roles of power in negotiation

8/12/2019 Roles of Power in Negotiation

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Why is Power Important to

Negotiators?

It gives one negotiator an advantage over theother party

To secure a greater share of the outcomes orachieve their preferred solution

Which arises from one of two perceptions:

Currently has less power than the other party More power needed than the other party to increase the

probability of securing a desired outcome


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the ability of the negotiator toinfluence the behavior ofanother


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Relative between the parties

Changes over time

Always limited Can be either real or apparent

Has both benefits and costs

Relates to the ability to punish or benefit;

Enhanced by legal support, personal knowledge,skill, resources and hard work;

Increased by the ability to endure uncertaintyand by commitment;

Enhanced by a good negotiating relationship;

Depends on the perceived BATNA; and

Exists to the extent that it is accepted


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Sources of Power (How People

Acquire Power)


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It derived from the negotiators ability to

assemble and organize facts and data tosupport ones position, arguments or desireoutcome. Negotiation may also useinformation as a tool to challenge the otherparty position to undermine the effectivenessof the others negotiating arguments

Informational

Personality & IndividualDifferences

Personal Orientation

Cognitive OrientationMotivational Orientation

Dispositions and Skills

Moral Orientation

V b l i d t f

d f iti i f b d f


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Legitimate Power : It exists because organizations find it advantageous toassign certain powers to individuals so they can do their jobs effectively

Types of social Legitimate power :The Legitimate Power of Reciprocity

The Legitimate Power of Equity

The Legitimate Power of ResponsibilityResources Control : Resource can be anything valued by participants in thenegotiation. Some of the most important resources are:

Money : Cash, salary, budget allocations

Supplies : Raw materials, components

Human capital : Available labor supply

Time : Free time, the ability to meet declinesEquipment : Machines, tools, technology,

Critical Services : Repair, maintenance

Internal Support : Verbal praise and encouragement

for good performance or criticism for bad performance

Position-Based Power

Verbal praise and encouragement for good performance or criticism for bad performance

Verbal praise and enco ragement for good performance or criticism for bad performance


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Goal Interdependence : How the parties viewtheir goals and how much achievement of theirgoal depends on the behaviour of the other party

Referent Power : Derived from the respect oradmiration one commands because of attributeslike personality, integrity, interpersonal style andothers

Networks : Power is derived from whateverflows through that particular location in thestructure

Relationship-BasedPower




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the circumstances or events that form the environment withinwhich something exists or takes place

Common sources of contextual power as follows:

BATNAs : Good negotiators use it for the better results ofnegotiation. The availability of BATNA offers a negotiator significantpower because he or she now has a choice between accepting the

other partys proposal or the alternative dealCulture : It encompasses the values and norms shared by membersof that group or organization about how to interact with each other,work together, deal with the external environment, and move theorganization into the future

Agents, Constituencies, and External Audiences : first we examinethe different types of audiences that can exist in negotiation andconsequences that audiences have on negotiators behavior. Inaddition, these other parties might or might not share your interests,thus putting pressure on either party.

Contextual



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Never do an all-or-nothing deal.

Make the other party smaller by having multiplerelationships and engage in multiple negotiations.

Make yourself bigger by building partnerships andcoalitions with other parties who find themselves in the

same position. Build momentum through doing deals in sequence by

selecting those high-power targets that have the most togain, the maximize visibility of those deals to other parties.

Use the power of competition to leverage power bycompeting with more than just the higher power individual. Good information is always a source of power Do what you can to manage the process.

Dealing With Others Who HaveMore Power


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Recognize and develop all of your sources ofpower

Act with the level of conviction and resolve

necessary to persuade other negotiators andproduce fair and favorable settlements

Power should be used in an ethical,professional, non-punitive way to move thenegotiation toward mutually acceptableclosure

roles of power in negotiation

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