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ESSENTIALS OF NEGOTIATION
CANADIAN 3RD EDITION LEWIC
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CHAPTER 8
Negotiation Power and Persuasion
Overview
Most negotiators believe that power is important because it gives one negotiator an advantage
over the other party. Why? Negotiators who have this advantage usually want to use it to secure
a greater share of the outcomes or achieve their preferred solution. In general, negotiators who
don’t care about their power or who have matched power—equally high or low—will find that
their deliberations proceed with greater ease and simplicity toward a mutually satisfying and
acceptable outcome. In contrast, negotiators who do care about their power and seek to match or
exceed the other’s power are probably seeking a solution in which they either do not lose the
negotiation (a defensive posture) or dominate the negotiation (an offensive posture).
Learning Objectives
1. Identify the sources of power in negotiations and explain the uses and limits of power,
2. List eight ways to comfortably deal with others who have more power,
3. Describe the two routes to persuasion, and list the various influence tools and techniques
that are available through each route.
In this section we will take a broad perspective on power as it relates to negotiation and
aggregate the major sources of power into several different groupings (see Table 7.1):
• Informational sources of power.
• Power based on position in an organization.
• Network or Relationship-based sources of power.
• Contextual sources of power.
• “Information is power”
a. Information power is derived from the negotiator’s ability to assemble and
organize facts and data to support his or her position, arguments, or desired
outcomes.
There are two major sources of power based on an individual’s position in an organization: i)
legitimate power (title/responsibilities) and ii) resource power (control of funding/budgets).
1. Legitimate power
2. 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.
• Important organizational resources include:
1. Money, in its various forms
2. Supplies
3. Human capital
4. Time
5. Equipment
6. Critical services
7. Interpersonal support
• Reward/punishment can be tangible or intangible.
Power also comes from location in an organizational structure, but not necessarily a
hierarchical structure. In this case, power is derived from whatever flows through that
particular location in the structure (usually information and resources, such as money).
Expert negotiators know that power comes not just from who you control, but also from
whom you are connected to.
(1) BATNAs
(i) The availability of a BATNA offers a negotiator significant power because
she now has a choice between accepting the other party’s proposal or the
alternative deal.
(2) Culture
(i) Culture often shapes what kinds of power are seen as legitimate and
illegitimate or how people use influence and react to influence.
(ii) National cultures also differ in the degree to which these “power over” or
“power with” orientations are supported or encouraged.
(iii)Culture—both organizational and national—often translates into deeply
embedded structural inequalities in a society.
Power is only the capacity to influence; using that power to exert influence requires insight, skill,
experience and sophistication.
Persuasion
• During negotiations, actors frequently need to convince the other party that they have
offered something of value, their offer is reasonable, and they cannot offer more.
• It is important to keep in mind that you do not need power to be persuasive. There are
numerous techniques negotiators can use to change their counterparts attitude and
behaviour.
• If you can get the other party to agree to something—almost anything—then you
have laid the foundation for subsequent agreement. The task is to find something that
the other party can agree with that puts him or her in the mind-set of saying yes.
6. Message Components
• Negotiators can help the other party understand and accept their arguments by break-
ing them into smaller, more understandable pieces.
Section Summary
• Negotiators need to take care when they construct a message to persuade another
party to their point of view
• Aspects of the message content, message structure, and delivery style can all
influence the extent to which a message is persuasive
• Peripheral routes involve “automatic” avenues of influence or, in other words, persuasion
through habitual, instinctive, unconscious and routine means of behaviour
• Discussion of peripheral routes to influence draw, in part, on the seminal work of
psychologist Robert Cialdini
• Three sets of strategies: message aspects, attributes of the persuader, and elements of the
influence context
1 Message Order
i Important points should be made early, exposing the receiver to the
primacy effect: The first item in a long list of items is the one most likely
to be remembered. In contrast, when the topic is uninteresting, unfamiliar,
or not very important to the receiver, the most critical point should be
placed at the end of the message to take advantage of the recency effect:
the tendency for the last item presented to be the best remembered.
2 Distractions
i When receivers are distracted, they are less able to engage in issue-
relevant thinking, and hence they may be more susceptible to processing
peripheral cues that may push them toward a particular choice.
When recipients of a persuasive message are unmotivated to pay close attention to the
substance/content of the communication, they become vulnerable to influence (source
effect) by the characteristics of the individual/organization delivering the message, such
as expert status.
1 Source Credibility
i Qualifications
ii Trustworthiness
iii Self-Presentation
2 Personal Attractiveness
i Friendliness and Likeability
ii Perceived Similarity
3 Authority
i People with authority have more influence than those without authority.
Stanley Milgram’s classic studies of obedience to authority suggest that
people will go to great lengths when their behaviour is legitimized by an
authority figure
ii Most people will obey the orders of a person wearing a uniform, even if
there is apparent emergency
iii Cialdini offers the following advice for dealing with authority figures who
may have influence over you. Ask two questions:
• “Is this authority truly an expert?”
• “How truthful can you expect this expert to be?”
There are certain aspects of the surrounding context that can be influential beyond the message
itself. The five strategies discussed below are powerful elements of persuasion. A sender of a
message should be aware of and incorporate opportunities in their discussions to involve/invoke
these additional peripheral routes of influence”
1. Reciprocity – a social norm that suggest you have an obligation to return something
(i.e., a favour) in the future when you have receive something. The norm of
reciprocity plays a vital role in negotiations, particularly with respect to concessions.
4. Scarcity – this suggests that when things are less available, they will have more
influence. In negotiation, people may be more susceptible to influence if they feel
they are obtaining scarce resources.
5. Use of Reward and Punishment – this concept was discussed as a base of Power
early in the chapter. Individuals that control resources or the ability to employ a threat
can secure the other’s compliance. However, it is again noteworthy that such pressure
tactics produce short-term compliance and could have potentially long-term adverse
consequences.
• Reinforce Points You Like in the Other Party’s Proposals – the simplest way
to reward people for what they say during a negotiation is to support the point you
are in agreement with and ask them to elaborate further on the favourable point.
Power can be fleeting and influential in different ways in different contexts. Expert negotiators
are aware of their sources of power and the limits of the power they do wield. In the next chapter
we further explore power and its role in dispute situations.
Persuasion is one way negotiators with low power can increase their success in negotiation. Each
of the techniques presented in the chapter can help, but only in situations where they are
appropriate. Familiarity with each technique, and attention to our suggestions regarding when to
use them, can go a long way towards improving your outcomes.