Why is Power Important to

Negotiators?
It gives one negotiator an advantage over the
other party
To secure a greater share of the outcomes or
achieve their preferred solution
Which arises from one of two perceptions:
Currently has less power than the other party
More power needed than the other party to increase the
probability of securing a desired outcome



the ability of the negotiator to
influence the behavior of
another

Relative between the parties
Changes over time
Always limited
Can be either real or apparent
Has both benefits and costs
Relates to the ability to punish or benefit;
Enhanced by legal support, personal knowledge,
skill, resources and hard work;
Increased by the ability to endure uncertainty
and by commitment;
Enhanced by a good negotiating relationship;
Depends on the perceived BATNA; and
Exists to the extent that it is accepted

Sources of Power (How People
Acquire Power)
It derived from the negotiators ability to
assemble and organize facts and data to
support ones position, arguments or desire
outcome. Negotiation may also use
information as a tool to challenge the other
party position to undermine the effectiveness
of the others negotiating arguments
Informational
Personality & Individual
Differences
Personal Orientation
Cognitive Orientation
Motivational Orientation
Dispositions and Skills
Moral Orientation




Legitimate Power : It exists because organizations find it advantageous to
assign certain powers to individuals so they can do their jobs effectively
Types of social Legitimate power :
The Legitimate Power of Reciprocity
The Legitimate Power of Equity
The Legitimate Power of Responsibility

Resources Control : Resource can be anything valued by participants in the
negotiation. Some of the most important resources are:
Money : Cash, salary, budget allocations
Supplies : Raw materials, components
Human capital : Available labor supply
Time : Free time, the ability to meet declines
Equipment : Machines, tools, technology,
Critical Services : Repair, maintenance
Internal Support : Verbal praise and encouragement
for good performance or criticism for bad performance











Position-Based Power
Verbal praise and encouragement for good performance or criticism for bad performance

Goal Interdependence : How the parties view
their goals and how much achievement of their
goal depends on the behaviour of the other party

Referent Power : Derived from the respect or
admiration one commands because of attributes
like personality, integrity, interpersonal style and
others

Networks : Power is derived from whatever
flows through that particular location in the
structure



Relationship-Based
Power
Verbal praise and encouragement for good performance or criticism for bad performance

the circumstances or events that form the environment within
which something exists or takes place
Common sources of contextual power as follows:
BATNAs : Good negotiators use it for the better results of
negotiation. The availability of BATNA offers a negotiator significant
power because he or she now has a choice between accepting the
other partys proposal or the alternative deal
Culture : It encompasses the values and norms shared by members
of that group or organization about how to interact with each other,
work together, deal with the external environment, and move the
organization into the future
Agents, Constituencies, and External Audiences : first we examine
the different types of audiences that can exist in negotiation and
consequences that audiences have on negotiators behavior. In
addition, these other parties might or might not share your interests,
thus putting pressure on either party.




Contextual
Verbal praise and encouragement for good performance or criticism for bad performance


Never do an all-or-nothing deal.
Make the other party smaller by having multiple
relationships and engage in multiple negotiations.
Make yourself bigger by building partnerships and
coalitions with other parties who find themselves in the
same position.
Build momentum through doing deals in sequence by
selecting those high-power targets that have the most to
gain, the maximize visibility of those deals to other parties.
Use the power of competition to leverage power by
competing with more than just the higher power individual.
Good information is always a source of power
Do what you can to manage the process.

Dealing With Others Who Have
More Power
Recognize and develop all of your sources of
power
Act with the level of conviction and resolve
necessary to persuade other negotiators and
produce fair and favorable settlements
Power should be used in an ethical,
professional, non-punitive way to move the
negotiation toward mutually acceptable
closure