Ups and Downs: Emotional Dynamics in Negotiations and Their Effects on (In)Equity

Michele Griessmair

doi:10.1007/s10726-017-9541-y

Abstract

Organizational scholars now acknowledge the relevance of emotions in virtually every aspect of organizational life, including negotiations and conflict resolution. Integrating negotiation phase model theory with social functional models of emotion, we test hypotheses about the development of emotions in negotiations and their effects on the degree of economic (in)equity of the counterpart’s subsequent offer during the actual negotiation process. By comparing stalemate dyads with efficient settlement dyads, the study identifies emotional dynamics that characterize successful as opposed to unsuccessful negotiations. Results show that observed differences are primarily the result of impasse dyads spiraling into a negative emotional climate rather than efficient settlement dyads having overall higher levels of positive emotions or increasing them throughout the negotiation process. As predicted by social functional models, the study further confirms that emotions are not only a reaction to the economic (un)fairness of a proposed offer, but their display also influences the payoff (in)equity of the counterpart’s subsequent offer. Whether a specific emotional expression increases or decreases the economic fairness of the counterpart’s subsequent offer, however, differs across negotiation phases and between dyads that reached an agreement or not. Furthermore, the results show distinct differences between emotions that address individual goal realization in negotiations and emotions that focus on the relational, interpersonal aspect of negotiations, both with regard to their development as well as their function. Taken together, the results shed light on the mechanisms leading to the emergence of conflict spirals.

Highlights

Since the rediscovery of affect in the mid-1980s and the 1990s (Brief and Weiss 2002), a plethora of research on mood and emotion in organizational settings has emerged
Based on phase model and emotion theories, we propose that emotional differences observed in previous studies primarily result from impasse negotiators spiraling into a negative emotional climate rather than negotiators reaching an efficient outcome increasing their level of positive emotions throughout the negotiation
By comparing efficient settlement with stalemate dyads, the study identifies the emotional dynamics differentiating between an impasse as opposed to an efficient outcome

Summary

Introduction

Since the rediscovery of affect in the mid-1980s and the 1990s (Brief and Weiss 2002), a plethora of research on mood and emotion in organizational settings has emerged. Extensive evidence shows that affect influences decision making, creativity, leadership, group processes and outcomes, cooperation and helping behavior, job satisfaction, turnover, absenteeism, and motivation as well as a variety of performance indicators (Barsade and Gibson 2007; Brief and Weiss 2002). Another area in which emotions have gained considerable attention in recent years is negotiation and conflict resolution research (Druckman and Olekalns 2008; Martinovsky 2015b). Acknowledges the complex nature of affect, showing that both positive as well as negative emotions have important functions in negotiations (Van Kleef et al 2010). This research has established strong empirical evidence that emotions impact the negotiator’s own behavior and decisions, the counterpart’s reaction and, in consequence, the outcome of the negotiation—sometimes beneficially and sometimes in a harmful manner (for reviews, see, Druckman and Olekalns 2008, 2015; Griessmair et al 2015)

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