Business Skills

1
Learning Focus for Today

• Business Skills
• Leadership Skills
• Interpersonal Skills
• Intrapersonal Skills

2
Business Skills

• Decision Making Problem solving
• Negotiation
• Planning

Leadership Skills

• Motivating talent
• Developing communicating vision
• Goal setting
• Persuasion
• Persistence

3
Interpersonal Skills

• Social Skills
• Self-monitoring
• Self Control

Intrapersonal Skills

• Emotional Stability
• Self Control
• Attitudes toward authority
• Learning style

4
Teaching Method
Reading/Lecture Self Assessment Role Play
Cialdini Higgins, Judge, Ferris Thompson Leornadelli Influence strategy Ugli Orange Salary Negotiation
5
Learning Goals from Lecture on Readings

• Difference between Power Influence
• How to enact an influence strategy

6
What is power

• Having personal or positional resources to change
  situations or peoples attitudes behaviors

Legitimate
Referent
Coercive
Reward
Expert
Control over information
Positional Resources
Personal Resources
Yukl, 1989
7
What is Influence

• Using ones personal/positional resources to
  change peoples behaviors or attitudes
• Rational persuasion
• Ingratiation (liking)
• Exchange of benefits (reciprocity)
• Pressure tactics
• Appeals to authority (legitimating tactics)
• Consultation
• Inspirational appeals
• Coalition

Yukl, 89 Jensen, 07 Yukl Falbe 90
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Most Effective Influence Tactic

• Rational persuasion
• Explaining the reasons for request
• using logic to convince person,
• presenting information in support of point of view

Higgins, Judge, Ferris, 2003
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Second Most Effective Influence Tactic

• Ingratiation (liking)
• Made me feel important (e.g., only you have the
  brains, talent to do this)
• praising
• acting very humbly while making request

Higgins, Judge, Ferris, 2003
10
Influence
Liking
Example Study supporting the link
Guest liked Hostess more Guest liked Hostess less
Amount of Tupperware products purchased More Less
Cialdini
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Power vs. influence

• Power is not sufficient to result in behavioral
  or attitudinal change, it is the potential to
  change
• Influence is the process of changing
• e.g. one needs to have the ability or opportunity
  to use expertise or information that one has
  control over to change others/events

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Types of Power Types of Influence Tactics
Legitimate
Coercive
Reward
Referent
Expert
Inspirational Ingratiation
Pressure
Appeals to authority
Exchange
Rational Persuasion
13
Influence
Scarcity
Tactics not obviously linked to a source of power
Appeals to authority
Rational Persuasion
Consultation
Pressure
Exchange
Ingratiation
Coalition
Inspirational
Preference for consistency
Power
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How to enact some influence strategies
Whether similar others are influenced
Exchange Norms
Liking (ingratiation)
Influence
Preference for consistency
Scarcity
Expertise
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Influence
Liking
Similarity
2nd Study supporting the link
High Similarity to Salespersons Low Similarity to Salespersons
Probability of purchasing insurance policies High Low
Similarity measured in terms of age, religion,
politics etc.
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Liking
Praise/Flattery
Influence

• Studies supporting the link
• Men liked the individual who praised them most
  even if the praise was undeserved
• Positive comments about a persons attitudes,
  traits, performance leads to liking and
  compliance with the comment makers request

17
Reflect on how you generated liking in Fruit
Negotiation/Group Decision Making Exercise

• Describe how you
• Enhanced similarity between you and other
• Used praise or flattery
• Explain how that led to a positive outcome

18
Apply what you learned in the Salary Negotiation
Exercise

• As a supervisor/subordinate, make a plan on how
  you will use the research on liking in your
  salary negotiations
• Write down what specific things will you say/do?

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Influence
Exchange Norms

• Field Study supporting the link

Request accompanied by personalized address labels Request not accompanied by gift
Response rate to Disable Americans Veterans Fund Raising letter 35 18
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Behaviors to enact when using Exchange Tactics

• Exchange of benefits (reciprocity)
• Reminding person of past favors that you did for
  him/her
• Offering an exchange (e.g., if you do this for
  me, I will do something for you)

21
Reflect on how you established exchange norms
in Fruit Negotiation/Group Decision Making
Exercise

• Describe what you gave and how it prompted the
  other party to return the favor
• Explain how that led to a positive outcome

22
Apply what you learned in the Salary Negotiation
Exercise

• As a supervisor/subordinate, how will you use the
  research on exchange norms in your upcoming
  salary negotiations
• Write down what specific things will you say/do?

