Social Context: Relationships and Representatives CHAPTER EIGHT Social Context: Relationships and Representatives

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

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

A Negotiating Dyad & Agents and Constituencies 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

Additional Negotiators & Negotiating Teams 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

Unrepresented Bystanders and Audiences 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

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

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

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

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

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

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

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

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

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

Four Key Dimensions of Relationships

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

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

Key Elements in Managing Negotiations within Relationships Trust Justice

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 Trust Knowledge-based Trust Identification-based Trust

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

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

Key Elements in Managing Negotiations within Relationships (cont.) Justice Can 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

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

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

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

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

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

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

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.