Personality Influences in

Negotiations
Dr. M Abdur Rahman Malik
LUMS
What is Personality?
What is Personality?

 A method to measure individual differences.

 Individual Inclinations towards exhibiting a specific behavior.

 Sum total of ways in which we act, react, and think.

 The combined outcome of our genetic designing and experiential

influences.
Why Personality is Important?
Why Personality is Important?

 Our personality has influences on whatever we think, whatever we

feel, whatever we experience, and whatever we do, including …..
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Negotiations!
Personality and Negotiations

 Personality is one of the strongest drivers of our behavior. It affects

our behavior during negotiations, which in turn affects negotiation
outcomes.
 Personality can influence negotiations both positively and negatively.
 However, it is important to note that what actually matters in
negotiations is not the personality itself, but the behavior one
exhibits.
 Hence, we can maximize the positive and can minimize the negative
effects of personality on negotiation outcomes, by managing our
behavior.
Asset or Liability ?
 Some personality types become assets during negotiations,
whereas other types might become liabilities. It varies from
situation to situation, and from negotiation to negotiation.
 What we need to know and do:
1K- What P types become assets and liabilities in negotiations?
2K- Who is most suited for a specific negotiation?
3K- What is our P? Are we carrying assets or liabilities to the negotiation
table?
4D- If we have a liability, we must keep an eye on it so it doesn't affect our
behavior too much.
5D- If we have an asset, we should try to use it for getting maximum
benefit.
6D- Keep an eye on others’ personalities. May be they don’t really mean it.
The Big Five Model of Personality
Dimensions
 Globally the most widely used method to measure Personality.

 What’s your Personality type? You will find out now!

The Big Five Model of Personality
Dimensions
• Sociable, gregarious, and assertive
Extroversion

• Good-natured, cooperative, and trusting

Agreeableness

• Responsible, dependable,
persistent, and organized
Conscientiousness
• Calm, self-confident, secure under stress
(positive), versus nervous, depressed, and
Emotional Stability insecure under stress (negative)

Openness to • Curious, imaginative, artistic, and sensitive

Experience
High and Low Traits
 Copyright © 2011 Pearson Education, Inc.
publishing as Prentice Hall
5-11
Personality in Distributive Negotiations
Personality Characteristics Distributive
Negotiations
1 Extraversion High info exchange, Concern for Liability (info, ties)
social ties, Assertiveness Asset (assert)
2 Agreeableness Non assertive, Cooperative, Liability
Giving concessions
3 Conscientiousness More homework, Better planning Asset

4 Neuroticism Increased reactivity, Experience Liability (deadlock)

negative emotions
5 Openness Divergent thinking Asset
6 Locus of Control Its in my control, Put in more Asset
energy
Suitable traits for negotiator Low E, A, N. High C,
LOCi
Personality in Distributive Negotiations
Personality Characteristics Integrative
Negotiations
1 Extraversion High info exchange, Concern Asset (Info exchange,
for social ties, Assertiveness concern for ties)
2 Agreeableness Non assertive, Cooperative, Asset (cooperativeness)
Giving concessions Post negotiation +ve affect
3 Conscientiousness More homework, Better Asset (better planning)
planning
4 Neuroticism Increased reactivity, Liability (sending negative
Experience negative emotions signals)
5 Openness Divergent thinking Asset (ability to find a win-
win)
6 Locus of Control Its in my control, Put in more Asset (belief that I can find a
energy win-win)
Suitable traits for negotiator High E, A, O and LOCi, Low N