Decipher Your Counterpart: Perceived Status Hierarchy Accuracy and Intergroup Negotiation Performance

Keywords: Status, hierarchy, groups, negotiation

Abstract: Humans are a fundamentally social species and spend much of their time interacting in groups. However, research on the dimensions of individual ability has largely overlooked group-focused abilities. Building upon research on the individual benefits of accurate status information, we examine how individuals’ perceived status hierarchy (PSH) accuracy leads to unique team outcomes in inter-group negotiation settings. We propose that groups with high-PSH accuracy members will perform better in inter-group negotiations, because they can better identify the counterpart’s internal status hierarchy, choose the right people (i.e., truly high-status members) to persuade, and wield better negotiation outcomes. We find support for our prediction in a highly involving face-to-face inter-group negotiation with EMBA students. This work contributes to our understanding of the constellation of human abilities, extends existing theories of status and group dynamics, and offers a new answer to the critical question: “How well does this person work in groups?”