Negotiation Power

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What Is Negotiation Power!

& Why do we need IT.

NEGOTIATIONPOWER

How to deal with Other’s Power!

What are the types of Power!

& What are the Sources of Power

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NEGOTIATION POWER

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Importance of Negotiation Power

Negotiator believes that he has less power than the

other party which would be used against him as an

advantage and accordingly seeks power to offset that

advantage.

Negotiator believes he needs more power than the other party to increase the probability of securing the desired output.

Understanding the power in Negotiation

Enhancing negotiator‘s own power|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||Deminishing the other‘s Power

Equalization Difference

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Reward Power

Being able to reward others for doing what to

be done

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Types of POWER

Expert Power

In depth information about a subject.

Coercive Power

Being able to punish others for not doing what needs to be done.

Legtimate Power

Using the power associated from holding an office or a formal title

Referent Power

Resepect one commands because of attributes like personaility,integrity,interpersonal style

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NEGOTIATION POWER

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Relationship-based

•Goal interdependence

•Referent Power

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Sources of Power

Informational Source

•Most common source of power.

•Derived from negotiator’s ability to organiza facts and data to support his position, or desired output.

Personal Source

Derived from differences in:

•psycological orientation

•Cognitive orientation

•Motivational orientation

•Dispositions and skills

•Moral Orientation

Contextual source

Common Sources:

•Availability of BATNA’s

•Organizational and national culture

•Availability of agents and audience that can affect directly is indirectly the outcomes of the negotiation.

Positional based

•Derived from being located in a paticular position in organizational or communication structure leading to several kinds of leverage.

1.Formal authority

2.Resource control

• Positive (+)

• Negative (-)

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Sources of POWERS

• THE SOURCES OF POWERS IN DETAILS

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Informational Source of POWER

Information Power

•Derived from the negotiator's ability to assemble and organize facts to support t his or her positions, arguments, and outcomes.•The exchange of information is the heart of the concession making process•This also allows the negotiators to drive a common picture of the current situation

Expertise power can be Positive or Negative:

•We believe the other because of their acknowledged expertise.•This will lead to pursue a course of action opposite to the one they advocate

Expertise Power

It’s a special form of information power.A lot of people have information but expert power is accorded to those who are seen as having achieved some levels and mastery of body of information.

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Personal-Based Source of POWER

Cognitive orientation

There are 3 types of ideological frames:

The unitary: Characterized by beliefs that society is an integrated whole and that the interests of individuals and society are one, such power can be ignored or used to benefit the good of all.

The radical: Characterized by beliefs that society is in a continual clash of social, political and class interests. That power is structurally imbalanced.

The pluralist: Characterized by beliefs that power is distributed relatively equally across various groups which compete and bargain for a share of the continually evolving balance of power

Motivational Orientation

•Focuses on the different in individual motivations

•Differences rooted more in needs and "energizing elements" of the personality.

•Individuals differ in the "power motive" or the disposition of some people to have high needs to influence and control others and to seek out positions of power and authority.

Individuals have different psychological orientation to special situations

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Personal-Based Source of POWER (Cont.)

Dispositions and skills

•Skills such as high expertise, self confidence and high tolerance for conflict

•Emphasizing skills such as sensitivity to others, flexibility, and ability to consider and incorporate the views of others into agreements.

Moral Orientation

•There is a significant positive relationship between people's implicit ideas regarding egalitarianism and their willingness to share power with low power parties.

Individuals have different psychological orientation to special situations

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Relationship based Source of POWER

Goal Interdependence•How the parties view their goals – and how much achievement of their goal depends on the behavior of the other party – has a strong impact on how likely Parties will be to constructively use power.

Referent Power:•As defined earlier, referent power is derived from the respect or admiration one Commands because of attributes like personality, integrity.• Referent power is often based on an appeal to common experiences, common fate, or membership in the same groups. •Thus, a negotiator might start getting to know the other in order to discover Commonalities (home town, college, favorite sports team, political perspective) that, when discovered, will hopefully create a bond between the parties that will facilitate agreement. Negative referent power is often used, particularly when parties seek to create distance or division between themselves and others or to label the other.

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Relationship based Source of POWER (Cont.) 3-Networks:• Understanding power in this way is derived from conceptualizing organizations and their functioning not as a hierarchy, but as a network of interrelationships.Tie strength •This is an indication of the strength or quality of relationships with other.•Quality might be measured by how close you are how much personal information you share with the other. Strength of ties can be determined by how often the parties interact, how long they have known each other, how intimate one is with the other.Tie content•Content is the resource that passes along the tie with the other person.Network structure: Refers to the overall set of relationships within a social system ( e.g.a workplace, Department, school, or other social environment)Aspects of network structure•Centrality.: Determined by the amount of information or total number of transactions that Pass through a node, or by the degree to which the node is central to managing information flow. •Criticality and relevance: People who depend highly on others may become critical to the degree that they are charged with assembling information from many locations.3. Flexibility: The degree to which the key individual can exercise discretion in how certain Decisions are made.•Visibility: Nodes differ in their degree of visibility – that is, how visible the task performance is to other in the organization.5. Coalitions: Often act together to represent a point of view or promote action or change.

