CHAPTER SEVEN

1. CHAPTER SEVEN Finding and Using Negotiation Power INB 350 Lecture By: Ms. Adina Malik (ALK)

2. Learning Objectives • What is power? • Why is it important to negotiators? • ‘Power over’ vs. ‘power with’ • Types of power • Sources of power • Dealing with others who have more power • Relation between ‘power and influence’

3. Introduction Power: • Thecapabilities negotiators can assemble to give themselves an advantage or to increase the probability of achieving their objectives. • The potential to alter the attitudes and behaviors of others that an individual brings to a given situation. • All negotiators want power.

4. Why Is Power Important to Negotiators? Seeking power in negotiation arises from one of two perceptions: 1. The negotiator believes he or she currently has less powerthan the other party. 2. The negotiator believes he or she needs more power than the other party.

5. A Definition of Power • “an actor…has power in a given situation (situational power) to the degree that he can satisfy the purposes (goals, desires, or wants) that he is attempting to fulfill in that situation” • Two perspectives on power: • Power used to dominate and control the other– “power over”(more likely in a distributive context) • Power used to work together with the other–“power with”– to level the playing field (more likely in an integrative context)

6. A Definition of Power Not only actors but context and situation in which actor operates can also be the source of power: • Environmental power • Relationship power • Personal power

7. Types of Power • Raven(1959) identified five major source of power: Formal or Positional Power: • Legitimate power: power invested in a role • Reward power:is the extent to which managers can use rewards to influence others • Coercive power:power to force someone to do something against their will

8. Types of Power Personal Power: • Referent power: power from another person liking you or wanting to be like you. It is the power of charisma and fame and is wielded by all celebrities (by definition) as well as more local social leaders.

9. Types of Power Personal Power: • Expert power: power of the specialist R&D Engineer when they threaten to leave unless they get an exorbitant pay rise

10. Sources of Power –How People Acquire Power • Informational sources of power • Personal sources of power • Power based on position in an organization • Relationship-based sources of power • Contextual sources of power

11. Informational Sources of Power • Information is the most common source of power • Derived from the negotiator’s ability to assemble and organize data to support his or her position, arguments, or desired outcomes • A tool to challenge the other party’s position or desired outcomes, or to undermine the effectiveness of the other’s negotiating arguments • E.g. The power of information, now available through the internet, has changed the ways people buy cars.

12. Informational Sources of Power • The exchange of information in negotiation is also at the heart of concession making process. • As each side presents information (amount and kind of information shared), a common definition (hopefully, realistic picture) of the situation emerges. • The information may not be 100% accurate to be effective: bluffs, exaggeration, omission and outright lies may work just as well. • Therefore, information exchange in negotiation serve as primary medium for creating a common view of situation- • by justifying one’s own and other’s perspective • by making concessions • and eventually explaining one’s feeling about the agreement achieved.

13. Power Based on Personalityand Individual Differences • Personal orientation • Cognitive orientation • Ideologies about power • Motivational orientation • Specific motives to use power • Disposition and skills • Orientation to cooperation/competition • Moral orientation • Philosophical orientation to power use

14. Power Based onPosition in an Organization Two major sources of power in an organization: • Legitimate power which is grounded in the title, duties, and responsibilities of a job description and “level” within an organization hierarchy • Power based on the control of resources (budget, financing, etc.)associated with that position

15. Power Based onPosition in an Organization Power Based on Resource Control • People who control resources have the capacity to give them to someone who will do what they want, and withhold them (or take them away) from someone who doesn’t do what they want. • Some of the most important resources: Money, Supplies, Human capital, Time, Equipment, Critical services and Interpersonal support

16. Power Based onPosition in an Organization • Legitimate power: • Legitimate power is the foundation of social structure • The effectiveness of legitimate power depends on the willingness of the followers to acknowledge the legitimacy of the system. • People can acquire power • By birth • By election • By appointment • Derived from social values

17. Power Based on Relationships • Goal interdependence • Cooperative goals: ‘power with’ orientation (more assistance, greater support, more persuasion, less coercive, more trusting and friendly attitude). • Competitive goals: ‘power over’ orientation (reinforce or enhance existing power differences, use power to maximize one’s goals)

18. Power Based on Relationships • Networks (personal or professional level) • Power is derived from whatever flows through that particular location in the structure (usually information and resources) • It comes from location in an organizational structure, but not necessarily a hierarchical structure. • For e.g. automobile chauffeurs in China before 1980s

19. Power Based on Relationships • Key aspects of networks that shape power: • Tie strength • An indication of the strength or quality of relationships with others • Stronger tie with another usually indicate greater power to have the other agree to requests. • Tie content • The resource that passes along the tie with the other person. E.g. money, information, support, emotion, etc. • Network structure • The overall set of relationships within a social system (workplace, department, school or other social environment)

20. Contextual Sources of Power Power is based in the context, situation or environment in which negotiations take place. • BATNAs • An alternative deal that a negotiator might pursue if she or he does not come to agreement with the current other party • Culture • Often contains implicit “rules” about use of power • Culture often shapes what kinds of power are legitimate or illegitimate, or how people use influence and react to it. • Agents, constituencies and external audiences • They formally or informally pressure others as part of the negotiation process.

21. Dealing with Others Who Have More Power When negotiators are on the receiving end of power: • Never do an all-or-nothing deal • Make the other party smaller • Make yourself bigger • Good information is always a source of power • Build momentum through doing deals in sequence • Use the power of competition to leverage power • Constrain yourself • Do what you can to manage the process

22. Power vs. Influence • Power is the potential to alter the attitudes and behaviors of others that an individual brings to a given situation • Influence, can be thought of, as ‘power in action’ • Influence is the actual messages and tactics an individual undertakes in order to change the attitudes and behaviors of others Power is potential influence Influence is kinetic power (power in use)