THE INFLUENCE OF 3RD-PARTY POWER AND SUGGESTIONS ON NEGOTIATION - THESURFACE VALUE OF A COMPROMISE

A simulated organizational dispute tested the influence of third party power and settlement suggestions on negotiation. Six different types of third party suggestions were tested: Integrative (highest possible value to both parties), compromise (the prominent solution equally fav orable to both parties), unintegrative (lowest possible value to both parties), favorable (more value to subject than to opponent), unfavora ble (more value to opponent than to subject), and no offers. Additiona l subjects bargained with no third party. The results suggest that the potential of a third party to impose a settlement influenced disputan t perceptions of power and desire for third party involvement, but had only weak effects on communication processes and little effect on off er proposals. While integrative suggestions led to greater acceptabili ty of the third party, compromise suggestions positively influenced th e appearance of fairness and the use of rationality and exchange messa ges. Receipt of an unfavorable suggestion resulted in less favorable r atings of third party acceptability, greater perceptions of bias, and the use of more assertive messages and fewer upward appeals aimed at t he third party than did receipt of a favorable suggestion. Implication s for managerial dispute resolution behavior and subsequent perception s of satisfaction and justice are discussed.