Ch 8: Power in Negotiations

Question 1

Why is power Important to Negotiators?

Answer 1

Because they believe it gives one party advantage

Question 2

What are the two perceptions(ideas) behind why negotiators seek power?

Answer 2

Either they:

1. Believe they have less power, so they seek more to counterbalance it
2. Or believe they need more to secure gain. That is; they feel they may need more to get or sustain their advantage

Question 3

Why do negotiators use tactics?

Answer 3

1. To create power differences to gain advantage/block the other party’s moves– allowing one side to dominate
2. To create power equalization to prevent one side from dominating- laying the groundwork for compromising or collaboration

Question 4

What are the 2 perspectives of power?

Answer 4

1. power used to dominate and control the other (more likely in a distributive bargaining context)
   -Powerholder perspective: power is domineering/coercive

-Recipient: power really is powerlessness

2. power used to work together with the other (more likely in an integrative negotiation
   context

-Actor/Powerholder: power is real power with
-Receiver: Power is like empowerment

Question 5

What are the sources of power?

Answer 5

Expert- get from have unique depth of knowledge

Reward- power from being able to reward someone for getting things done

Coercive-being able to punish someone for not doing what needs to be done

Legitimate- power from holding an office or title

Referent- power from respect they have due to their personality

Question 6

What are the 5 broad groupings of the sources of Power?

Answer 6

Informational

Power based on personality and individual differences

Power based off position

Relationship based

Contextual sources

Question 7

Describe informational source of power

Answer 7

Based on:

Information: accumulation and presentation of data intended to change other person POV

Expertise: Acknowledged accumulation of knowledge, or mastery in a body of knowledge, problem or issue.

Question 8

Describe power based on personality and individual differences

Answer 8

Power is derived from differences in:

• Psychological orientation (broad orientations to power use). Which includes:
• Cognitive orientation (ideologies about power).
• Motivational orientation (specific motives to use power).
• Dispositions and skills (orientations to cooperation/competition).
• Moral orientation (philosophical orientations to power use).
• Moods and dispositions

Question 9

Describe the cognitive orientation

Answer 9

differences in ideological frames of reference:

Unitary frame: beliefs that society is an integrated whole and that the interests of individuals and society are one, such that power can be largely
ignored or, when needed, be used by benevolent authorities to benefit the good of all
(a view common to many “communal” societies and cultures).

Radical frame: beliefs that society is in a continual clash of social, political, and class interests and that power is inherently and structurally
imbalanced (a view common to Marxist individuals and cultures).

Pluralist frame: beliefs that power is distributed relatively equally across various groups, which compete and bargain for a share of the continually
evolving balance of power (a view common to many liberal democracies

Question 10

Describe Motivational Orientation - Personality and Individual differences cont’d

Answer 10

Differences in needs and energizing elements.
Eg. Power motive- having a high need to influence and control others- like Hitler

Question 11

Describe Dispositions and Related Skills- P&ID cont’d

Answer 11

Orientation to power grounded in individual 2 dispositions: to be Cooperative vs Competitive

Competitive dispositions may emphasise “power over” approach; having skills like stamina, high conflict tolerance, high self-confidence

Cooperative dispositions may emphasise “power with” with skills like sensitivity, flexibility etc.

Question 12

Moral Orientation toward Power- P&ID

Answer 12

Orientation towards power based on their “moral identity”- a broader commitment to act on behalf of the broader common good.

Those with strong moral identity- will be less likely to act in own self interest

Question 13

Moods- P &ID

Answer 13

Anger- seen with more powerful negotiators(those with more power). Anger help to focus on own wants

Low power negotiators do not react to their own emotions; are likely to be drawn into the emotions of the other party

Question 14

Describe the third source of power- Position in the Organization(Structural power)

Answer 14

Power Derived from Traditional Hierarchy: Two forms- (1) Legitimate power, (2) resource power- control of resources (budget, funding etc.)

