Page 289 - DMGT519_Conflict Management and Negotiation Skills

Unit 13: Fairness and Trust in Negotiation

13. You can tell if someone is bluffing about walking away from a negotiation if she takes and Notes
action that will make it more costly for her not to follow through on the threat.
14. The Mutual Trust Principle requires you to reveal your “bottom line” in a negotiation
only if you have reason to believe your opponent will do the same thing.

13.16 Summary

 Negotiations are integral to marketing transactions, whether they concern price, or product
or channel attributes.
 The areas of procedural and substantive fairness most often exist in the minds of employers,
H.R. personnel and even disciplinary or appeal hearing Chairpersons as no more than a
swirling, gray thick fog.
 The process of arriving at an agreement when there is multiple potential and conflicting
choices; it is the process by which multi-cultural teams reach an agreement
 Deterrence-based trust, on the other hand, is “based on consistency of behavior, meaning
that people will follow through on what they promise they are going to do.”
 Trust can be defined as “an expression of confidence in another person…that you will not
be put at risk

 Coalitions can have very significant effects on the negotiation process and outcome.
 Negotiators are often in the position to collectively define what is right or fair as a part of
the negotiation process

13.17 Keywords

Deal-making Negotiations: They are negotiations to buy and sell.
Decision-making Negotiations: The process of arriving at an agreement when there is multiple
potential and conflicting choices; it is the process by which multi-cultural teams reach an
agreement. Dispute-resolution negotiations are negotiations to resolve conflict resulting from
a claim being made and rejected.
Trust Negotiation: Trust Negotiation is an approach to gradually establishing trust between
strangers online through the iterative exchange of digital credentials. In contrast to a closed
system, where the interacting entities have a preexisting relationship (often proved by typing a
username and password), trust negotiation is an open system, and complete strangers can build
trust in one another.

Value-claiming Negotiation: It is a negotiation to reach a distributive agreement. It is about
claiming value.
Value-creating Negotiation: It is a negotiation to reach a integrative agreement. It is about
creating value.

13.18 Review Questions

1. What do you mean by Procedural fairness?
2. Explain about Substantive Fairness.

3. Describe different types of Negotiation.
4. Explain about rules in Negotiating Trust.

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