Women & Negotiation. Notre Dame Chicago Women Connect November 29, 2011 Professor Joseph Holt
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1 Women & Negotiation Notre Dame Chicago Women Connect November 29, 2011 Professor Joseph Holt
2 Learning Objectives Clarify the meaning of gender vs. sex differences in negotiation Provide a sampling of basic research regarding gender differences in negotiation Conduct a self-assessment survey to determine personal bargaining style Discuss strengths & weaknesses of each style Offer suggestions for getting better negotiation results
3 Gender & Negotiation Sex & Negotiation Sex is based on biological distinctions Gender includes psychological & cultural distinctions
4 Gender Identity & Role Do you consider yourself more analytical, competitive, dominant? Or more someone who is sensitive to the needs of others, warm, compassionate and gentle? Which set of traits better identifies you? Are you high on the first set of traits (masculine gender identity), the second set (feminine) or on both (androgynous)?
5 Gender Stereotypes & Negotiation Stereotypes When it comes to negotiation, it is typically assumed that: Men are more. Women are more. This is exacerbated by stereotypes about negotiation itself. Competency in negotiation is typically associated with traits typically associated with men more than with women
6 Gender Stereotypes & Negotiation Stereotypes Traits typically associated with men: Rational, strong, dominant, assertive, competitive, protective of their own interests Traits typically associated with women: Passive, weak, emotional, accommodating of others needs
7 Does the Evidence Suggestion Material Gender Differences in Negotiation? Yes and no. Gender stereotypes have greater effect in weak situations I.e. Situations in which issues are not clearly defined, criteria aren t clear, and role, status and authority are also not clear Gender stereotypes have lesser effect in strong situations I.e. Situations in which issues are clearly defined, criteria are clear, and role, status and authority are also clear)
8 A Case in Point In a 2005 study, MBA graduates took jobs in strong (low ambiguity) or weak (high ambiguity) situations In the strong situations, but not in the weak, job candidates were able to obtain solid information about salaries, etc. In low ambiguity situations, men and women obtained similar salary amounts, but in high ambiguity situations women accepted salaries 10% lower than those accepted by men
9 But Are Men & Women Equally Inclined to Negotiate in the First Place? Study 1: Male graduates from Carnegie Mellon with a master's degree earned starting salaries almost $4,000, or 7.6%, higher than female students But who negotiated and who simply accepted the initial offer? 57% of men, but only 7% of women, turned out to have negotiated the job offer in the first place And on average, those who negotiated raised the initial offer by $4,053
10 You ve Gotta Shoot to Score! You miss 100 percent of the shots you don t take. Wayne Gretzky
11 Other Factors that Matter Status & power Organizational context Organizational contexts can be masculine, feminine or androgynous Upper level management in corporations is typically male-dominated and masculine
12 Organizational Context Further Explored Gender stereotypes have a greater effect in typically masculine organizational contexts such as car dealerships: In one study women and men actors were asked to follow the same script in inquiring about a new car Price quotes received by women were significantly higher But in feminine contexts such as childcare, gender differences do not seem to come into play And other contexts such as private law practice seem more androgynous, i.e. to have fewer gender expectations (role of lawyer supersedes gender role)
13 Emphasis Matters One study found that when a link between stereotypically feminine traits and good negotiation results was emphasized, women performed better than men
14 An Important Difference Men tend to set higher goals than women do in negotiations One study found that male buyers on average set goals 9.8% higher than female buyers did In negotiation, there is a strong link between aiming higher and achieving higher results Do you tend to focus on the acceptable minimum or the desirable maximum in negotiations?
15 Your Personal Bargaining Style: First, A Thought Experiment Then, A Self-Assessment
16 Negotiation Strategies (or Styles) What are they and why are they important? What were the results of your bargaining styles assessment? What are the dominant styles?: Avoiding (lose-lose) Accommodating (lose to win) Competing (win-lose) Compromising (split the difference) Collaborating/Problem-Solving (win-win)
17 To Maximize Effectiveness, Adapt the Strategy to the Situation Many negotiators use the same strategy or style regardless of the negotiation situation, but effective negotiators adapt the strategy that best fits the situation. See The Situational Matrix: A Strategy Guide, from Bargaining for Advantage, by G. Richard Shell (next slide)
18
19 Two General Categories There are five personal bargaining styles, but more fundamentally negotiators tend to be either competitive or cooperative
20 Corrective Reminders for Those Who Are Disposed to Be Cooperative Focus on preparing your goals and setting high expectations rather than on your bottom line Have clear alternatives planned in case the negotiation fails Imagine that you are negotiating on behalf of someone else rather than for yourself Create an audience
21 Corrective Reminders for Those Who Are Disposed to Be Cooperative (cont.) Prepare to say, You ll have to do better than that because Insist on clear commitments, with consequences if they are not honored, rather than merely general agreements without clear consequences ( A commitment is really not a commitment if both sides realize that it can be easily broken. Howard Raiffa) Copyright Joseph Holt. All rights reserved.
22 Corrective Reminders for Those Who Are Disposed to Be Competitive Adopt more of a win-win rather than merely a winlose mindset Ask more questions than you re naturally inclined to ask Rely more on objective standards than leverage, especially when relationships matter Try to maximize results on your big issues rather than on all issues Always treat the other party respectfully
23 Further Suggestions to Achieve Better Negotiation Results Be the best negotiator you can be Overcome brute force with the powers of principle and information Attila the Hun power vs. Gandhi power Recognize that more is likely negotiable than you typically assume Avoid the empathy trap: understanding agreeing Be willing to say no rather than to accept terms you will later regret or resent
24
25 Other Readings That May Be Helpful Women Don't Ask: The High Cost of Avoiding Negotiation-- and Positive Strategies for Change, Linda Babcock & Sara Laschever Ask For It: How Women Can Use the Power of Negotiation to Get What They Really Want, Linda Babcock & Sara Laschever Nice Girls Don't Get the Corner Office: 101 Unconscious Mistakes Women Make That Sabotage Their Careers, Lois Frankel A Woman s Guide to Successful Negotiating, Lee Miller & Jessica Miller The Shadow Negotiation : How Women Can Master the Hidden Agendas That Determine Bargaining Success, Deborah Kolb & Judith Williams
26 The End
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