1. Non-economic aspects of negotiations
Organizational Behavior
Lecture X
Winter Semester Jolanta Babiak

2. Past and present What makes for an effective negotiator?
Real negotiation was about getting the best economic deal for yourself or your organization
For years research and teaching focused on the deal
Concepts of value claiming and value creation were presumably the competitive and collaborative tactics that served these goals
Somehow it was recognized that the underlying relationship was important but relationship issues were not addressed directly

3. Aspects of negotiations
Although it has been acknowledged that negotiations are complex, multilayered process, until recently the focus has been only one layer of this process
Yet, in order to craft a deal, negotiators must manage at least three distinct layers:
the meaningful aspects of negotiation, i.e., creating and claiming value
the interpersonal interactions that support and shape negotiators’ ability to craft a deal;
the increasingly complex environment in which negotiations are held and deals are made
To manage theses processes, negotiators need to balance a proficiency of important, deal-making skills with a mastery of complementary social and relational skills.

4. Shift in understanding key issues of successful negotiations
Negotiation scholars are turning their focus to the intangible aspects of negotiation, such as trust, emotion and reputation
Scholars and practitioners start acknowledging the changing environment in which we negotiate, which may involve unseen opposition, unidentifiable coalitions, and difficult and awkward disputes
Managing these intangible aspects of negotiation requires many “soft” skills that focus on the social and relational aspects of negotiation

5. How do we learn intangible negotiations skills?
how to create a learning environment in which our individuals experience the consequences of reputational damage, unethical behavior, or trust violation?
Upon the increasing interest in emotion, how we can recreate ‘‘hot’’ negotiations so that we learn to manage both own and the other party’s strong emotional reactions
how can we better capture the increasingly complex negotiating environment which includes changing technology, globalization of business, and sensitivity to the environment

6. Emotions
We can safely assume that both positive and negative emotions will be present during negotiations just as they are present in other social interactions
Emotions may be honest and realistic, reflecting our reaction to the other party’s offers and behaviors: they may be “crafted” and aimed at influencing the other party.
Thus, it is important for negotiators to recognize own emotions, the other party emotions, act upon them and successfully manage them
Some researchers consider emotion management as a form of negotiation expertise (NEEM) and more vital for negotiations than emotional intelligence as a trait
The strategic display (or hiding) of emotion, can involve deception

7. Complex environment
Both external and internal factors increase the complexity of a negotiation
Complexity increases when we recognize that negotiations are a dynamic process that need to be actively managed
Cultures (e.g. high vs low context communication), timing, strategies to recover from difficult situations
Timing: time costs (may affect one party) and time deadlines (may affect both parties)
The use of StopWatch, designed to explore the effects of time pressure on negotiation. Using this negotiation enables learning about the counterintuitive value of disclosing your final deadline as early as possible in the negotiation.

8. Social context Reputational effect
Social outcomes such as reputation are as important, if not more important, than economic outcomes especially in the long term relationships
Ethical behavior

9. Bibliography
Olekalns, M & Brett, J.M. (2008). Beyond the Deal: Next Generation Negotiation Skills. Introduction to Special Issue. Negotiations and conflict management research. Volume 1, Number 4, Pages 309–314.