BUSM4722 - Topic 6 - Negotiation Power and Influence (1)

Negotiations & Infl uence Topic 6: Negotiation Power and Influence Dr Steven Clarke POWER Definition The two perspectives on power Power used to dominate and control Power used to work together with the other More likely in an integrative negotiation More likely in an integrative negotiation “Power over” from one party “Power with” from one party “Powerlessness and dependence” from the other ”empowered and independent” from the other Sources of power Informational sources o Information: Assemble and organize facts and data to support their own and to challenge the other party’s arguments o Expertise: from mastery of a body of information, on a particular problem or issue  more credibility Sources of power Personality and individual differences o Psychological orientation o Cognitive orientation o Motivational orientation o Dispositions and skills o Moral orientation Sources of power Personality and individual differences o Psychological orientation Stable individual differences – personality traits – affect how individuals acquire and use power Sources of power Personality and individual differences o Cognitive orientation (ideologies)  The unitary frame: society is an integrated whole  Power benefit the good of all  The radical frame: society is continually clashed  Power is imbalanced  The pluralist frame: power is distributed equally across all groups Sources of power Personality and individual differences o Motivational orientation (motives)  Some people have high needs to influence and control others and to seek out positions of power and authority Sources of power Personality and individual differences o Dispositions and skills (cooperate / compete)  Sensitivity to others  Maintaining focus  Flexibility  Having high expertise  Ability to consider views of others  Strong self-confident  High tolerance for conflict Competitive Cooperative  Sustaining energy Sources of power Personality and individual differences o Moral Orientation  Individuals differ in their moral views about power and its use Sources of power Contextual power o Availability of BATNAs o Organizational and national culture o Availability of agents, constituencies, and audiences who can affect the outcomes of the negotiation Dealing with Others Who Have More Power Never an all-or-nothing deal o Low-power parties enter into deals with several other parties so no single high-power player could wipe them out Dealing with Others Who Have More Power Make the other party smaller o Deal with many individuals and departments in a high-power organization ‘Divide and Conquer’ Dealing with Others Who Have More Power Make yourself bigger o Low-power players build coalitions with each other  increase collective bargaining power Dealing with Others Who Have More Power Build momentum through doing deals in sequence o Early deals can be done to build a relationship, strengthen the relationship with the high-power party, and perhaps acquire resources Dealing with Others Who Have More Power Use the power of competition to leverage power o Offer something to more than one high-power party  get them to compete against each other for what you want Dealing with Others Who Have More Power Good information is always a source of power o Seek out information that strengthens your negotiating positions Dealing with Others Who Have More Power Do what you can to manage the process o The agenda, the cadence, the timing, and the location o If the low-power party controls the process  steer the deal in an advantageous direction I N F LU E N C E 21 Definition Efforts to portray themselves as likable people who should be treated decently These efforts are designed to use information, as well as the qualities of the sender and receive of that information, to adjust the other party’s positions, perceptions, and opinions BUT Can stem from power – If you have leverage over someone because of your authority, you can use those things to influence Achieving successful influence does not necessarily require having power over the individual you wish to influence Two Routes to Influence First Central Route Second Peripheral Route Persuasive Style • • • • Active participation Vivid language/ metaphors Receiver fears Receiver expectations Message Structure • • • • One/two-sided messages Message components Repetition Conclusions Message Content • • • • Make offer attractive Frame the message Make message normative Agree in principle Central Route to Influence Context Effects • • • • Reciprocity Commitment Social proof Source Characteristics • • • Credibility Attractiveness Authority Scarcity Message Characteristics • • • Message order Format Distractions Peripheral Route to Influence ... integrative negotiation ? ?Power over” from one party ? ?Power with” from one party “Powerlessness and dependence” from the other ”empowered and independent” from the other Sources of power Informational... More Power Never an all-or-nothing deal o Low -power parties enter into deals with several other parties so no single high -power player could wipe them out Dealing with Others Who Have More Power. .. Personality and individual differences o Motivational orientation (motives)  Some people have high needs to influence and control others and to seek out positions of power and authority Sources of power