After studying this chapter, you should be able to: Explain how the management of human resource is both a role for the human resource management department and all managers, describe the key means by which companies find job candidates, explain how companies select job candidates,. | Judgment in Managerial Decision Making 8e Chapter 11 Negotiator Cognition Copyright 2013 John Wiley & Sons 1 Common Mistakes of Negotiators The fixed pie myth Framing of negotiator judgment Escalation of conflict Overestimating your value Self-serving biases Anchoring biases Now that we have a framework for making rational decisions in negotiations, we can start to consider the ways in which negotiators often deviate from the decision-analytic framework. Cognitive biases are often responsible for deviations from rational decision-making in negotiations. Some of the most common biases of negotiators include: The myth of there being a fixed pike of resources in a negotiation. Negotiator judgment being influenced by framing. Unnecessary conflict being escalated. Negotiators overestimating their value. Negotiators being influenced by self-serving biases. Negotiators anchoring to arbitrary offers and reference points. We will discuss these biases. 2 The Mythical Fixed Pie of Negotiation | Judgment in Managerial Decision Making 8e Chapter 11 Negotiator Cognition Copyright 2013 John Wiley & Sons 1 Common Mistakes of Negotiators The fixed pie myth Framing of negotiator judgment Escalation of conflict Overestimating your value Self-serving biases Anchoring biases Now that we have a framework for making rational decisions in negotiations, we can start to consider the ways in which negotiators often deviate from the decision-analytic framework. Cognitive biases are often responsible for deviations from rational decision-making in negotiations. Some of the most common biases of negotiators include: The myth of there being a fixed pike of resources in a negotiation. Negotiator judgment being influenced by framing. Unnecessary conflict being escalated. Negotiators overestimating their value. Negotiators being influenced by self-serving biases. Negotiators anchoring to arbitrary offers and reference points. We will discuss these biases. 2 The Mythical Fixed Pie of Negotiation Assumption that interests directly conflict Perception of negotiations as win-lose Devaluation of counterpart concessions - As mentioned previously, in mixed-motive interactions with the potential for mutually beneficial integrative agreements to be struck, negotiators can create value by conceding on issues they care little about in exchange for their counterparts conceding on issues that are valued more highly by a focal negotiator. - However, many negotiators are unable to create value because they typically view negotiations as a distribution of resources from a “fixed pie”. This assumption holds that negotiator interest directly conflict with one another. Thus, people view any concession as a losing course of action. In general, this fosters a view of negotiations as win-lose rather than win-win where both sides can obtain outcomes more favorable than their BATNA. One manifestation of this tendency to view negotiations as a fixed pie is that counterpart concessions are often .
