Page 285 - DMGT519_Conflict Management and Negotiation Skills

Unit 13: Fairness and Trust in Negotiation

 Escalation Notes
 Planted Information
 Never-Ending Negotiation
Trust

 Essential factor in negotiation
 Enables cooperative behavior
 Reduces harmful conflict

 Facilitates work
 Involves some risk
 Requires interdependent relationship
Five Bases of Trust
 Deterrence-based trust – imposed penalties

 Self-interest trust – mutually advantageous
 Relational trust – reliability in past performance
 Identity-based trust – “us” culture

 Institutional-based trust – imposed by the situation
13.12 Establishing Trust

 Assess the situation
 Are there incentives for parties to deceive one another?
 Are there time constraints?

 How well do you know the other party?
 How does the other party see you?
 Are there common interests to build trust upon?
 Build mutual trust

 Use norm of reciprocity
 Display trust in the other person
 Demonstrate trustworthiness by following through on a promise
 Recognize mutual interests

 Guard your reputation for trustworthiness
13.13 Trust and Distrust

It is considered that the root cause of a conflicting situation is trust and distrust relationships. To
pursue effective negotiations, trust must be built and distrust managed. In the past 10 years, a lot
has been studied about trust, but not much has been written about distrust. This paper uses a case
study approach to examine the antecedents, behaviors, and consequences in 10 legal cases in
Hong Kong, where distrust is generally regarded as the root cause of the problem in the cases.

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