Negotiation Flashcards
What are we going to argue for a potential reason for the gender pay gap?
its due to different attitudes towards negotiation by men and women.
Why is who goes to the bargaining table an important question?
Persistent gender wage gap even controlling for job level, industry, experience, education etc.
What does this show ?
The pay gap increases, the higher the educational achievement
What does this show?
It shows that part of this gender pay gap could be explained about what men and women want in a career e.g. men want higher salary whereas being happy is more important for a women.
Who tends to negotiate? So who negotiates less men or women?
1) Those who have a high internal locus of control ( you believe that what you get out of life will be determined by your actions as opposed to external locus of control (what you get out of life is determined by external factors.
2) Sense of entitlement
Thus given this, women are less likely to negotiate.
So we tend to find women don’t ask for promotion and don’t like to network with men so what is one consequence of this?
only 5% of CEOs of the biggest 2500 companies in the world are female.
Still few male directors on company boards, except for countries which have quotas.
So we say having diverse boards is good for company performance but does it actually improve company performance? Why is the results what it is?
It makes no difference in Bell et al (2011) meta analysis.
Women are not listened to (groupthink) also the stock market is prejudice and doesn’t like to put women on boards( there is evidence of a stock market premium for all male boards)
What is the first paper we are going to look at which basically concludes Women are less likely to negotiate?
Who goes to the bargaining table The influence of Gender and Framing on invitation of negotiation ( A small et al 2007
In the Who goes to the bargaining table The influence of Gender and Framing on invitation of negotiation ( A small et al 2007 paper we have a very simple experiment for study 1 which is :
74 Participants ( 35 men and 39 females) play a word game on their own ( Boggle)
Were told ‘you will be paid between $3 and $10
After the task they were all offered $3
They were not told that they could negotiate more money
The dependent variable is if participants negotiate for higher payment
What were the results?
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So understandly in study 1 we have low negotiation results but striking differences between men and women, so in study 2 we want to make it explicit to a certain group that they can ask for more money and see what it means for our results.
So method:
Control group = same as study 1
Treatment group = were told ‘ the exact payment is negotiable, now interpret these results? and what does this show in comparison to study 1 results?
For control group we see the same results as before men negotiate without negotiation frame.
Now with the treatment group, overrall negotiation increased but still striking differences between men and women.
This shows the gender difference in negotiation is not because women didn’t realise you could ask for more money, because in the treatment group everyone was told you could ask for more money but still didn’t.
So study 1 and 2 give some strong evidence on the hyphothesis that women don’t negotiate as much for pay as men, so in study 3 we wanted to find what are womens perception and feelings in regards to negotiating, do they find negotiating intimidating and also ask how intimidating is asking .
So they give women and men a questionnaire which is either framed as negotiating or framed as asking.
Interpret the results?
So for men, negotiation and asking doesn’t make a difference in terms of intimidation.
For women, they find asking for stuff far less intimidating than negotiating for stuff.
So lets say instead of saying you can negotiate you can ask for more payment, so same experiment.
So we have a control group ( no cue)
We have a group where you say in advance you can negotiate more pay.
We have a Ask group where you say in advance you can ask for more pay. Interpret the results.
So as before big gender difference with the control and negotiate group.
However for Ask group we see a small gender difference, actually slightly more women asked for more money. So it seems here the framing of the question is important.
So the authors thought how can we make negotiation less intimidating and make women more confident to negotiate, as the framing of the word clearly makes a difference? It was speculated that women feel they have low power in society, thus is the reason why they find negotiation intimidating, thus the authors thought of priming the women with power to see if negotiation will now become less intimidating so Method:
1) Priming treatment = people are asked to recall a situation where they had power over someone else
2) For control they had to write something down but it was like how they spent their evenings
Then same questions are asked about how they intimidating they find negotiating and asking.
Interpret the results?
For control group, we find familiar gender difference in how intimidating negotiation is.
For the power primed group, there is no difference between men and women in terms of how intimidating they find negotiation.
Hence the role of power is important in moderating gender differences in reactions to the prospects of asking and negotiating.
What is a potential limitation of the experiment in the paper by A small et al (2007)
It only looked at the initiation of negotiation, the paradigm did not allow us to examine the social outcomes of initiating a negotiation for men and women.
There are also costs involved in negotiation ( damaging relationships, thus that needs to be considered)
So we concluded from first paper, women are less likely to negotiate because of intimidation and the lack of power they feel they have. Now what is the second paper looks another reason why women don’t involve themselves in negotiation and its to do with how society expects women to behave and the differences between between the treatment men and women get in negotiation. What is the paper called?
Social incentives for gender differences in the propensity to initiatte negotiations: Sometimes it does hurt to ask. Bowles et al ( 2007)
What are women expected to be?
What are men expected to be in society?
There are 4 experiments now lets look at experiment 1
So participants have to evaluate job candidates based on their CV and interview notes taken place. The notes say whether they were male and female and also whether the candidate tried to negotiate for money money or whatever.
Then participants are asked ‘How likely is that you hire this person’ (1-7). Interpret the result = dependent variable
Note: they use subscripts in which if they are different e.g. a and b then it is significant.
So as you can see firstly for the male candidates they are punished for asking, they have a lower score when asking.
Although the female candidates are punished more severely for same behaviour.
We do see that for those who didn’t ask for more money, females are slightly higher.
Due to the fact that results in experiment 1 may be a bit non reliable as the evaluators may were less inclined to hire a candidate who initiated negotiations , so the 2nd experiment deals with this, were the evaluator had some managerial experience and that the potential negotiator was that of job candidate who had already received an offer, so that negotiating would be seen as an acceptable practice. Then they read 4 transcripts - male/female and did they negotiate or not
For male candidates, the ones that ask get a lower score but not significant.
For female candidates the ones that ask get a lower score and it is significant.
Again we see that females are actually failed a bit when they don’t ask.
Hence women incur a greater social cost from attempting to negotiate for higher compensation than men.
In experiment 3, it is conducted the exact same as experiment 2 but now see a videotaped interview instead of notes. They get asked the same questions of willingness to work but now on the perceived competence ‘nicer’ perceived as more competent, ‘more demanding’ perceived as less competent.
They also look to see if it makes a difference if the evaluator is male or female.
Interpret please.
If you have a male candidate and a male evaluator, there is no significant difference in whether you asked or not to negotiate.
If you have a female candidate and a male evaluator, there is a significant difference when they ask to negotiate.
If you have a male candidate and a female evaluator there is a significant difference in asking to negotiate then not asking to negotiate.
If you have a female candidate and a female evaluator there is a significant difference in asking to negotiate then not asking to negotiate, however this is smaller than a female evaluator looking at a male candidate.
This shows the questions the evaluators got asked about the perceived niceness, demandingness and competence. Interpret some main findings.
Its easy here to interpret, remember when subscripts are different its means its significant.
In experiment 4 we did blaj
