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CRICOS Provider Number 00025B
MGTS7310
Business
Negotiation
Fangcheng Yuan 43334458
Stephanie Saxton 41166392
Sebastian Selvarajan 44231684
Hou Ying 43798416
Anisha Mandhana 43654192
The Power Of Emotions In Negotiation
1
CRICOS Provider Number 00025B
2
Outline
• Emotions- Concept and affect on Negotiation
• Role play
• Positive Emotions
• Negative Emotions
• Strategic Use of Emotions
• Recommendations to handle Emotions
• Conclusion
CRICOS Provider Number 00025B
3
Emotions and Feelings
CRICOS Provider Number 00025B
4
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”
CRICOS Provider Number 00025B
5
Scene 1
CRICOS Provider Number 00025B
6
Scene 2
CRICOS Provider Number 00025B
7
CRICOS Provider Number 00025B
8
CRICOS Provider Number 00025B
9
CRICOS Provider Number 00025B
10
Positive Emotions
Different terms
Closely related to
power
Facilitates
integrative
negotiation
Reduced contentious
tactics
Leads to improved
workplace outcomes
Contagious
Affect infusion
model
CRICOS Provider Number 00025B
11
Positive
Consequences
Results in
Integrative
Negotiation
Process
Creates
positive
attitude
Promotes
Persistence
Set the stage
for successful
subsequent
negotiations
Positive Emotions
Aspec
ts
Fair
procedures
Favorable Social
Comparisons
CRICOS Provider Number 00025B
12
Positive Emotions can also
lead to Negative Outcomes
CRICOS Provider Number 00025B
13
Negotiation Process
Competitive Mindset Impasse
The prospect of
beginning
negotiation
Negative
Emotions
CRICOS Provider Number 00025B
14
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
CRICOS Provider Number 00025B
15
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
CRICOS Provider Number 00025B
16
Strategic Emotion
How to use emotion as a strategy in negotiations?
CRICOS Provider Number 00025B
• Attention individual differences
• Exercise emotional control
• Engage in emotion work
17
On-demand emotional expression
Emotional
intelligence
Self-
monitoring
Self-
regulation
CRICOS Provider Number 00025B
Assesses the need for specific
emotions
Plans for the display of such
emotions
Executes the plan with
appropriate expressive behavior
18
A strategic negotiator..
CRICOS Provider Number 00025B
19
Manipulations of strategic
emotion display
Developing different bargaining styles
Positive
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
CRICOS Provider Number 00025B
20
Analysis
Scene 1- Anger
employed to gain
short term gains
Possible
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
CRICOS Provider Number 00025B
21
Recommendations
• Manage the opponents emotion
• Take time out or reschedule the
meeting
• Focus on integrative negotiation
approach
• Acknowledge negative emotion
• Focus on the objective
CRICOS Provider Number 00025B
22
Conclusio
n
• 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
CRICOS Provider Number 00025B
23
Reference List
Boehm, 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.). NewYork,
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.
CRICOS Provider Number 00025B
24
CRICOS Provider Number 00025B
25

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Business Negotiation-1

  • 1. CRICOS Provider Number 00025B MGTS7310 Business Negotiation Fangcheng Yuan 43334458 Stephanie Saxton 41166392 Sebastian Selvarajan 44231684 Hou Ying 43798416 Anisha Mandhana 43654192 The Power Of Emotions In Negotiation 1
  • 2. CRICOS Provider Number 00025B 2 Outline • Emotions- Concept and affect on Negotiation • Role play • Positive Emotions • Negative Emotions • Strategic Use of Emotions • Recommendations to handle Emotions • Conclusion
  • 3. CRICOS Provider Number 00025B 3 Emotions and Feelings
  • 4. CRICOS Provider Number 00025B 4 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”
  • 5. CRICOS Provider Number 00025B 5 Scene 1
  • 6. CRICOS Provider Number 00025B 6 Scene 2
  • 10. CRICOS Provider Number 00025B 10 Positive Emotions Different terms Closely related to power Facilitates integrative negotiation Reduced contentious tactics Leads to improved workplace outcomes Contagious Affect infusion model
  • 11. CRICOS Provider Number 00025B 11 Positive Consequences Results in Integrative Negotiation Process Creates positive attitude Promotes Persistence Set the stage for successful subsequent negotiations Positive Emotions Aspec ts Fair procedures Favorable Social Comparisons
  • 12. CRICOS Provider Number 00025B 12 Positive Emotions can also lead to Negative Outcomes
  • 13. CRICOS Provider Number 00025B 13 Negotiation Process Competitive Mindset Impasse The prospect of beginning negotiation Negative Emotions
  • 14. CRICOS Provider Number 00025B 14 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
  • 15. CRICOS Provider Number 00025B 15 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
  • 16. CRICOS Provider Number 00025B 16 Strategic Emotion How to use emotion as a strategy in negotiations?
  • 17. CRICOS Provider Number 00025B • Attention individual differences • Exercise emotional control • Engage in emotion work 17 On-demand emotional expression Emotional intelligence Self- monitoring Self- regulation
  • 18. CRICOS Provider Number 00025B Assesses the need for specific emotions Plans for the display of such emotions Executes the plan with appropriate expressive behavior 18 A strategic negotiator..
  • 19. CRICOS Provider Number 00025B 19 Manipulations of strategic emotion display Developing different bargaining styles Positive 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
  • 20. CRICOS Provider Number 00025B 20 Analysis Scene 1- Anger employed to gain short term gains Possible 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
  • 21. CRICOS Provider Number 00025B 21 Recommendations • Manage the opponents emotion • Take time out or reschedule the meeting • Focus on integrative negotiation approach • Acknowledge negative emotion • Focus on the objective
  • 22. CRICOS Provider Number 00025B 22 Conclusio n • 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
  • 23. CRICOS Provider Number 00025B 23 Reference List Boehm, 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.). NewYork, 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.

Editor's Notes

  1. Emotional Intelligence??
  2. not merely an other-directed tactic that either succeeds or fails in its attempt at interpersonal influence. Negotiators interact with each other and their emotions evolve in the process. 1. accurate assessment of the emotional needs in specific situations 2. integration of such needs with one’s affective tendencies 3. efficacy in deploying the strategy.
  3. In this case the manager attempted to manage emotions by rescheduing the the meeting for a time when the emploee is in a calmer state of mind. Someties strong emotions can lead to situations where they cannot be managed and must be dealt with on the spot. Say- No evidence in literature of long term benefits of using negative emotions. Manager might resist giving raise under such circumstances even if in the companies best interest. Scene 2- New negotiation promised – open ended negotiation, prevents repeat of similar situation in the future
  4. 1- If you or the other party are experiencing some negative emotion, its best to take time out or reschedule the meeting.
  5. 1- Helps in building long term relationships. 3- Emotional intelligence-be aware of your own emotions and manage other persons emotions.