Read The Intelligent Negotiator Online
Authors: Charles Craver
Tags: #Business & Economics, #General
Tit-for-Tat
A
number of years ago, Professor Robert Axelrod decided to conduct a competitive exercise on computers using the so-called “Prisoner’s Dilemma.”
1
In this game, two prisoners are allegedly caught by the police and interrogated separately. The police do not have clear evidence of their guilt, thus they hope to induce one to become a witness against the other. Each choice a prisoner makes, whether it is to confess or to remain silent, is referred to in the game as an
iteration.
If one agrees to cooperate but the other does not, the cooperating person gets a short jail term (six months, for example) while the other gets a more substantial term (say, ten years). If both confess, they both get moderate terms (five years), while if neither confesses they both get shorter terms (two years). If the game players experiment with a number of iterations, they find they maximize their joint return by refusing to cooperate with the police. In this scenario they each get
two years for each iteration. On the other hand, if one confesses while the other does not, the confessor gets a short term and their partner gets a long term. While it might thus seem optimal to confess, if both do so, each one gets an intermediate term.
Professor Anatol Rapoport entered a program called “Tit-for-Tat,” in which his prisoner would remain silent on the first iteration and on each subsequent iteration would do exactly what the other side’s programmed prisoner did on the preceding iteration. Although Professor Rapoport’s program never beat the other side (the best it did was tie with that program), his program prevailed over all the others. When his program lost, it lost by so little that over the entire competition it achieved the best cumulative results.
From the Prisoner’s Dilemma experiment, Professor Rapoport developed some rules designed to encourage others to behave cooperatively when they interact with you.
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Intelligent Negotiators who use these Tit-for-Tat guidelines in the cooperative stage will obtain the best possible results.
First: Don’t be envious of your opponent’s results.
Don’t be a win-lose negotiator who judges your success by how poorly your opponents have done, but rather be a win-win negotiator who asks whether you are pleased with what you got. If you got a good deal, that fact that your counterpart is also pleased should not detract from the gains you have achieved.
Second: Always begin with a cooperative attitude.
Never plan to employ inappropriate behavior of an adversarial nature. This positive approach is likely to encourage similar cooperation from others.
Third: Fight back when you encounter inappropriately adversarial behavior.
Politely but forcefully lean back on those who use overtly competitive tactics. Make it clear you will not let them take advantage of you. If someone uses the Nibble Technique (see
chapter 6
) to seize items from you at the conclusion of an interaction, be sure to demand reciprocity for what they are seeking instead of merely giving in to their one-sided demands.
Fourth: Be forgiving.
Never hold a grudge. Don’t take the negotiation process personally. Once you have challenged your opponent’s improper conduct, make it clear you plan to cooperate with that person in the future as long as they continue to cooperate with you.
Fifth: Establish an appropriate reputation.
Through your interactions with others, establish a reputation as a cooperative negotiator who will respond appropriately to counteract improper conduct by overly competitive adversaries. Others will learn of your reputation and think twice before they resort to hostile behavior.
Felicia actively seeks alternative approaches during the Cooperative Stage of her negotiation with Andersen.
Before Felicia and Solomon part company, she asks whether the firm would increase her signing bonus instead of reimbursing her for moving expenses. She realizes that anything Andersen provides with respect to moving expenses will cause an equal reduction in the amount her husband is reimbursed by the State EPA. Solomon suggests a $2,000 increase in her $1,000 signing bonus, which she readily accepts.
When Solomon asks Felicia if she could possibly begin work in four weeks instead of six, she seems reluctant. He finally asks if she could begin on a part-time basis in four weeks and go to full-time four weeks thereafter. She indicates that she could probably work twenty-five hours per week during that four-week transition period, and he looks pleased. He then graciously says that if she is willing to accept the earlier starting date on a part-time basis, he would ensure that she is paid on a full-time basis as soon as she initially begins her part-time work.
S
UMMARY
P
OINTS
Through cooperative efforts, negotiators can expand the pie to be divided and simultaneously improve their respective situations.
Get your bargaining agreement in place before you enter the Cooperative Stage.
Cooperative bargaining may be beneficial for even pure money exchanges, as parties use in-kind and future payments to enhance their joint interests.
When multiple item negotiations are involved, the participants should seek to go beyond the acceptable, actively exploring alternative options with the goal of maximizing the joint return through the most efficient distribution of the items being exchanged.
When agreements are achieved, negotiators should briefly review the basic terms and attempt to draft the final accords.
Intelligent Negotiators use the “Tit-for-Tat” approach to encourage opponents to engage in cooperative behavior.
P
ART
IV
F
REQUENTLY
E
NCOUNTERED
N
EGOTIATING
S
ITUATIONS
C
HAPTER
9
S
ITUATION
1: N
EGOTIATING
E
MPLOYMENT
O
PPORTUNITIES
T
he paths to initial employment and subsequent advancement consist of a series of critical negotiations. If you are seeking either a new position or advancement at your present job, view these situations as Intelligent Negotiating opportunities. This approach will give you an edge you can use to build your career.
