In any case, managers should keep existing anddesired relationships in mind as they bid for substantiveoutcomes. For example, when negotiators are on the losingenti of a win-lose negotiation, they should examine theimplications of taking a short-term loss. During his thirdappointment, Peterson's willingness to make only minimalgains in service contracts for the short term may create aposilivf relationship that will lead to
lucrative, long-termcontract with Tarco. The relative importance of possiblesubstantive and relationship outcomes should help execu-tives decide whether and how to negotiate. To guide theirdecision process, managers should begin by assessing ihoirrelative power and the level of conflict between them andthe other party. Both are key determinants of their currentrcLitionship with the other party.Exhibit
illustrates the negotiation context, showingihose aspects of the situation and negotialion episode that'^hape relationship
substantive outcomes. Exisling levelsof power
the relationship betweenthe executive and the other party and (2) (he negotiationstrategies they choose. These strategies are implementecithrough appropriate tactics during
meeting withrtiultiple parties — and result in substantive and relationshipoutcomes.The multiplearrows linking strategies, tactics.and thetU'HOtialion episode in Exhibit
show the monitoring proc-ess through which both the manager and the other partyrefine their strategies and tactics during an episode. A com-plex .lnd lengthy negotialion.such asj union tontratt nego-
m.iy include many episodes;
simple negotiationm.iy be (omj^leted within one episode. Each episode,nonetheless, influences future negotiations by changing themanager's and the other party
relative power, the level ofconflict between them. ,ind their relationship.
The relative power of the negotiators establishes animportant aspect of their relationship: the extent of each|).irty
defiendence on the olher. Researchers have foundlh.il individuals assess their power in a relationship and( hoose whether Io (ompete, iK(ommo(Jate, tollaborote. orwithdraw when negotiating with others.' Managers canassess their power relative to the other party by comparingtheir respective abilities to induce compliance through thecontrol of human .ind material resources. To what extent cioihey
control key material resources? To what extent doihey each control the deployment, arrangement, andadvancement of people within the organization?*"These questions will help managers determinewhether their relationship with the other party Is based onindependence, dependence, or interdependence. Addi-tionally, these questions should help executives considerhow
whether their relationship with the other parlyshould be strengthened orweakened.Often managers willfind themselves or their organisations in interdependenirelationships that have both beneficial and detrimcnl.ilaspects. These relationships are called mixed-motive situa-tions in the negotiation literature because they provideincentives for both competitive and cooperative actions.In his relationship with the Roadwork salesman.Peterson has considerable power. He is satisfied wiih hiscurrent vendor and has other vendors wanting to sell himthe same product. The numerous choices available allowhim to make demancJs on the salesman. Similarly. Petersonli.ts more relative power than the mechanic. On the olher
he has relatively little power wiih Tarco. since thecontractor
number of equipment-serviceshops. Moreover. Tarco's representative did noi make theinitial contact and has not actively sought Dickerson'sservices.
The levei of conflict underlying a potentkil negoti.i-lion establishes how the negotiators perceive the affectivedimension of their relationship — ihat is. ils degree of sup-fjorliveness or hostility. Managers can assess the relaliori-shi[is level of conflict by identifying the difleretices between
party's interests. On what issues do both parties agree?On what issues do they disagree? How intense and howingrained are these differences?"Answers to these c]uestions will reve.il whcMhcrnegotiations will easily resolve differences and whether iherelationship is perceived as supportive or hostile. Thesequestions, like the questions about relative power, shouldalso help exec utivesccinsidcn how <in</whether ihe relation-ship should bestrenglhenecl or weakened. Very tew negcili-ations begin with
neutral relationship.Indexed,the affectiveslate of the relationship may be
primary reason fcjr nego-tiating with
powerful other party. es[iec
if ihe rcLiticm-ship has deteriorated or been parliciiLirlv supportivc-In Peterson's case, neutral to positive relationshipsexist with the Roadwork salesman and the Tarco representa-
However, his relationships with the mechanic and theunion are potentially hostile. Eorexomfile. mtin.igemeni andunion representatives have .ilreacK h.id (ontronl.ilions.Their conflict may escalate if the relationship is notand both sides are not willing to make concessions."