Page 287 - DMGT519_Conflict Management and Negotiation Skills

Unit 13: Fairness and Trust in Negotiation

(and that it is not uncommon for us to not recognize what is making us angry, defensive, or Notes
zealously committed to some idea). Are you being particularly difficult with the other party
because he “does not respect you”; are you “trying to teach a subordinate a lesson”; or do you
want to “win” this negotiation to “look better” than another manager? Without passing judgement
on the legitimacy of these goals, we strongly urge negotiators to be aware of the effect of
intangible factors on their own aspirations and behaviour. Often talking to another person – a
sympathetic listener - can help the negotiator figure them out. Strong negotiators are aware of
how both tangible and intangible factors influence negotiation, and they weigh both factors
when evaluating a negotiation outcome.

Actively manage coalitions: Coalitions can have very significant effects on the negotiation
process and outcome. Negotiators should recognize three types of coalitions and their potential
effects: (1) coalitions against you, (2) coalitions that support you, and (3) loose, undefined coalitions
that may materialise either for or against you. Strong negotiators assess the presence and strength
of coalitions and work to capture the strength of the coalition for their benefit. If this is not
possible, negotiators need to work to prevent the other party from capturing a loose coalition
for their purpose. When negotiators are part of a coalition, communicating with the coalition is
aligned with their goals. Successfully concluding negotiations, especially when a coalition is
aligned against a negotiator is an extremely challenging task. It is important to recognize when
coalitions are aligned against you and to work consciously to counter their influence. Frequently,
this will involve a “divide and conquer” strategy where negotiators try to increase dissent
within the coalition by searching for ways to breed instability within the coalition.
Savour and protect your reputation: Reputations are like eggs – fragile, important to build,
easy to break, and very hard to rebuild once broken. Reputations travel fast, and people often
know more about you than you think that they do. Starting negotiations with a positive reputation
is essential, and negotiators should be vigilant in protecting their reputations. Negotiators who
have a reputation for breaking their word and not negotiating honestly will have a much more
difficult time negotiating in the future than those who have a reputation for being honest and
fair. Consider the following contrasting reputation: “tough but fair” versus “tough and
underhanded.” Negotiators prepare differently for others with these contrasting reputations.
Negotiating with a tough but fair negotiator means preparing for potentially difficult negotiations
while being aware that the other party will push hard for her perspective but will also be
rational and fair in her behaviour. Negotiating with a tough but underhanded other party
means that negotiators will need to verify what the other says, be vigilant for dirty tricks, and
be more guarded about sharing information.

How are you perceived as a negotiator? What is your reputation with others at this point? What
reputation would you like to have? Think about the negotiators you respect the most and their
reputation. What is it about their behaviour that you admire? Also think about the negotiators
that have a bad reputation. What would it take for them to change your image of them?
Rather than leaving reputation to change, negotiators can work to shape and enhance their
reputation by acting in a consistent and fair manner. Consistency provides the other party with
a clear set of predictable expectations about how you will behave, which leads to a stable
reputation. Fairness sends the message that you are principled and reasonable. Strong negotiators
also periodically seek feedback from others about the way they are perceived and use that
information to strengthen their credibility and trustworthiness in the marketplace.
Remember that rationality and fairness are relative: Research on negotiator’s perception and
cognition makes it quite clear that people tend to view the world in a self-serving manner and
define the “rational” thing to do or a “fair” outcome or process in a way that benefit themselves.
First, negotiators need to be aware of this tendency in both themselves and the other party.
Negotiators can do three things to manage these perceptions proactively. First, they can question
their own perception of fairness and ground them in clear principles. Second, they can find
external benchmarks and examples that suggest fair outcomes. Finally, negotiators can illuminate

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