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Business Negotiation - Gender differnce

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Raghav Malik

on 6 May 2013

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Transcript of Business Negotiation - Gender differnce

Does Gender Makes A Difference in Negotiation ??? GENDER Differences In Business Negotiation According to Gerhart and Rynes men negotiating higher salary after receiving a actual job offer tends to obtain more than women.
Computer simulated test on same siutation gave similar results- observed by Stevens et al.(1993) Laboratory experiments using game theory however indicate that individual differences between negotiators (such as personality and gender) have no discernable effect on outcomes of the negotiations.
Craver (2002) and Pradel et al. (2006) state that gender is not an accurate predictor of negotiation outcomes in commercial settings. It does!! It does not!! Situational differences Perceptual differences The state of being male or female (typically used with reference to social and cultural differences rather than biological ones - Oxford Dictionaries Gender Definition Motivation Situation Power Situation Competitive Situation Men are more likely to act competitively.
In highly ambiguous situations, men outperform women, as they are willing to take more risk. Women are more reticent.
Women are willing to set lower individual goals - Women acts towards common good as a result have lower individual achievement. Watson (1994) found that gender had an effect in only one study out of eight she reviewed, while power seemed to carry effects in all eight. Baseline: Power is a more decisive factor in a mix-gender negotiation than gender itself Rubin and Brown(1975) and Riley and Babcock(2002) report that men set themselves higher performance targets than women and achieve agreement payoffs which are significantly higher, both in ambiguous and high risk situations Eagly et al.(1983) put forward that women make a more equilibrated judgement on the negotiation situation. Non-verbal signs
Verbal signs
Organizational Circumstances
Facts & Figures Evidence suggests that women perceive themselves to be less deserving of rewards and compensation than men (Gneezy etal.,2003) Women allocate less resource to themselves.
Women succumb under pressure.
Women set lower individual goals.
Women are more motivated by maintaining relationships. Tannen(1994) Men allocate more resources to themselves.
Men step up their performance under pressure.
Men set high individual goals.
Men are more attracted by competition and status. Tannen(1994) Women’s performance maybe ‘‘devalued’’ incomparison to men’s mainly because success by women rather tends to be attributed more to external causes
(Stuhlmacher and Walters,1999). To the extent that expectations and perceptions on being entitled to something lead to higher outcomes, women will be less successful in negotiations in terms of individual results. The different power situation of men and women is thus both a
predictor of outcomes and a self-fulfilling prophecy(Watson,1994). Women's stereotype perception Power Difference The widely held stereotype that women are less effective at negotiating than men, will thus prove to be right in the end(Steele and Aronson,1995). Verbal signs
Facts & Figuers Men and women also have different perceptions on negotiation situations in general(Greenhalgh etal.,1985). Women set themselves more realistic outcomes, as observed by Dion etal.(1997), who found that women obtain better outcomes in sales situations, whenever they
have ample opportunity to prepare for the details. Behavioral Differences Kimmel etal.(1980) report that women make less use of distributive tactics and show less interest in bargaining than men. It is still a widely held belief that women are more cooperative and less aggressive than men(Cook and Sloane,1985; Gneezy etal., 2003; Niederle and Vesterlund,2007 and 2008) Bargaining Neu etal.(1988) found no differences between male and female salespeople in their use of a ‘‘problem solving
approach,’’ a tactic described as cooperative and information seeking. In a buyer–seller negotiation experiment, Pruitt et al. (1986) found no differences in the tendency of men and women to engage in contentious behaviour in the presence of authority. Most research (Walters etal.,1998; Eckel etal. 2008) found that women display significantly more cooperative behaviour than men and like cooperative situations more More Agressive
Like to enter a into hyper-competitive situations.
More 'tough' than women More Cooperative
More emphasizes good relationships
women outperform men in commercial negotiation settings Report-Talk & Rapport-Talk Build relationships, establish connections and to share experiences Women
Rapport talk Men
Report talk Share information establish status and power Hedging A hedge is a mitigating word or sound used to lessen the impact of an utterance. Hedging is more often applied by women.
A woman may use hedging even when dealing with someone who is in a lower power position than her. A man may use hedging when dealing with someone of higher power than him, but not with people of equal or lower power. Apology Accepting responsibility
Expressing concern, empathy, or sadness about something that has happened. Only for accepting responsibility
or their error. Listen Women
Better listeners than men
Use more “insertions” (e.g. short questions, nodding etc.)
Overlapping speech Men
May see overlapping
speech as interruption Women talk less ! ! ! Women Group member:
Qilan, Raghav Malik, Danni Shi, Yan Li, Jun Ruan Let other speakers into the conversation
Encourage the current speaker to go on
Allow another speaker to dominate the discussion
Respect each other’s turns in speaking
Apologize for talking too much. Reference List Craver, C.B., 2002. Gender and Negotiation Performance. Sociological Practice: A Journal of Clinical and Applied Sociology, 4(3), 183-193.

