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Negotiation

Section 02:
Negotiation Subprocesses

Chapter 08:
Finding and Using
Negotiation Power

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 Why Is Power Important to Negotiators?

Most negotiators believe that power is important because it

gives one negotiator an advantage over the other party.

A negotiator may believe that they have less power than the
other.
• So they seek power to offset or counterbalance the other’s advantage.
A negotiator may believe they need more power to secure
their desired outcome.
• They believe added power is necessary to gain or sustain their own
advantage in the upcoming negotiation.

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 Tactics to Enhance Power and Motives to Use Them

Tactics may enhance a negotiator’s own power, diminish the

other’s power, or create a power equalization or difference.
• Motives relate to why the negotiator is using the tactics—usually two
major reasons.

Negotiators use tactics to create power differences as a way

to gain advantage or to block the other party’s power moves.
• This leads to a competing strategy and a distributive agreement.
Negotiators use tactics to create power equalization as a way
to level the playing field.
• This leads to a compromising strategy and an integrative agreement.

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 A Definition of Power

People have power when they achieve their desires or get

things done the way they want them to be done.
• A party with power can induce another to do what the latter otherwise
would not do—that is, having power over another person.
But there is a problem—the definition so far is too restrictive
for understanding how power is used in negotiation.

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 Two Perspectives on Power

Power Used to Dominate Power Used to Cooperate

From the power holder’s From the power holder’s
view, this fits the power over view, this fits a power with
definition. situation.
• The receiver is powerless and • The receiver is empowered
dependent on the other. and independent.

Interpersonal dynamics may The dynamics reflect the

range anywhere between: benefits of empowerment.
• Benign and supportive, as a • Increased participation.
mentor, or
• Broad delegation of authority.
• Oppressive and abusive, as a
• Able to act with autonomy and
dictator.
integrity.
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 Reviewing Power Sources

It is near impossible to review power sources, power bases,

and the conditions under which each should be used.
• Effective use of power requires a sensitive touch, and its
consequences vary greatly from one person to the next.
• Not only do the key actors and targets change from one situation to
another, but the context changes as well.
This only allows us to identify a few key sources of power.

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 Sources of Power—How People Acquire Power

There are five identified major types of power.

• Expert power—derived from having unique, in-depth information about
a subject.
• Reward power—derived by being able to reward others for doing what
needs to be done.
• Coercive power—derived by being able to punish others for not doing
what needs to be done.
• Legitimate power—derived from holding an office or a formal title and
using the powers that are associated with that office.
• Referent power—derived from the respect a person commands
because of attributes like personality, integrity, and interpersonal style.

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 A Broader Perspective on Power

Here, we take a broader perspective on power as it relates to

negotiation and aggregate the major sources of power into
five different groupings.

• Informational sources of power.

• Power based on personality and individual differences.
• Power based on position in an organization (structural
power).
• Relationship-based sources of power.
• Contextual sources of power.

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 Informational Sources of Power

Derived from the ability to assemble and organize facts and

data to support a position, argument, or desired outcome.
• In negotiation, it is likely to be the most important source of power.
• Information can be a tool to challenge the other’s position or
undermine the effectiveness of the other’s arguments.
The exchange of information leads to concession-making.
• A common definition of the situation emerges and serves as a
rationale for both parties to adjust positions and reach agreement.
How information is presented is a key source of power, and
expertise power is a special form of information power.

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 Power Based on Personality and Individual
Differences

Personality traits affect how people acquire and use power.

Cognitive orientation.
• Use either the unity frame, the radical frame, or the pluralist frame.
Motivation orientation.
• Your “power motive” is your need to influence and control others.
Dispositions and related skills.
• Competition is “power over” and cooperation is “power with.”
Moral orientation.
• Either you want “power over” or you remain powerless.
Moods.
• Mood can create power, and power enhances the impact of emotion.
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 Power Based on Position in an Organization
(Structural Power)

Power is also shaped by the “structural” characteristics of an

organization.
• Organizations are designed so that some people have more power.
• This strongly influences negotiating strategies and outcomes.
• Those with structural power do not necessarily use that power.

We now discuss two approaches to structure that can

influence negotiating power.
• Traditional structure—a hierarchy of jobs and positions.

• A network structure—shows how the location in a network can lead to

bargaining power.

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 Structural Power from Traditional Hierarchy:
Legitimate Power

Legitimate power is grounded in the specific titles, duties,

and responsibilities of a job and “level” within a hierarchy.

• This is at the foundation of our social structure.

• People can acquire legitimate power by birth, by election, by
promotion, or simply by the position itself.
• Legitimate power cannot function without obedience of the
governed.
• Because of this, power holders may seek more than one type of
power.
• Legitimacy is applied to norms that exert control over people—
such as reciprocity, equality, and responsibility or dependence.

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 Structural Power from Traditional Hierarchy:
Resource Power

Resource power is based on the control over resources

associated with the job position.

• Those who control resources can give them or withhold them.

• Resources include: money, supplies, human capital, time,
equipment, critical services, and interpersonal support.
• Resources are deployed as rewards or punishment—
considered as reward power and coercion power.
• Reward power and coercion power each have personal and
impersonal forms.
• Negotiators must develop/maintain control over a reward the
other party wants or a punishment the other seeks to avoid.

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 Structural Power Based on Location in a Network

Power derives from critical resources flowing through a node.

• In a network, the ties represent flows and connect nodes.

Three key aspects shape power.

• Tie strength indicates strength or quality of relationships with others.
• Tie content is the resources that pass along the tie.
• Network structure is the overall set of relationships in the system.
Aspects of network structure that determine power include:
• Centrality, criticality and relevance, flexibility, visibility, and
membership in one or more coalitions.

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 Figure 8.1: Comparing Organizational Hierarchies
and Networks

Access the text alternative for slide images.

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 Power Based on Relationships

Goal interdependence.
• Cooperative goals tend to shape the “power with” orientation, and
competitive goals lead to “power over” orientation.
Referent power.
• Made salient when one party identifies a commonality in an effort to
increase their power (persuasiveness) over the other.
• Can also have negative forms to create distance or division.
Social capital.
• Emerges from a strong network with common goals and respect.
• Assistance is provided through bartering, and power is used with
ease.

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 Contextual Sources of Power

BATNAs.
• A strong BATNA increases the chance that you make the first offer,
increase your outcomes, gain leverage, and claim more value.
• For integrative outcomes, the reverse is true.
Culture.
• Culture shapes what power is seen as legitimate.

• “Power distance” is a key dimension that distinguishes cultures.

Agents, constituencies, and external audiences.
• The situation becomes more complex if a negotiator is acting as an
agent or when there are multiple parties critiquing the outcomes.

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 Consequences of Unequal Power

Research focuses on the impact of power differences on

negotiating outcomes.

• Differences in power and level of interdependence can

lead to different conflict orientations and behaviors.
• Parties with equal power are likely to engage in
cooperative behavior, while parties with unequal power are
more likely to use threats and punishment.
• The more powerful party has the capacity to determine the
outcome but does not necessarily use that power.

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 Dealing with Others Who Have More Power

1. Never do an all-or-nothing deal.

2. Make the other party smaller.
3. Make yourself bigger.
4. Build momentum through doing deals in sequence.
5. Use the power of competition to leverage power.
6. Constrain yourself.
7. Good information is always a source of power.
8. Ask many questions to gain more information.
9. Do what you can to manage the process.

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