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Input 15: Building Trust in Negotiations - Coggle Diagram
Input 15: Building Trust in Negotiations
Trust in Negotiations
Hurley’s Model of Trust
Decision-Maker Factors:
Risk Tolerance: Risk-seekers trust more; risk-averse require control.
Level of Adjustment: Well-adjusted trust faster; anxious individuals slower.
Relative Power: Higher power = more trust; low power = cautious trust.
Situational Factors:
Security: Higher risk lowers trust.
Similarities: Shared traits boost trust.
Aligned Interests: Common goals increase trust.
Benevolence: Concern for others’ interests fosters trust.
Capability: Competence builds confidence (trust).
Predictability: Reliability, consistency and integrity build trust.
Communication: Open communication fosters trust.
Building Trust
RSPC
Relative Power: Balance power dynamics.
Similarities: Identify shared interests and values.
Predictability & Integrity: Ensure consistency, delivering what you promise
Communication: Clear, honest, effective
Managing Distrust
Share information and encourage reciprocity
Share your key interests first and expect the other side to reciprocate.
State ground rules clearly: explicit commitment to reciprocal sharing.
Share information incrementally to minimize risks
Negotiating Multiple Issues Simultaneously
Identify Key Issues for the Other Party
What issue leads to the most resistance to compromise?
Where do they dominate the conversation instead of listening?
Which issue evokes the most emotion or tension?
Which issue do they repeatedly revisit?
Solution: Negotiate All Issues Together
Alternate between issues in offers and counteroffers to uncover true interests.
List all issues upfront and put everything on the table.
Problem with Sequential Negotiation
Causes clashing and obscures true priorities.
Discussing issues one at a time makes each seem critical.
Make Multiple Offers Simultaneously
Key Benefits
Reveals preferences of reserved negotiators.
Shows flexibility and empathy.
Encourages constructive dialogue.
Scenario: Business owner vs. ex-employee.
Offer X: $7,500 + 3 months of health insurance.
Offer Y: $5,000 + 6 months of health insurance.
Outcome: Ex-employee valued insurance (doesn't explicitly say so but can deduct from the way he reacts to both offers) more, enabling a tailored, cost-effective resolution.
Tactic: Propose equally valuable options differing on key issues to uncover priorities.