Question

How can human, social, and relational capital affect a negotiation? Share a personal experience in which you used one or more of these during a negotiation.

Answer 1

Human, social and relational capital affect the negotiation in a way that negotiation is facilitated smoothly and parties in negotiation, come to work in collaboration and create a solution of the negotiation that is win-win for all the parties involved. Here, human capital brings competencies and skills that not only develops understanding of the negotiation, but also to do it amicably for a good solution, liked by everyone. Social capital brings social bonding and creates trust among the parties. It makes negotiation to move in a positive direction and help achieve a solution. Relational capital brings impact using the human relationship where parties start thinking about each other. It brings collaboration and cooperation and people drop their rigidity and come ahead to work on a mutually agreeable solution. All these capitals affect differently to achieve a successful negotiation.

For example, it was a personal experience to negotiate with a potential candidate for the job on the compensation package. The human capital and social capital were used to successfully negotiate the compensation package. Human capital helped to assess the best package possible for the job profile, reasoning behind the offer, growth opportunities, and initial hurdles at work that are to be faced by the organization. Besides, it helped to critically assess the skill sets of the candidate and his side of expectations. Social capital brought a common understanding on societal needs, need for the growth and future raise in compensation. It developed a trust between potential employee and the employer. These two capitals, helped to successfully negotiate upon a package and both parties got a win-win solution.