Dion, P.A., Easterling, D., Javalgi, R., 1997. Women in the Business-to-Business Salesforce: Differences in Performance Factors. Industrial Marketing Management, 26(5), 447-457.

Eagly, A.H., 1983. Gender and social influence: A social psychological analysis. American Psychologist, 38(6), 971-981.

Eckel, C., de Oliveira, A., Grossman, P.J., 2008. Gender and Negotiation in the Small: Are Women (Perceived to Be) More Cooperative than Men? Negotiation Journal, 24(4), 429-445.

Gerhard, B., & Rynes, S. (1991). Determinants and consequences of salary negotiations by male and female MBA graduates. Journal of Applied Psychology, 76(2), 256-262.

Gneezy, U., Niederle, M., Rustichini, A., 2003. Performance in competitive environments: Gender differences. Quarterly Journal of Economics, 118(3): 1049–1074.

Greenhalgh, L., Neslin, S.L., Gilkey, R.W., 1985. The effects of negotiator preferences, situational power, and negotiator personality on outcomes of business negotiations. Academy of Management Journal, 28(1), 9-33.

Kimmel, M.J., Pruitt, D.G., Magenau, J.M., Konar-Goldband, E.K., Carnevale, P.J.D., 1980. Effects of trust, aspiration, and gender on negotiation tactics. Journal of Personality and Social Psychology, 38(1), 9-22.

Neu, J., Graham, J.L., Gilly, M.C., 1988. The influence of gender on behaviors and outcomes in a retail negotiation simulation. Journal of Retailing, 64(4), 427-451.

Niederle, M., Vesterlund, L., 2007. Do women shy away from competition? Do men compete too much? Quarterly Journal of Economics, 122(3): 1067–1101. Interrupt others more than women Men Reference List Pradel, D.W., Bowles, H.R. McGinn, K.L., 2006. When does gender matter in negotiations? Contract Management, 46(5), 6-10.

Pruitt D.G., Carnevale, P.J.D., Forcey, B., Van Slyck, M.V., 1986. Gender effects in negotiation: Constituent surveillance and contentious behaviour. Journal of
Experimental Social Psychology, 22(3), 264-265.

Riley, H.C., Babcock, L., 2002. Gender as a situational phenomenon. Cambridge, Ma: Kennedy School of Government and Harvard University, Working Paper, 36 pp.

Riley, H.C., Mc Ginn, H.R., 2002. “When does gender matter in Negotiation? Cambridge, Ma.: Kennedy School of Government and Harvard University, Working Paper, 31 pp.

Rubin, J. Z., Brown, B.R., 1975. Bargainers as individuals, The social psychology of bargaining and negotiation. New York: Academic Press, 157-196

Steele, C. M., Aronson, J., 1995. Stereotype threat and the intellectual test performance of African Americans. Journal of Personality and Social Psychology, 69 (4), 797–811.

Stevens, C.K., Bavetta, A.G., Gist, M.E., 1993. Gender differences in the acquisition of salary negotiation skills: The role of goals, self-efficacy, and perceived control. Journal of Applied Psychology, 78(6), 723-735.

Stuhlmacher, A.F., Walters, A.E., 1999. Gender Differences in negotiation Outcome: a Meta-Analysis. Personnel Psychology, 52(5), 653-677.

Tannen, D., 1994. Gender and Discourse, Oxford University Press, Oxford, U.K.

Walters, A.E., Stuhlmacher, A.F., Meyer, L.L., 1998. Gender and negotiator competitiveness: A meta-analysis. Organizational Behavior and Human Decision Processes, 76(1), 1-29.

Watson, C. 1994. Gender differences in negotiating behavior and outcomes: Fact or artifact? In Taylor A., Beinstein-Miller J. (eds.), Conflict and gender. Cresskill, NJ: Hampton Press. Conclusion From what was previously observed , since most researchers found no evidence of gender differences in negotiation outcome and competitiveness of behavior in negotiations
(Pruitt, 1986; Neu et.al. 1988).
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