Perception, Cognition, and Emotion CHAPTER FIVE Perception, Cognition, and Emotion INB 350 Lecture By: Ms. Adina Malik (ALK)

Learning Objectives Perception The process of cognition Forms of perception disorder The process of cognition Cognitive biases or systematic errors The role of moods and emotions For causes of behavior For consequences of outcome

Perception Perception is: The process by which individuals connect to their environment. A “sense-making” process A complex physical and psychological process It is defined as ‘the process of screening, selecting and interpreting stimuli so that they have meaning to the individual’ (Steers,1084). Negotiators approach each situation guided by their perceptions of past situations and current behaviors and attitudes. Their expectations of the future behaviors of other parties and subsequent outcomes are based largely on information gained through direct experience or observations. People interpret their environment so that they can respond appropriately. Environments are typically complex. This complexity makes it impossible to process all the available information, so perception becomes selective, tuning in on some stimuli while tuning out others. Stimuli: something that causes physiological and psychological response. Physiology: function of living organism

The Role of Perception The process of ascribing meaning to messages and events is strongly influenced by the perceiver’s current state of mind, role, and comprehension of earlier communications People interpret their environment in order to respond appropriately The complexity of environments makes it impossible to process all of the information People develop shortcuts to process information and these shortcuts create perceptual errors

Perceptual Distortion Four major perceptual errors: Stereotyping Halo effects Selective perception Projection Distortion by Generalization Distortion based on Attributes In any given negotiation, the perceiver’s own needs, desires, motivations, and personal experiences may create a predisposition about the other party. This is a cause of concern when it leads to biases and errors in perception and subsequent communication. Perception distortion by generalization: small amounts of perceptual information are used to draw large conclusions about individuals. Distortion based on attributes: form of distortion that involves anticipating certain attributes and qualities in another person. Perceptual distortions are in sense ‘shortcuts’ that individuals use to make sense of very complex environments and situations. Unfortunately these shortcuts come with significant costs-perceptual errors, which typically occur without people being aware that they are happening and which have unfortunate consequences. If initial assumptions are incorrect, then negotiators may not be able to reverse their effects; by the time negotiators are in a position to judge the predisposition of the other party accurately, the other party may have interpreted the initial competitive mood and defensive posture of the negotiator as offensive and antagonistic.

Stereotyping Is a very common distortion Occurs when an individual assigns attributes to another solely on the basis of the other’s membership in a particular social or demographic category For e.g.: ‘Old people are conservative; this person is old and therefore is conservative.’ Stereotypes are formed about a wide variety of different groups, for example, younger generation, males or females, Italians or Germans, or people of different races, religions or sexual orientations. People assign an individual to a group based on one piece of perceptual information (e.g. whether the individual is old or young). Then they assign a broad range of characteristics of that group to this individual. For e.g.: ‘Young people are disrespectful; this person is young and therefore is disrespectful’. There is no factual basis for such conclusion.

Halo Effects Are similar to stereotypes Occur when an individual generalizes about a variety of attributes based on the knowledge of one attribute of an individual For e.g.: A smiling person is judged to be more honest than a frowning person, even though there is no consistent relationship between smiling and honesty. It can be positive or negative It can be positive or negative a good attribute may be generalized so that people are seen in a positive light, while a negative attribute may have a reverse effect.

Selective Perception The perceiver singles out information that supports a prior belief but filters out contrary information Perpetuates stereotypes or halo effects For e.g.: Smile as honest or dishonest are likely to affect how the other party’s behavior is perceived or interpreted. Selective Perception: It occurs when a perceiver singles out certain information that supports or reinforces a prior belief and filters out information that does not confirm that belief. Perpetuate: after forming quick judgments about individuals on the basis of limited information, people may then filter out further evidence that might disconfirm the judgment. For e.g.: the predisposition to view the smile as honest or dishonest are likely to affect how the other party’s behavior is perceived or interpreted.

