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NEGOTIATION SEVENTH EDITION

• ROY J. LEWICKI • DAVID M. SAUNDERS • BRUCE BARRY

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Chapter 10

RELATIONSHIPS IN NEGOTIATION

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NEGOTIATING THROUGH OTHERS WITHIN A RELATIONSHIP

• The Adequacy of Established Research for Understanding Negotiation within Relationships

• Forms of Relationships • Key Elements in Managing Negotiations within Relationships

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ADEQUACY OF ESTABLISHED RESEARCH FOR UNDERSTANDING NEGOTIATION WITHIN

RELATIONSHIPS Current negotiation theory is based on transactional 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 ESTABLISHED 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 ESTABLISHED 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  Ethnic Groups  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‐for‐tat 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 buyer– seller transactions

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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 party’s 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  Shaped by past behavior  Influenced by an individual’s 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 individual’s belief in and willingness to act on the words, actions and decisions of another”  Three things that contribute to trust 1. Individual’s 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 other’s desires and intentions. Trust exists because the parties effectively understand and appreciate each other’s 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 another’s conduct  Distrust is defined as confident negative expectations of another’s 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 How to increase identification‐based trust • Develop similar interests • Develop similar goals and objectives • Act and respond like the other • Stand for the same principles, values and ideals • Actively discuss your commonalities and develop plans to enhance and strengthen them

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ACTIONS TO MANAGE DIFFERENT FORMS OF TRUST IN NEGOTIATIONS

How to manage calculus‐based distrust • Monitor the other party’s actions • Prepare formal agreements • Build in plans for “inspecting” and verifying commitments • Be vigilant of the other’s actions; monitor personal boundaries • Use formal legal mechanisms if there are concerns that the other might take advantage of you

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 other’s 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 other’s 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?