Signalling your bottom line reduces your counterparty’s ambitions.
Michael Schaerer is an Assistant Professor at Singapore Management University. He received his PhD from INSEAD.
Michael is interested in the psychological principles that govern organizational behaviour in hierarchically differentiated environments. Michael's research is primarily driven by two underlying questions: a) How do people in powerless positions think, feel, and behave in the workplace? and b) How can organizational decision makers effectively manage the effects of social hierarchies? Michael's work contributes to research on judgment and decision making, negotiation, and teams, and helps inform how powerlessness and hierarchical differentiation affect individual, interpersonal, and group-level outcomes. Michael previously worked as a strategy consultant at The Boston Consulting Group and holds a master's degree from The London School of Economics and a bachelor's degree from the University of St.Gallen.
Communication gaps between managers and their employees widen when delivering criticism.
Mentally simulating an attractive alternative can provide some of the advantages that real alternatives typically offer.
Depending on who you are negotiating with, your offers should be more or less precise.
When you are negotiating a deal it pays to have viable alternatives to fall back on – or at least that’s what most people think...