July 24, 2005

Emotions Help Determine Outcomes

An article from the Warton School of Business, "Looking to Make a Sale or Get Promoted? Emotions Will Help Determine the Outcome", talks about  study of how emotion effects how we negotiate and make decisions:
The main idea in the paper is that emotions which are irrelevant to the judgment task nevertheless influence trust judgments in predictable ways," Schweitzer says.
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"The extent to which I do or do not trust you is a function not only of how trusting a person I am and what I know about you, but also a function of irrelevant events that have influenced my emotional state.
These results have a direct effect on how people can approach a negotiation:
"In negotiation, we have always known that non-task communication -- discussion that's not directly relevant to the negotiation process -- is important for closing a deal," says Schweitzer. "This research gives us some insight into why it's important and what kinds of things should go into that communication." Specifically, "non-task communication, like telling jokes/stories or talking about sports, can change people's emotional states and make them more (or less) trusting.
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The reason you gave someone a large contract may have more to do with how funny the story he told you beforehand was than with his reputation for dependability."
But, people are not powerless in the face of such manipulation:
"When people recognize the trigger, or source, of their emotions they are less likely to misattribute them. When I realize that I'm angry because of something my spouse did, I am less likely to use that anger in an unrelated judgment. When I am not aware of or thinking about why I am angry, I am more likely to misattribute it."
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Correctly attributing our emotional states can counter the effects of others who are trying to manipulate our feelings. "Good sales people tell jokes and funny stories; they bring little gifts. What they are trying to do is influence people's emotional states." Recognizing that this person is trying to make you feel good can help separate the good feelings from the decisions at hand.
Read the article and then examine your own negotiation technique. Do you use non-task related conversation to put the other at ease? Or do you let others use non-task related talk to effect your mood and your decision making? Useful things to watch out for.
Posted by georgegmacdonald at July 24, 2005 01:13 AM