Business Negotiation-1

CRICOS Provider Number 00025B

MGTS7310 Business

Negotiation

Fangcheng Yuan 43334458Stephanie Saxton 41166392Sebastian Selvarajan 44231684Hou Ying 43798416Anisha Mandhana 43654192

The Power Of Emotions In Negotiation

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Outline

• Emotions- Concept and affect on Negotiation

• Role play• Positive Emotions• Negative Emotions• Strategic Use of Emotions• Recommendations to handle

Emotions• Conclusion


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Emotions and Feelings


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Emotional Intelligence“the ability to monitor one’s own and others feelings and emotions, to discriminate among them and to use this information to guide one’s thinking and actions”


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Scene 1


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Scene 2


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Positive Emotions

Different terms Closely related to power

Facilitates integrative negotiation

Reduced contentious tactics

Leads to improved workplace outcomes

ContagiousAffect infusion model


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Positive Consequences

Results in Integrative Negotiation

Process

Creates positive attitude

Promotes Persisten

ce

Set the stage for

successful subsequen

t negotiatio

ns

Positive Emotions

Aspects

Fair procedure

s

Favorable Social

Comparisons


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Positive Emotions can also lead to Negative

Outcomes


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Negotiation Process

Competitive Mindset Impasse

The prospect

of beginning negotiatio

n

Negative Emotions


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Negative Emotions

Defining the situation as

competitive or distributive

Cannot analyze situation

accurately, affects outcomes

Escalating the conflict

Retaliating, thwart integrative outcomes

Negative Consequences

Consequences


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How anger influences negotiating performance?

Affects Value claiming and creation

Angry negotiators feel more focused and assertive

Leads counterparts to be intransigent due to reduced trusts


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Strategic Emotion How to use emotion as a strategy in

negotiations?


• Attention individual differences • Exercise emotional control • Engage in emotion work

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On-demand emotional expression

Emotional

intelligence

Self-monitor

ing

Self-regulati

on


Assesses the need for specific emotions

Plans for the display of such emotions

Executes the plan with appropriate expressive behavior

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A strategic negotiator..


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Manipulations of strategic emotion display Developing different bargaining stylesPositive

Bargaining style

• Positive• Avoid hostility• Create positive

relationships

• Reframe “you against me” to “we”

Resolute bargaining

style• Negative• Be persistant

and committed to beliefs

• Begin with extreme positions

• Employ negative reinforcements

• Be tough

Rational Bargaining

style• Neutral• Control

emotions’ display

• Be professional• Think logically• Make rational

strategic decisions


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AnalysisScene 1- Anger

employed to gain short term

gainsPossible outcomes- raise+ poor relations- No raise+ poor relations

Scene 2- Employee showed

emotional intelligence, moved to a

positive frame- Positive language employed- Integrative approach- Different options discussed


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Recommendations

• Manage the opponents emotion

• Take time out or reschedule the meeting

• Focus on integrative negotiation approach

• Acknowledge negative emotion

• Focus on the objective


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Conclusion• Neutral Emotion is not necessarily

the best way to manage Emotions

• Employ Positive Emotions for integrative or Win-win outcomes

• Negative Emotions usually result in distributive negotiation outcome

• Negative Emotions may be used for short-term benefits

• Use Emotional intelligence during negotiation


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Reference ListBoehm, J. K., & Lyubomirsky, S. 2008. Does happiness promote career success? Journal of Career Assessment, 16(1): 101-116.

Carnevale, P. J. D., & Isen, A. M. 1986. The influence of positive affect and visual access on the discovery of integrative solutions in bilateral negotiation. Organizational behavior and human decision processes, 37(1): 1-13.

Druckman, D., & Olekalns, M. 2008. Emotions in negotiation. Group Decision and Negotiation, 17(1): 1-11.

Forgas, J. P. 1994. The role of emotion in social judgments: An introductory review and an affect infusion model (AIM). European Journal of Social Psychology, 24(1): 1-24.

Forgas, J. P. 1995. Mood and judgment: The affect infusion model (AIM). Psychological bulletin, 117(1): 39-66.

Kleef, G., Pietroni, D., Rubaltelli, E., & Rumiati, R. 2009. When happiness pays in negotiation. Mind and Society: Cognitive Studies in Economics and Social Sciences, 8(1): 77-92.

Kopelman, S., Rosette, A. S., & Thompson, L. 2006. The three faces of eve: Strategic displays of positive, negative, and neutral emotions in negotiations. Organizational behavior and human decision processes, 99(1): 81-101.

Lewicki, R. J., Barry, B., & Saunders, D. M. 2015. Negotiation: Readings, exercises and cases (Seventh ed.). New York, NY: McGraw-Hill.

Li, S. 2005. Strategic emotion in negotiation: The use and consequences of positive and negative emotionsProQuest Dissertations Publishing.

Olekalns, M., & Druckman, D. 2014. With feeling: How emotions shape negotiation: Emotion in negotiation. Negotiation Journal, 30(4): 455-478.

Tsay, C., & Bazerman, M. 2012. The psychology of negotiations in the 21st century workplace.


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Documents

Business Negotiation-1