1. McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

2. CHAPTER FIFTEEN Individual Differences II: Personality and Abilities

3. Early Research on Individual Differences and Negotiation Four explanations for contradictory and inconclusive early research: The effects of individual differences are subtle and elusive The wrong kind of task was investigated The wrong individual differences were investigated Research methods were flawed or inconsistent 15-3

4. Eight Approaches to Studying Personality in Negotiation 1.Conflict management style 2.Social value orientation 3.Interpersonal trust 4.Self-efficacy and locus of control 5.Self-monitoring 6.Machiavellianism 7.Face threat sensitivity 8.The “Big Five” personality factors 15-4

5. Conflict Management Style Two levels of concern underlie the five conflict management styles –Degree of assertiveness a party shows for his or her own outcomes –Degree of cooperativeness the party shows toward working for the other’s outcomes Two personality dimensions represent these levels of concern –Degree of assertiveness –Degree of cooperativeness 15-5

6. Conflict Management Style Five major conflict management styles: A competing style—high on assertiveness and low on cooperativeness An accommodating style—low on assertiveness and high on cooperativeness An avoiding style—low on both assertiveness and cooperativeness A collaborating style—high on both assertiveness and cooperativeness A compromising style—moderate on both assertiveness and cooperativeness 15-6

7. Conflict Management Style 15-7

8. Social Value Orientation Preferences regarding the kinds of outcomes people prefer in social settings where interdependence with others is required Two orientations: –Pro-self or egoistic: primarily concerned with personal outcomes –Pro-social or cooperative: preference for outcomes that benefit both self and others 15-8

9. Interpersonal Trust Determined by the experiences that people have in dealing with others Individuals differ in levels of interpersonal trust –High trusters: believe that others will be trustworthy and that they need to trustworthy themselves –Low trusters: believe that others cannot be trusted to observe the rules and may feel less pressure themselves to trust others 15-9

10. Self-Efficacy A judgment about one’s ability to behave effectively Plays an important role in complex interpersonal behavior, including negotiation Higher levels of self-efficacy lead to higher outcomes and setting higher goals One’s perceived level of competence at negotiation may increase the likelihood that collaborative problem solving will occur 15-10

11. Locus of Control The extent to which people perceive that they have control over events that occur: –High external locus of control: attributes the cause of events to external reasons (e.g., luck) –High internal locus of control: attributes the cause of events to internal reasons (e.g., ability) In a distributive negotiation, “internals” had higher resistance points than “externals” Locus of control appears to influence negotiator aspirations, preferences and outcomes 15-11

12. Self-Monitoring The extent to which people are responsive to the social cues that come from the social environment High self-monitors: –Attentive to external, interpersonal information –Inclined to treat this information as cues to how one should behave Low self-monitors: –Less attentive to external information that may cue behavior, –Guided more in their behavioral choices by inner, personal feelings 15-12

13. Machiavellianism Those scoring high in Machiavellianism: –Tend to be cynical about others’ motives –More likely to behave unaltruistically and unsympathetically –Less willing to change their convictions under social pressure –More likely to tolerate behavior that violates social norms –More inclined to advocate the use of deception interpersonally 15-13

14. Face Threat Sensitivity The concept of “face” refers to the value people place on their public image or reputation Some people are more susceptible to reacting in a negative way to threats to face Threats to one’s image will make a negotiator competitive in a situation that might otherwise benefit from cooperative behavior 15-14

15. The "Big Five" Personality Factors Extraversion – sociable, assertive, talkative Agreeableness – flexible, cooperative, trusting Conscientiousness – responsible, organized, achievement oriented Emotional stability – secure, confident, not anxious Openness – imaginative, broad-minded, curious 15-15

16. The "Big Five" Personality Factors Negotiators higher in extraversion and agreeableness were more likely to do worse in distributive bargaining Effects of personality were lessened when negotiators had high aspirations for their own performance These elements of personality did not affect how well negotiators did in complex integrative bargaining 15-16

17. Abilities in Negotiation Three kinds of abilities and negotiation behavior: Cognitive ability Emotional intelligence Perspective-taking ability 15-17

18. Cognitive Ability Synonymous with the general notion of intelligence, cognitive ability has been shown to influence: –Reasoning –Decision making –Information processing capacity –Learning –Adaptability to change, particularly in novel or complex situations 15-18

19. Emotional Intelligence Encompasses a set of discrete but related abilities: – Perceiving and expressing emotion accurately –Accessing emotion in facilitating thought –Comprehending and analyzing emotion –Regulating appropriately one’s own emotions and those of others –To date only a few studies of its role have yet to appear in the academic literature 15-19

20. Perspective-Taking Ability “A negotiator’s capacity to understand the other party’s point of view during a negotiation and thereby to predict the other party’s strategies and tactics” Negotiators with higher perspective-taking ability –Negotiated contracts of higher value –Appear to be able to increase the concessions that the other party is willing to make 15-20

21. Behaviors of Superior Negotiators During prenegotiation planning: Consider more outcome options for the issues being discussed Spend more time looking for areas of common ground Think more about the long-term consequences of different issues Prepare goals around ranges rather than fixed points Do not form plans into strict, sequential order 15-21

22. Behaviors of Superior Negotiators During face-to-face bargaining: Make fewer immediate counterproposals Are less likely to describe offers in glowingly positive terms Avoid defend-attack cycles Use behavioral labeling, except when disagreeing Ask more questions, especially to test understanding Summarize compactly the progress made in the negotiation Do not dilute arguments by including weak reasons when trying to persuade the other party 15-22

23. Behaviors of Superior Negotiators During postnegotiation review: Reserve time to review what is learned from the negotiation 15-23