When two or more parties work out their differences, they often employ explicit agreements. Written or oral, signed or unsigned, agreements spell out what will be exchanged and when, or what the parties will refrain from doing. Agreements are essential to collaborative work in the context of constrained resources.
When agreements collapse spontaneously, there is no apparent external cause. Even when external conditions remain unchanged, agreements can implode. Distrust and rancor can follow, jeopardizing the possibility of future agreements. Because the long-term consequences of collapse can be more severe, unpleasant, and debilitating than the collapse itself, skill in crafting stable agreements is a valuable asset.
Here are some of the attributes of stable agreements.
- They're voluntary
- Stable agreements are voluntary. Neither party is coerced by the other, or by any other party. For example, the supervisor who addresses toxic conflict between subordinates by ordering them to "work it out or else" is establishing conditions for an unstable agreement.
- If coercion drives the bargain, the agreement can remain stable only as long as the coercion remains effective.
- Information quality is symmetric
- Both parties have equal access to information about the context of the agreement and the value of the items exchanged. That is, one party estimates the fairness of the agreement about as accurately as the other. Information quality asymmetry is especially troublesome when the advantaged party knows that the disadvantaged party is agreeing to an unfair exchange, or when the advantaged party intentionally misleads the disadvantaged party.
- When the truth finally becomes apparent, the disadvantaged party often feels harmed. Relationships degrade. The agreement collapses.
- There are incentives for preserving the confidentiality of confidential terms
- When agreements have If coercion drives the bargain,
the agreement can remain
stable only as long as the
coercion remains effectiveconfidential components, stability requires that there be incentives for maintaining that confidentiality. For example, when an agreement must remain confidential for delicate policy reasons, a trap awaits: the first party to disclose the agreement can sometimes shift responsibility for the need for delicacy onto the other party, even after harvesting value from the agreement.
- When agreements are confidential, they must address the problem of incentives for first disclosure.
- Value exchange is contemporaneous
- Perhaps the most important stabilizer of agreements is simultaneity of exchange. If one party harvests value from the agreement before the other, or faster than the other, then the earlier harvester has an incentive to renege after having harvested enough value. Such an agreement becomes a form of "I'll scratch your back; you stab me in mine."
- Working out contemporaneous exchanges can be difficult, sometimes requiring streams of small bits. Finding workable decompositions can require some cleverness.
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More articles on Conflict Management:
- Nasty Questions: I
- Some of the questions we ask each other aren't intended to elicit information from the respondent. Rather,
they're poorly disguised attacks intended to harm the respondent politically, and advance the questioner's
political agenda. Here's part one a catalog of some favorite tactics.
- Rapid-Fire Attacks
- Someone asks you a question. Within seconds of starting to reply, you're hit with another question,
or a rejection of your reply. Abusively. The pattern repeats. And repeats again. And again. You're being
attacked. What can you do?
- Overtalking: III
- Overtalking other people is a practice that can be costly to organizations, even though it might confer
short-term benefits on the people who engage in it. If you find that you are one who overtalks others,
what can you do about it?
- Compulsive Talkers at Work: Peers I
- Our exploration of approaches for dealing with compulsive talkers now continues, with Part I of a set
of suggestions for what to do when a peer interferes with your work by talking compulsively.
- Conceptual Mondegreens
- When we disagree about abstractions, such as a problem solution, or a competitor's strategy, the cause
can often be misunderstanding the abstraction. That misunderstanding can be a conceptual mondegreen.
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- And on May 2: Narcissistic Behavior at Work: VII
- Narcissistic behavior at work prevents trusting relationships from developing. It also disrupts existing relationships, and generates toxic conflict. One class of behaviors that's especially threatening to relationships is disregard for the feelings of others. In this part of our series we examine the effects of that disregard. Available here and by RSS on May 2.
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- The Power Affect: How We Express Our Personal Power
- Many people who possess real organizational power have a characteristic demeanor. It's the way they project their presence. I call this the power affect. Some people — call them power pretenders — adopt the power affect well before they attain significant organizational power. Unfortunately for their colleagues, and for their organizations, power pretenders can attain organizational power out of proportion to their merit or abilities. Understanding the power affect is therefore important for anyone who aims to attain power, or anyone who works with power pretenders. Read more about this program.