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Finding and Using Negotiation Power


CHAPTER 7 Finding and Using Negotiation Power – PowerPoint PPT presentation

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Title: Finding and Using Negotiation Power

  • Finding and Using Negotiation Power

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

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 dont 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

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

2. Sources of PowerHow 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
  • Relationship-based sources of power
  • Contextual sources of power

2.1 Informational Sources of Power
  • It is derived from the negotiators ability to
    assemble and organize facts and data to support
    his or her position, arguments, or desired
  • 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.

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.

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 peoples implicit ideals
    regarding egalitarianism.

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 holders authority, it is
    not uncommon for power holders to accumulate
    other power sources to fortify their power base.

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.

2.4 Power Based on Relationships
  • Goal Interdependence
  • Goal structure has consistently
    demonstrated a strong effect on negotiators
    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

  • 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
  • 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

Figure 7.1 Comparing Organization
Hierarchies and Networks
An Organization Hierarchy
An Organization Network
Isolated Dyad
Linking Pin
External Environment
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)

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
  • (6) Constrain yourself.
  • (7) Good information is always a source of power.
  • (8) Do what you can to manage the process.

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
  • 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.