06 Relational Aspects of Negotiation

Question 1

Context of Relationships

Answer 1

• How can relationships affect the negotiation context
  
  • Time: they have past, present and future
  • Opportunity to learn: negotiation is often not a way to discuss an issue, but a way to learn more about the other party and increase interdependence
  • More than distribution: resolution of simple distributive issues has implications for the future
  • Emotions: distributive issues within relationships can be emotionally hot
  • Finish line: negotiating within relationships may never end
    
    • parties may defer negotiations over tough issues in order to start on the right foot
    • issues on which parties truly disagree may never go away
  • Problems: in many negotiations, the other person is the focal problem
  • Preservation: In some negotiations, relationship preservation is the overarching negotiation goal
    
    • parties may make concessions to preserve or enhance the relationship

Question 2

Parties in relationships

Answer 2

• 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 that they work together
• 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
• are more likely to use compromise or problem-solving strategies for resolving conflicts

Question 3

Reputation

Answer 3

How other people remember their past experience with you

Why is it important?

• perceptual and highly subjective
• an individual can have a number of different, even conflicting reputations
• shaped by past behavior
• influences by an individual’s personal characteristics and accomplishments
• develops over time; once developed, it is hard to change
• negative reputations are difficult to repair

Question 4

Trust

Answer 4

Willingness to put yourself in a position of vulnerability

Why is it important?

• tendency to approach new relationships with high levels of trust
• trust tends to cue cooperative behavior
• individual motives also shape trust and expectations
• of the other’s behavior (cooperation vs. competition motivated)
• trustors, and those trusted, may focus on different things as trust is being built (framing issues)
• the nature of the negotiation task can shape how parties judge the trust (distributive vs. integrative)
• greater expectations of trust lead to greater information sharing
• greater information sharing enhances effectiveness in achieving a good negotiation outcome
• 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

Question 5

Justice

Answer 5

Can take several forms (distributive, procedural, interactional)

Question 6

Relationship Repair

Difficulties and Issues

Answer 6

• the more severe the breach of trust, the more difficult the repair
• if past relationship was positive, it is easier to repair
• the sooner the apology occurs after the breach, the more effective it is
• apologies should be presented by an actor with personal responsability
• apologies are more effective if the breach was an isolated event

Question 7

Relationship Repair

Diagnostic Steps

Answer 7

• 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?
• 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?
• What might be causing one or both of us to get upset, and what can I do to balance emotion and reason?

Question 8

Discussion: Emotions

Answer 8

• while some boil, others freeze-up
• you need to understand, channel, and learn from your emotions
• at an early stage of the negotiation, it is possible to predict which pairs will eventually reach agreement
• emotional intelligence is an important asset
• negotiations are inherently stressful
  
  • lack of control, unpredictability, and absence of feedback

Question 9

Discussion: Liars

Answer 9

• few people go through a day without lying
• attempts to mislead are common in negotiations
• there are presumed giveaways but we are not good lie detectors
• there are no universal telltale signs of lying
• how to protect against deception in negotiaions?
  
  • before: research background, set special ground rules
  • during: look for potential signs, ask questions in different ways or to which you know the answer, take notes, trust but verify

Question 10

Discussion: Exploding Offers

Answer 10

• expiration dates are common
• ultimate hard-bargaining tactic
• characteristics:
  
  • power asymmetry
  • “test of faith”
  • restricting choice
  • lack of consideration and respect
  • lack of good faith
• has one of two functions:
  
  • force quick acceptance by ending or
  • restrict the ability of the recipient to comparison-shop
• potential solutions:
  
  • try to create value (provide sensible counteroffers) or
  • fight fire with fire by embracing (“provisionally” accept and then break the deadline)