The Impact of Social Status on Negotiations

33 %
67 %
Information about The Impact of Social Status on Negotiations
Business

Published on May 4, 2014

Author: spconsultingfirm

Source: slideshare.net

Description

Have you ever been in a negotiation where the other party's reasoning was not economically rational? This white paper aims to take your negotiating skills to the next level by focusing on unspoken social motivations.

THE IMPACT OF SOCIAL STATUS ON NEGOTIATIONS DEBRA SCOTT, JD, MPH Presented before SWAG on May 3, 2014 A key element important to success during negotiations is an understanding of the interplay between social status, emotions and our cognitive perceptions of the two. There is an abundance of research relating to the role of emotion and social status within the negotiation process. This research moves beyond traditional negotiating techniques where the focus is on moving persons closer to joint acceptance through the art of persuasion, use of information and the understanding of perceived economic interests. If you want to improve your ability to negotiate, it is also important to acknowledge and confront the social motivations of those involved in the process. Social motivation is a powerful influence, which emanates from our quest for social reward and favorable treatment. (Heffetz and Frank) Our social status, in essence, is a non-monetary currency that provides a subjective utility. (Heffetz and Frank) We do not create our own status. Status is given to us based upon the esteem in which one is held within society. (Anderson, John and Keltner) It is believed that our general concern regarding status is narrowly construed to those we constantly interact with such as our friends, co-workers, present and former classmates and relatives. In fact, research has found that our desire to maintain or enlarge social ranking immediately impacts how we interact with others, including how we conduct negotiations. (Curhan, Elfenbein and Xu) Negotiations can become tinted by the desire to achieve intangible social recognition. For instance, Corinne Bendersky and Nicholas Hays in their research on status conflicts provide the following example: “ If I disagree with a teammate’s opinion regarding a way to approach our task and offer an alternative idea supported by new information, that is a task conflict that could benefit the group’s

2 | P a g e performance. If, however, I disagree with a teammate’s opinion regarding our group’s task based on my having more credible or legitimate expertise than does my teammate, that is a challenge to my teammate’s status, which may induce a defensive response and hurt our group’s performance.” (Bendersky and Hays) This example, albeit argued in the context of workplace conflict, applies broadly to social interactions where outcome is measured by each party’s ability to agree on certain terms. In this example, the later rationale for rejection of the teammate’s position was not based on better information, but on a desire to enlarge ranking. In other words, to increase social status, the teammate purposefully demonstrated (likely in front of other teammates) her superior knowledge, which in turn deflates the standing of the other teammate and her position. If the other teammate takes this as a personal attack, then she too may seek methods to regain status within the group. Our undefined need for ranking among our local peers (co-workers, family, business colleagues, neighbors, and friends) influences our judgment and interests during negotiations. (Frank) Even in a one-time encounter, there exists a universal desire to command respect, which sometimes rises above economic interests as a motivator in our decisions and stances. (Curhan, Elfenbein and Xu) Research suggests that we may conflate our feelings of self and need for respect on how well we negotiate. When we perceive that we are “losing” during the negotiations, we perceive this to be a direct attack on our social standing and possibly an unconscious reason to reject a rational offer. To be successful in negotiations, one must be cognizant that social status has a bearing on the decision-making process of parties involved. Ideally, one should plan for this and generate questions that illicit not only economic interests but also social motivations. For instance, does the other party believe that if a certain position is conceded that will cause shame or embarrassment among his or her peers? If that is the perception, you will need to have a plan to deal with this perception (whether it is real or imagined) during the negotiations. You will need to listen to the rational of the other party and

3 | P a g e Debra Scott, JD, MPH, The Scott Practice, LLC. Copyright 2014. All Rights Reserved. his or her emotional cues to detect signs that social status is an issue. You can then use subtle tactics to convincingly suggest that the party’s concession will not affect his or her credibility or standing. In other words, if the underlying fear of the other party is social status, you will need to assuage this concern . By recognizing the role of status, you will be able to better understand unspoken motivations that may lead to greater success during negotiations. Works Cited Anderson, Cameron, et al. "Who Attains Social Status? Effects of Personality and Physical Attractiveness in Social Groups." Journal of Personality and Social Psychology (2001): 116-132. Bendersky, Corinne and Nicholas Hays. "The Fourth Dimension: Status Conflict in Groups." Available at SSRN: http://ssrn.com/abstract=1298494 or http://dx.doi.org/10.2139/ssrn.1298494 (2008). Curhan, Jared R., Hillary Anger Elfenbein and Heng Xu. "What Do People Value When They Negotiate? Mapping the Domain of Subjective Value in Negotiation." Journal of Personality and Social Psychology (2006): 493-512. Frank, Robert H. "Choosing the Right Pond." Oxford University Press (1985). Heffetz, Ori and Robert H. Frank. "Prefrences for Status: Evidence and Economic Implications." Cornell University, Johnson Graduate School of Management (2008).

Add a comment

Related presentations

Boat chandlery

Boat chandlery

October 26, 2014

http://ecommerce-for-business.com/shackles-boats-theboatonlinestore/ We offer a ...

http://vendere-su-internet.com/shackles-for-boats-from-theboatonlinestore/ Moori...

Silver bar!

Silver bar!

October 21, 2014

Pretty similar to gold bars are these silver slabs. Silver is considered as the mo...

Gold coin prices!

Gold coin prices!

October 21, 2014

If you are an investor of gold bars and coins, one of the major things that you ou...

CyberSecurity's social media stats for one week as of Oct 21st 2014

CyberSecurity's social media stats for one week as of Oct 28th 2014

Related pages

Social categorization in interpersonal negotiation: How ...

Social categorization ... The aim of the present article is to investigate the impact of social categorization ... intergroup negotiations; social status;
Read more

Social Comparisons in Negotiation - PON - Program on ...

... which signal concern about relative status, have a profound impact at the bargaining table. To make social ... Social Comparisons in Negotiation.
Read more

STATUS CONFLICT IN NEGOTIATION

STATUS CONFLICT IN NEGOTIATION. ... When there is between group status conflict along with between group negotiations, high-status ... Social status ...
Read more

Effects of Relative Status and Relationship on Negotiation ...

paid little attention to the role of relative status between social ... The negative impact of status ... Relationships in Negotiations Social ...
Read more

Trade Sustainability Impact Assessment in support of ...

Trade Sustainability Impact Assessment in support of negotiations of a ... 3 Additional social analysis 49 3.1 Social status ... Sustainability Impact ...
Read more

How Emotions Work: The Social Functions of Emotional ...

How Emotions Work: The Social Functions of Emotional ... why communication media impact negotiations. ... it is not as though status was without impact.
Read more

Culture-Based Negotiation Styles | Beyond Intractability

... While it is difficult to characterize any national or cultural approach to negotiation, ... social status , gender, race, age ... Negotiations, Journal ...
Read more

Power in Negotiation: The Impact on Negotiators and the ...

Power in Negotiation: The Impact on Negotiators and the Negotiation Process Negotiations Between Counterparts of ... Negotiations, Gender, and Status at ...
Read more

Trade Sustainability Impact Assessment in support of ...

3 Additional Social Analysis 47 3.1 Social status ... Trade Sustainability Impact ... Trade Sustainability Impact Assessment in support of negotiations ...
Read more