Relationships Chapter 9

Key Elements in Managing Negotiations within Relationships Reputation 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” Three things that contribute to trust Individual’s chronic disposition toward trust Situation factors History of the relationship between the parties

Giving people proper credit Admitting mistakes According to Asherman, the following items are the most critical in creating trust Meeting commitments No surprises Being consistent Giving people proper credit Admitting mistakes Admitting when they do not know something

Taking responsibility for their actions Not making threats (Continued) Taking responsibility for their actions Not making threats

Types of Trust in Relationships Deterrence-based trust Knowledge-based trust Identification-based trust

Trust/Relationship Grid Personal Business Embedded Lack of trust Prenuptial agreements Surveillance Theory X management Use of threats, punishments, sanctions Surveillance Use of threats, punishments, sanctions Deterrence-based Sympathy for the other Customer-driven focus Assessment of clients’ needs Understand and appreciate partners Knowledge-based Theory Y management Selection of employees who fit corporate culture and its values Restructuring to serve customer Empathy Development of social identity True empathy for other Investment in other’s welfare Identification-based

Building Trust: Rational and Deliberate Mechanisms Transform personal conflict into task conflict Agree on a common goal or shared vision Capitalize on network connections Find a shared problem or shared enemy Focus on the future

Building Trust: Psychological Strategies Similarity-attraction effect Mere exposure Good mood Physical presence Reciprocity principle Don’t gloat Schmoozing Flattery Self-disclosure

What Leads to Mistrust? Breaches or defections Miscommunication Poor pie expansion Dispositional attributions Focusing on the “bad apple” Social comparison

Process for Repairing Broken Trust Suggest a personal meeting Put the focus on the relationship Apologize Let them vent Do not get defensive Ask for clarifying information Test your understanding Formulate a plan Think about ways to prevent a future problem Do relationship check-up at a scheduled date

Reputation Protecting your reputation Impressions of others Halo effect Forked-tail effect Repairing your reputation

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 Influenced by an individual’s personal characteristics and accomplishments. Develops over time; once developed, is hard to change. Negative reputations are difficult to “repair”

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

Understanding Negotiation within Relationships: Remember 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

Understanding Negotiation within Relationships: Remember 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