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Ashesi University College

Negotiation & Creative Problem Solving

Trust & relationship building in negotiation RELATIONSHIPS IN NEGOTIATIONS Past, present and future relationships do affect the process and outcome of negotiations How does having a relationship with the other party shape the context? Negotiating with relationships take 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 a simple distributive issue has implications for the future (reputations?) Distributive issues within relationship negotiations can be emotionally hot Negotiating within relationships may never end o Defer tough issues so you can start on the right foot o You cannot anticipate the future and negotiate all aspects of the relationship upfront o Issues on which parties disagree many never go away In many negotiations, the other party is the focal problem >> fail to separate people. Relationship preservation could be key leading to concessions on substance etc Page 197 Box 9.1 & Page 198 Box 9.2 & Page 199 Box 9.3 Friendships Opening up > > > complete and mutual honesty Working together > > > corporative problem solving Strangers Haggling > > > competitive attempt to get the best possible deal for oneself Business relationships Business with friends and family o Communal norms > > > take care of each other optimizing??? o Exchange norms > > > give based on value of input. possible??? o Emotion o Myopic view o Internal value conflict > > > eg. competency and liking Business with strangers o We choose our friends but not our co-workers o Business relationships > > > status and rank issues o Swift trust o The myth of the one-shot business situation Three factors: Relationships vs. trust; reputation & justice

TRUST Your belief in and willingness to act on words, actions and decisions of another Contributors to the level of trust Individuals natural disposition towards trust Situational factors >>> opportunity to create something worth trusting History of relationship between the two Types of Trust Deterrence-based trust (pre-conventional moral cognitive development) o Expensive to develop and maintain because of the oversight required o It can backfire and undermine trust (the case of the forbidden fruit and rebels)

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Trust & relationship building in negotiation

Knowledge-based trust o Having enough information and using that as a predictor of the other partys behaviour o Increases dependence and commitment Identification-based trust o Agreement, empathy, emotional connection etc Rational and deliberate trust-building mechanisms Transform personal conflicts into task conflicts (separate people from the problem) Agree on a common goal or shared vision Capitalize on network connections Find a shared problem or shared enemy Focus on the future Psychological trust-building mechanisms Similarity similarity-attraction-effect (establish connections through small talk etc) Mere exposure mere-exposure effect (familiarity) Physical presence propinquity effect, functional distance Reciprocity feeling obligated to return a favour Schmoozing small talk (fake niceness) Flattery (moral and ethical considerations) Self-disclosure (feeds reciprocity in disclosure) Sources of mistrust Miscommunication Dispositional attributions personalized attributions (FAE) Focusing on the bad apple in the group Repairing Broken Trust i. Arrange a personal meeting ii. Put the focus on the relationship iii. Apologize iv. Let them vent v. Do not get defensive vi. Ask for clarification vii. Test your understanding (recap and validate their points) viii. Formulate a plan/strategy ix. Think of how to prevent future problems x. Do a relationship checkup/follow up

REPUTATION They are based on judgment, consistent, immediate and inferential Could be direct or hearsay May lead to: o Halo effect (positive or negative impression) o Forked-tail effect (negative impression) Reputations o Liar-manipulator >> people a tough >> will do anything for advantage o Tough but honest >> people are tough but will make concessions and not lie o Nice and reasonable >> makes concession >> use of more integrative tactics o Cream puff >> makes concessions regardless of what the other does Negative reputation is hard to repair. How can the repair be done?

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Trust & relationship building in negotiation

JUSTICE Fair or unfair.. Just or unjust. Reasonable or unreasonable Forms: o Distributive Concerns the distribution of outcomes Was it fair, just and/or reasonable in your opinion? o Procedural Concerns the process of determining the outcome Was it fair, just and/or reasonable in your opinion? Interactional Concerned with how parties treat each other >>> one-on-one relationships Was it fair, just and/or reasonable in your opinion? Systematic Concerned with how organizations appears to treat groups of individuals and its developing norms Was it fair, just and/or reasonable in your opinion?

Page 206 Box 9.4 How can this influence relationships and negotiations?

Repairing 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? 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? What might be causing one of both of us to get upset, and what can I do to balance emotion and reason?

Dont forget the bottom line!!! Relationships will be one of three kinds: friendship; pure business; or business friends Thompson Page 157 Exhibit 6-12 >> use to assess relationship

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