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Whether similar others are influenced
Influence

• 1st Study supporting the link

Long list of neighbors who donated Short list of neighbors who donated
Probability of donating to charity High Low
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Whether similar others are influenced
Influence
2nd Study supporting the link
Another New Yorker had returned lost wallet Foreigner had returned lost wallet
Probability of residents of NY returning wallet High Low
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Behaviors to enact when using coalition
influence tactics

• Coalition
• Pointing out that many non participants back up
  your idea
• Obtaining support of other participants to back
  up your idea

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Apply what you learned in the Salary Negotiation
Exercise

• As a supervisor/subordinate, how will you use the
  research on the role of whether similar others
  are influenced in your upcoming salary
  negotiations
• Write down what specific things will you say/do?

27
Influence
Preference for consistency

• 1st study supporting the link

Signed petition for establishing a rec centre for the handicapped 2 weeks earlier Did not sign petition
Probability of donating to charity for handicapped High Low
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Preference for consistency
Influence
2nd study supporting the link
Filled out a printed form saying they wished to volunteer Did not fill out a printed form stating that they did not wish to volunteer
Likelihood of reporting for volunteer duty High Low
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Reflect on how you made preference for
consistency salient in Fruit Negotiation/Group
Decision Making Exercise

• Describe what you did and how that led to a
  positive outcome

30
Apply what you learned in the Salary Negotiation
Exercise

• As a supervisor/subordinate, how will you use the
  research on the role of public commitment and
  consistency in your upcoming salary negotiations
• Write down what specific things will you say/do?

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Influence
Expertise

• Non-experimental study supporting link
• Stroke patients were more likely to comply with
  their exercise regime after they left the
  hospital when the physical therapists
  credentials were left on the walls of the therapy
  room

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Influence
Scarcity of Resource
1st study supporting the link
Told that if they failed to insulate their homes they would lose a certain amount of money each day Told that if they did insulate their homes they would gain a certain amount of money each day
Likelihood of insulating home High Low
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Influence
Scarcity of Resource
2nd study supporting the link
Told that there would be a scarcity of beef in the future and no other beef buyer had this information about scarcity Told that there would be a scarcity of beef in the future
Likelihood of buying beef High Low
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Apply what you learned in the Salary Negotiation
Exercise

• As a supervisor/subordinate, write down specific
  things you will say/do to incorporate the
  research on the role of following factors in
  negotiation
• Expertise
• Scarcity of resources

35
Review
Whether similar others are influenced
Exchange Norms
Liking (ingratiation)
Influence
Preference for consistency
Scarcity
Expertise
36
Other influence strategies you may have used in
Fruit Negotiation/Group Decision Making Exercise
or may use in Salary Negotiation Exercise
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Behaviors to enact when using Consultation
influence tactics

• Told person what you are trying to accomplish and
  asked if person knew of a good way to do it
• Actively sought persons input with regard to a
  decision

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Behaviors to enact when using Pressure influence
tactics

• Expressing anger verbally
• demanding that other person do what you want

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Behaviors to enact when using Inspirational
Appeals

• Using charisma to arouse persons interest and
  support for your ideas and proposals
• Describing your proposal or change with
  enthusiasm and conviction that it is important
  and worthwhile

40
Recall the role of other factors already reviewed
Type of Relationship between parties
Type of Emotions
Negotiation
Perceptions of Parties
Ability to Invent Options
Type of BATNA
Bargaining Style
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Whats next

• Theoretical Understanding from Readings
• Practical Application
• Do Salary Negotiation Exercise
• Complete influence style questionnaire for self
  and other in the salary negotiation exercise
  give each other feedback
• Discuss learning from Salary Negotiation Exercise

42
When describing your agreements explain how these
factors affected your negotiation
Whether similar others are influenced
Exchange Norms
Liking (ingratiation)
Influence
Preference for consistency
Scarcity
Expertise
43
When describing your agreements, explain how
these factors affected your negotiation
Type of Relationship between parties
Type of Emotions
Negotiation
Perceptions of Parties
Ability to Invent Options
Type of BATNA
Bargaining Style
44
Reflecting on influence strategies you used

• How did you implement them?
• Did your partner notice them as you intended?
• How effective were they?
• What are the implications of
• Your partner feedback on the influence strategies
  you will use in the future?
• The effectiveness of your influence strategies

45
Future implications

• Compare contrast your experience in this role
  play with experiences you may have had in real
  salary discussions
• Identify one thing you learned from your
  experiences in this role play that you think may
  be useful in your next real salary negotiation.