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EssentialsofNegotiationPart03:NegotiationRelationshipsChapter09:RelationshipsinNegotiation©McGraw-HillEducation.Allrightsreserved.Authorizedonlyforinstructoruseintheclassroom.NoreproductionorfurtherdistributionpermittedwithoutthepriorwrittenconsentofMcGraw-HillEducation.ChallengingHowRelationshipsinNegotiationHaveBeenStudiedNegotiationisstudiedintwoways.Livefieldsituations.Simulatednegotiations.Simulatednegotiationsdominatedresearchfor50years.Itiseasiertoconduct.Controlledconditions.Easeofdatacollection.Problemswiththisapproach.Conclusionsforcomplexnegotiationscomefromsimplesimulations.Partieshavenoexistingrelationship.Yet,relationshipschangenegotiationdynamics.Negotiatinginrelationshipstakesplaceovertime.Negotiationisawaytolearnandincreaseinterdependence.Resolutionofsimpleissueshasimplicationsforthefuture.Issueswithinrelationshipscanbeemotionallyhot.Negotiatingwithinrelationshipsmayneverend.Theotherpersonmaybethefocalproblem.Relationshippreservationisthegoalinsomenegotiations.2NegotiationsinCommunalSharingRelationshipsPartiesinacommunal-sharingrelationshiparemorecooperativeandempathetic.Relationalidentitytheoryholdsthatdefinedgroupmemberswhousenegotiationtechniquesfocusingonissuesarelikelytofail.Itisunclearwhetherpartiesincloserelationshipsproducebettersolutionsthanothernegotiatorsdo.Along-termstudyofconflictresolutioninmarriagesprovidesinsights.Successfulcouplesstaypositiveandsay“yes”often.Theyembraceconflictasawaytoworkthroughdifferences.Goodrelationshipsknownotonlyhowtofight,butalsohowtorepairarelationshipafterafight.Successfulcouplesstresswhattheylike,value,appreciate,andrespectabouttheother.3KeyElementsinManagingNegotiationswithinRelationshipsAstudyofworkrelationshipsidentifiedeightkeydimensions.Trust,support,affect(emotion),loyalty,accountability,instrumentality,respect,andflexibility.Somedimensionsarecriticalatthebeginningofarelationship.Whileothersarecriticalasarelationshipmatures.Trustwasthemostcommonandimportantdimension.Reputationsplayimportantrolesinshapingrelationshipdevelopment.Justicewasalsoanimportantrelationshipcomponent.4ReputationThereareseveralimportantaspectsofreputation.Reputationsareperceivedandhighlysubjectiveinnature.Itiswhatothersactuallythinkofusthatcounts.Anindividualcanhaveanumberofdifferent,evenconflicting,reputations.Itiscommonlyasingle,consistentimage.Reputationsareshapedbypastbehavior.Reputationisinfluencedbypersonalcharacteristicsandaccomplishments.Reputationsdevelopovertime;oncedeveloped,theyarehardtochange.Other'sreputationscanshapeemotionalstatesaswellastheirexpectations.Negativereputationsaredifficultto“repair.”5TrustOnedefinitionoftrustisanindividual’sbeliefinandwillingnesstoactonthewords,actions,anddecisionsofanother.Threethingscontributetotheleveloftrustonenegotiatorhasforanother.Thenegotiator’schronicdispositiontowardtrust—individualdifferencesinpersonalitythatmakesomepeoplemoretrustingthanothers.Situationfactors—suchastheopportunityforthepartiestocommunicatewitheachotheradequately.Andthehistoryoftherelationshipbetweentheparties.6RecentResearchonTrustandNegotiation:IndividualandSituationalAntecedentsofTrustinNegotiationIndividualantecedentsoftrustinnegotiation.Peoplegenerallystartwithhighlevelsoftrustevenwithoutdataaboutthesituationortheotherparty.Individualmotivesshapeexpectationsoftrust.Personalitydifferencesshapeexpectations.Emotionscontributetotrustordistrust.Situationalantecedentsoftrustinnegotiation.Thenatureofthenegotiationprocessshapestrustexpectations.Face-to-facenegotiationencouragesgreatertrustdevelopmentthanonlinenegotiation.Negotiatorswhoarerepresentingothers’intereststendtobelesstrustingandlesstrustworthythaniftheyarerepresentingtheirowninterests.7RecentResearchonTrustandNegotiation:NegotiationProcessesandOutcomesofTrustTrustandnegotiationprocesses.Thefocusondifferentthingsisamplifiedbythetypeofnegotiationsthepartiesexpect.Trustincreases“positive”turningpointsaroundcommoninterestsanddecreases“negative”turningpointsthatmightdeadlockanegotiationaroundpolarizationofissuesornegativeemotions.Outcomesoftrust.Trustcuescooperativebehavior.Trustenhancesthesharingofinformation,andgreaterinformationsharinggenerallyleadstobetternegotiationoutcomes.Partieswhotrusttendtocommunicatebyusingquestionsandanswersinordertoshareinformationandunderstandtheother’sperspective.Partieswhotrustlesstendtoargueforandjustifytheirownpreferencesandlistenlesstotheother—hence,theyarelesslikelytounderstandtheother’sperspectiveandmorelikelyto“force”theirviewontheotherparty.8BuildingTrustattheNegotiationTableLearnwhatyoucanaboutyourcounterpart.Reputationalinformationcanbehelpful.Gettoknowthepersonbeforeyouformallynegotiate.Whetheryouhavedealtwiththeotherbefore,ornot.Proceedwithcautionontheother’strustworthiness.Usesafeguardstoprotectyouagainsterrorsinjudgment.Wintheother’strust.Maketheotherunderstandthe“cost”ofamajorconcessionfromyouanddon’tunderestimatethevalueofaconcessionontheirpart.Listentoandacknowledgetheother’sconcerns.Acknowledgingemotionmaybeoneofthemostimportantpartsofeffectivelisteningasavehicleforbuildingtrust.9TrustRepairThreemajorstrategiesthatatrustviolatorcanusetorepairtrust.Verballyaddressintent
withapologies,explanations,andaccounts.Apologiesshouldinclude:anexpressionofregret,anexplanation,anacknowledgementofresponsibility,adeclarationofrepentance,anoffertorepairtheimpact,andarequestforforgiveness.Reparations–paymentofcompensationtothevictimsfortheconsequencessufferedfromtheviolator.Theamountofmoneyofferedislesscriticalthantheofferitself.Structuralsolutions–maketheefforttocreaterules,regulations,andprocedurestominimizethelikelihoodofviolationinthefuture.Rulesandprocedurescanbestrengthenedbyalsocreatingfinesandpenaltiesforruleviolation.10JusticeJusticecantakeseveralforms.Distributivejusticeisaboutthedistributionofoutcomes.Proceduraljusticeisabouttheprocessofdeterminingoutcomes.Concernsaboutproceduralfairnessarisemostwhennegotiatorsarejudgingthebehaviorofthirdparties.Interactionaljusticeisabouthowpartiestreateachotherinone-to-onerelationships.Peoplehavestrongexpectationsabouttheirtreatmentandwhenthosestandardsareviolated,partiesfeelunfairlytreated.Systemicjusticeisabouthoworganizationsappeartotreatgroupsofindividualsandthenormsthatdevelopforhowtheyshouldbetreated.Whengroupsarediscriminatedagainst
ordisenfranchised,theymaythinkthesystemisbiased.11ResearchConclusionsonJusticeandFairnessInvolvementintheprocessofshapingnegotiationstrategyincreasescommitmenttothatstrategyandwillingnesstopursueit.Proceduraljusticeappearstoimpactthewaynegotiatorsapproachthenegotiationprocess.Negotiatorsencouragedtothinkaboutfairnessweremorecooperativeindistributivenegotiations.Partieswhoreceiveofferstheyperceiveasunfairmayrejectthemoutofhand,eventhoughtheamountofferedmaybebetterthantheirBATNA.Establishmentofsomeobjectivestandardoffairnesshasapositiveimpactonnegotiationsandsatisfactionwiththeoutcome.Judgmentsoffairnessaresubjecttocognitivebiases.Egocentricbiasesvaryacrosscultures.12RelationshipsamongReputation,TrustandJusticeReputations,trust,andjusticeallinteractinshapingexpectationsoftheother’sbehavior.Whenonepartyfeelstheotheractedfairlyinthepastorwillactfairlyinthefuture,theyaremorelikelytotrusttheother.Conversely,whenpartiesareunfairlytreated,theyoftenbecomeangryandretaliateagainsteithertheinjusticeitselforthosewhoareseenascausingit.Trust,justice,andreputationareallcentralt
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