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:
- The Fine Art of Quibbling
- We usually think of quibbling as an innocent swan dive into unnecessary detail, like calculating shares
of a lunch check to the nearest cent. In debate about substantive issues, a detour into quibbling can
be far more threatening — it can indicate much deeper problems.
- Logically Illogical
- Discussions in meetings and in written media can get long and complex. When a chain of reasoning gets
long enough, we sometimes make fundamental errors of logic, especially when we're under time pressure.
Here are just a few.
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- When you're responsible for an organizational function, and someone not reporting to you won't recognize
your authority, or doesn't comply with policies you rightfully established, you have a hard time carrying
out your responsibilities. Why does this happen?
- Preventing Toxic Conflict: I
- Conflict resolution skills are certainly useful. Even more advantageous are toxic conflict prevention
skills, and skills that keep constructive conflict from turning toxic.
- Dealing with Deniable Intimidation
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- Narcissistic behavior at work threatens the enterprise. People who behave narcissistically systematically place their own interests and welfare ahead of anyone or anything else. In this Part II of the series we consider the narcissistic preoccupation with superiority fantasies. Available here and by RSS on March 7.
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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.