Unit V PP Negotiate
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Negotiation
Section 02: Negotiation Subproccesses
Chapter 08: Finding and Using Negotiation Power
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Why Is Power Important to Negotiators?
Most negotiators believe power gives them an advantage and seek power when they perceive one of two situations.
They believe they currently have less power than the other party.
They believe they need more power than the other party.
power, or create power equalization or power difference.
Motives relate to the use of tactics used for two major reasons.
To create power equalization as a way to level the playing field.
Those less concerned with their power or with equal power find negotiation proceeds with greater ease and simplicity.
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A Definition of Power
In a broad sense, people have power when they achieve their desires or get things done they way they want.
Power over another means you can induce them to do things.
Power can also mean how dependent a person is on another.
Power can range from benign to oppressive and abusive.
Power may also be situational.
It is near impossible to define power for two reasons.
Effective use of power requires a sensitive touch and varies by person.
Actors, targets, and context changes with each situation.
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Sources of Power How People Acquire Power
There are five identified types of power.
Expert, reward, coercive, legitimate, and referent.
There are five groupings of power relating to negotiation.
Informational sources of power.
Power based on personality and individual differences.
Power based on position in an organization structural power.
Relationship-based sources of power.
Contextual sources of power.
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Informational Sources of Power
organize data to support their position and desired outcome.
In negotiation, it is likely the most important source of power.
The exchange of information in negotiation is at the heart of the concession-making process.
A common definition emerges through information exchange.
The definition is a rationale to adjust positions and reach agreement.
How information is presented is a source of power.
Directly or indirectly.
Power arising from expertise is a special form of information power.
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Power Based on Personality and Individual Differences
Cognitive orientation.
People differ in their ideological frames to power: the unity frame, radical frame or pluralist frame each shaping perspectives.
Motivation orientation.
Dispositions and related skills.
the impact of emotional expression.
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Structural Power Power from Traditional Hierarchy
Legitimate power comes from a job, office, or position.
This is at the foundation of our social structure.
People can acquire legitimate power by birth, by election, by promotion, or simply by the position itself.
Legitimate power cannot function without obedience of the governed.
Because of this, power holders may seek more than one type of power.
Legitimacy can be applied to some social norms.
The legitimate powers of reciprocity, equality, and responsibility or dependence.
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Power from Traditional Hierarchy Resource Power
Those who control resources have the capacity to give them or withhold them.
Important organizational resources include: money, supplies, human capital, time, equipment, services, and support.
Resources are deployed as rewards or punishments considered as reward power and coercion power.
Each has a personal and impersonal form.
Rewards and punishments can be tangible or intangible.
In negotiation, these arise as threats to punish and promises to reward.
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Power Based on Location in a Network
Power derives from critical resources flowing through a node.
In a network, the ties represent flows and connect nodes.
Three key aspects shape power.
Tie strength indicates strength or quality of relationships with others.
Tie content is the resources that pass along the tie.
Network structure is the overall set of relationships in the system.
Centrality brings power as the node is integral to a certain flow.
Criticality and relevance being irreplaceable is a key to keeping power.
Flexibility the role of gatekeeper controls access to key figures or groups.
Visibility of the task performance to others in the organization.
Membership in one or more coalitions.
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Figure 8.1: Comparing
Organizational Hierarchies and
Networks
Jump to slide containing descriptive text.
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Power Based on Relationships
Goal interdependence.
Referent power.
Made salient when one party identifies a commonality in an effort to increase their power (persuasiveness) over the other.
Can also have negative forms.
Used when parties seek to create distance or division between themselves and others, or to label the other.
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Contextual Sources of Power
BATNAs.
Having a strong BATNA increases the likelihood you will make the first offer, increase your outcomes, gain leverage, and claim more value.
For integrative outcomes, the reverse is true.
Culture.
Culture shapes what power is seen as legitimate.
Agents, constituencies, and external audiences.
Negotiations become more complex if acting as an agent and when there are multiple parties critiquing the outcomes.
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Consequences of Unequal Power
Research studies support the following findings.
Differences in power and level of interdependence can lead to different conflict orientations and behaviors.
Parties with equal power are likely to engage in cooperative behavior, while parties with unequal power likely use threats and punishment.
The more powerful party has the capacity to determine the outcome, but does not necessarily use that power.
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Dealing With Others Who Have More Power
Never do an all-or-nothing deal.
Make the other party smaller.
Make yourself bigger.
Build momentum through doing deals in sequence.
Use the power of competition to leverage power.
Constrain yourself.
Good information is always a source of power.
Ask many questions to gain more information.
Do what you can to manage the process.
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End of chapter 08.
© 2019 McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.