Negotiation Ch 10 Relationships In Negotiation[Sav Lecture]
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Transcript of Negotiation Ch 10 Relationships In Negotiation[Sav Lecture]
TUNGHAI UNIVERSITYDepartment of International Business - Taichung
Relationships, Trust and Reputation in
Negotiation
10-1
Four Key Dimensions of Relationships
Key Elements in Managing Negotiations within
Relationships
• Reputation
• Trust
10-3
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– Influenced by an individual’s personal
characteristics and accomplishments.– Develops over time; once developed, is hard
to change. – Negative reputations are difficult to “repair”
10-4
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 trust1. Individual’s chronic disposition toward trust2. Situation factors 3. History of the relationship between the parties
10-5
Key Elements in Managing Negotiations within
RelationshipsTwo different types of trust:• Rules (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
• Relationship (Identification-based trust)– Identification with the other’s desires and intentions.
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.
Key Elements in Managing Negotiations within
RelationshipsTrust (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
10-7
Building a Win Win Relationship
1. Transform personal conflict into task conflict ( Interests vs. positions)
2. Agree on a common goal or shared vision
3. Find a shared problem or shared enemy
4. Focus on the future
How to Build Trust
• Similarity-attraction effect (same boat)• Mere exposure (affinity)• Physical presence• Reciprocity• Schmoozing• Flattery• Self-disclosure
How to Avoid Mistrust
1. Breaches or defections
2. Miscommunication
3. Poor pie expansion
4. Threats
5. Focusing on the “bad apple”
6. False representations
How to Fix a Breach of Trust
• Arrange a personal meeting
• Put the focus on the relationship
• Apologize • Let them vent• Do not get defensive• Ask for clarifying
information
• Test your understanding
• Formulate a plan• Think about ways to
prevent a future problem
• Do relationship check-up at a scheduled date
Recent Research on Trust and Negotiation
Good news about 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• Greater expectations of trust between negotiators
leads to greater information sharing• Greater information sharing enhances effectiveness in
achieving a good negotiation outcome
Recent Research on Trust and Negotiation
Did you know:
• 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