Tuesday, February 4, 2014

A632.4.5.RB_LarsonKurt, Deception in Negotiations

During the course of negotiations, people often misrepresent information to gain at least a temporary advantage. For example, a seller may fabricate existence of another interested buyer or a buyer may misrepresent the price and availability of an item from a different vendor. Reflect on deceptions in negotiations and describe four ways to evaluate information during negotiations.

One topic that is not discussed in Hoch (2001,) is rhetoric and its uses that I believe have a place for discussion as to how an individual(s) with the tact of rhetoric and skill as a negotiator utilize either to convince or deceive those who are unwary of the tricks of the trade.  Aristotelian rhetoric has been a matter of history and not simply the philosophy of rhetoric for two millennia (Rapp, 2008, pg.2).  By the very definition of rhetoric or more importantly, the rhetorician as an individual whom is able view what is persuasive (Rapp, 2008, pg.2).

Consequently rhetoric simply put the ability to envision what may be persuasive in a given situation, location, or to a group of people. So, rhetoric can have the distinct disadvantage of serving two masters. Aristotle himself concedes that rhetoric on one hand can be misused, as all goods except virtue. He [Aristotle] goes on to say that the risks of misuse are outweighed by the benefits that can be accomplished, kind of an early day risk assessment if you will (Rapp, 2008, pg.6). 

As discussed in Hoch (2001,) negotiators can be known to misrepresent themselves and their reservation prices, intentions, interests and material facts.

As example, reservation pricing, automobile salesmen and the age-old situation whereby the salesman is going out on a limb with his boss to get you the pricing you two have negotiated upon, at the salesmen’s expense. My opinion of this as conveyed to many a salesman and merchant is simply: if you must go out on a limb or risk getting into trouble with the boss, then you are not accomplishing your job correctly. That generally ends the conversation and my decision to buy from this individual.

Another example discussed in Hoch (2001,) is interests and/or intentions whereby an individual or group intentions and interests are misrepresented by them or a negotiator without full disclosure. For example in Alabama a seller of a house need only disclose defects that are structural in nature and not the fact that the house may sit on land that is known for sinkholes. Again the intentions are to sell the house, get it off their hands; the negotiator may or may-not disclose these known facts because he or she wants their commission.

When we built a house South of Birmingham years ago, we decided upon both earthquake and sinkhole insurance… who’s to say after the fact which actually caused structural damage, the earth quake or the subsequent sink-hole?

Material facts the final method of evaluating information during negotiations can be described as discussed in Hoch (2001,) lies that can constitute fraud, or, “known misrepresentation” of the facts that eventually causes damage are unacceptable in any way, shape or form.

In these instances the prudent individual follows the methodology of the 40th President of the United States, Ronald Wilson Reagan. “Trust but verify”.
    
Relate an example of a recent negotiation in which you have been misled and one in which you may have overstated a claim; define how far you would be willing to go to leverage your position. 

Recently a coworker with whom I had some preconceived trusts issues misled me. We were working on a potentially volatile situation with some possible political ramifications that were of a contentious nature. As suspected the individual was playing both sides with the endgame of landing in the other court at my expense. As time progressed I could feel the slippery slope as the situation was coming to a head. I decided on seeking legal advice (at my own expense and incognito) and received some very prudent advice on just how to state my position and rational, which I did, also overstating my claim just enough to have some give or wiggle room, all-the-while it caught my now opponent off guard and with-out a safe place to land.

While this scenario would not have been my first choice, it was necessary from several fronts. To establish my ground as someone to be reckoned with and who will seek outside and factual advice, and subsequently that I do not tolerate the antics of slippery slopes or fence straddlers.   

References

Hoch, S., Kunreuther, H., & Gunther, R. (2001). Wharton on Making decisionsdoi:www.wiley.com


Rapp, Christof, "Aristotle's Rhetoric", The Stanford Encyclopedia of Philosophy (winter 2008 Edition), Edward N. Zalta (ed.), URL = http://plato.stanford.edu/archives/win2008/entries/aristotle-rhetoric

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