Art and Strategy of Negotiation Substantive and Relationship OutcomesPart 2

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Art and Strategy of Negotiation--Substantive and
Relationship OutcomesPart 2

• Negotiation Conflict Management
• January 30, 2006
• John D. Blair, PhD
• Georgie G. William B. Snyder Professor in
  Management

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Savage, Blair and Sorenson (SBS) Model Emphasizes

• Negotiation made up of discrete episodes
• Negotiation may have 1 to 100 episodes
• Episodes occur within changing context impacted
  by each prior episode
• Substantive outcomes of negotiation matter
• But relationship outcomes of negotiation matter,
  as well

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Savage, Blair and Sorenson (SBS) Model
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Characteristics of aNegotiation Situation

• There are two or more parties
• There is a conflict of needs and desires between
  two or more parties
• Parties negotiate because they think they can get
  a better deal than by simply accepting what the
  other side offers them
• Parties expect a give and take process

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Key to Relationships?
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Usefulness of Theory and Research for
Understanding Negotiation within Relationships

• Most current negotiation theory is based on
  trans-actional research. Only recently have
  researchers (such as in the SBS Model) 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

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Usefulness of Theory and Research for
Understanding Negotiation within Relationships
Cont

• 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

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Usefulness of Theory and Research for
Understanding Negotiation within Relationships
Cont

• 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

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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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Communal Sharing 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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Authority Ranking 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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Equality Matching 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

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Market Pricing 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
  buyerseller transactions

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Four Key Dimensions of Relationships
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SBS Model Emphasizes Cont

• Subordinative strategies are not necessarily a
  reflection of weakness and may be most valuable
  when party is strong
• Avoiding negotiating can actually be a strategy
  and is probably underused.

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SBS ModelUnilateral Strategies
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Interactive Strategy

• I don't like that man. I'm going to have to get
  to know him better. -- Abraham Lincoln

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SBS Model Emphasizes Cont

• Your strategy must be adapted to the anticipated
  strategy of the other party
• Be prepared with a back up or secondary strategy,
  if your primary one is not working

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SBS ModelInteractive Strategies
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First Key Element 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 individuals personal
  characteristics and accomplishments.
• Develops over time once developed, is hard to
  change.
• Negative reputations are difficult to repair

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Second Key Element in Managing Negotiations
within Relationships

• Trust
• An individuals belief in and willingness to act
  on the words, actions and decisions of another
• Three things that contribute to trust
• Individuals chronic disposition toward trust
• Situation factors
• History of the relationship between the parties

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Trust and Honesty Dilemmas

• Dilemma of honesty
• Concern about how much of the truth to tell the
  other party
• Dilemma of trust
• Concern about how much negotiators should believe
  what the other party tells them

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Types of Trust

• 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 others desires and
  intentions. Trust exists because the parties
  effectively understand and appreciate each
  others wants mutual understanding is developed
  to the point that each can effectively act for
  the other.

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Third Key Element 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

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Observe Other Partys Tactics

• You can observe a lot by just watching. Yogi
  Berra

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SBS Model Emphasizes Cont

• Negotiations go through relatively predictable
  phases
• Be aware of where you are in the negotiation
  process
• Also be aware of whether you have gone backwards
  during a specific episode
• Be sure your tactics are consistent with your
  strategy
• Observe the tactics reflected in the behavior of
  others to determine what strategy they are
  followingdo not need to read their minds.

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SBS ModelTactics and Phases