If you're responsible for people or resources — most of us are responsible for at least ourselves — you probably make commitments at work. You commit to do something (or not to), at a certain pace, or by a certain date, or within some constraints. Sometimes the commitment is part of an exchange: I'll do this, and you'll do that; or I won't do this, and you won't do that; and so on.
When commitments are part of exchanges, we sometimes call them informal agreements. Rarely are they written down, though they might be; rarely are there handshakes, though there might be. Most agreements actually work. What makes agreements durable? Here are some of their attributes.
- They're bilateral
- Bilateral agreements are based on mutual consent. In a unilateral agreement one of the parties believes there is an agreement, but the other doesn't, or is unaware of any agreement. For durability, both parties must be aware that a deal has been struck.
- They're clear
- Even if both parties acknowledge existence of an agreement, they might not agree on the terms. It's essential that all concerned agree about what's being exchanged, and how it will be exchanged.
- They're voluntary
- Neither party is coerced — not by the other, nor by events, nor by another party. If coercion drives the bargain, the agreement is durable only while coercion persists.
- The parties are equally knowledgeable
- Each party has roughly Even if both parties acknowledge
existence of an agreement,
they might not agree
on the termsequal information about the value of the items exchanged and the framework of the exchange. That is, both parties estimate the agreement's fairness equally accurately. If one party has better information than the other, then when the second party "wakes up," the deal often implodes, or the relationship sours.
- Incentives have symmetric value
- When the agreement includes incentives, the value of the incentives to each party is roughly identical. Incentives that mean much more to one party than the other are likely to lead to non-performance by the party that has lesser regard for its incentives.
- There are no incentives for breach of confidentiality
- When the agreement is confidential and sub rosa a trap awaits, because there can be an incentive to breach confidentiality. The first party to admit to a sub rosa agreement can sometimes avoid the penalties of having made such an agreement, even after harvesting value from it.
Most important, there can be no incentive for one party to turn against the other. If one party can capture value by inflicting harm on the other, the agreement is inherently unstable. It becomes a form of "I'll scratch your back; you stab me in mine." Durable agreements are structured such that turning on one's partner is very, very expensive. Top Next Issue
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More articles on Workplace Politics:
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- When you find yourself in a tough spot politically, what can you do? Most of us obsess about the situation
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- The Advantages of Political Attack: I
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- Before You Blow the Whistle: II
- When organizations become aware of negligence, miscalculations, failures, wrongdoing, or legal infractions,
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decide to reveal what the organization is trying to hide. Here's Part II of our catalog of methods used
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- Active Deceptions at Work
- Among the vast family of workplace deceptions, those that involve presenting fiction as reality are
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- Just Make It Happen
- Many idolize the no-nonsense manager who says, "I don't want to hear excuses, just make it happen."
We associate that stance with strong leadership. Sometimes, though, it's little more than abuse motivated
by ambition or ignorance — or both.
Forthcoming issues of Point Lookout
- Coming April 1: Incompetence: Traps and Snares
- Sometimes people judge as incompetent colleagues who are unprepared to carry out their responsibilities. Some of these "incompetents" are trapped or ensnared in incompetence, unable to acquire the ability to do their jobs. Available here and by RSS on April 1.
- And on April 8: Intentionally Misreporting Status: I
- When we report the status of the work we do, we sometimes confront the temptation to embellish the good news or soften the bad news. How can we best deal with these obstacles to reporting status with integrity? Available here and by RSS on April 8.
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