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Personality Types and Their Affect on Negotiations

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Levi Smathers

on 29 May 2014

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Transcript of Personality Types and Their Affect on Negotiations

High Openness
Tend to be more aware of their feelings and emotions
Appreciation of art & beauty
On average more creative
Low Openness
More traditional interests
Prefer things straightforward, to the point
Prefer familiarity over novelty (McCrae & Costa, 1987)

High openness leads to adaptability and the ability to change strategy quickly
High situational flexibility
Does not have specific relationship to any of the following conflict styles:
(Ma, 2005)
Openness in Negotiations
High Neurosis has a negative correlation with successful negotiations
High neurosis individuals take personal offense to more than low neuroticism
Individuals with higher neuroticism are less likely to compromise
High neuroticism does not necessarily mean people are more competitive, but they do not avoid conflict either
High levels of the other 4 personality traits tend to have their pros and cons, neuroticism is purely negative in a negotiation (Ma, 2005)
Neuroticism in Negotiations
Personality Types and Their Affect on Negotiations
Based on the Big 5 Personality Traits
Big 5 Personality Traits
Coined by Dr. Lewis Golden of the University of Oregon (Barry & Friedman, 1998)
Refers to openness to new experiences
One's tendency to show self-discipline
The degree to which one receives their energy from outside stimuli
How much one strives for social harmony
Level of emotional stability
Research shows that people considered leaders typically exhibit lower amounts of neurotic traits, maintain higher levels of openness, balanced levels of conscientiousness, and balanced levels of extraversion. (Rothman & Coetzer, 2003)
Value getting along with others
Willing to compromise their interests for others
Optimistic view of human nature
Make better transformational leaders than transactional leaders
Less skeptical of others
Level of agreeableness is the most closely tied to interpersonal relationships (McCrae & Costa, 1987)
Within the context of negotiations, high conscientiousness is helpful for preparation work and pre-negotiation planning, but not necessarily related to any of the conflict styles

High or low conscientiousness does not dictate how well a person will behave in a conflict situation

High conscientiousness has a high correlation to being able to learn in all learning styles. This would help in a negotiation because information could be understood quicker than the adversary (Barry & Friedman, 1998)
Conscientiousness in Negotiations
Seen as full of energy
They tend to have a general positive personality
Like to be noticed in a group setting
Like to talk
Tend to be more assertive

Lower social engagement
Quiet, low-key, and deliberate
More independent
(McCrae & Costa, 1987)
Extraversion in Negotiations
High correlation between Extraversion and competing and collaborating conflict styles
Other factors of personality (mainly agreeableness) dictate whether the extraverted person is likely to collaborate or compete
There is a negative correlation with avoidance of conflict (Ma, 2005)
According to research, high extraversion can be a liability in negotiations when pure distributive bargaining is the goal. Extraverts tend to offer less than introverts as a counteroffer
Extraversion can be an asset if relationship building is a key part of the negotiation (Barry & Friedman, 1998)
Agreeable people have a direct correlation to compromising in conflict styles
Have a negative correlation to competing in conflict styles (Ma, 2005)
Agreeableness can be counteracted by having a high personal aspirations
Level of agreeableness directly affects whether an extravert will compete or compromise
Individuals with similar agreeableness will often have the same perceptions of how a negotiation went
Similar to extraversion, agreeableness is an asset when relationship building is the goal of a negotiation
Can be a liability in pure bargaining situation (Barry & Friedman, 1998)

Agreeableness in Negotiations
Different than the Freudian view of neurosis
Often referred to as emotional intelligence
Level of emotional intelligence are a key indicator in success
High levels of stress can often be attributed to low emotional intelligence
Low neuroticism means a person experiences less bad feelings, but not necessarily more good feelings
High neuroticism traits may include:
Easily annoyed
Mood swings
Seldom relaxed (McCrae & Costa, 1998)
Barry, Bruce, and Raymond A. Friedman. "Bargainer characteristics in distributive and integrative negotiation.." Journal of Personality and Social Psychology 74.2 (1998): 345-359. Print.
Costa, P. T., & McCrae, R. R. (1992). Neo PI-R professional manual. Odessa, FL: Psychological.
Ma, Zhenzhong. "Exploring the Relationships between the Big Five Personality Factors, Conflict Styles, and Bargaining Behaviors." IACM 18th Annual Conference . IACM. University of Amsterdam, Amsterdam, Netherlands. 1 June 2005. Lecture.
McCrae, R.R.; Costa, P.T.; Jr (1987). "Validation of the five-factor model of personality across instruments and observers". Journal of Personality and Social Psychology 52 (1): 81–90
McCrae R. R., Terracciano, A., & 79 Members of the Personality Profiles of Cultures Project. (2005). Personality Profiles of Cultures: Aggregate Personality Traits. Journal of Personality and Social Psychology 89, No.3, 407–425
Rothmann, S., and E. P. Coetzer. "The big five personality dimensions and job performance." SA Journal of Industrial Psychology 29.1 (2003): All. Print.
Big Five in Relation to Gender and Different Cultures
Cross-culturally, women tend to have higher agreeableness and neuroticism than men. They are also more open to new feelings
Men are more assertive (a facet of extraversion) and more open to new ideas
Gender differences are the highest in wealthy countries that rank highest in gender equality (Costa & McCrae, 1992)
Cultural Differences
Openness is much lower in many Asian countries and sometimes not used at all
As individualism rises in cultures, so does extraversion
The less egalitarian a country is, the more conscientious the people tend to be (Costa & Terraciano, 2005)
Is related to how people control or direct their impulses

High Conscientiousness
Affected by outside measures (SAT scores)
Always prepared
Pay attention to details
Follow schedules
Low Conscientiousness
Neglect duties
Messy (McCrae & Costa, 1987)

Amount of conscientiousness rises in young adults, but begins to fade in older adults (Rothman & Coetzer, 2003)
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