The effect of Emotions on Business Negotiations

Negotiations have permeated individual and public life in various aspects and degrees and have had an impact on both the personal and professional levels. In a fast-paced, more global, yet regionally focused environment than ever before, business negotiations provide an effective, high-risk, high-reward tool for achieving one's goals. The role of emotions and their effect on business negotiations will be analyzed in this thesis.

The results of this thesis include direct psychosomatic differentiations based on gender and situation, as well as their effect on negotiation strategies. Conclusion biological indicators that influence behavior, their use and implementation at the negotiating table as part of an integrated strategy to achieve the desired result.

Introduction

The intention to reach the negotiating table can consist of an agenda to agree or disagree, to cooperate or to confront, to be pleasant in the process or to be aggressive. In the specific context of professional negotiations, it will be argued, both theoretically and practically, how the effect of emotions on communication can be an important element in planning strategy and negotiation tactics. This thesis continues as follows: In the second chapter, the theoretical development of Economics (Smith, 1759), Game Theory (Myerson, 1991), Nash Equilibrium (Nash, 1950), Industrial Organization (Tirole, 1988) and their implication in Reputation (Morris, 2012) is established.

Chapter four consists of the evidence supporting the theoretical development and methodology, including biological information (Brizendine M.D., 2007) from stakeholders. Chapter five refers to the implication of the argumentation and in chapter six the conclusion of the effect of emotions on business negotiations is deployed.

Theoretical Development

Social and psychological factors are explored to understand the decision-making process” (Ploumaki, 2013), which is then attributed to game theory (Myerson, 1991), “the study of mathematical models of conflict and cooperation between intelligent rational decision-makers.” In game theory (Myerson, 1991), Nash equilibrium is a solution concept of a non-cooperative game involving two or more players, where each player is assumed to know the other players' equilibrium strategies, and no player has anything to say has. profit by unilaterally changing only his own strategy”. Rubinstein, 1994) “The Nash equilibrium concept can be used to analyze the outcome of the strategic interaction of different decision makers”.

The influential presence of the “invisible hand” in classical economics (Smith, 1759, pp. 153–154) is also evident in Soft Power (Nye, 2004, p. 7), where “if my conduct is determined by an observable, but intangible attraction - soft power is at work". This soft power - getting others to want the results you want co-opts people instead of coercing them." (Nye, 2004, p. 5) The effect of soft power inducing emotions will be applied to their effect on business negotiations.

Research Methodology

• Meta Review of Pertinent Literature
• Methodological Approaches
• Categorisation
• Focalisation
• Methodological Implications
• Data Overview
• Bibliography Sampling

Arbitrage is the exploitation of differences between national or regional markets, often by locating separate parts of the supply chain in different places.” The aggregation and emergence of corporations replacing state power have become a reason for the importance of balanced bargaining power. The number of women-owned businesses with 100 or more employees has grown almost twice as fast as all other businesses.

The vast majority (83%) of female business owners are personally involved in the selection and purchase of technology for their businesses. Female business owners generally employ a roughly balanced workforce (52% female, 48% male), while male business owners employ an average of 38% female and 62% male. 3% of all women-owned businesses have revenues of $1 million or more, compared to 6% of male-owned businesses.

Between 1997 and 2002, women-owned businesses increased their employment by 70,000, while men-owned businesses lost 1 million employees. There are an estimated 10.6 million women-owned businesses – up from 6.4 million almost twenty years ago. Women business owners are philanthropically active: seven out of 10 volunteer at least once a month; 31% contribute $5,000 or more to charity annually; 15% gives.

Women business owners are more likely than men to serve in leadership positions in their volunteer pursuits. Biological and biochemical evidence has been collected and presented, providing factual substantiation of the aforementioned theoretical assumptions; however, given the intuitive, biased and prejudicial conditions of the self, a clear, pragmatic and accurate conclusion, consistent with the facts and applicable to all situations and circumstances cannot be guaranteed. To the best of the writer's knowledge, the bibliography sampling is an unbiased and fair representation of current research.

Data Analysis and Evidence

Differentiation in gender is a hormonal indicator of differentiation on its own, responsible for the effect on behavior in the communication process. Abundance of stereotypes and classifications exist in the operation, performance and consequences of the male and female brain functions. Gender characteristics can then be evaluated in the context of its environment to the individuals' characteristics.

