1. McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

2. CHAPTER TWELVE Coalitions

3. Situations with More than Two Parties p. 256 Variations on a three-party negotiation: 1.One buyer is representing the other and two negotiations are occurring 2.The seller is conducting a sequenced series of one-on-one transactions 3.The seller is about to unwittingly compromised by the buyers (this happens when the parties form coalitions or subgroups in order to strengthen their bargaining position through collection action). 12-3

4. What Is a Coalition? P. 357 Interacting groups of individuals Deliberately constructed and issue oriented Exist independent of formal structure Lack formal structure Focus goals external to the coalition Require collective action to achieve goals Members are trying to achieve outcomes that satisfy the interests of the coalition 12-4

5. How and Why Coalitions Form and Develop p. 359 Coalitions are build one member at a time When coalitions form: Parties come together to pool efforts and resources in pursuit of common or overlapping goals Control over resources becomes the basis for two critical pieces of the coalition formation process: –What each member brings to the coalition –What each member should receive if the coalition forms 12-5

6. How and Why Coalitions Form and Develop Coalition formation is studied by: –A classic coalition game: The 3–2 game p. 360 –Real-world examples: The European Economic Community (EEC) p. 361 The Nature of Coalitions Inputs – p. 361 Coalitions form to preserve or increase resources Coalitions form in order to avoid a poor outcome that will occur if individuals acts alone (a “social dilemma”) 12-6

7. How and Why Coalitions Form and Develop p. 364 How coalitions develop: Coalitions start with a founder –Successful founders have extensive networks –Founders’ benefits from early coalitions are likely to be small Coalitions build by adding one member at a time p. 365 –The founder finds an ally; –The founder can benefit if he or she understands the others’ interests 12-7

8. How and Why Coalitions Form and Develop Linking new members—“ties”—become critical: –Strong ties: a new member who can bring a lot to the coalition, but demands a lot in return; –Weak ties: a new member who only brings a small amount to the table—enough to leverage the coalition to a “win”—but will not demand as much in return. Hence, weak ties can create strength for coalition founders: –Founders who have a large, diverse network of weak ties are often in a better situation to form a coalition than those who have a small, tightly organized network of strong ties 12-8

9. Standards for Coalition Decision Making p. 368 Coalition decision rules –Three criteria to determine who receives what from the results of the coalition’s efforts Equity standard –Anyone who contributed more should receive more (in proportion to the contribution made) Equality standard –Everyone should receive the same Need standard –Parties should receive more in proportion to some demonstrated need for a larger share of the outcome 12-9

10. Prospective Coalition Member Roles p. 372-73 12-10

11. Prospective Coalition Member Roles p. 372-3 Allies –Parties who are in agreement with a negotiator’s goals and vision, and whom the negotiator trusts Opponents –People with whom a negotiator has conflicting goals and objectives, but who can be trusted to be principled and candid in their opposition Bedfellows –Parties with whom a negotiator has high agreement on the vision or objectives, but low to moderate levels of trust 12-11

12. Prospective Coalition Member Roles p. 373-4 Fence Sitters –Parties who will not take a stand one way or the other –Fear taking a position because it could lock them in, be politically dangerous, or expose them to risk Adversaries –Adversaries are low in agreement and cannot be trusted. 12-12

13. Action Strategies for Building Relationships in Coalitions p. 374 Box 12.3 With allies –Affirm agreement on collective vision or objective –Reaffirm quality of the relationship –Acknowledge doubt and vulnerability with respect to achieving vision and collective goal –Ask for advice and support With opponents –Reaffirm relationship based in trust –State vision or position in a neutral manner –Engage in problem solving 12-13

14. Action Strategies for Building Relationships in Coalitions With bedfellows –Reaffirm the agreement; acknowledge caution exists –Be clear about expectations in terms of support –Ask what they want from you –Reach agreement on how to work together With fence sitters –State your position; find out where they stand –Apply gentle pressures –Focus on issue; have them tell you what it would take to gain their support 12-14

15. Action Strategies for Building Relationships in Coalitions With adversaries –State your vision or goals –State your understanding of your adversary’s position in a neutral way –Identify your own contributions to the poor relationship –End the meeting by restating your plan but without making demands 12-15