CHAPTER 7 Finding and Using Negotiation Power

1. CHAPTER 7 Finding and Using Negotiation Power

2. The Titles • Why Power is Important to Negotiators? • Sources of Power—How People Acquire Power ? • Dealing with Others Who have More Power ? • Chapter Summary

3. 1. Why Power is Important to Negotiators? • Seeking power in negotiating usually arises from one of two perceptions (1) The negotiator believes he or she currently has less power than the other party. (2) The negotiator believes he or she needs more power than the other party to increase the probability of securing a desired outcome • In general, negotiators who don’t care about their power or who have matched power will find that their deliberations proceed with greater ease and simplicity toward a mutually satisfy and acceptable outcome. • A Definition of Power

4. A Definition of Power • There are two perspectives on power: Power used to dominate and control the other and power used to work together with the other. • “Power over”, the power is fundamentally dominating and coercive in nature. This use of power implies powerlessness and dependence on the receiving end. • “Power with” , the power holder jointly develops and shares power with the other. The receiver experiences this power as empowered and independent.

5. 2. Sources of Power—How People Acquire Power • In the seminal work on power, French and Raven(1959) identified five major types: expert power, reward power, coercive power, legitimate power, referent power. • A broader perspective on power as relates to negotiation and aggregate the major sources of power into five different groups: Informational sources of power Personal sources of power Power based on position in an organization Relationship-based sources of power Contextual sources of power

6. 2.1 Informational Sources of Power • It is derived from the negotiator’s ability to assemble and organize facts and data to support his or her position, arguments, or desired outcomes. • The exchange of information is also at the heart of concession-making process. • Though the exchange of information, a common definition of situation emerges and serves as a rationale for both sides to modify their positions and, eventually, arrived at a mutually acceptable price. • The presentation of information is also a key source of power in negotiation.

7. 2.2 Power Based on Personality and Individual Differences -1 • Personal Orientation. Individuals have different psychological orientations to social situations. • Cognitive Orientation. Three types of ideological frames: the unitary, the radical, the pluralist. Each ideological perspective operates as a frame, shaping expectations about what one should pay attention to, how events will evolve, and how one should engage situations of power.

8. 2.2 Power Based on Personality and Individual Differences -2 • Motivational Orientation. Differences rooted in needs and “energizing elements” of the personality rather than in ideology. • Disposition Orientation. • Moral Orientation. Individuals differ in their moral views about power and its use. There is a significant positive relationship between people’s implicit ideals regarding egalitarianism.

9. 2.3 Power Based on Position in an Organization -1 • Legitimate Power It is derived from occupying a particular job, office, or position in an organizational And it is at the foundation of our social structure. People can acquire legitimate power in several ways. Legitimate Power cannot function without obedience or the consent of the governed. Because legitimate power can be undermined if followers choose to no longer recognize the power holder’s authority, it is not uncommon for power holders to accumulate other power sources to fortify their power base.

10. 2.3 Power Based on Position in an Organization -2 • Resource Control Resources can be many things, some of most important resources are the following: Money, Supplies, Human Capital, Time, Equipment, and so on. The ability to control and dispense resources is a major power source in organizations. Power also comes from creating a resource stockpile in an environment where resources appear to be scare. Resources are generally deployed in one of two principle ways: as rewards and as punishment. Negotiators must develop or maintain control over some desirable reward that the other party wants or control over some punishment the other seeks to avoid.

11. 2.4 Power Based on Relationships • Goal Interdependence Goal structure has consistently demonstrated a strong effect on negotiator’s attitudes and behaviors by influencing the disposition parties take toward power. • Referent Power Referent power is often based on a appeal to common experiences, common past, common fate, or member ship in the same group. • Networks

12. Networks • Tie Strength. This is an indication of the strength or quality of relationships with others. Stronger ties with another usually indicate greater power to have the other accede to request. • Tie Content. It is the resource that passes along the tie with the other person. • Network Structure (1) Centrality. (the star in figure 7.1) (2) Criticality and Relevance (liaisons and linking pins perform this role) (3) Flexibility (the role of gatekeeper) (4) Visibility (how visible the task performance is to others in the organization ) (5) Coalitions .It often act together to represent a point of view or promote action or change.

13. Figure 7.1Comparing Organization Hierarchies and Networks An Organization Hierarchy An Organization Network Star Liaison Gatekeeper Isolated Dyad Linking Pin External Environment Isolate

14. 2.5 Contextual Sources of Power • BATNAs. Any viable BANTA gives the negotiator the choice to walk away from current deal or to use the BATNA as leverage to strike a better agreement in the current discussion. • Culture. Culture determines the “meaning system ” of a social environment. National Cultures also differ in the degree to which these “power over” or “power with” orientations are supported or encouraged. Culture often translates into deeply embedded structural inequalities in a society. • Agents, Constituencies, and External Audiences. (multiple parties are involved in)

15. 3. Dealing with Others Who have More Power • (1) Never do an all-or-nothing deal. • (2) Make the other Party smaller. • (3) Make yourself bigger. • (4) Build momentum. • (5) Use the power of competition to leverage power. • (6) Constrain yourself. • (7) Good information is always a source of power. • (8) Do what you can to manage the process.

16. 4. Chapter Summary • In this chapter, we discussed the nature of power in negotiation. • We suggested that there are two major ways to think about power: “power with” and “power over”. • We then viewed five major sources of power. • It must be highly elusive and fleeting in negotiation. • Power is only the capacity to influence; using that power and skillfully exerting influence on the other requires a great deal of sophistication and experience.