Exam 3 Study Guide PDF

Negotiation (Last part of Chapter 14): - Distributive bargaining o Negotiation that seeks to divide up a fixed amount of resources; a win-lose situation o Available resources- fixed amount o Primary motivation- I win, you lose o Primary in...

Negotiation (Last part of Chapter 14): - Distributive bargaining o Negotiation that seeks to divide up a fixed amount of resources; a win-lose situation o Available resources- fixed amount o Primary motivation- I win, you lose o Primary interests- opposed to each other o Focus on relationships- short term - integrative bargaining o negotiation that seeks one or more settlements that can create w win-win solution o available resources- variable amount of resources to be divided o primary motivations- I win, you win o primary interests convergent or congruent with each other o focus on relationships- long term - Target and resistance points o Target point ▪ Goal/ideal o Resistance point ▪ Highest/lowest willing to go - The negotiation process o Preparation and planning ▪ Do your homework Your goals, their goals, history of conflict ▪ Develop strategy BATNA o Definition of ground rule ▪ Who will do the negotiating ▪ Where will it take place ▪ What time constraints if any will apply? ▪ To what issues will negotiation be limited ▪ Will you follow a specific procedure if an impasse is reached ▪ The parties will exchange their initial proposals or demands o Clarification and justification ▪ Both parties explain, amplify, clarify, bolster, and justify original demands ▪ Not confrontational, but educational: why are the issues important and how you arrives at initial demands ▪ Provide documentation to support position o Bargaining and problem solving ▪ Both parties make concessions to reach an agreement o Closure and implementation ▪ Formalize agreement and develop procedures necessary for implementing and monitoring it  ▪ For major negotiations this could require formal contracts for specifics. ▪ Nonformal could be handshake or verbal confirmation of agreement - BATNA (which is the Best Alternative to a Negotiated Agreement…or an alternative that you could fall back on in place of what you are presently negotiating for) o Midst of negotiation for a car, alternative to an agreement about the car could be a different car or public transportation. Something to reduce dependency on that negotiation (giving in or paying too much) gives you power that you are not dependent on negotiation and could walk away and have other options - Individual differences in negotiation effectiveness: o Personality ▪ People who are ambitious and likeable tend to fare the best ▪ Agreeable individuals can either do great or horrible in negotiations ▪ Negotiators who have similar personalities tend to reach agreements faster ▪ Confidence is key, but not too confident ▪ Emotional intelligence and emotion recognition ability is link to gains in negotiation performance as well as to perceptions of being more cooperative and likeable o gender differences ▪ o mood/emotions ▪ anger can induce concessions because the other negotiator believes no further concessions from the angry party are possible should only show anger if you have at least as much power as your counterpart if you have less power it can provoke hardball reactions fake anger is not effective history of anger can be seen as tough and win more negotiations ▪ anxiety may use more deception anxious negotiators may expect lower outcomes, respond to offers more quickly, and exit bargaining process sooner, leading to worse outcomes ▪ o cultural differences ▪ cross cultural negotiations the negotiator must be high on personality trait of openness need to be aware of the emotional dynamics - Third-party negotiations: o Mediator  ▪ Neutral third party who facilitates and negotiated solution by using reasoning, persuasion, suggesting alternatives, etc Cant dictate agreement o Arbitrator ▪ A third party with the authority to dictate an agreement Judge type person o Conciliator ▪ Trusted third party who provides an informal communication link between the negotiator and the opponent Trusted by both parties Not usually paid Leadership (Chapter 12): - How do leaders differ from managers - leaders - managers - influence people based on more - carry out responsibilities and than position (legitimate power) exercise authority - Shift direction (transformation) - Make things a little better (sales/efficiency) - Trait and behavioral theories (focus on major conclusions, concern for production/people) - Behavioral theories o Proposing that specific behaviors differentiate leaders from non leaders ▪ Leadership traits can be taught o Concern for production ▪ Initiating structure (Ohio state) ▪ Production oriented (U. Mich) o Concern for people ▪ Consideration (ohio state) ▪ Employee oriented (U. Mich) - Trait theories o Consider personality, social, physical, or intellectual traits to differentiate leaders from non leaders ▪ Leaders are born not made Contingency theories: recognize if youre going to try and predict about leaders you should have traits/styles about leaders themselves and also knowledge about the situation - Fiedler model o Big picture: you can only be task or relationship oriented and cannot change. o 3 components of a situation o ******if you have favorable/unfavorable situations 3 components are all good-favorable 3 components are all bad-unfavorable both need task  oriented. Moderate situation (3 components good and bad)- you need relationship-oriented leader***** - situational leadership theory o A contingency theory that focuses on followers readiness ▪ Higher follower readiness is, lower need for leaders need for support and supervision - leader participation o provides a set of rules to determine the form and amount of participative decision making in different situations o - leader-member exchange theory o leaders create in-groups and out-groups, and subordinated with in-group status will have higher performance ratings, less turnover, and greater satisfaction with their leader - path-goal theory o The leaders job to assist followers in attaining their goals and to provide necessary direction and/or support to ensure their goals are compatible with the overall objectives of the group or organization - What is trust, three characteristics that lead us to