     

Discrepant Values and Measures of Negotiator Performance

The thesis of the paper is that measuring negotiator performance correctly is difficult because the values that those of us who measure negotiator performance think negotiators are maximizing may differ from the values negotiators are actually maximizing. When such discrepant values exist, using performance measures that do not account for them can lead easily to incorrect conclusions about negotiator performance. Indeed, good performance may be judged poor, and vice-versa. This paper explores several related literatures, including the experimental-bargaining, behavioral-decision-making, and procedural-justice literatures, to demonstrate that discrepant values exist. It then demonstrates that whenever performance measures are used as dependent variables in negotiation experiments, the existence of discrepant values can lead to both Type I and Type II construct-validity errors.     

Negotiation beliefs: Comparing Americans and the Chinese

We address the micro foundations of international business research by examining negotiation beliefs as a parsimonious guide for international business negotiators. We conceptualise the construct of ‘negotiation beliefs’ as a negotiator’s cognition about the nature of negotiation and effective negotiation strategies. We integrate the negotiation literature and empirically investigate the differences and similarities in the negotiation beliefs of Americans and the Chinese. Across two studies, we conduct a conceptual analysis of negotiation beliefs and develop measures for the culturally similar and culturally different factors of the negotiation beliefs of Chinese and American negotiators. We find that negotiation beliefs can predict negotiation outcomes. Our findings indicate that Americans and the Chinese share negotiation beliefs about cooperation and competition. They also understand negotiation using culturally different factors, namely hierarchy and relationship for the Chinese and economic interest and confrontation for the Americans. We further discuss the theoretical and practical implications for international negotiations, particularly regarding disputes between the US and China.     

“Let's make a deal:” Price outcomes and the interaction of customer persuasion knowledge and salesperson negotiation strategies

In response to increased consumer empowerment and frugality, many business-to-consumer (B2C) firms now negotiate “deals” with customers. Understanding how buyer and seller inputs affect negotiation outcomes is important because successful completion, or a closed sale, results in perceived value (based on the negotiated price) for both the customer and the seller. We suggest negotiation is influenced by the persuasion knowledge of the customer and the negotiation strategies used by the salesperson to manage conflicts that arise during the process. Using unique dyadic data from the automotive industry that combines multisource (salesperson and customer) survey data with objective purchase price information, we find that price outcomes and customer satisfaction depend on the different interactions of customer persuasion knowledge and salesperson negotiation strategies. The results suggest that perceived value may be generated for both the selling firm and the customer based on these unique inputs.     

The Influence of Past Negotiations on Negotiation Counterpart Preferences

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 when the negotiation was difficult. Similar to Study 1, this effect was mediated through liking of the counterpart. Study 3 examined the possibility of debiasing negotiator preferences from the biasing influence of situational characteristics by providing relevant information about the negotiation situation. Replicating the results of Study 2, negotiation difficulty affected counterpart preferences before additional information was given or when irrelevant information was given. However, once negotiators received relevant information on the negotiation situation, the effect of negotiation difficulty disappeared. Theoretical and practical implications are discussed.     

The Effects of Multimedia Communication on Web-Based Negotiation

With the rapid growth of electronic commerce, there is growing demand forremote online negotiations. Although the Internet now enables audio and video communication, most Web-based negotiation systems are still text-based. There is, however, a lack of research on the effects of multimedia on remote negotiations. In this paper, we present a theoretical model to investigate the impacts of multimedia communication in an online negotiation setting. The constructs in our model include communication efficiency, communication effectiveness, and positive and negative social-emotional communication. Through a simulated house purchasing negotiation experiment, we study how different multimedia combinations (text only; text with audio; text with audio and video) affect our constructs and thus further influence negotiation results. Our results showed that both text with audio and text with audio and video communication were significantly preferred to text alone. However, the addition of video to text and audio communication in a negotiation environment was not found to be beneficial. It did not significantly improve communication efficiency, effectiveness or positive social-emotional communication, but distracted negotiators from focusing on the negotiation task. Our analysis also revealed that the communication efficiency construct did not correlate with the perceived success of the negotiation solution; however communication effectiveness and social-emotional communication did correlate with negotiation satisfaction.