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Positional Based Source of POWER

Legtimate Power

It is derived from occupying a particular position in an organizationThere are times when people respond to directions from another , even directions they don’t like it, because they feel it is proper for the other to direct them .This is the effect of Legitimate power.

Legitimate power is at the foundation of our social structure.People must elect a leader and introduce some formal rules about decision making, work divisions, responsibilities and conflict management.

Legitimate power can be acquired by several ways:At birth :Like queen Elizabeth IIBy election:Like President ObamaBy promotion: Appointment or promotion to some organizational position.By respect:Derived from social good or important social values like college members

It is also possible to apply the notion of legitimacy to certain social norms that exerts strong control over people such as:

The legitimate power of reciprocity: "I did you a favor; I expect you to do one for me"The legitimate power of equity: "I went out of my way for you; this is the least you could do for me"The legitimate power of responsibility or dependence: a strong social norm that we have an obligation to help others who can't help themselves

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Positional Based Source of POWER (Cont.)

Resource Control

People who control resources have the capacity to give them to someone who will do what they want and withhold them from someone who doesn’t do what they want.Particular resources are more useful as instruments of power and are highly valued in the negotiation.

Most important types of resources are:Money: cash, salary, budget allocation, bonus...etc.Supplies: Raw material Human capital: available labor supply Time: free time , ability to meet dead line , time pressureEquipment: machines, tools, technology, vehicles.Critical services: maintenance, technical support, transportation.Interpersonal support: verbal praise , encouragement for good performance or criticism for bad performance.

“To make a successful control over resources; negotiators must maintain control over desirable reward that the other party wants or punishment the other seeks to avoid”

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Contextual Source of POWER

BATNA:

Best Alternative to negotiated agreement.More backup plans and more alternatives LEADING TO more negotiation power.

Based on:•Context•Situation•Environment

CULTURE:

Determined by the social environments.National cultures differs in degree of power over, power with orientations are supported or encourage.Culture both organizational and national often translated into deeply embedded structural inequalities in society, degree to which women, religious groups, social classes, other interests

Agents, Constitutions and External Audiences:

One –to-one negotiation may be not complex, representing other parties’ view make in more complexly.Public Media, Audience presents to observe, critique, and evaluate the negotiation, all can make pleasure to the negotiation parties as a part of negotiation process.

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CASESTUDY

• CASE STUDY

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CASESTUDYHuawei and GSM in ME and Africa

Operator

Subcontractor

Negotiation Level (Table) 01


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Negotiation Level (Table) 01 Contextual Source of Power:

• Powers Huawei lacked & the sources of power they used to equalize

• Powers Huawei had & where does it

• Limited Market

• Cross Culture

• Competitors

Informational Source of Power:

• BATNA

• Acquired capable resources from local market and globally.

• Gathered info about their competitors to know what are there points of weakness and where Huawei can have an edge on them.

Expert Power:

• Total Solutions and technology

Reward Power:

• Long time warranty & Maintenance

Contextual Source of Power:

• Very good organizational structure.

Positional based source of power:

• Rapid deployment and supply.

• Better Prices.

• Human resources quality and quantityRelationship-based source of power:

• Goal interdependence

Personal source of power:

• Motivation to penetrate the market

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• Powers Huawei lacked • Powers Huawei had & where does it

• Lack of local resources

Expert Power:

• He needs to leverage his finance

• Not aware with the construction, logistics in the local market.

• Lack of expertise in part of the solution.

Informational Source of Power:

• Well versed and in contact with large number of local subcontractors.


Coercive Power,

Reward power &

Positional based source of power:

• Majority of market share

Positional based Source of Power:

• Very good organizational structure.

• BATNA; as there is large number of subcontractors in the market

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• Huawei has managed to equalize the points of weakness infront of both the Operator and the subcontractor

• Maximizing their benefits (Market share and profit) using the powers they have.

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NEGOTIATIONPOWER1. Never do an all or nothing deal

Dealing with others who have more power

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. Do what you can manage the process

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NegotiationPOWERMatrix between Types of Powers and Sources of Powers

Source of Power Type of Power Description

Information Expert. Information Expertise

Personal Expert. Referent

Psychological Cognitive Motivational Dispositions Moral

Position-based Legitimate Reward; Coercive

Legitimate Resource control

Relationship-base Referent. Reward, coercive, legitimate

Goal interdependence. Referent power. Networks

Contextual Expert Availability of BATNAs. Organizational and national culture. Agent, constituencies and audiences can

affect outcomes. “makes pressure”.

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THANK YOU

Negotiation Power

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