How do emotions impact the outcome of negotiations

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Conflict is an emotional or cognitive response that occurs when interests, perspectives, and behaviors of one individual or group explicitly differ from those of another individual or group. Because conflict can be both destructive and constructive, understanding the factors that support and inhibit both types of conflict is especially important. By understanding the nature of and the factors that underlie differences, by communicating effectively, and by formulating an action plan that considers the interests of the individuals and groups involved in the conflict, a manager can more effectively manage any type of conflict.

Conflict that occurs between members of the same group is called interpersonal conflict. Interpersonal conflict often emerges because of interdependence, when two or more individuals must work together to achieve a common goal. When their interests or perspectives are not aligned, conflict can emerge. Conflict that occurs between members of different groups is called intergroup conflict. Two theories help explain why intergroup conflict can escalate-social identity theory and realistic conflict theory. According to social identity theory, members of one group try to enhance their self-image by finding negative aspects of the other group, which leads to conflict. According to realistic conflict theory, access to limited resources can lead to conflict and can cause one group to more strongly coalesce against the other group.

Cognitive (or task-related) conflict can lead to more positive or productive outcomes, especially when individuals leverage their different interests, perspectives, and beliefs. If left unresolved, however, conflict can be detrimental and can limit the effectiveness of decision-making, creativity, and communication. Conflict that is directed at individuals and not the task is called affective conflict, and it tends to impede the ability of the group to work together effectively.

There are various ways to manage conflict from avoidance to compromise to collaboration. Managers must assess the situation to determine the most appropriate course of action. One way to try to resolve disagreements between individuals or groups is to outline the positions and interests of both parties. By doing so, the individuals in the dispute may be able to find some common ground.

Sometimes disagreements cannot be solved easily, and the two parties must turn to more formal processes such as negotiation. The two primary forms of negotiation are distributive and integrative negotiation. Distributive negotiations are single-issue negotiations that assume that one person's win is the other person's loss. Integrative negotiations focus on multiple issues that have the potential to allow both parties to achieve some level of victory or satisfaction.

To negotiate effectively, negotiators must evaluate each party's alternatives, interests, and priorities before the negotiation begins. Effective negotiators understand how to claim value and how to create value. They also understand the power of negotiating multiple issues simultaneously and exploring all opportunities so that no resources are left on the table. An effective negotiator avoids making mistakes including unnecessarily committing to his or her original stance, prematurely accepting the first offer, or becoming overconfident in the value he or she brings to the negotiation.

The form of and approach to negotiations will vary based on the cultural values that are important within a specific region or country. For instance, individuals in egalitarian cultures are more open to confrontation while individuals from hierarchical cultures tend to be less comfortable with direct confrontation. In cross-border negotiations, negotiators need to take time to understand any cultural implications that can influence the process.

How can and do emotions impact the outcome of negotiations?

Reference no: EM133267139

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