believe that a leader is trustworthy o Integrity, benevolence, ability - Charismatic leadership o Followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviors o Key characteristics ▪ Vision ▪ Sense of mission ▪ Willing to take personal risks to achieve the vision ▪ Sensitive to followers needs  ▪ Exhibit extraordinary behaviors - Transformational leadership o Leaders who provide individualized consideration and intellectual stimulation and who possess charisma. Inspire followers to transcend their own self interests for the good of the organization ▪ Inspiration ▪ Intellectual stimulation ▪ Individual consideration - Transactional leadership o Leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements ▪ Contingent rewards ▪ Management by exception (active) ▪ Management by exception (passive) ▪ punishment - Servant leadership o Going beyond a leaders self interest o Focusing on opportunities to help follower grow and develop - Mentoring o A senior employee who sponsors and supports a less experienced employee o Mentoring activities ▪ Presents ideas clearly ▪ Listen well ▪ Empathize ▪ Share experiences ▪ Act as a role model ▪ Share contacts More on leadership: - Self-leadership - Attribution theory of leadership o The idea that leadership is merely an attribution that people make about other individuals o Qualities attributed to leaders ▪ Intelligent, strong verbal skills, outgoing, aggressive, understanding, industrious ▪ Perceived as consistent and unwavering in their decisions - Substitutes for leadership - Key points from “How I learned to let my workers lead” (assigned article) Power and Politics (Chapter 13) - What power is o The capacity, discretion, and means to enforce ones will over others o Used as a means for achieving goals o Requires follower dependence  o Used to gain lateral and upward influence o Research focus ▪ Power tactics and gaining compliance - Dependency and what creates it o The extent to which people depend or rely on a powerful person o What creates it ▪ Importance of the resource to the organization ▪ Scarcity of the resource ▪ Nonsubstitutability of the resource - Bases of power o Legitimate- power that is truly stemming from position in hierarchy (being in charge/being boss is key) o Coercive-threatening/punishing, fear of negative results o Reward- rewards for specific behavior o Expert- expertise, special skills, knowledge o Referent- influence based on identification with a person who has desirable resources or traits (admiration or desire to be like that person) - Which behaviors are likely for which bases of power (covered in class) - Power tactics o Legitimacy- rely on authority or say request is consistent with organization policies/rules o Inspirational appeals- appeals to values and aspirations o Consulation- involve the person to increase their support o Exchange: Rewarding the target with benefits/favors in exchange for following a request o Pressure: Using warnings, repeated demands, and threats. o Coalitions: Enlisting the aid of other people to persuade the target. o Rational persuasion: Presenting logical arguments to demonstrate that the request is reasonable. o Personal appeals: Ask for compliance based on friendship or loyalty. - Coalitions o Clusters of individuals who temporarily come together to achieve a specific purpose - Political behavior and factors that contribute to political behavior o Activities that are not required as part of ones formal role in the organization, but that influence, or attempt to influence, the distribution of advantages or disadvantages within the organization o Individual factors ▪ High self monitors ▪ Internal locus of control ▪ High mach ▪ Organizational investment ▪ Perceived job alternatives ▪ Expectations of success o Organizational factors ▪ Reallocation of resources  ▪ Promotion opportunities ▪ Low trust ▪ Role ambiguity ▪ Unclear performance evaluation system ▪ Zero sum reward practices ▪ Democratic decision making ▪ High performance pressures ▪ Self serving senior managers - Impression management o The process by which individuals attempt to control the impression others form of them o IM Techniques: ▪ Conformity ▪ Excuses ▪ Apologies ▪ Self-Promotion ▪ Flattery ▪ Favors ▪ Association o Issue Selling - What it is, issue selling process choices, and the in-class exercise on issue selling (all of this will be covered in class; this is not in your book) o Attempts to influence high level managers to pay attention to particular issues (managing up) o What people lower in the organization believe should be paid attention to ▪ Seeking: resources, solutions to problems c-suite may not be aware of, o Issue selling is important because: ▪ Flatter organizations need/want involvement from people at lower levels (everyone on same level) Need people to bring issues up More involved ▪ Top managers experience information overload- what issues should they pay attention to ▪ An important skill that can make/break your career o People make the choice to sell issues in organizations when: ▪ They perceive that management will listen and be supportive ▪ The organization is changing o But they won’t issue sell when: ▪ The organizations culture is a conflict avoiding culture ▪ Politics are complex ▪ People are afraid to damage their reputations o How to issue sell: tactical issues  ▪Bundling: connecting the issue to another issue vs selling the issue as an isolated concern ▪ Framing: using a business vs. moral frame (opportunity vs threat) ▪ Language: flexible or specific to one audience ▪ Involvement: go solo vs. involve others as co-sellers ▪ Approach: formal, public appeal vs informal, private appeal ▪ Timing: early vs. late o Power and Politics exercise: ▪ Tactics to consider: Involvement- involve other people rather than just gina Framing- use business framing vs moral to sell to higher ups (costs a lot of money to replace people who are quitting) Bundling: connect this problem to resignations they are experiencing Approach: More informal methods may be appropriate (memo being too formal) Also: - Any videos/podcasts shown in class (for example, the Gandhi video, empowerment related video) Gandhi video- used speech to highlight characteristics of charismatic leader. In recording from nov 5th Empowerment related video- self leadership and self management Good luck studying!