1. Social Context: Relationships and Representatives
CHAPTER EIGHT
Social Context: Relationships and Representatives

2. The Major Social Context Factors in Negotiations
1. The number of parties and the relationships among those parties
2. The social knowledge and goals of the parties
3. The social norms that govern the negotiation (group and cultural norms and practices)
4. The communication processes that the parties use
5. The informal rules that govern their interaction
6. The physical environment and the cultural context in which a negotiation takes place

3. The Number of Parties in a Negotiation
The basic possible roles for parties in a negotiation:
A negotiating dyad
Agents and constituencies
Additional negotiators
Negotiating teams
Unrepresented bystanders and audiences
Third parties

4. A Negotiating Dyad & Agents and Constituencies
When two isolated individuals negotiate for their own needs and interests
Agents and Constituencies
A negotiator is not acting for himself but for others. We will call the negotiator in such situations an agent and the individuals he is representing a constituency

5. Additional Negotiators & Negotiating Teams
In some instances there are more than two negotiators
There is a possibility that parties will form alliances
Negotiating Teams
A team is two or more parties on the same side who are collectively advocating the same positions and interests

6. Unrepresented Bystanders and Audiences
Those who have some stake in a negotiation, care about the issues or the process by which a resolution is reached
Negotiators do not formally represent bystanders
Audience
Any individual or group of people not directly involved in or affected by a negotiation
They may offer:
Input
Advice
Criticism

7. Third Parties Third parties
Bystanders who may be drawn into the negotiation specifically for the purpose of helping to resolve it
Third parties often can reshape a polarized situation into a constructive agreement

8. Negotiating Through Others Within a Relationship
The Adequacy of Past Theory and Research for Understanding Negotiation within Relationships
Forms of Relationships
Negotiations in Communal Relationships

9. The Adequacy of Past Theory and Research for Understanding Negotiation within Relationships
Most of current negotiation theory is based on studies of simple transactions. They cannot take into account the effects of relationships on negotiations:
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

10. The Adequacy of Past Theory…
The effects of relationships on negotiations (cont.):
Distributive issues within relationship negotiations can be emotionally hot
Negotiating within relationships may never end
In many negotiations, the other person is the focal problem
In some negotiations, relationship preservation is the goal, and parties may make concessions on substantive issues to preserve or enhance the relationship

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

12. 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
Neighborhoods

13. 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

14. 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
Soldiers of the same rank
Members of a jazz band

15. Forms of Relationships
4. Market pricing
Based on an (intermodel) metric of value by which people compare different commodities and calculate exchange and cost/benefit ratios
Examples can be drawn from all kinds of buyer–seller transactions

16. Four Key Dimensions of Relationships

17. Negotiations in Communal Relationships
Parties who are in a communal sharing relationship:
Are more cooperative and empathetic
Craft better quality agreements
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

18. Negotiations in Communal Relationships
Parties who are in a communal sharing relationship (con’t.):
Are more likely to share information with the other and less likely to use coercive tactics
May be more likely to use compromise or problem solving
Are more likely to use indirect communication about conflict issues, and develop a unique conflict structure
Examples: families develop own “fighting” styles

19. Key Elements in Managing Negotiations within Relationships
Trust
Justice

20. 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”
Higher levels of trust make negotiation easier
Trust develops through three stages:
Calculus-based Trust
Knowledge-based Trust
Identification-based Trust

21. Key Elements in Managing Negotiations within Relationships
Calculus-based Trust
Individuals will do what they say because they are rewarded for keeping their word or they fear the consequences of not doing what they say
Knowledge-based Trust
Knowing the other sufficiently well so that one can anticipate and predict his or her behavior
Identification-based Trust
Identification with the other’s desires and intentions. Trust exists because the parties effectively understand and appreciate each other’s wants

22. Some Actions To Increase Different Forms of Trust in Negotiations
How to Increase Calculus-based Trust
Create and meet the other party's expectations. Do what you say
Stress the benefits of creating mutual trust
Establish credibility. Make sure your statements are honest and accurate
How to Increase Knowledge-based Trust
Have frequent interaction with the other. Meet often. Get to know the other
Let the other learn about you. Tell him or her about yourself
Be predictable. Learn to predict how the other will respond
How to Increase Identification-based Trust
Develop similar interests
Develop similar goals and objectives
Act and respond similar to the other. Stand for the same principles, values, and so on

23. Key Elements in Managing Negotiations within Relationships (cont.)
Justice
Can take several forms:
Distributive justice
About the distribution of outcomes
Procedural justice
About the process of determining outcomes
Interactive justice
About how parties communicate with each other
Systemic justice
About how organizations appear to treat groups of individuals

24. Using Representatives
Using Representatives creates audiences. There are many different kinds of audiences:
Team Members
Constituents
Bystanders and Observers
Consequences of audiences:
They make negotiators ‘Try Harder’
Negotiators seek a positive reaction from them
They can push negotiators into ‘Irrational’ behavior
Then hold the negotiator accountable

25. Tactical Implications of Social Structure Dynamics: The Negotiator’s Dilemma
How can a negotiator satisfy both the constituency’s demands for firmness (and a settlement favorable to their interests), versus the other party’s demand for concessions (and a settlement favorable to the other party or to their mutual gain)?
Answer: A negotiator must build relationships with both the constituency and the other party

26. Advice to Negotiators for Managing Their Constituencies and Audiences
1. Maintain Control over and “Manage” Audience Visibility
Limit Concessions by Making Negotiations Visible to the Constituency
Use the Constituency to Show Militancy
Use the Constituency to Limit One’s Own Authority
Use Great Caution in Exceeding One’s Authority

27. Advice to Negotiators for Managing Their Constituencies and Audiences
1. “Manage” Audience Visibility (cont.)
Increase the Possibility of Concession to the Other Negotiator by Cutting Off Visibility to Audiences
Establish “privacy” prior to the beginning of negotiations
Screen visibility during negotiations
Be aware of time pressure
Establish a Reputation for Cooperation

28. Advice to Negotiators for Managing Their Constituencies and Audiences
2. Communicate Indirectly with Audiences and Constituents
Communicate through Superiors
Communicate through Intermediaries
Communicate Directly to the Other Party’s Constituency
3. Communicate Directly to Bystanders and Audiences
4. Build Relationships with Audiences, Constituents and Other Agents

29. Advice to Constituents in Managing Agents
The agent should lack authority to make a binding commitment on any substantive issues
The agent should have discretion to design, develop an effective overall negotiation process
The constituent should focus most communication to the agent on:
Interests
Priorities
Alternatives

30. Advice to Constituents in Managing Agents
The constituent should set clear expectations about the frequency and quality of reporting back to them
Agent authority should expand as the constituent gains insight about them
Specific instructions to the agent should be in put in writing and be available to show to the other side
The constituent should instruct the agent on what they can disclose --interests, ranges of acceptable settlement, etc.