Page 201 - DMGT519_Conflict Management and Negotiation Skills

Unit 9: Distributive Bargaining

cycles are often perpetuated by other human behaviors, including (1) naïve realism—when people Notes
assume their view of the world, and only their view, reflects reality, (2) confirmatory bias—when
people tend to seek only information that confirms their original position or belief, and
(3) accuser bias—when we tend to hold someone who has harmed us once excessively responsible
for other actions. These human tendencies cause the cycles of vicious or virtuous behavior to be
perpetuated, and the reciprocity norm to be practiced.

9.9 Good Faith Bargaining

Good faith bargaining is a fourth major type of norm, and in a negotiation situation generally
means that people expect certain behaviors from the other negotiators, including the following:
1. They will honor what they propose in bargaining; they do not retract an offer once made
and accepted, and if necessary they sign written agreements.
2. They are willing to meet together, at reasonable times and places, to discuss issues.
3. They are willing to make proposals on each of the issues at hand.

4. They will engage in a process of give-and-take or compromise.
5. They provide only honest information, and if necessary will share their sources of
information. It is important to realize that in most negotiation situations, however, there
are no legal or prescribed rules for good faith bargaining, and unfortunately reasonable
people can disagree as to exactly what behaviors define “good faith.” Thus, one party may
feel that the other has violated the rules of good faith bargaining, and discussions can be
prematurely terminated. Why? It is often said that a negotiator’s greatest asset is integrity.
Few negotiators will continue to meet with someone they no longer trust to be negotiating
in good faith, since they cannot expect to reach an agreement, or if one is reached, they fear
it will not be implemented as negotiated.
Workplace collective bargaining in the United States is a specialized negotiation situation that
involves representatives from labor and management—an example of the good faith bargaining
norm in action. The National Labor Relations Act of 1935 and its amendments require the
representatives to meet at reasonable times and confer in good faith on issues such as wages,
benefits, hours, and working conditions. This requirement includes active participation with an
intention to reach an agreement and to sign binding agreements on mutually acceptable terms.
It does not however, require either party to make a concession or agree to a proposal.

Counter offers

Returning to the Chapter Case, the buyers and the seller of the work of art (refer again to
Box 9.2) will draw upon one or more of the negotiation norms just discussed as a basis for
making counteroffers to the other party and for evaluating the counteroffers received. In addition,
during this give-and-take process they may choose to utilize one or more of the common
negotiation tactics described in As you recall, these tactics include (1) making extreme or even
ridiculous opening offers—designed to cause the other side to question its own opening positions;
(2) claiming limited authority to make concessions; (3) using emotional outbursts such as
shouting, cursing, name-calling, and even walking out in a huff as part of a posturing strategy;
(4) offering few concessions, they view concessions as a sign of weakness, and thus offer few
themselves, and seldom offer a concession not even in return when concessions are made by the
other side; (5) resisting deadlines and using time as their ally, preferring a delayed settlement if
it gains something, however small, for their side; and (6) waiting to counter after receiving an
offer.

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