1. NEGOTIATION SEVENTH EDITION
ROY J. LEWICKI
DAVID M. SAUNDERS
BRUCE BARRY

2. Relationships in Negotiation
Chapter 10
Relationships in Negotiation

3. Negotiating through Others within a Relationship
The Adequacy of Established Research for Understanding Negotiation within Relationships
Forms of Relationships
Key Elements in Managing Negotiations within Relationships

4. Adequacy of Established Research for Understanding Negotiation within Relationships
Current negotiation theory is based on transactional research. Only recently have researchers begun to examine negotiations in a relationship context:
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

5. Adequacy of Established Research for Understanding Negotiation within Relationships
Distributive issues within relationships can be emotionally hot
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

6. Adequacy of Established Research for Understanding Negotiation within Relationships
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

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

8. 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
Ethnic Groups
Neighborhoods

9. 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

10. 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

11. Forms of Relationships
4. Market pricing
Based on metrics of valuation by which people compare different commodities and calculate exchange and cost/benefit ratios
Examples can be drawn from all kinds of buyer–seller transactions

12. Negotiations in Communal Relationships
Parties in a communal sharing relationship:
Are 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 the way that they work together

13. Negotiations in Communal Relationships
Parties in a communal sharing relationship (cont.):
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, and develop a unique conflict structure
May be more likely to use compromise or problem solving strategies for resolving conflicts

14. Key Elements in Managing Negotiations within Relationships
Reputation
Trust
Justice

15. 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
Shaped by past behavior
Influenced by an individual’s personal characteristics and accomplishments.
Develops over time; once developed, is hard to change.
Negative reputations are difficult to “repair”

16. 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

17. Key Elements in Managing Negotiations within Relationships
Two different types of trust:
Calculus-based trust
Individual will do what they say because they are rewarded for keeping their word or they fear the consequences of not doing what they say
Identification-based trust
Identification with the other’s desires and intentions. Trust exists because the parties effectively understand and appreciate each other’s wants; mutual understanding is developed to the point that each can effectively act for the other.

18. Key Elements in Managing Negotiations within Relationships
Trust (cont.)
Trust is different from distrust
Trust is considered to be confident positive expectations of another’s conduct
Distrust is defined as confident negative expectations of another’s conduct – i.e., we can confidently predict that some other people will act to take advantage of us
Trust and distrust can co-exist in a relationship

19. Actions To Manage Different Forms of Trust in Negotiations
How to increase calculus-based trust
Create and meet the other party's expectations
Stress the benefits of creating mutual trust
Establish credibility; make sure statements are honest and accurate
Keep promises; follow through on commitments
Develop a good reputation
How to increase identification-based trust
Develop similar interests
Develop similar goals and objectives
Act and respond like the other
Stand for the same principles, values and ideals
Actively discuss your commonalities and develop plans to enhance and strengthen them

20. Actions To Manage Different Forms of Trust in Negotiations
How to manage calculus-based distrust
Monitor the other party’s actions
Prepare formal agreements
Build in plans for “inspecting” and verifying commitments
Be vigilant of the other’s actions; monitor personal boundaries
Use formal legal mechanisms if there are concerns that the other might take advantage of you
How to manage identification-based distrust
Expect disagreements
Assume that the other party will exploit or take advantage of you; monitor your boundaries regularly
Verify information, commitments and promises of the other party
Minimize interdependence and self-disclosure
“The best offense is a good defense”

21. Recent Research on Trust and Negotiation
Summary of findings about the relationships between trust and negotiation behavior:
Many people approach a new relationship with an unknown other party with remarkably high levels of trust
Trust tends to cue cooperative behavior
Individual motives also shape trust and expectations of the other’s behavior
Trustors, and those trusted, may focus on different things as trust is being built
The nature of the negotiation task can shape how parties judge the trust

22. Recent Research on Trust and Negotiation
Summary of findings about the relationships between trust and negotiation behavior (cont.):
Greater expectations of trust between negotiators leads to greater information sharing
Greater information sharing enhances effectiveness in achieving a good negotiation outcome
Distributive processes lead negotiators to see the negotiation dialogue, and critical events in the dialogue, as largely about the nature of the negotiation task.

23. Recent Research on Trust and Negotiation
Summary of findings about the relationships between trust and negotiation behavior (cont.):
Trust 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

24. 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

25. Repairing a Relationship
Diagnostic steps in beginning to work on improving a relationship:
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?

26. Repairing a Relationship
Diagnostic steps (cont.):
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?

27. Repairing a Relationship
Diagnostic steps (cont.):
What might be causing one or both of us to get upset, and what can I do to balance emotion and reason?