THE PSYCHOLOGY OF NEGOTIATIONS: BEST PRACTICES FOR DEALING WITH THE

PSYCHOLOGICAL FACTORS THAT CAN BLOCK PROGRESS IN NEGOTIATIONS

A Short Workshop Delivered on December 5th 2012 by Dr. Evan Hoffman, Executive Director of the Canadian

International Institute Applied Negotiation, for the Public Service Alliance of Canada (PSAC)

What is Negotiation?

“It is a back and forth communication designed to reach an agreement when you and the other side have some interests that are shared and others that are opposed.”

(Getting to Yes by Roger Fisher & William Ury)

Some Key Elements of NegotiationThe Communication is ExplicitThe Communication is ReciprocalThe Communication Takes Place Directly Between the

PartiesThe Process is DesignedThe Intended Objective is an Agreement It is a Complex Relationship Which is a Mixture of Co-

operation and Conflict

(Negotiating World Order by Alan Henrikson)

Negotiation Success…

…depends on communicating effectively in order to build agreement between two or more parties.

People are at the Heart of Negotiation

Their actions can be influenced by their negotiating partners (and, in return, they also exert influence back on them). Moreover, their actions are also influenced by the context and by their own negotiating team. In this sense, negotiation is a very fluid and dynamic process that is constantly changing. However, perhaps most importantly a negotiator’s behaviours are also influenced by their own internal processes (in other words, “psychological factors”).

PSYCHOLOGICAL FACTORS THAT CAN BLOCK PROGRESS IN NEGOTIATIONS

Perception & CommunicationDiffering perceptions of the problem being addressed or issues being discussed can block progress in negotiations.

Closely related to this are issues of understanding and being understood (ie, communication).

Perception is SubjectiveWhat I see may not be what you see…

Verbal vs Nonverbal Communication

• 93% of communication is non-verbal. • Only 7% of a message’s meaning is

contained within the words.

Communication is a Process

Different personal values and/or working assumptions can block progress in negotiations

– Power is the bottom line– Most people are basically good– Women are easier to negotiate with than men– Most people are rational actors – People cannot and do not change – Time is money

Cognitive processes (ie, flawed decision-making processes), attitudes, and emotions (ie. anger) can block progress in negotiations.

Personality clashes created via ‘posturing’ and ‘saving face’ can block progress in negotiations.

Intangible issues such as status, pride, honor and dignity are often hidden within the overt negotiation process.

(The Sage Handbook of Conflict Communication edited by Stella Ting-Toomey)

© CIIAN

Deeply ingrained cultural differences or differing worldviews can block progress in negotiations.

ROLE OF CULTURE IN NEGOTIATION

Negotiating Goal Contract? or Relationship?

Negotiation Attitude Win/Lose? or Win/Win?

Personal Style Informal? or Formal?

Communication Direct? or Indirect?

Sensitivity to Time High? or Low?

Emotionalism High? or Low?

Form of Agreement General? or Specific?

Building an Agreement Bottom up? or Top down?

Team Organization One Leader? or Group Consensus?

Risk Taking High? or Low?

HOW CAN WE COMPENSATE FOR THE PSYCHOLOGICAL FACTORS THAT CAN BLOCK PROGRESS IN NEGOTIATIONS?

WAYS TO OVERCOME THE PSYCHOLOGICAL FACTORS THAT CAN BLOCK PROGRESS IN NEGOTIATIONS

Ways to Overcome the Psychological Factors That Can Block Progress in NegotiationsFACTOR TACTICS

Mis-Perceptions Clarify perceptions via ‘fact checking’

Communication Obstacles Be alert to nonverbal communication gestures such as body languageUse active listening skillsLearn the other’s languageAvoid jargonPhrase your message in clear and consistent languageDo not assume that what you said is that the other party heard (close the communication loop via feedback).

Personal Values

Working Assumptions Be aware of your own working assumptions; guess at your negotiating partner’s working assumptionsFlawed Cognitive Processes

Employ a structured-decision making modelKnow your BATNA

Negative Attitudes Try to foster empathyTake “Conciliatory Gestures”Be prepared to apologize for your mistakes

Negative Emotions Allow for ventingTake time outsDo not loose your temper

Personality Clashes Change negotiating partnersCreate “Face Saving” opportunities (ie, informal agreements)Try to establish a personal relationshipTreat your negotiating partner as an equal

Cultural differences Build cultural awareness Adjust your negotiating strategy to match their cultural needs

© CIIAN