Projection Arises out of a need to protect one’s own self-concept People assign to others the characteristics or feelings that they possess themselves (position reversed) For e.g. frustration Projection: Self-concept: to see myself as consistent and good. Negotiators may assume that the other party would respond in the same manner they would if positions were reversed. For e.g.: if a negotiator feels that he would be frustrated if he were in the other party’s position, then he is likely to perceive that the other party is frustrated

Cognitive Biases in Negotiation Negotiators have a tendency to make systematic errors when they process information. These errors, collectively labeled cognitive biases, tend to impede negotiator performance. Cognitive Biases: Irrational escalation of commitment Mythical fixed-pie beliefs Anchoring and adjustment Issue framing and risk Availability of information The winner’s curse Overconfidence The law of small numbers Self-serving biases Endowment effect Ignoring others’ cognitions Reactive devaluation

Irrational Escalation of Commitment and Mythical Fixed-Pie Beliefs Negotiators maintain commitment to a course of action even when that commitment constitutes irrational behavior To avoid it parties should involve advisor who will work as a reality check point Mythical fixed-pie beliefs Negotiators assume that all negotiations (not just some) involve a fixed pie To avoid it parties should introduce accountability in the negotiation context

Anchoring and Adjustment and Issue Framing and Risk The effect of the standard (anchor) against which subsequent adjustments (gains or losses) are measured The anchor might be based on faulty or incomplete information, thus be misleading Thorough preparation, along with reality check can help to avoid it Issue framing and risk Frames can lead people to seek, avoid, or be neutral about risk in decision making and negotiation

Availability of Information and the Winner’s Curse Operates when information that is presented in vivid or attention-getting ways becomes easy to recall. Becomes central and critical in evaluating events and options The winner’s curse The tendency to settle quickly on an item and then subsequently feel discomfort about a win that comes too easily The best remedy for winner’s curse is to prevent it from occurring

Overconfidence and The Law of Small Numbers The tendency of negotiators to believe that their ability to be correct or accurate is greater than is actually true The law of small numbers The tendency of people to draw conclusions from small sample sizes The smaller sample, the greater the possibility that past lessons will be erroneously used to infer what will happen in the future

Self-Serving Biases and Endowment Effect People often explain another person’s behavior by making attributions, either to the person or to the situation The tendency, known as fundamental attribution error, is to: Overestimate the role of personal or internal factors Underestimate the role of situational or external factors Endowment effect The tendency to overvalue something you own or believe you possess

Ignoring Others’ Cognitions and Reactive Devaluation Negotiators don’t bother to ask about the other party’s perceptions and thoughts This leaves them to work with incomplete information, and thus produces faulty results Reactive devaluation The process of devaluing the other party’s concessions simply because the other party made them

Mood, Emotion, and Negotiation The distinction between mood and emotion is based on three characteristics: Specificity Intensity Duration

Mood, Emotion, and Negotiation Negotiations create both positive and negative emotions Positive emotions generally have positive consequences for negotiations They are more likely to lead the parties toward more integrative processes They also create a positive attitude toward the other side They promote persistence Aspects of the negotiation process can lead to positive emotions Positive feelings result from fair procedures during negotiation Positive feelings result from favorable social comparison

Mood, Emotion, and Negotiation Negative emotions generally have negative consequences for negotiations They may lead parties to define the situation as competitive or distributive They may undermine a negotiator’s ability to analyze the situation accurately, which adversely affects individual outcomes They may lead parties to escalate the conflict They may lead parties to retaliate and may thwart integrative outcomes

Mood, Emotion, and Negotiation Aspects of the negotiation process can lead to negative emotions Negative emotions may result from a competitive mindset Negative emotions may result from an impasse Effects of positive and negative emotion Positive emotions may generate negative outcomes Negative feelings may elicit beneficial outcomes Emotions can be used strategically as negotiation gambits