Sunday, November 15, 2015

A632.4.5.RB - Deception in Negotiations

Abstract
Negotiation is a method by which people settle differences. An act of negotiation is a formal discussion between people who are trying to reach an agreement (Webster, 2015). Negotiation is a process every person has experienced. An example of this is negotiating the price of your first home or first vehicle. Deception is big part of negotiation, whether or not you can see the deception will greatly increase the chances of a good deal. “We tend to be overconfident in our ability to consider the possibility that we were being deceived as we negotiate and make important decisions” (Hoch, Kunreuther & Gunther, 2001, p. 189). Deception is a real weapon of the negotiators and we must be ready to guard against it with knowledge.
Deception in negotiations is part of human nature. If you take a quick glance at your life you will see that at some point you might have been deceived during a negotiation or even the one who was deceiving someone. An important fact to know is that deception of some kind is an inherent part of human interaction. According to Hoch (2001) we can look for certain vocabulary, verbal, vocal, and visual cues to detect when someone is deceiving us; however, we are not good at detecting when someone is deceptive. Hoch (2001), suggest the best defense against deception is taking steps to reduce the likelihood that people will use deception in the first place.
There are many steps you can do to prepare before negotiating in order to guard against deception. Hoch (2001) outlines several steps before, during, and after negotiations. Before negotiating, you must prepare the questions you are going to be asking. This is an essential part of the preparation and will play a big role in establishing your credentials as a negotiator. One way that I like to prepare is by doing a thorough background research on previous contracts, and the lessons learned from the past events. This helps me to be more confident and prepares me for any deception that might happen. During the negotiation, establish a foundation for trust at the beginning of the negotiation process Hoch, Kunreuther, & Gunther, 2001). It’s essential to convince your negotiation partner that you will not use deception. Shifting the frame is also a great resource to utilize. Developing a reference-point to showcase your needs is a good way to stay on target. Asking direct question and listening carefully will show respect and enhance trust. From experience I have seen how having a reference-point is something extremely useful. Working for the Government during the budget cuts, I was forced to drop the price of our contract due to budget constraint. Luckily this experience did not harm the relationship with the organization because they were fully aware of all the budget cuts. Finally, after the negotiations you need to manage your reputation.  Building a long lasting and trusting relationship is a valid goal during the negotiations. Being known as a fair and honest person is extremely important. Being humble is a great quality to have and I encouraged my team to do the same. Perceptions are reality and you want to continue a positive, strong relationship. Hoch (2011) tells us to “develop relationships and a reputation for treating people fairly and honestly” as it pays off in the long run (p. 197).
I’ve been lucky enough to have great mentors and coaches that have taken interest in teaching me alone the way. Most recently, I negotiated a Navy sports contract with a company in the New Orleans area. This was our office’s first time working with this organization and we wanted to make a good first impression.  The organization has never worked a contract with a Government agency and were mislead about how long the process would take. Someone in another department told them it would only take two weeks for the contract to be awarded. This was a false statement by the individual and it almost caused us to lose the contract. Thankfully, I was able to work through the obstacles and make the contract work. At the end of it all, the relationship was strong and we are currently in the process for next years contract. This experience taught me to be patient, responsible for my company’s actions, and to be ready for curve balls along the way. I learned that I must be knowledgeable in my company contract process in order to conduct a professional, ethical negotiation.


Reference:
Hoch, S. J., Kunreuther, H. C. & Gunther, R. E. (2001). Wharton on making decisions. Hoboken, NJ: John Wiley & Sons, Inc.
Negotiation. (n.d.). Retrieved November 15, 2015, from http://www.merriam-webster.com/dictionary/negotiation




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