Studied by 2 people
Three Capitals of Prosperity
Financial, Social, Human
Homophily
Tendency to bond with others who are similar to you (Similarity Attraction Theory)
Brokerage
The act of connecting otherwise unconnected individuals or closing \n the gap in the social network structure
Benefits of being a broker
More access to unique information
Increased creativity and job performance
More social influence, i.e informal power
Shared Activity Principle
Forge connections through activities that a) evoke passion b) necessitate interdependence c) have something at stake, this leads to unscripted behaviors and natural responses while rallying around a common goal
Informal Conversations
Having conversations about non-work topics allow people to perceive you in a less instrumental way
Dormant Ties
People who we have not reached out to in a while are easier to reactivate into the network
Signs of Low Self Awareness
Won’t listen to or accept critical feedback
Can’t empathize
Have difficulty tailoring their message
Possess an inflated opinion of their contributions
Hurtful without realizing it
Take credit and blame others
Person-Environment Fir Theory
People are likely to perform better in organizations (i.e., person-organization fit) or at specific tasks (i.e., person-job fit) that are congruent with their personality trait
High in Conscientiousness
Detail-Oriented
Reliable and Hard working
Well organized
Self-control
Low in Conscientiousness
Careless
Unreliable
Disorganized
Impulsive
Extroverted
Energetic and Talkative
Seek social activities
Outgoing
Introverted
Quiet and reserved
Focus on own world
Selective in social relationships
High on Agreeableness
Cooperative and inclined to compromised
Avoid conflict
Empathetic
Trusting
Low on Agreeableness
Uncompromising
Abrasive and confrontational
Self-centered
Skeptical
Downside to Openness to Experience
Can be perceived as unfocused, risky or disruptive
Downside to Conscientiousness
Risk of being controlling and obsessive
Rigidity can clash with others openness to experience
Downsides to Extraversion
Can be perceived as aggressive
Can dominate discussion
Downsides to Agreeableness
Unproductive conflict avoidance
Risk of burnout
Ingenuine
High on Neuroticism
Moody and temperamental
Insecure
Self conscious and anxious
Low on Neuroticism
Emotionally stable
Secure
Self-Satisfied
High on Openness
Creative and curious
Open to try new things and changes
Comfortable with abstract concepts
Liberal
Low on Openness
Conventional and lack curiosity
Prefer routine
Prefer factual concepts
Traditional and conservative
Narcissism
Represents an inflated view of self, feeling superior to others with an intense desire for attention and admiration
Behaviors:
Self - promoting
Flamboyant and attention seeking
Won’t admit to wrongs
Name-dropping
Machiavellianism
Someone with a strong belief in the effectiveness of manipulation, a cynical view of human nature, and an overall lack of morality
Behaviors:
Attuned to social status and power
Demand respect and submissio
Calculative and strategic
Psychopathy
Overall lack of empathy, guilt and remorse while being impulsive and enjoying mental thrills
Behaviors
Disregard for welfare and lacking remorse
Seeking Sensation
Upsides to Narcissistic CEO’s
More likely to engage in CSR
More likely to initiate mergers and engage in radical innovation
Upsides to Machiavellianism
Useful in military settings, when sense of self should be reduced
Upsides to Psychopathy
Negotiation
Managing Up
The process of consciously working with your superior to obtain the best possible results for you, your boss, and the company
Mutual dependence
Leaders and employees equally depend on each other.
Over-dependence
The tendency to be overly dependent on the leader
Counter-dependence
The tendency to resent or rebel against the leader
Career Stages
Establishment → Advancement → Maintenance → Withdrawal
Employee Needs during Establishment Phase
Coaching
Feedback and Affirmation
Role-Modelling
Protection
Employee Needs during Advancement Phase
Exposure
Challenge
Sponsorship
Counseling
Employee Needs during Maintenance Phase
Autonomy
Opportunities to mentor
Needs during Withdrawal Phase
Consultative Roles
Boss Needs during Establishment ohase
Technical support
Psychological support
Boss Needs during Advancement phase
Loyalty
Boss Needs during Maintenance phase
Opportunities to mentor
Availability Heuristic
Tendency to use information that comes to mind quickly and easily when making decisions about the future
Framing Effect
hen our decisions are influenced by the way information is presented, as equivalent information can be more or less attractive depending on the way it is presented
Loss Aversion
Humans tend to be more sensitive to losing anything than gaining something
Anchoring Bias
Tendency to rely too heavily on the first piece of information we are given about a topic
Escalation of Commitment
Tendency to remain committed to our past behaviors, particularly those exhibited publicly, even if they do not have desirable outcomes
Confirmation Bias
Our tendency to focus on evidence that fits with or re-affirm our existing beliefs and ignore information that contradicts our existing beliefs
Overconfidence Bias
Our tendency to overestimate our abilities and expertise
Hindsight Bias
Our tendency to look back at an unpredictable event and think it was easily predictable
Ways to overcome cognitive biases
Establish concrete criteria before other options are presented
Involve outsiders
Time delay
Best Alternative To a Negotiated Agreement (BATNA)
The most advantageous alternative that a negotiating party can take if negotiations fail and an agreement cannot be made
Reservation Price
“Walk away” price, where it is too high for a buyer or too low for a seller
Target Price
The highest value the negotiator believe they can get from a negotiation
Settlement Range
Reservation Price – Target Price
ZOPA
Overlap in the two settlement ranges
How to calculate own BATNA/Reservation Price
List all current alternatives
Evaluate value of alternatives
Select highest value alternative (BATNA)
Reservation not lower than BATNA
Agreement Bias
Settling for terms worse than your BATNA
Winner’s Curse
Settling for too little or paying too much, lacking information
Lose-Lose
Leaving money on the table and failing to develop solutions to create a win-win situation
Hubris
Letting ego or emotion influence walking away from the deal
First Mover Advantage
First offer acts as an anchor for negotiation, anchor a little above the target price, but must be informed
Principle of Liking
People prefer to comply with the requests of those they know and like
Principle of Reciprocity
People repay in kind what they have received (the golden rule of social relationships)
Principle of Scarcity
People value items and opportunities more as they become less available
Principle of Authority
People tend to defer to authority, so expose your own expertise
Principle of Consistency
People align with their commitments, so get people to make smaller commitments before larger ones
Principle of Social Proof
People tend to follow the lead of others, or believe what they say, so use peer power when available to garner support
Distributive Approach
Negotiators view the negotiation as zero-sum, but limits creative approaches
Integrative Approach
Both parties look to integrate their goals under a larger umbrella, thus looking for ways to expand the “pie”
Alternative Dispute Resolution (ADR)
Mediation, arbitration, and other ways of resolving conflicts with the help of a specially trained, neutral third party
Mediation
When an outside third party (the mediator) enters the situation with the goal of assisting the parties in reaching an agreement
Arbitration
Parties submit the dispute to the third-party arbitrator, who makes the final decision
Terminal Values
End states people desire
Instrumental Values
Moral values about conduct
Positive affective v. Negative affective
Whether someone tends to experience positive or negative moods more often
Internal/External Locus of Control
The degree to which someone believes their life circumstances are based on their own actions
Negotiation Mistakes
Neglecting the other side’s problem
Holding price above other terms
Zero-Sum mindset
Searching too hard for common ground
Neglecting BATNA
Overlooking role bias and villification
Note
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