Submitted To-

Professor Dr. Md. Moazzam Husain

Course: Conflict Management
Course Code: MGT 5303
Department of Business Administration



Submitted By-
Nahida Ali
ID: 720
2nd Trimester
Program- MBA (1 Year)




Premier University (PU)


Negotiation
Assignment
on
Roll of Personality Traits
in Negotiation


Negotiation is a dialogue between two or more people or parties, intended to reach an
understanding, resolve point of difference, or gain advantage in outcome of dialogue, to
produce an agreement upon courses of action, to bargain for individual or collective advantage,
to craft outcomes to satisfy various interests of two people/parties involved in negotiation
process. Negotiation is a process where each party involved in negotiating tries to gain an
advantage for themselves by the end of the process. Negotiation is intended to aim at
compromise.
Negotiation occurs in business, non-profit organizations, and government branches, legal
proceedings, among nations and in personal situations such as marriage, divorce, parenting,
and everyday life. The study of the subject is called negotiation theory. Professional negotiators
are often specialized, such as union negotiators, leverage buyout negotiators, peace
negotiators, hostage negotiators, or may work under other titles, such as diplomats, legislators
or brokers.
i

The Role of Mood and Personality Traits in Negotiations
Negotiators who are in positive moods negotiate better outcomes than those who are in
average moods. Why? Negotiators who are upbeat or happy tend to trust the other party more
and therefore reach more joint-gain settlements. Let us assume Carlos, a manager, is a very
effective negotiator. One of the reasons Carlos is a good negotiator is because he opens
negotiations by trying to put his counterparts in a good mood he tells jokes provides
refreshment or emphasizes the positive side of what is at stake. This technique makes is
counterparts bargain more interactively because they communicate their priorities more
accurately, perceive others interest and they also think more creatively.
What about personality? Can you predict an opponents negotiations tactics of you know
something about his or her personality? It is tempting to answer Yes to this question. For
instance you might assume that high risk takers would be more aggressive bargainers who
make fewer concessions. Surprisingly the evidence has not always supported this intuition.
Assessment of the personality negotiation relationship has been that personality traits have
no significant direct effect on either the bargaining process or the negotiation outcomes.
However, recent research has started to question the theory that personality and the
negotiation process are not connected. In fact, it appears that several of the Big Five traits are
rated to negotiation outcomes. For example negotiators who are agreeable or extraverted are
not very successful when it comes to distributive bargaining. Why? Because extraverts are
outgoing and friendly they tend to share information than they should. And agreeable people
are more interested in finding ways to cooperate rather than butt heads. These traits while
slightly helpful in integrative negotiation are liabilities when interests are opposed. So the best
distributive bargainer appears to be a disagreeable introverts that is, someone who is
interested in his own outcomes versus pleasing the other party and having a pleasant social
exchange.
A big ego can also affect negotiations. For example, Samantha is an executive with a major
clothing manufacturer. She is convinced that everything she touches turns to gold and she
cannot stand to look bad. An important contract with her companys suppliers just came up for
negotiation. Excited, Samantha thinks she will take the reins during for negotiation process, but
her boss tells her she is off the negotiating team. Her boss is smart to keep such a hardliner off
the case, because a study found that individuals who are concerned with appearing competent
and successful in negotiations (that is, saving face) can have a negative effect on the outcome
of the negotiation process. Individuals who were more concerned with saving face were less
likely to reach agreements than those who were less concerned with coming out on top. This is
because those who are overly competitive in negotiating negotiate to look good personally
rather than to attain the best agreement for all concerned. So those who are able to check egos
at the door are able to negotiate better agreements for themselves and for others, whether the
bargaining situation is distributive or integrative.
Gender Difference in Negotiators: A popular stereotype held by many is that women are more
cooperative and pleasant in negotiations than are men. The evidence does not support this
belief. However, men have been found to negotiate better outcomes than women although the
difference is relatively small. It has been postulated that this differences might be due to men
and women pacing divergent values on outcomes. It is possible that a few hundred dollars more
in salary or the corner office is less important to women than forming and maintaining an
interpersonal relationship.
The evidence suggests that women attitudes toward negotiation and toward themselves as
negotiators appear to be quite different from mens. Managerial women demonstrate less
confidence in anticipation of negotiating and are less satisfied with their performance after the
process is complete even when their performance and the outcomes they achieve are similar to
those for men. This latter conclusion suggests that women may unduly penalize themselves by
failing to engage in negotiations when such action would be in their best interests.
ii

