Factors to Affect Negotiation Strategy

Cite this article as:"Factors to Affect Negotiation Strategy," in The Business Professor, updated October 2, 2017, last accessed August 8, 2020, https://thebusinessprofessor.com/lesson/factors-to-affect-negotiation-strategy/.

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What other factors are understood to affect strategic objectives and planning in a negotiation?

Cognitive Disposition – In Ch. 6, we address the effect of cognitive disposition on the negotiation process. Logic is the starting point for negotiation strategy. That is, a party must understand the elements of a negotiation and a party’s logical response to those elements. A party’s perception of a negotiation and all of its contextual elements may change given any number of influences on the negotiator. Most notably, emotions can affect the strategic orientation of a negotiator. Specifically, emotions (or lack thereof) are known to influence an individual’s behavior and alter or take the place of logic. In turn, they can alter the perception of interests. Emotions can also affect a negotiator’s self-belief or self-efficacy. “Emotional intelligence” is the ability of people (and negotiators) to understand emotions in themselves and others and to use this understanding to effect positive outcomes.

Communication – In Ch. 7, we will discuss the communication process and how it affects the negotiation. In summary, negotiations are a communication exercise. This is the method by which negotiators carry out their strategies.

Trust, Relationships, and Ethics affect Negotiations – In Ch. 8, we discuss the role of trust, relationships, and ethics in the negotiation. These are all personal factors that affect how negotiators interact. Each of these elements involve emotions and can affect one’s objectives. In summary, individuals do not always act logically when affected by emotions. These factors can affect one’s approach to and objectives in the negotiation.

Ethics – In Ch. 9 – We discuss the ethical considerations present in a negotiation. We explore how ethics can affect the negotiation process and outcome.

Multi-party or Team Negotiation – In Ch. 10, we discuss team and multi-party negotiations. The team dynamics in a negotiation affect the strategy and tactics employed. Further, it can affect the interests or objectives in the negotiation. Further, the human element of team-based negotiation is the propensity to form coalitions in support or against others. These factors can affect the process and outcome of the negotiation.

Cross-cultural Negotiation – Ch. 11 discusses cross-cultural negotiation. Individuals from diverse cultures may place differing levels of value upon the outcomes (interests or objectives) and process of negotiation. As such, culture stands to greatly influence the negotiation context and process.

Medium of Negotiation – Ch. 12 explores negotiation through information technology. Negotiation is effectively an exercise in communication. Negotiation through a medium other than face-to-face can alter the context of the negotiation, as well as how other factors (such as ethics, trust, etc.) affect the negotiation. As such, a negotiator must adjust her strategy and tactics accordingly.

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