Chapter 7 - Finding & Using Negotiation Power”

Why is Power Important to Negotiators?
Most negotiators believe that power is important in negotiation because it gives one negotiator an advantage over the other party. Negotiators who have this advantage usually want to use it to secure a greater share of the outcomes or achieve their preferred solution.

Reasons for Negotiator to Seek Power:
- The negotiator believes he or she currently has less power than the other party.
- The negotiator believes he or she needs more power than the other party to increase the probability of securing a desired outcome.

Power Defined:
- There are really two perspectives on power, “power over”, or power used to dominate and control the other and “power with”, or power used to work together with the other.

1. Negotiators focus on interests and priorities as a way to work toward a mutually satisfying agreement that creates value.
2. Negotiators focus on right when they seek to resolve a dispute by drawing upon decision rules or standards grounded in principles of law, fairness, or perhaps an existing contract.
3. Negotiators focus on power when they use threats or other means to try to coerce the other party into making concessions.

Some important implications for the use of power in negotiation:
- Starting a negotiation by conveying your own power to coerce the other party could bring a quick settlement if your threat is credible.
- 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.

Source of Power:
Classic view of Source of power:
- Expert Power
- Reward Power
- Coercive Power
- Legitimate power
- Referent Power

Contemporary view for sources of 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

Informational Sources of Power:
Information Power:
“Information Power is derived from the negotiator's ability to assemble and organize facts and data to support his or her position, argument, or desired outcomes”
Expertise Power
“Through the perceived expertise in a field, the person receives respect, deference and credibility”

Power Based on Personality and Individual Differences :
Cognitive Orientation:
- The Unitary
- The Radical
- The Pluralist
Motivational Orientation:
- “Energizing Elements” of personality
- Ex. “The authoritarian personality”
Disposition and Skills
Competitive Disposition and Skills
– Associated with “Power Over” definition
Cooperative Disposition and skills
– Associated with “Power With” definition
Moral Orientation:
- People are different in their moral views about power and how it should be used
- A strong positive relationship regard the use of power ethically and willingness to share power with low power parties

Power Based on Position in an Organization:
Legitimate Power:
- Derived from occupying a particular job, office, or position in an organizational hierarchy
How legitimate power acquired?
1. By Birth
2. Through Election of Designated Office
3. Through Appointment or Promotion within an organization
4. Be in Positions Where People Would Show Respect
Common Social Norms of "Legitimacy“:
1. The legitimate power of reciprocity
–"I did you a favor, I expect you to do the same“
2. The legitimate power of equity
–"I went out of my way for you; this is the least you could do for me“
3. The legitimate power of responsibility or dependence
–"I understand that others really needed help on this and could not do it themselves"
Power received from ability to "give" or "withhold" limited resources within organization
Type of Resources:
1. Money
2. Equipment
3. Supplies
4. Critical Services
5. Human Capital
6. International Support
7. Time

Power Base on Relationship:
Goal interdependence:
-How the parties view their goals and how much achievement of their goal depends on the behavior the other party
Referent Power:
Referent power is derived from the respect or admiration one commands becasue of attributes like personality, integrity, interpersonal style, and the like.
Networks:
The person occupying a certain position may not have a formal title or office; his or her leverage comes from the ability to control and manage what "flows" through that position.
Three Types of Networks Shape Power:
Tie Strength:
This is an indication of the strength or quality of relationships with others.
Tie Content:
Content is the resources that passes along the tie with the other person.
Network Structure:
Network structure refers to the overall set of relationships within a social system
1. Centrality
2. Criticality and Relevance
3. Flexibility
4. Visibility
5. Coalitions

Other Powers that Effect the Negotiation:]
Contextual Sources of Power:
-While power can be located within individuals and their relationships, power is also based in the context, situaiton, or enviromnent in which negotiations take place.
BATNAs:
- The availability of a BATNA offers a negotiator power because she now has a choice between accepting the other party's proposal or the alternative deal.
Agents, constituencies, and external audiences :
- When there are multiple parties, the public media, and/or audiences present to observe, critique, and evaluate the negotiations. When all of these parties are present in a negotiation, they can become actively involved to formally or informally pressure others as part of the negotiation process .