-Legitimate power can be gained by:
1. Birth
2. Election
3. Appointment or promotion

Legitimate power of reciprocity: I did you a favour, now you owe me one

Legitimate power of Equity(fairness): I went out of my way for you, you can at least accept my wishes

Legitimate power of responsibility/dependence: Obliged to help those who cannot help themselves and are dependent on us

Resources:
1. Money in various forms: cash, salary budget

2. Supplies: raw materials, components, pieces
3. Human capital: available labour supply, temporary help
4. Time
5. Equiptment
6. Critical Services: repair, maintenance
7. Interpersonal support

Question 15

Describe power based on location in the network- Structural power cont’d

Answer 15

Not based on hierarchy, but being in a place where critical resources flow- like information and money)- like power in finance department

Question 16

What are the 3 key aspects of a network that shape power?

Answer 16

Tie strength: This is an indication of the strength or quality of the ties with other- shown in closeness of node on diagram; or how much one person is willing to go out of their way for the other

Tie Content: refers to the resources that pass along the tie to the other person

Network Structure: refers to the overall set of relationships within a social system (e.g., a workplace, department, friendship group, sorority or other social environments)

Some aspects that determine power in a network include:

Centrality: The more central a node is within the overall network of exchanges and
transactions, the more power that node’s occupant will have

Criticality and Relevance: Being in a place where critical information passes through- Laision

Flexibility: r the degree to which the key individual can exercise discretion in how certain decisions
are made or who gains access- the gatekeeper

Visibility: how visible the task performance is to others in the organization.

Membership in a coalition: Coalitions often act together to represent a point of view or promote action or change; the more coalitions you belong to, the more likely you will be to find “friends” who can help you meet key people, obtain
important (often “inside”) information

Question 17

Power Based on Relationships

Answer 17

Two types of Power:

1. Goal Interdependence: How the parties view their goals—and how much achievement
   of their own goal depends on the help received from the other party toward goal attainment—has a strong impact on how likely parties will be to constructively use power
2. Referent Power: referent power is derived from the respect or admiration one commands because of attributes like personality, integrity, interpersonal style, and the like.

Question 18

Contextual Sources of Power

Answer 18

Power based on context, situation or environment

1. BATNA
2. Culture: Determines which power orientation (power over vs power with) is more dominant;
   And how legitimate power is viewed
   Eg- Ceo has ideas, senior execs disagree, but do not openly challenge the CEO, but do so privately- respect for the hierarchy
3. Agents, Constituencies, and External Audiences: having more people- negotiations become more complex when you have an agent(who represents someone else); a public audience, multiple parties.

When all are of the parties are present, they can become actively involved to formally or informally pressure others as part of the negotiation process.

Question 19

How do you deal with those who have more power?

Answer 19

Never do an all-or-nothing deal

Make the other party smaller: establish multiple relationships and engage in multiple negotiations

Make yourself bigger: band with other low-power negotiators to increase influence of collective bargaining

Seek good information

Ask a lot fo questions to gain more info

Question 20

Interests, Rights, and Power

Answer 20

In order to reach a mutually beneficial agreement
that adds value, negotiators focus on interests
when they make an effort to understand each
other’s objectives and desires.

-While seeking to settle a disagreement,
negotiators emphasize rights by using criteria or
standards based on legal principles, social norms
of fairness, or maybe a current contract

-By using threats or other tactics to pressure the
opposing side into accepting concessions,
negotiators concentrate on power

Question 21

Implications for the Use of Power in Negotiation

Answer 21

Starting a negotiation by conveying your own
power to coerce the other party could bring a
quick settlement if your threat is credible. If
the other party calls your bluff, however, you
are left to either carry out your threat or lose
face, both of which may be undesirable

Power tactics (and rights tactics) may be
most useful when the other party refuses to
negotiate or when negotiations have broken
down and need to be restarted.

The success of power tactics (and rights tactics) depends to a great extent on how they
are implemented. To be effective, threats must
be specific and credible, targeting the other
party’s high-priority interests