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!

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NEGOTIATION POWER

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Importance of Negotiation Power

Negotiator believes he needs

more power than the other
Enhancing negotiator‘s own power
party to increase the
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probability of securing the
Deminishing the other‘s Power
desired 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
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NEGOTIATION POWER
Types 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

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NEGOTIATION POWER

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NEGOTIATION POWER

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NEGOTIATION POWER
Sources of Power Personal Source
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 BATNA’s
negotiator’s ability to •Organizational and
organiza facts and data •Moral Orientation
national culture
to support his position,
or desired output. •Availability of agents
and audience that can
• Positive (+) affect directly is
indirectly the outcomes
• Negative (-) 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

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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
Expertise Power a course of action
It’s a special form of information power. opposite to the one
A lot of people have information but expert power is accorded to those who they advocate
are seen as having achieved some levels and mastery of body of
information.

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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.

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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 people's implicit ideas regarding egalitarianism
and their willingness to share power with low power parties.

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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 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 Like queen Elizabeth
direct 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
good or important
The legitimate power of reciprocity: "I did you a favor; I expect you to do
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 can't help themselves

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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”

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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.

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CASESTUDY

• CASE STUDY

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CASESTUDY
Huawei and GSM in ME and Africa

Negotiation Level (Table) 01

Operator

Subcontractor
Negotiation Level (Table) 02
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CASESTUDY
Huawei 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

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CASESTUDY
Huawei 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
Positional based Source of Power: subcontractors 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

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CASESTUDY
Huawei 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.

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NEGOTIATIONPOWER
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. Do what you can manage the process

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NegotiationPOWER
Matrix 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”.

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 THANK YOU

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