Power of Negotiation (Negotiation Power)


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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.

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Power of Negotiation (Negotiation Power)

  1. 1. NEGOTIATIONPOWER What are the types of Power! & What are the Sources of Power & Why do we need IT. What Is Negotiation Power! How to deal with Other’s Power! YOUR LOGOPage  1
  3. 3. Importance of Negotiation PowerNegotiator believes he needsmore power than the other Enhancing negotiator„s own powerparty to increase the |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||probability of securing the Deminishing the other„s Powerdesired output. Equalization Difference 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. Understanding the power in Negotiation YOUR LOGOPage  3
  4. 4. NEGOTIATION POWERTypes of POWER Expert Power Coercive Power Legtimate Power In depth Being able to Using the power information about a punish others for associated from subject. not doing what holding an office or needs to be done. a formal title Reward Power Referent Power Being able to reward Resepect one others for doing what to commands because of be done attributes like personaility,integrity,inte rpersonal style YOUR LOGOPage  4
  7. 7. NEGOTIATION POWER Personal SourceSources of Power Derived from differences in: Informational Source • psycological orientation • Most common source • Cognitive orientation Contextual source of power. • Motivational orientation Common Sources: • Derived from • Dispositions and skills • Availability of negotiator‟s ability to BATNA‟s organiza facts and • Moral Orientation • Organizational and data to support his national culture position, or desired output. • Availability of agents • Positive (+) and audience that can affect directly is • Negative (-) indirectly the outcomes of the negotiation. Relationship-based • Goal interdependence Positional based • Referent Power • 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 YOUR LOGOPage  7
  9. 9. Informational Source of POWER Information Power • Derived from the negotiators 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 Expertise Power pursue a course of It‟s a special form of information power. action opposite to A lot of people have information but expert power is accorded to those who the one they advocate are seen as having achieved some levels and mastery of body of information. YOUR LOGOPage  9
  10. 10. Personal-Based Source of POWER Individuals have different psychological orientation to special situations 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. YOUR LOGOPage  10
  11. 11. Personal-Based Source of POWER (Cont.) Individuals have different psychological orientation to special situations 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 peoples implicit ideas regarding egalitarianism and their willingness to share power with low power parties. YOUR LOGOPage  11
  12. 12. 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. YOUR LOGOPage  12
  13. 13. 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) YOUR LOGOPage  13
  14. 14. Positional Based Source of POWER Legtimate Power Legitimate power It is derived from occupying a particular position in an organization can be acquired by several ways: There are times when people respond to directions from another , even At birth : directions they don‟t like it, because they feel it is proper for the other to direct Like queen Elizabeth them .This is the effect of Legitimate power. II By election: Legitimate power is at the foundation of our social structure. Like President People must elect a leader and introduce some formal rules about decision Obama By promotion: making, work divisions, responsibilities and conflict management. Appointment or promotion to some organizational It is also possible to apply the notion of legitimacy to certain social position. norms that exerts strong control over people such as: By respect: Derived from social The legitimate power of reciprocity: "I did you a favor; I expect you to do good or important social values like one for me" college members 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 cant help themselves YOUR LOGOPage  14
  15. 15. Positional Based Source of POWER (Cont.) Resource Control Most important types of People who control resources have the capacity to give them to someone resources are: Money: cash, salary, who will do what they want and withhold them from someone who doesn‟t do budget allocation, what they want. bonus...etc. Particular resources are more useful as instruments of power and are highly Supplies: Raw material valued in the negotiation. Human capital: available labor supply Time: free time , ability to meet dead line , time pressure Equipment: machines, “To make a successful tools, technology, vehicles. control over resources; Critical services: maintenance, technical negotiators must maintain support, transportation. control over desirable Interpersonal support: verbal praise , reward that the other party encouragement for good performance or criticism wants or punishment the for bad performance. other seeks to avoid” YOUR LOGOPage  15
  16. 16. Contextual Source of POWER BATNA: Based on: Best Alternative to negotiated agreement. • Context • Situation More backup plans and more alternatives LEADING TO more negotiation • Environment power. 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. YOUR LOGOPage  16
  18. 18. CASESTUDYHuawei and GSM in ME and Africa Negotiation Level (Table) 01 Operator Subcontractor Negotiation Level (Table) 02 YOUR LOGOPage  18
  19. 19. CASESTUDYHuawei and GSM in ME and Africa Negotiation Level (Table) 01 Contextual Source of Power: Contextual Source of Power: • Limited Market • Very good organizational structure. • BATNA Expert Power: • Total Solutions and technology • Cross Culture Reward Power: • Acquired capable resources from local market and • Long time warranty & Maintenance globally. Positional based source of power: • Rapid deployment and supply. Informational Source of Power: • Better Prices. • Competitors • Gathered info about their competitors to know • Human resources quality and quantity what are there points of weakness and where Relationship-based source of power: Huawei can have an edge on them. • Goal interdependence Personal source of power: • Motivation to penetrate the market • Powers Huawei lacked & the sources of power • Powers Huawei had & where does it they used to equalize YOUR LOGOPage  19
  20. 20. CASESTUDYHuawei and GSM in ME and Africa Negotiation Level (Table) 02 • Powers Huawei lacked • Powers Huawei had & where does it Contextual Source of Power: Contextual Source of Power: • Lack of local resources • Very good organizational structure. • BATNA; as there is large number of subcontractors Positional based Source of Power: in the market • He needs to leverage his finance Informational Source of Power: • Not aware with the construction, logistics in the local market. • Well versed and in contact with large number of local subcontractors. Expert Power: Coercive Power, Reward power & • Lack of expertise in part of the solution. Positional based source of power: • Majority of market share YOUR LOGOPage  20
  21. 21. CASESTUDYHuawei and GSM in ME and Africa • 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. YOUR LOGOPage  21
  22. 22. NEGOTIATIONPOWERDealing 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. Do what you can manage the process YOUR LOGOPage  22
  23. 23. NegotiationPOWERMatrix between Types of Powers and Sources of Powers Source of Power Type of Power Description Information  Expert.  Information  Expertise Personal  Expert.  Psychological  Referent  Cognitive  Motivational  Dispositions  Moral Position-based  Legitimate  Legitimate  Reward; Coercive  Resource control Relationship-base  Referent.  Goal interdependence.  Reward, coercive, legitimate  Referent power.  Networks Contextual  Expert  Availability of BATNAs.  Organizational and national culture.  Agent, constituencies and audiences can affect outcomes. “makes pressure”. YOUR LOGOPage  23
  24. 24. THANK YOU YOUR LOGOPage  24