Sunday, 5 February 2017

A632.4.4.RB - Deception in Negotiations

A632.4.4.RB_Manglona, Matthew-Napu_ Deception in Negotiations

If I can evaluate negotiating information in my day to day life I would go with what Hoch, Kunreuther,& Gunther (2001) discussed of setting goals carefully, look for justifications, assess underlying uncertainty, and prepare carefully. In setting goals carefully, I ensure that I set a realistic goal that is at a high reward and gain, however to remember that I should always set the goal as near achievable than near impossible.  Then looking for justifications, being able to understand my position of my decision making and ensuring that I have information to back it up. Without data or information I would be good as lost when it comes to negotiating for my personal cause. Assessing underlying uncertainty is what I see as one of the important factors to negotiating. Failing to ask the right questions to understand the end state will leave the person into deception and at the failing end. Finally, when it comes to preparing carefully by establishing a rehearsal to oneself in what he or she wants to accomplish. Hoch, Kunreuther,& Gunther (2001) discussed that that when a person is overwhelmed or caught off guard with unexpected questions they tend to fall back on deception. Being prepared and being able to understand the product or situation to sell, success will only come out of it.

Hoch, Kunreuther,& Gunther (2001) stated “as the benefits of lying rise and the costs of lying fall, negotiators become more likely to lie.” (p. 2025) When it comes to gaining one’s personal agenda one will do almost anything to accomplish it. I remember when data crunching and inputs were crucial to obtaining more funding for the program that I run.  It was coming close to the deadline of turning our State Plan in with the data to support our claim to receive more funding. We have had trends that brought our numbers up for us to tweak our numbers to justify our budget. Every year I go to our headquarters (HQ) in D.C. to request for more money in which we receive a base line of $500,000. I go there and request for a firm $800,000 knowing that I will never get it, then the HQ says we will give you $750,000 with a possible additional funding within the fiscal year. I have no problem with that so long as I get more than the base line budget. I just justify my claims of needing the funding with the data that we collect.

A recent negotiation where I was duped was with one of my cousins who convinced me into buying a truck from his dealer for $45,000. He told me the base line of what he can get me my truck for and he will take care of the rest. I ended up going to his dealer with $40,000 (initially what my cousin told me) but the dealer told me he can only let go of the truck for $50,000. The negotiating of $48,000 to $46,000 was really leaving me in a mood where I didn’t want the truck anymore. I was so convinced I can get the truck to $40,000 because of what my cousin told me but the dealer wasn’t having it. Finally, we came to a conclusive deal of $42,000. Hoch, Kunreuther,& Gunther (2001) discussed that negotiators are more likely to justify their distortion of information when information is not known. (p. 2052) in my case is what happened to me, I didn’t even know what was going on because of what I was told. It was both my cousin and his dealer who got the better end of the deal for whatever side deal they had going on without my knowledge.

When asked to define “how far you would be willing to go to leverage your position?” I would answer depending on the two factors of personal agenda and morals, I would use something to effect of what is best for both people, the negotiator and his or her client. I guess in my experiences so long as I am in the range of benefitting both parties, it allow me to consciously sleep at night. For some people they really don’t care which is not shocking, like my example with my purchase for my truck, but this is a world where personal gain is a must, and sometimes we just have to embrace or accept that concept.





References:

Hoch, S., Kunreuther, H., & Gunther, R. (2001). Wharton on Making Decisions (1st edition). Hoboken, NJ: John Wiley & Sons, Inc.

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