BUS403: Negotiations and Conflict Management

Multiparty Negotiations

Coalitions

• Definition: two or more parties who agree to cooperate in order to achieve some mutually desirable goal
  
• A way for individually weaker parties to gain power
  
• May be unstable: in the coalition game for any dyad, the excluded party can offer a better deal to one member in an alternative grouping.
  
• Complex mixture of cooperation and competition:
  
  • cooperation with fellow coalition members
    
  • competition with other coalitions
    
    • but also seeking cooperation with individual members from other coalitions to poach
      
  • competition with fellow coalition members over allocating rewards
    

Characteristics of Coalitions

• Often form one member at a time
  
• Tend to be formed independently of formal organizational structure
  
• Often are dependent on persuasion and trust
  (fears of defection, fear of leaked information)
  Do coalitions help OR hurt the reaching of integrative solutions?

The Complexities of Multiparty

• Informational complexity
  
  • Much more information to keep track of (various interests, positions, perceptions, BATNAs, strategies)
    
  • Your alternative to an agreement often is not "no deal" but other parties making a deal that excludes you
    
  • Challenge equals
    
    • (i) figure out parameters into which solution must fit
      
    • (ii) avoiding "tunnel vision" of groups and generating creative solutions given various interests
      
    • Avoid triggering negative emotions (hard to do without a good process)
      

The Complexities of Multiparty Negotiations

• Procedural complexity: How do you make sure everyone has an opportunity to speak and hold a constructive discussion?
  
  • Free form?
    
  • Go around the table?
    
  • Opening statement followed by open discussion?
    
• Decision rules:
  
  • Majority rule? Unanimity? Consensus?
    
• Social complexity
  
• Dynamics in groups are different from dyads (not just additive, people behave differently in groups)
  
• Beware: pressures of group think and conformity to emerging consensus
  
• Studies show group effects on perception and behavior
  
• Status differences can intensify this dynamic
  
• Stay conscious of this dynamic and remain in touch with colleagues who are not in the group

Source: MIT OpenCourseware, https://learn.saylor.org/pluginfile.php/33751/mod_resource/content/4/BUS403-4.1-PowerandNegotiationMultipartyNegotiations-CC-BY-NC-SA-4.0.-pdf..pdf
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