Is Trust Necessary for Effective Negotiation?

Is trust necessary for effective negotiation? Interpersonal trust has been considered a cornerstone of social order by many intellectual disciplines (Lewicki, McAllister& Bies 1998). It permeates the core of human relationships. If intrinsic to interpersonal transactions, trust or the lack of it, also affects human interactions in a business context. This essay seeks to discuss what is understood by trust. It explores research findings on the role of trust in negotiations and its impact on the negotiation process. Finally, it exposes practical suggestions on creating an environment of trust during negotiations.

Rousseau et al. in Lewicki, Tomlinson & Gillespie (2006) define trust as "a psychological state comprising the intention to accept vulnerability based upon positive expectations of the intentions or behaviour of another". Conversely, distrust is defined by Govier in Lewicki, Tomlinson & Gillespie (2006) as a "lack of confidence in the other, a concern that the other may act so as to harm one, that he does not care about one's welfare or intends to act harmfully or is hostile".

The definition of trust suggested by Lewicki, Tomlinson & Gillespie (2006), is comprised of two important components: the intention to accept vulnerability, and a positive expectation of the intentions or behaviour of another. The definition implies that the interaction between teo parties comprises a risk, albeit mitigated by the expectation that the other party will behave cooperatively during the interaction to achieve an outcome.

Negotiation also comprises a risk. It is described by Fells (2010) as an interaction between two parties who have differences which they need to resolve whilst trying to achieve agreement through the process of exploring options and exchanging offers. Hence either trust, distrust, or a mix of both must be an integral part of negotiations as the latter is comprised of an interaction between the