CHAPTER EIGHT

Social Context: Relationships and Representatives

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The Major Social Context Factors in Negotiations

1. The number of parties and the relationships among those parties

2. The social knowledge and goals of the parties

3. The social norms that govern the negotiation (group and cultural norms and practices)

4. The communication processes that the parties use

5. The informal rules that govern their interaction

6. The physical environment and the cultural context in which a negotiation takes place

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The Number of Parties in a Negotiation

The basic possible roles for parties in a negotiation:

A negotiating dyad Agents and constituencies Additional negotiators Negotiating teams Unrepresented bystanders and audiences Third parties

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A Negotiating Dyad & Agents and Constituencies

A Negotiating Dyad

– When two isolated individuals negotiate for their own needs and interests

Agents and Constituencies– A negotiator is not acting for himself but for

others. We will call the negotiator in such situations an agent and the individuals he is representing a constituency

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Additional Negotiators & Negotiating Teams

Additional Negotiators– In some instances there are more than two

negotiators

– There is a possibility that parties will form alliances

Negotiating Teams– A team is two or more parties on the same side

who are collectively advocating the same positions and interests

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Unrepresented Bystanders and Audiences

Bystanders – Those who have some stake in a negotiation, care about

the issues or the process by which a resolution is reached

– Negotiators do not formally represent bystanders Audience

– Any individual or group of people not directly involved in or affected by a negotiation

– They may offer: Input Advice Criticism

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Third Parties

Third parties– Bystanders who may be drawn into the

negotiation specifically for the purpose of helping to resolve it

– Third parties often can reshape a polarized situation into a constructive agreement

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Negotiating Through Others Within a Relationship

The Adequacy of Past Theory and Research for Understanding Negotiation within Relationships

Forms of Relationships Negotiations in Communal Relationships

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The Adequacy of Past Theory and Research for Understanding

Negotiation within Relationships

Most of current negotiation theory is based on studies of simple transactions. They cannot take into account the effects of relationships on negotiations:

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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The Adequacy of Past Theory…

The effects of relationships on negotiations (cont.):

Distributive issues within relationship negotiations can be emotionally hot

Negotiating within relationships may never end In many negotiations, the other person is the focal

problem In some negotiations, relationship preservation is

the 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-for-tat revenge)

– Examples include: College roommates Soldiers of the same rank Members of a jazz band

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Forms of Relationships

4. Market pricing – Based on an (intermodel) metric of value 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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Four Key Dimensions of Relationships

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Negotiations in Communal Relationships

Parties who are in a communal sharing relationship:

Are more cooperative and empathetic Craft better quality agreements 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 who are in a communal sharing relationship (con’t.):

Are more likely to share information with the other and less likely to use coercive tactics

May be more likely to use compromise or problem solving

Are more likely to use indirect communication about conflict issues, and develop a unique conflict structure– Examples: families develop own “fighting” styles

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Key Elements in Managing Negotiations within Relationships

Trust

Justice

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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”

– Higher levels of trust make negotiation easier– Trust develops through three stages:

Calculus-based TrustKnowledge-based Trust Identification-based Trust

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Key Elements in Managing Negotiations within Relationships

Calculus-based Trust– Individuals will do what they say because they are

rewarded for keeping their word or they fear the consequences of not doing what they say

Knowledge-based Trust– Knowing the other sufficiently well so that one can

anticipate and predict his or her behavior Identification-based Trust

– Identification with the other’s desires and intentions. Trust exists because the parties effectively understand and appreciate each other’s wants

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Some Actions To Increase Different Forms of Trust in Negotiations

How to Increase Calculus-based Trust Create and meet the other party's expectations. Do what you say Stress the benefits of creating mutual trust Establish credibility. Make sure your statements are honest and accurate

How to Increase Knowledge-based Trust Have frequent interaction with the other. Meet often. Get to know the other Let the other learn about you. Tell him or her about yourself Be predictable. Learn to predict how the other will respond

How to Increase Identification-based Trust Develop similar interests Develop similar goals and objectives Act and respond similar to the other. Stand for the same principles, values,

and so on

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Key Elements in Managing Negotiations within Relationships (cont.)

JusticeCan take several forms:– Distributive justice

About the distribution of outcomes

– Procedural justice About the process of determining outcomes

– Interactive justice About how parties communicate with each other

– Systemic justice About how organizations appear to treat groups of

individuals

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Using Representatives

Using Representatives creates audiences. There are many different kinds of audiences: – Team Members– Constituents– Bystanders and Observers

Consequences of audiences:– They make negotiators ‘Try Harder’– Negotiators seek a positive reaction from them– They can push negotiators into ‘Irrational’

behavior– Then hold the negotiator accountable

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Tactical Implications of Social Structure Dynamics: The

Negotiator’s Dilemma

How can a negotiator satisfy both the constituency’s demands for firmness (and a settlement favorable to their interests), versus the other party’s demand for concessions (and a settlement favorable to the other party or to their mutual gain)?

Answer: A negotiator must build relationships with both the constituency and the other party

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Advice to Negotiators for Managing Their Constituencies and Audiences

1. Maintain Control over and “Manage” Audience Visibility

Limit Concessions by Making Negotiations Visible to the Constituency

Use the Constituency to Show Militancy Use the Constituency to Limit One’s Own

Authority Use Great Caution in Exceeding One’s Authority

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Advice to Negotiators for Managing Their Constituencies and Audiences

1. “Manage” Audience Visibility (cont.) Increase the Possibility of Concession to the

Other Negotiator by Cutting Off Visibility to Audiences– Establish “privacy” prior to the beginning of

negotiations

– Screen visibility during negotiations

– Be aware of time pressure Establish a Reputation for Cooperation

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Advice to Negotiators for Managing Their Constituencies and Audiences

2. Communicate Indirectly with Audiences and Constituents

Communicate through Superiors Communicate through Intermediaries Communicate Directly to the Other Party’s

Constituency

3. Communicate Directly to Bystanders and Audiences

4. Build Relationships with Audiences, Constituents and Other Agents

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Advice to Constituents in Managing Agents

The agent should lack authority to make a binding commitment on any substantive issues

The agent should have discretion to design, develop an effective overall negotiation process

The constituent should focus most communication to the agent on:– Interests

– Priorities

– Alternatives

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Advice to Constituents in Managing Agents

The constituent should set clear expectations about the frequency and quality of reporting back to them

Agent authority should expand as the constituent gains insight about them

Specific instructions to the agent should be in put in writing and be available to show to the other side

The constituent should instruct the agent on what they can disclose --interests, ranges of acceptable settlement, etc.