A step further from examining the aforementioned indicators is the perceptual extent of their negotiation counterparts. In the brain's centers for language and thinking, women have eleven percent more neurons than men. Schulte-Ruther (2008) found increased neural activity in the TPJ, the temporal-parietal junction, in males; and found that females showed increased MNS activation, particularly inferior frontal mirror neurons.

Witelson (1991a) found that the temporal-parietal region, TPJ, of the brain is larger in males. The researchers found that young adult females had a significantly higher volume of gray matter in the mirror neuron system than males. Yuan (2009) hypothesizes that the greater female NMS may lead to more emotional contagion – or contagious feelings – and empathy in the average woman than in the average man.

Moving from understanding emotions to using them effectively in the negotiation process requires perception, knowledge and experience in evaluating them, choosing the right approach and implementing the right techniques. Identification of a fighting-type personality can lead to traits being used against him or her in the bargaining process, taking advantage of the related traits precisely. Starting with a statement of the raw face of “Power is the ability to influence the behavior of others to get the results one wants” (Nye, 2004), he adds. that “Power always depends on the context in which the relationship exists”.

Interdependencies weigh on the weight of the personalities, their hierarchical position, their role in leadership and their relationship by making contact with their peers as well as with the negotiating partners. The negotiation development can be described as a gradual building process, which takes into account the performance targets in advance and in the process identifies the specification criteria and stakeholder management.

Data Analysis and Implications

Before you judge who holds the high cards, you need to understand what game you are playing and how the value of the cards can change." (Nye, 2004) However, power is always present and those who understand its consequences and know how to use it have a competitive advantage over their peers. Two of the competitive forces lie in bargaining power, which is based on hard facts of product, market share, market retention, customer perception, but also on the power of the individual, organization or corporation when negotiating. An opportunity for a new service of negotiation is then subtly presented: NPO – Negotiation Process Outsourcing.

Knowing what the desired output is, with a calculated input one can receive world class output, without the need to actively monitor or be aware of the process. Assigning the process to achieve a set output with a given input to an outside organization, in the same or different geographic location, without any interference, efforts or monitoring of how the process will be achieved. Considering that professional relationships essentially guide the essence of a business, it is easy to see how mistrust could arise from such a proposition.

And even in the common man mind is trusted for all functions, without individuals being aware of the majority of them. In the corporate world, Subcontracting, Arbitration, Business Process Outsourcing, Knowledge Process Outsourcing and Public Relations emerged and Corporate Social Responsibility was born. The concentration of always effective communication skills backed by the knowledge of the targeted field taking over a specific function of a company or institution is not a new idea in the world, but one that seems strangely absent in the world of business negotiations.

Furthermore, it is not certain whether this is the most efficient way to proceed to achieve an intended result. And with information on the performance of individual companies easier to obtain than ever, truly competent groups can shine: individuals with exceptional communication skills, effective networking skills, determination, high workplace plasticity and performance extraordinary general. The approach of outsourcing the negotiation process is a further step in the process of specialization in the business environment and can potentially constitute a significant advantage for individuals or groups who will decide to use their service.

Conclusions and Recommendations

Companies emphasizing the part of business relations and its impact both on the organization and on the wider social and professional network have already made their presence known. Negotiation Intelligence in the UK refers to itself as "a niche training and consultancy company, helping a wide variety of clients train to negotiate better" (Negotiation Intelligence, Raising your negotiation IQ, 2013). Both organizations mentioned above focus on preparing individuals with the necessary knowledge of emotional intelligence, strategy, psychology, body language and tactics in which methods to succeed in relevant negotiation scenarios.

Another organization that focuses on human behavior in business, but not directly with the negotiation part of it, is Krauthammer. Our core contribution to this end lies in the mastery of behavior and its conditions. It is therefore clear that organizations, companies, management consultants and the wider professional environment have realized the importance of behavioral and emotional interaction with a strategic concept in the individual's and.

Methods to increase one's potential and impact are evaluated and tactics to improve relevant skills are employed. Professionals who possess or master such skills are particularly well situated in a rather competitive global business environment and their cooperation is considered an asset. However, everyone realizes the importance of soft skills when communicating, collaborating, leading, exercising power and influence; consequently, the effect of emotions on business negotiations is a sector that has begun to attract a lot of attention and will continue to develop and evolve with the individuals and corporations that realize its impact.

Acknowledgements

Extract 2012, from The Impact of Gender in Bargaining Interactions: http://www.negotiations.com/articles/gender-interaction/. Extract from Managing Differences at Market Borders: http://hbr.org/2007/03/managing-differences-the-central-challenge-of-global-strategy/ar/1.