Chapter Seven Finding and Using Negotiation Power

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CHAPTER SEVEN
Finding and Using

Negotiation Power
McGraw-Hill/Irwin ©2006 The McGraw-Hill Companies, Inc., All Rights Reserved

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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 power than the other party.
2. The negotiator believes he or she needs more
power than the other party.

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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”
– Power used to work together with the other–“power
with”

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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

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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

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Power Based on Personality

and 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
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Power Based on
Position 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 associated
with that position

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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.

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Power Based on
Resource Control
• Some of the most important resources:
– Money
– Supplies
– Human capital
– Time
– Equipment
– Critical services
– Interpersonal support

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Power Based on Relationships

• Goal interdependence
– How parties view their goals
• Referent power
– 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)

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An Organization Hierarchy

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An Organizational Network
Star Isolated Dyad

Gatekeeper
Liaison
Linking Pin
External Isolate
Environment
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• Key aspects of networks:
– Tie strength
• An indication of the strength or quality of relationships with others
– Tie content
• The resource that passes along the tie with the other person
– Network structure
• The overall set of relationships within a social system

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Aspects of network structure that determine
power include:
• Centrality
• Criticality and relevance
• Flexibility
• Visibility
• Coalitions

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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
• Agents, constituencies and external audiences

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Dealing with Others

Who Have More Power
• 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
• Do what you can to manage the process

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7-1

Finding and Using

McGraw-Hill/Irwin ©2006 The McGraw-Hill Companies, Inc., All Rights Reserved

Why Is Power Important to

McGraw-Hill/Irwin ©2006 The McGraw-Hill Companies, Inc., All Rights Reserved

McGraw-Hill/Irwin ©2006 The McGraw-Hill Companies, Inc., All Rights Reserved

McGraw-Hill/Irwin ©2006 The McGraw-Hill Companies, Inc., All Rights Reserved

Informational Sources of Power

McGraw-Hill/Irwin ©2006 The McGraw-Hill Companies, Inc., All Rights Reserved

Power Based on Personality

McGraw-Hill/Irwin ©2006 The McGraw-Hill Companies, Inc., All Rights Reserved

McGraw-Hill/Irwin ©2006 The McGraw-Hill Companies, Inc., All Rights Reserved

McGraw-Hill/Irwin ©2006 The McGraw-Hill Companies, Inc., All Rights Reserved

Power Based on Relationships

McGraw-Hill/Irwin ©2006 The McGraw-Hill Companies, Inc., All Rights Reserved

McGraw-Hill/Irwin ©2006 The McGraw-Hill Companies, Inc., All Rights Reserved

Star Isolated Dyad

Power Based on Relationships

McGraw-Hill/Irwin ©2006 The McGraw-Hill Companies, Inc., All Rights Reserved

Power Based on Relationships

McGraw-Hill/Irwin ©2006 The McGraw-Hill Companies, Inc., All Rights Reserved

Contextual Sources of Power

McGraw-Hill/Irwin ©2006 The McGraw-Hill Companies, Inc., All Rights Reserved

Dealing with Others

McGraw-Hill/Irwin ©2006 The McGraw-Hill Companies, Inc., All Rights Reserved

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