08 Power Dynamics in Negotiation

Question 1

Why is power important?

Answer 1

• power in negotiations arises from one of two perceptions
  
  1. negotiator believes he or she currently has less power than the other party
  2. negotiator believes her or she needs more power than the other party
• two perspectives on power
  
  • ​power used to dominate and control the other - “power over”
  • power used to work together with the other - “power with”

Question 2

Five major sources of power

Answer 2

• Informational source of power
• Personal source of power
• Power based on position in an organization
• Relationship-based source of power
• Contextual sources of power

Question 3

Informational source of power

Answer 3

• information is the most common source of power
• experts control information
• 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 negotiating arguments

Question 4

Personal sources of power

Answer 4

• based on personality and individual differences
• 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

Question 5

Power based on position in an organization

Answer 5

Two major sources:

• legitimate power which is grounded in the title, duties, and responsibilities of a job description and “level” within an organization hierarchy
  
  • the foundation of our social structure
• power based on the control of resources associated with that position
  
  • 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

Question 6

Relationship-based sources of power

Answer 6

• Goal interdependence
  
  • How parties view their goals (competitive vs. cooperative)
• Referent power
  
  • respect and admiration
  • based on an appeal to common experiences, common past, common fate, or membership in the same groups
• Networks
  
  • Power is derived from whatever flows through that particular location in the structure (usually information and resources)

Question 7

Contextual sources of power

Answer 7

Power is based on the context, situation, and environment in which negotiations take place

• BATNAs
  
  • an alternative deal that a negotiator might pursue if she or he does not come to an agreement with the current other party
• Culture
  
  • often contains implicit “rules” about the use of power
• Agents, constituencies, and external audiences
  
  • all these parties can become actively involved in pressuring others

Question 8

When others have more power

Answer 8

• 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