CHAPTER ELEVEN

Multiparty, Coalitions
and Team
4th Canadian Edition
Negotiations

Kevin Tasa
Schulich School of Business
York University

© 2020 McGraw-Hill Limited 11.1

 Learning Objectives
After reading this chapter you should be able to:

LO1: List the factors that make multiparty

negotiations more complex than one-on-one
negotiations.
LO2: Summarize the meaning of coalitions and their
impact on multiparty negotiation.
LO3: Explain how to plan for and conduct a team
negotiation.

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 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

© 2020 McGraw-Hill Limited 11.3

 Coalitions
What is a Coalition?
 A collection of two or more parties within a larger social
setting who work together to pursue mutually desirable goals
 Members are trying to achieve outcomes that satisfy the
interests of the coalition, not necessarily those of the larger
group within which the coalition is formed

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 Types of Coalitions (1)
Potential coalition
 Latent coalition: emergent interest group that has not yet
formed into an operating coalition
 Dormant coalition: interest group that previously formed
but is currently inactive

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 Types of Coalitions (2)
Operating coalition
 Established coalition: relatively stable and ongoing
across an indefinite time span
 Temporary coalition: operates for a short time and is
usually focused on a single issue or problem
Recurring coalition

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 How to Build Coalitions: Some Practical
Advice (1)
Parties who pursue enlightened self-interest are likely
in their dealings with others to use authentic tactics
 This requires parties to…
 Say no when they mean no
 Share as much information as possible
 Use language that describes reality
 Avoid repositioning for the sake of acceptance

© 2020 McGraw-Hill Limited 11.7

 How to Build Coalitions: Some Practical
Advice (2)
You can think about other prospective coalition
partners along two dimensions
 Do they agree with your objectives?
 Do they generate from you high or low levels of trust?

© 2020 McGraw-Hill Limited 11.8

 How to Build Coalitions: Some Practical
Advice (3)
5 possible roles for coalition partners
 Allies
 Opponents
 Bedfellows
 Fence Sitters
 Adversaries

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 Preparing To Negotiate as a Team
Putting the team together
 Build the team considering diverse expertise
 Negotiation expertise
 Technical expertise
 Interpersonal skills

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 Prepare as a Team
Consider the following questions…
 Opening offer?
 What roles will each member take?
 e.g., lead negotiator, process manager, number cruncher,
scribe, bad cop, etc.
 How will the team know when to take a break or call for a
caucus?
 How can we use non-verbal communication to our
advantage?

© 2020 McGraw-Hill Limited 11.11

 Challenges and Strategies of Team
Negotiations
Information processing
 Common knowledge effect – Tendency to withhold
information that is unique (even though this is often the
reason for creating a team in the first place)
Stereotyping
 Teams often create extreme stereotypes of the other side
Group extremism
 Groups often take more extreme positions than individuals
(called group polarization)

© 2020 McGraw-Hill Limited 11.12

 Summary and Key Points
Keep in mind…
 What are the consequences of the parties failing to agree due to
the increased complexities? What happens if there is no
agreement?
 How will the parties involved actually make a decision? What
decision rules will be used? Why are these the best possible rules?
 How can the parties use iterations—multiple rounds of discussion
—to achieve their objectives? (This may be particularly
appropriate when the decision rule is consensus—or the best-
quality agreement—because consensus may not be achievable in a
single iteration.)
 Do we need a designated chair or facilitator? Should it be a
neutral outsider, or can one of the parties fill this role? What
tactics can a facilitator use to manage group process to ensure
that the best decision is reached?

© 2020 McGraw-Hill Limited 11.13