Agents, Constituencies, and Audiences: Understanding Coalitions and Multiple Parties in Negotiation

1. Chapter 11, 12 & 13 • Agents, Constituencies, Audiences • Coalitions • Multiple Parties and Teams By: Ms. Adina Malik (ALK) By: Ms. Adina Malik (ALK)

2. Learning Objectives • Principal, Agent and Constituent; & Bystanders in Negotiation • Audiences and Third Parties; their characteristics and how they influence negotiation • When to use an Agent vs. When to negotiate for yourself • What is Coalition • What is Multiparty negotiation?-Their characteristics and the nature of such negotiation

3. Principal in Negotiation • A party can act as a Principal –representing his or her own interests.

4. Agent and Constituent • An Agent is a negotiator who not necessarily presents their own issues and interests, but represent the views of others who may or may not be at the table. • A Constituent is one or more parties who have designated someone else (the agent) to represent their positions and interests in a negotiation. Constituents usually do not participate in the negotiation, although they may be present.

5. Agent and Constituent • E.g.: An attorney (an agent) and a client (a constituent) • E.g.: A salesperson (an agent) and his boss or manager (a constituent)

6. Bystanders • Bystanders are those who may have some stake in negotiation and who care about the substantive issues or the process by which a resolution is reached, but are not formally represented at the table. They frequently follow the negotiation, express public or private views to the negotiators, and in some way are affected by what happens.

7. THIRD PARTIES • Third parties can be described as bystanders who may be drawn in the negotiation specifically for the purpose of helping to resolve it.

8. Audiences • An Audience is any individual or group of people who are not directly involved in or affected by a negotiation, but who have a chance to observe and react to the ongoing events and who may at times offer input, advice, or criticism to the negotiators.

9. Characteristics of Audiences • Audiences vary according to whether they are physically present at or absent from the negotiation. • Audiences who are outcome-dependent derive their payoffs as a direct result of the negotiator’s behavior and effectiveness. A non-dependentaudience will not be affected by the result. • Audiences affect negotiation by the degree of their involvementin the process. • Indirect involvement via communication of idea, not directly influencing the course of an ongoing negotiation.

10. How Audiences Influence Negotiation • Audiences make negotiators “try harder” • Negotiators seek a positive reaction from an audience • Pressures from audiences can push negotiators into “irrational” behavior • Audiences hold the negotiator accountable

11. When to Use an Agent • When the agent has distinct or unique knowledge or skills in the issues • When the agent has better negotiation skills • When the agent has special friends, relationships or connections • When you are very emotionally involved in an issue or problem

12. When to Use an Agent • When you want the flexibility to use negotiation tactics that require several parties • When your natural conflict management style is to compromise, accommodate or avoid • When higher stakes to gain if you do well; while higher costs to incur if you do poorly

13. When to Negotiate for Yourself • When you want to develop or reestablish a strong personal relationship with the other negotiator • When you need to repair a damaged relationship • When you want to learn a lot about them before you craft an agreement • When your negotiation skills are better than those of any available agent

14. When to Negotiate for Yourself • When hiring an agent may be too costly • When the “image” of being represented by an agent may make the other side suspicious • When the agent is too emotionally involved, defensive and caught up in game playing

15. What is a Coalition? • A coalition is an alliance among individuals or groups, during which they cooperate in joint action, each in their own self-interest, joining forces together for a common cause. • E.g. Achieving a common corporate goal, lowering insurance rates, regulating an industry action, or strategic planning

16. Multiple Parties Multiple parties are negotiating with one another and attempting to achieve a collective or group consensus. Multiple individuals are present on each “side” of the negotiation The parties to a negotiation are teams against teams

17. A Multiparty Negotiation,Each Representing a Constituency .

18. The Nature of Multiparty Negotiations Differences between two-party and multiparty negotiations: Number of parties Informational and computational complexity Social complexity Procedural complexity Strategic complexity

19. Managing Multiparty Negotiations The pre-negotiation stage Characterized by many informal contacts among the parties The formal negotiation stage Structures a group discussion to achieve an effective and endorsed result The agreement phase Parties select among the alternatives on the table

20. The Pre-negotiation Stage Establish participants Form coalitions Define group member roles Understand the costs and consequences of no agreement Learn the issues and construct an agenda

21. The Formal Negotiation Stage Appoint an appropriate chair Use and restructure the agenda Ensure diversity of information and perspectives Ensure consideration of all available information Manage conflict effectively Review and manage the decision rules Strive for a first agreement Manage problem team members

22. Ensure consideration of all available information The Delphi technique An initial questionnaire, sent to all parties, asking for input Brainstorming Define a problem and generate as many solutions as possible without criticizing any of them Nominal group technique Brainstormed list of solutions ranked, rated, or evaluated The Formal Negotiation Stage

23. The Agreement Phase Select the best solution Develop an action plan Implement the action plan Evaluate outcomes and the process