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CHAPTER TEN Relationships in Negotiation

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Negotiating through Others within a Relationship

The Adequacy of Established Theory and Research for Understanding Negotiation within Relationships Forms of Relationships Key Elements in Managing Negotiations within Relationships

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Adequacy of Theory and Research for Understanding Negotiation within Relationships Current negotiation theory is based on trans-actional research. Only recently have researchers begun to examine negotiations in a relationship context:
Negotiating within relationships takes place over time Negotiation is often not a way to discuss an issue, but a way to learn more about the other party and increase interdependence Resolution of simple distributive issues has implications for the future

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Adequacy of Theory and Research for Understanding Negotiation within Relationships Distributive issues within relationships can be emotionally hot Negotiating within relationships may never end
Parties may defer negotiations over tough issues in order to start on the right foot Attempting to anticipate the future and negotiate everything up front is often impossible Issues on which parties truly disagree may never go away

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Adequacy of Theory and Research for Understanding Negotiation within Relationships

In many negotiations, the other person is the focal problem. In some negotiations, relationship preservation is the overarching negotiation goal, and parties may make concessions on substantive issues to preserve or enhance the relationship

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Forms of Relationships
Four fundamental relationship forms:
1. Communal sharing 2. Authority ranking 3. Equality matching 4. Market pricing

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Forms of Relationships
1. Communal sharing
A relation of unity, community, collective identity, and kindness, typically enacted among close kin Such relationships are found in:
Families Clubs Fraternal organizations Neighborhoods
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Forms of Relationships
2. Authority ranking
A relationship of asymmetric differences, commonly exhibited in a hierarchical ordering of status and precedence Examples include:
Subordinates to bosses Soldiers to their commander Negotiators to their constituents

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Forms of Relationships
3. Equality matching
A one-to-one correspondence relationship in which people are distinct but equal, as manifested in balanced reciprocity (or tit-fortat revenge) Examples include:
College roommates

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Forms of Relationships
4. Market pricing
Based on metrics of valuation by which people compare different commodities and calculate exchange and cost/benefit ratios Examples can be drawn from all kinds of buyerseller transactions

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Four Key Dimensions of Relationships

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Negotiations in Communal Relationships

Parties in a communal sharing relationship:
Are more cooperative and empathetic Craft better quality agreements Perform better on both decision making and motor tasks Focus their attention on the other partys outcomes as well as their own Focus attention on the norms that develop about the way that they work together
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Negotiations in Communal Relationships

Parties in a communal sharing relationship (cont.):
Are more likely to share information with the other and less likely to use coercive tactics Are more likely to use indirect communication about conflict issues, and develop a unique conflict structure May be more likely to use compromise or problem solving strategies for resolving conflicts
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Key Elements in Managing Negotiations within Relationships

Reputation Trust Justice

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Key Elements in Managing Negotiations within Relationships

Reputation
Perceptual and highly subjective in nature An individual can have a number of different, even conflicting, reputations Influenced by an individuals personal characteristics and accomplishments. Develops over time; once developed, is hard to change. Negative reputations are difficult to repair
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Key Elements in Managing Negotiations within Relationships

Trust
An individuals belief in and willingness to act on the words, actions and decisions of another Three things that contribute to trust
1. Individuals chronic disposition toward trust 2. Situation factors 3. History of the relationship between the parties

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Key Elements in Managing Negotiations within Relationships

Two different types of trust: Calculus-based trust
Individual will do what they say because they are rewarded for keeping their word or they fear the consequences of not doing what they say

Identification-based trust
Identification with the others desires and intentions. Trust exists because the parties effectively understand and appreciate each others wants; mutual understanding is developed to the point that each can effectively act for the other.
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Key Elements in Managing Negotiations within Relationships

Trust (cont.) Trust is different from distrust
Trust is considered to be confident positive expectations of anothers conduct Distrust is defined as confident negative expectations of anothers conduct i.e., we can confidently predict that some other people will act to take advantage of us Trust and distrust can co-exist in a relationship

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Actions To Manage Different Forms of Trust in Negotiations

How to increase calculus-based trust
Create and meet the other party's expectations Stress the benefits of creating mutual trust Establish credibility; make sure statements are honest and accurate Keep promises; follow through on commitments Develop a good reputation Develop similar interests Develop similar goals and objectives Act and respond like the other Stand for the same principles, values and ideals
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How to increase identification-based trust

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Actions To Manage Different Forms of Trust in Negotiations

How to manage calculus-based distrust
Monitor the other partys actions Prepare formal agreements Build in plans for inspecting and verifying commitments Be vigilant of the others actions; monitor personal boundaries

How to manage identification-based distrust

Expect disagreements Assume that the other party will exploit or take advantage of you; monitor your boundaries regularly Verify information, commitments and promises of the other party Minimize interdependence and self-disclosure The best offense is a good defense
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Recent Research on Trust and Negotiation

Summary of findings about the relationships between trust and negotiation behavior:
Many people approach a new relationship with an unknown other party with remarkably high levels of trust Trust tends to cue cooperative behavior Individual motives also shape trust and expectations of the others behavior Trustors, and those trusted, may focus on different things as trust is being built The nature of the negotiation task can shape how parties judge the trust
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Recent Research on Trust and Negotiation

Summary of findings about the relationships between trust and negotiation behavior (cont.):
Greater expectations of trust between negotiators leads to greater information sharing Greater information sharing enhances effectiveness in achieving a good negotiation outcome Distributive processes lead negotiators to see the negotiation dialogue, and critical events in the dialogue, as largely about the nature of the negotiation task.

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Recent Research on Trust and Negotiation

Summary of findings about the relationships between trust and negotiation behavior (cont.):
Trust increases the likelihood that negotiation will proceed on a favorable course over the life of a negotiation Face-to-face negotiation encourages greater trust development than negotiation online Negotiators who are representing others interests, rather than their own interests, tend to behave in a less trusting way

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Key Elements in Managing Negotiations within Relationships

Justice
Can take several forms:
Distributive justice
The distribution of outcomes

Procedural justice
The process of determining outcomes

Interactional justice
How parties treat each other in one-to-one relationships

Systemic justice
How organizations appear to treat groups of individuals
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Repairing a Relationship
Diagnostic steps in beginning to work on improving a relationship:
What might be causing any present misunderstanding, and what can I do to understand it better? What might be causing a lack of trust, and what can I do to begin to repair trust that might have been broken?
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Repairing a Relationship
Diagnostic steps (cont.):
What might be causing one or both of us to feel coerced, and what can I do to put the focus on persuasion rather than coercion? What might be causing one or both of us to feel disrespected, and what can I do to demonstrate acceptance and respect?

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Repairing a Relationship
Diagnostic steps (cont.):
What might be causing one or both of us to get upset, and what can I do to balance emotion and reason?

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