Saturday, May 20, 2017

A632.4.4.RB- Deception in Negotiations

Negotiations are situations that we learn about at an early age. For me personally, everything seemed to be a negotiation as a child. Like most parents, my mom or dad would tell me that I would have to finish my vegetables before leaving the table or having any desert. At that point, my negotiation skills, or what I thought at that time were my negotiation skills, would kick in and I would begin bargaining about eating three or four bites of my vegetables, but not all of them. After a lengthy debate, an agreement would usually be made satisfying both parties, or they may have just given up. I would also try to negotiate bedtime or when I had to come in from playing outside.

Some individuals tend to gain pleasure out of the negotiation process and some do not. Some people tend to be great negotiators as life progresses, but my negotiation skills ended during my teenage years. In a negotiation, there are times where the other party can attempt to deceive or mislead me so information should be evaluated during the negotiation. There are also times where I have been the deceitful party by overstating a claim.

How common is it to be lied to in a negotiation? According to Hoch, Kunreuther, & Gunther (2001), “100 percent of negotiators either failed to reveal a problem or actively lied about it during negotiations if they were not directly asked about the issue” (p.189). So everybody lies about potential issues or glitches during a negotiation? That seemed unreal to me! I began to reminisce about the times a problem was not revealed to me during a transaction or negotiation and realized that most people are not upfront about potential issues during negotiations. In high school, my parents bought me a car and very shortly after the purchase the timing belt snapped causing major damage. Turns out the previous owner knew that the belt had been slipping but failed to mention that information during the sale.

According to Bolton and Croson (2012), some parties seem to profit by withholding or misrepresenting the information they possess. Another example of being misled took place when we purchased our home. In 2010 we wanted to quit renting and buy a house and decided it was time to act. One of our good friend’s mom was in the real estate business so we began working with her because we knew she was trustworthy. We looked at dozens of houses over many weeks until we finally found a neighborhood that had a couple of houses left. The neighborhood consisted of ‘pick-a-plan’ houses but we were excited about the possibility of owning a new home. As we spoke to the other agent about possibly buying a home in the neighborhood he had one selling point that he mentioned multiple times during the visit. The lot we were interested in sat against some woods and he continued to tell us that no one could ever build behind us because the land is zoned as a nature preserve and it would be against the law to build. After much deliberation, we bought the lot and moved into our home in June 2010.

Fast-forward to about three years ago when we received a notice in the mail that a hearing will take place to determine if the nature preserve behind our home can be re-zoned to allow a project to be built. The hearing went the way of the builder as they were approved to start a project directly behind us. The project began about two months ago with the cutting down of all of the trees behind our property. The final product will be a neighborhood of nearly 1,200 houses and a strip mall. Several of the other houses on our side of the road that back up to the new construction project have been put up for sale as they were all told that they would never have new construction or neighbors behind them. I am not sure if the company that built our neighborhood knew this was a possibility and simply left out that information, but it is obvious that the new construction project altered the way many families feel about our neighborhood. 

Because it is not always evident when someone is lying to you, how do we shield ourselves from deceitful statements and tactics during a negotiation? There are several methods to uncover deception such as vocabulary used or not used, verbal and nonverbal cues, and visual clues. “The best defense against deception is taking steps to reduce the likelihood that people will use deception in the first place” (Hoch, Kunreuther & Gunther, 2001, p. 194). There were four evaluation methods that caught my attention including establishing trust, asking direct questions, paying attention to non-verbal cues, and keeping records and getting things in writing.

Trust is one thing that I strive to create in a relationship. Hoff (2016) stated that trust was the glue that keeps a relationship intact. A relationship or negotiation can fall apart at the blink of an eye if trust is lacking in the equation. Hoch, Kunreuther & Gunther (2001) indicated that a person should make it evident that deception will not be used in an effort to establish trust. While in the negotiating process an individual should also make a point to ask direct questions. According to Hoch, Kunreuther & Gunther (2001), there is a 61% chance that the other party will reveal a problem if asked directly. If you have a concern or question about a specific issue then do not hesitate to ask.

Paying attention to non-verbal cues is also extremely important in a negotiation. According to Mishra (n.d.), non-verbal cues consist of about 80% of all communication and can solely give out important messages.  One thing I have learned throughout my years as a professional is to keep records of interactions. There have been times where I have been asked to do something by a co-worker or supervisor only to later be questioned about my actions. The same tactic should be taken in a negotiation. Some individuals may try to back out of what was agreed upon. It could be because they decided later that they are no longer willing to make the agreement or that they just simply had forgotten certain aspects were part of the agreement. If you are taking notes and records during the negotiation then the other party will more than likely choose their words more carefully.

In negotiations, I tend to be what Hoch, Kunreuther & Gunther (2001) defined as either reasonable or a cream puff. I rarely attempt to deceive or manipulate and am very trustworthy to the other party, which is not always the best philosophy. I can’t even say that I ask direct questions or pay attention to non-verbal cues. But, one example does come to mind where I overstated my claim in a manner that was deceitful.

A couple of years ago, an employee left our department and I was presented with the opportunity for a promotion. The Vice President of the department came to me and said that I have been chosen to as a replacement for this individual and told me my new salary. He also said the President of the College would like to know my decision by the following morning. A wave of emotions hit me as I was happy, nervous, and unfulfilled all at the same time.

 I was overjoyed to be offered a promotion and pay raise but was skeptical about going into the position because of the manager I would report to. I had previously worked for this individual and applied for and received a lateral transition because of them. I also knew the amount of work involved with the new position and that I was the only one in the department with any experience in this particular area. Although I was going to take the position, I told my VP that I would need a higher salary (and told them the number) to take the position.  They said that he would have to talk to the President and called me about thirty minutes later and told me we had a deal. I am usually not a person that would be deceitful to leverage a deal but there were many factors that led me to try something different that particular time. The decision and negotiation worked out well as I enjoy the duties of my job and I no longer work for that supervisor.

Negotiations can be stressful and unsatisfying as it is sometimes difficult for both parties to feel like a winner after the negotiation. Some individuals will deliberately be deceitful so you must use methods to guard against deception during the negotiation. There are also times when an overstated claim can be used to leverage your position, but, in my opinion, those instances should be used utilized sparingly.

References


Hoch, S. J., & Kunreuther, H. C. (2005). Wharton on making decisions. (1st edition.).Hoboken, NJ: John Wiley & Sons Inc.

Hoff, N. (2016). The importance of building trust. Retrieved from http://www.huffingtonpost.com/naphtali-hoff/the-importance-of-buildin_1_b_9366838.html


Mishra, S. (n.d.). Why non-verbal communication is important? Retrieved from https://www.businesstopia.net/communication/why-non-verbal-communication-important

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