N
EW
P
OSITIONS
The first negotiation is to secure an interview. When you learn of an available position, you usually contact the firm directly or go through a university or private placement office. You have to make a good impression with those scheduling interviews and convince them that you deserve an interview. If you are rude or seem incompetent, they
may indicate that all interview slots are filled. On the other hand, even if the interviewer’s schedule is full, if you make an especially good impression, the scheduler is likely to fit you in during the day, or at the beginning or end of the interview schedule.
Many businesses advertise positions with only an e-mail address so that you must approach them by e-mail. If this is the case with the job you want, send a professional resume and cover letter, and after a week or two has passed, follow up with a polite note to the original contact, making sure they received the resume.
Prepare Thoroughly
When you do reach someone by telephone, or go in person to ask about a vacant position you are interested in, be fully prepared for that preliminary encounter. Read the available job announcement carefully to be sure you know what the job entails and what the expected qualifications are. Have a professional resume with you, in case the scheduler asks for a copy. Be prepared to describe your personal qualifications, if asked. The scheduler may possess the authority to determine who will be considered at all, thus you want to make a good impression on that person. You may also show up at the personnel office to schedule an interview and be asked to meet with the interviewer at that time. If you are prepared for such a possibility, you will make a better showing than if you are unprepared.
If you get on the interviewer’s schedule, prepare for that encounter. Be sure to wear proper attire—clothing appropriate for someone applying for the position you are seeking. When in doubt, keep in mind that you are better
off overdressed than underdressed. Even if the firm in question has “casual Fridays” and you are scheduled for a Friday session, dress in the same manner you would for an interview on another day of the week. While the interviewer may be wearing casual clothing, he or she is likely to expect
you
to dress more formally.
The Initial Interview
The preliminary portion of your meeting with the interviewer is especially important. Studies show that most interviewers form an initial impression during the first minute or two they spend with you. They then use the remaining portion of the interview trying to confirm their initial impression. It is thus crucial to begin your encounter in a highly professional manner. Introduce yourself politely but forcefully, and shake hands firmly with the interviewer. If she begins the small talk standing up, you should remain standing. Take a seat when she asks you to or when she elects to do so.
Be prepared to explain why you should be given the job. What are your specific qualifications? What unique personal skills could you bring to this firm? What other full- or part-time positions have you held that have prepared you for this type of employment? You may be asked about your specific strengths and weaknesses. Try to use these questions as opportunities to sell yourself. Emphasize your capabilities, and minimize your weaknesses. If asked about your weaknesses, try not to use cliches such as “I work too hard” or “I am overly conscientious.” Be honest, but don’t emphasize your negative traits.
Don’t hesitate to ask questions of the interviewer. If the job description contains general language, ask about
the specific job functions involved. Don’t hesitate to ask about advancement opportunities with the firm, because this demonstrates both a long-term interest and personal ambition. Try not to ask specific questions about salary and benefits at this stage of the selection process. The interviewer is likely to consider such inquiries presumptuous of someone who has not been offered the position. She should provide you with enough general information regarding these matters to satisfy your current interests. It is beneficial to use questions to get the interviewer talking. The more she speaks and you demonstrate active listening skills, the more likely she will be able to evaluate you favorably.
Salary Discussions
Avoid specific salary discussions until after you are offered a position. If the interviewer asks you about your salary requirements, attempt to provide a general—rather than a specific—response. You could mention your present salary, but may feel more comfortable responding with a question concerning the range for the position you are seeking. If you provide a specific answer and the number you cite is considered high, this may undermine the likelihood you will get the job. On the other hand, if you mention an unusually low number, the interviewer may think something is wrong with you. Why would someone with your capabilities be willing to accept such meager compensation? In addition, should you ultimately be offered the position at the low salary you mentioned, you may become a bitter and dissatisfied employee. If you are asked about your present compensation level and think it doesn’t reflect your personal value, don’t hesitate to describe
the skills you possess that make you worth more than you are currently earning. You can also indicate that you are looking for a more challenging position that will provide you with greater opportunities for advancement.
During the interview process, the business firm possesses the bargaining power. The firm has the job you want, as well as a number of qualified applicants. During this stage, those responsible for hiring are merely deciding which applicants to reject and which to consider. If you give them a reason (such as excessive salary expectations) to exclude you, they will do so. On the other hand, if you provide them with reasons to warrant consideration, you are likely to get to the next level. It is thus important to focus on the reasons for your inclusion, and avoid discussion of issues that may cause your disqualification.
Your bargaining power as a job applicant increases with the more expertise you have in a particular field or industry. Over time, you continue to garner more skills, contacts, and accomplishments, so you become increasingly more valuable as a seasoned performer who has already proven yourself in a specific arena.
The Compensation Package
Once you successfully negotiate your way through the selection process and obtain a firm offer, the balance of bargaining power shifts in your direction. The firm has decided to employ you, and the hiring official wants to secure your acceptance. This is the time to ask specific questions about salary and benefits.
Through friends, placement offices, trade groups, and other sources, you should have already obtained information concerning the compensation levels pertaining
to positions of this type. If you have Internet access, you can use sites such as
www.jobsmart.org
to gain information about relevant salary surveys that have been conducted recently. You can also find salary listings for various positions at sites such as
www.hotjobs.com
.