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 Negotiation
 The Communication is Explicit
 The Communication is Reciprocal
 The Communication Takes Place Directly
Between the Parties
 The Process is Designed
 The 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 & Communication
Differing 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 Subjective
What 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)
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?
© CIIAN
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
FACTOR
Mis-Perceptions
Ways to Overcome the Psychological Factors That Can Block Progress in Negotiations
TACTICS
Clarify perceptions via ‘fact checking’
Communication Obstacles Be alert to nonverbal communication gestures such as body language
Use active listening skills
Learn the other’s language
Avoid jargon
Phrase your message in clear and consistent language
Do 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 assumptions
Flawed Cognitive
Processes
Negative Attitudes
Employ a structured-decision making model
Know your BATNA
Try to foster empathy
Take “Conciliatory Gestures”
Be prepared to apologize for your mistakes
Negative Emotions
Allow for venting
Take time outs
Do not loose your temper
Change negotiating partners
Create “Face Saving” opportunities (ie, informal agreements)
Try to establish a personal relationship
Treat your negotiating partner as an equal
Personality Clashes
Cultural differences
Build cultural awareness
Adjust your negotiating strategy to match their cultural needs
© CIIAN