What personal and situational factors affect negotiation?

Negotiations are far more complicated than just a bundle of facts that negotiators are trying to organize. 

While facts are the background of negotiation, the following situational factors are readily understood to affect the negotiation process: 

Negotiation Context 

The situation or conditions under which the situation arises. What are the facts of the situation? Who are the parties to the situation? What is the nature of the interaction or relationship between the parties. Are there teams or coalitions among the parties? 

Objectives or Interests of Negotiators

The objectives and interests of the parties are often subjective and will drive the negotiation process. 

Perception or Cognition of Negotiators

How an individual perceives the facts of the situation. Cognition is the mental process used to process these facts will shape a parties willingness to negotiate. An individuals perception of the facts of a situation and the negotiation process will affect the ability to effectively process the facts or information. 

Cognition entails logic, emotion, and heuristics (biases). These elements affect a party's understanding of what is a successful negotiation. 

Creativity of Negotiators

A negotiators willingness and ability to search for and develop alternative resolutions to situations involving differing perceived interests or objectives will affect the breadth of the negotiation. 

Strategy & Tactics Used

Each parties strategic plan for arriving at a particular outcome (or within a range of outcomes) and the tactics or measures employed to effectuate that plan will affect the negotiation process. 

Communication 

The ability or effectiveness of parties to a negotiation to communicate their interests, objectives, and acceptable resolutions of situation will affect the negotiation process. In a way, effective negotiation practice is a communication exercise. 

Parties use communication techniques to derive and understanding of the other party and her interests. Communication is also the primary method of achieving concessions the bring a negotiation within a zone of potential agreement (ZOPA). 

Trust Between Negotiators

Trust between individuals affects the willingness and depth of personal interaction. In this way, trust moderates the interaction between individuals when their interests and objectives differ. Relationships - The nature or extent of the relationship between individuals will contribute to the context, communication, and trust that define a negotiation. 

Ethics of Negotiators

Ethics influence and individuals values, perceptions of situations, and the communication and strategic tactics employed in a negotiation. Culture - Aspects of cognition, communication, trust, and ethics are all implicated when individuals from different cultures interact. 

Medium of Communication 

The medium through which parties communicate can affect numerous aspects of the negotiation. Notably, it affects the communication process and the cognitive processing of the information exchanged. This can, in turn, affect the strategy that the parties employ. 

Intermediaries Involved

The presence of facilitators or decision makers will have an effect on the negotiators objectives, perceptions, strategy, communication, and trust in a situation. 

Negotiation Process 

A party's willingness to negotiate and their actions in the negotiation process are affected by the negotiation process and the actual outcome obtained. 

Each of these aspects of negotiation are important for effective negotiator to understand and is discussed individually throughout this material. This material draws heavily from negotiation research in the areas of management, psychology, law, economics, and other disciplines. 

Related Topics

• What is negotiation?

• What scenarios or situations lead to a negotiation or cause parties to negotiate?
• What characteristics are common to all negotiations?
• What are the differences among negotiators that affect the negotiation process?
• What is a conflict and how does it give rise to negotiation?
• How is a negotiators disposition toward conflict resolution related to negotiation strategy?
• What is the level of dependence in a conflict negotiation?
• What are integrative, distributive, and compatible bargaining scenarios?
• What is the BATNA and what is the significance of alternatives in negotiation?
• What is the significance of the reservation point and ZOPA in a negotiation?
• What is the significance of concessions or adjustment of the bargaining position?
• What are anchor points and the bargaining range in a negotiation?
• What personal and situational factors are commonly understood to affect negotiation?