Page 283 - DMGT519_Conflict Management and Negotiation Skills

Unit 13: Fairness and Trust in Negotiation

and it certainly has strong connotations of a power relation. Yet it offers an interesting Notes
juxtaposition against identification-based trust. Thompson refers to people’s attitudes towards
legal contracts and forms of surveillance as examples of deterrence-based trust. Compared with
identification-based trust, which operates at the level of intrinsic motivation, deterrence-based
trust is more expensive to maintain because it requires external monitoring of people’s
compliance. Moreover, backfiring is possible because, psychologically, people often react
negatively when they perceive that someone is controlling their behavior or limiting their
freedom. Looking at their flipside, the distinction between deterrence-based and identification-
based trust resembles somewhat that between hard and soft forms of power.

Values

 Values can be self-centered, internal standards accepted for one’s own behavior

 Values can be social-centered, external standards expected for another’s behavior
 Rokeach described end or terminal values and means or instrumental values

Behaviour Rules

 Descriptive behavior rules show what people do in certain situations
 Injunctive behavior rules show what people should do in certain situations
 Injunctive behavior rules become laws and codes of ethics

Substantive Fairness

 Seen in distribution of value

 Proportionality
 Reciprocity
 Impartiality
 Parties are heard

Notes Building trust requires time and even some risk, especially when we start a new
partnership or business relationship. If you don’t fully trust each other, find ways to
minimize your vulnerability and thus avoid the defensiveness that constrains value
creation. There are some ways to secure agreements in the absence of trust. These include
setting up monitoring regimes, creating guarantees and proceeding incrementally. There
is a need for trust to facilitate sharing information with the other side. The most value-
creating agreements are those in which both sides openly share data. The result of recent
studies by the consulting firm ‘A.T. Kearney’ showed that trust in high-level business
alliances is of particular significance. A direct correlation exists between trust and profit.
It means that if you consistently share data with clients, not only will trust go up, but so
too will the quality of your agreements and with these, so too will your profits. It may
take several meetings to develop this trust, but it will definitely pay off. Developing trust
has become a key source of sustainable competitive advantage. Once trust is built, keep in
mind that it is much easier to spoil it than create it.

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