Getting Less: When Negotiating Harms Post-Agreement Performance
54 Pages Posted: 20 Sep 2017
Date Written: September 18, 2017
In contrast to prior work that has assumed that negotiated agreements represent the economic value of negotiation outcomes, we demonstrate that the negotiation process can influence post-agreement behavior in a way that changes the economic value of the agreement. Our findings have particular relevance for negotiations for services, and fill a critical gap in our understanding of how negotiations influence performance. Across four studies, we demonstrate that negotiations can harm post-agreement behavior on both effortful and creative tasks. Specifically, we find that wage negotiations can harm productivity. Perceptions of conflict mediate the relationship between engaging in a negotiation and diminished motivation. Compared to not negotiating, individuals who negotiate may secure favorable deal terms, but risk incurring affective, relational, and economic costs. We call for future work to explore negotiations across a broader context of domains (e.g., negotiations for services in addition to goods) and to investigate how the negotiation process affects subsequent behavior (e.g., the provision of services). Our findings suggest that individuals should enter negotiations with caution.
Keywords: negotiation, productivity, conflict, reciprocity
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