Role of Personality in Negotiation
An impressive personality goes hand in hand with good communication for an effective
negotiation. A charming personality is the key to an effective negotiation.
Let us understand how ones personality traits help in an effective negotiation.
During negotiations an individual must try to be himself. One should not fake things or
pretend to be good. If you are not satisfied with the deal, do not pretend that you are
happy. Its better to raise a concern then and there, rather than crib later. Be normal
and relax, things will automatically fall into place.
Its important to be sincere rather than just being serious. Sincerity is one of the most
important personality traits required in negotiation. One has to be sincere for an
effective negotiation. Dont take things casually. Go well prepared for your negotiation.
For a business deal, try to study everything related to the deal beforehand. The agenda
of the negotiation must be very clear to you. Carry all the related documents which you
might require at the time of negotiation. Dont go just for the sake of it.
Be honest. Dont fake things. During negotiations, honesty plays an important role. One
should never manipulate his salary to get a hike in the next organization. Dont speak
unnecessary lies just for some money. The fear to get caught would always be there and
somehow it would reflect on your face as well. Dont worry; you will definitely get what
you deserve. If you know the laptop costs you xyz amount, dont go and lie to the
shopkeeper that it is much cheaper in the next shop. He is not a fool doing business.
Remember even he keeps a check on the price what his fellow shopkeeper is offering.
Its better if you ask for some discounts or probably some additional accessories rather
than reducing the price which you know is little difficult for the shopkeeper.
One should go smartly dressed for a negotiation. Our dressing plays an important role
in enhancing our personality. A shabbily dressed person will find it very difficult to
convince the other person. Remember the first impression is the last impression and
one has to be very careful about it. Let us suppose if you go to a shop where the
shopkeeper is not smartly dressed, has a very casual approach and is almost half asleep,
will you feel interacting with him? You will obviously not bother to even listen to him.
Jack went in a t shirt and denims for a business deal. The other person assumed that
Jack himself is not serious about the deal and thus did not take much interest in the
negotiation. Smart dressing does not mean wearing expensive clothes; instead it is
dressing appropriately according to the occasion. Prefer wearing formals for business
deals and do not forget to polish your shoes for the desired impact. People do look at
your shoes.
Be Patient. It has been observed that impatient individuals are poor negotiators. Dont
think that if you want that the price of a particular item should be $4, the shopkeeper
will agree to it immediately and gladly give it to you. You need to convince him and that
requires patience. You cant lose your temper and shout on him.
Be flexible and learn to compromise. Its okay to give priority to ones personal
interests but one should not be selfish. If you are the first one to accept something, you
will not become unimportant or lose anything, instead the other person would look up
to you and both of you will gain whatever you want.
One has to trust the second party for a better negotiation. Dont always find faults in
others. Not all people are bad; there are people who are really good and helpful. One
should not always think that the other person would do harm to him. The second party
is there just to do business; he is absolutely not your enemy. Dont just come to the
point, start the conversation with a warm smile. If he is wearing a nice shirt, do take the
initiative to give him a compliment. Treat him as a friend. One should never be arrogant.
He is also representing his company just like you. Order coffee and some snacks. It will
help in breaking the ice and strengthening the bond between the two parties. Do
remember that one should not be too casual and over friendly.
Be professional in your approach. Once your deal is closed, do sign a contract in
presence of both the parties. The minutes of the meeting must be circulated among all
the participants for better clarity. Dont forget to collect your bills from the shopkeeper
after you are done with your shopping. Dont only rely on verbal communication.
Enhance your listening skills for a better negotiation. Listen to the other party as well.
He might come up with something interesting and beneficial to you as well. Dont think
that the other person doesnt know anything; even he has come well prepared. One
should never underestimate the second party. If you go for a shopping, dont ignore the
shop keeper, listen to him and then only decide what to purchase and what not to.
Be a little tactful and diplomatic. Being diplomatic does not mean being clever. There is
a difference between the two. One needs to be intelligent and should know what to
speak and what not to speak. Analyze the situation and respond accordingly. Dont
speak something because your boss has asked you to do the same. Apply your brains
and react in an appropriate manner. If you feel your statements would sound foolish in
the particular situation, it is better not to speak.
iii




i
http://en.wikipedia.org/wiki/Negotiation
ii
http://www.citeman.com/3811-the-role-of-mood-and-personality-traits-in-negotiations.html

iii
http://www.managementstudyguide.com/role-of-personality-in-negotiation.htm