Maurice Schweitzer

How does our relationship, as we develop it through the negotiation process, impact the post-negotiation outcomes that we really get?

We’re thinking about drawing a very crisp distinction between some transactions. Imagine that I’m buying a used car from you. We reach a deal, shake hands, sign the paperwork, and I drive off with my used car. I never see you again.

That type of transaction characterizes some of the negotiation context that we’re in, and I think that’s actually where so much of the popular press and the academic press have focused. They are an important segment of our economy, but my point is that’s not actually the biggest sector of the economy. Most of our negotiations are really quite different, so more like a salary negotiation with an employer and many things in between. It could be negotiating with a caterer or negotiating with your babysitter. There are all kinds of places where it may even be the case that we’re better off not negotiating, which is an idea that I think is anathema to a lot of negotiation scholars. Sometimes we’re better off not negotiating because by negotiating, we’re creating some sense of conflict and reframing our relationship as if we have opposing interests. If a lot of the value is created after the negotiation, then we really need to be mindful of that relationship. The hard-bargaining tactics may ultimately harm the economic value that we derive after the negotiation.

The key question to ask is: How much does the relationship matter? The paradigm that we created has the negotiation as well as a second stage, where people are actually working with each other and creating value for each other. What we found is if you harm the relationship through the negotiation process, you end up with a lower economic outcome, even if the salary or the deal terms might be favorable.

Like this content? Why not share it?
Share on FacebookTweet about this on TwitterShare on LinkedInBuffer this pagePin on PinterestShare on Redditshare on TumblrShare on StumbleUpon
There Are No Comments
Click to Add the First »