The Power of Negotiation

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The final example is the threat move , a tactic associated with the power-based approach. These are manifested in his tough rhetoric and his build-up and deployment of missiles. It also needs to be perceived as credible — the target must believe the issuer has the ability to carry the threat out. While the target may submit to the issuer in face of a threat — like other tactics under a power-based approach — the use of threats can potentially backfire, risking escalation and relationship breakdown.

T here is widespread agreement among scholars that trust is important to effective negotiation. However, a more sophisticated understanding of trust is necessary to understand how it influences negotiation and decision-making in different ways. T his paper will first analyze whether trust is a precondition for negotiation. It will then discuss how trust may serve as a goal of and a strategy in negotiation and conclude with two examples. This brings to mind the question of whether trust is therefore a precondition for negotiation.

In certain situations, the presence of trust is indispensable for parties to negotiate at all. In traditional Chinese business circles , personal trust is so important that business people invest heavily to cultivate it. However, the significance of trust is culture — and context -specific. Claiming that trust is necessary for all kinds of negotiation seems to be an overstatement. To take an extreme example, in negotiation with hostage-takers, there is unlikely to be any trust to start with. Yet this is a situation where negotiation is urgently needed, and one objective of such negotiation is to build at least some mutual trust , so that the hostage-takers will be more willing to communicate their intentions.

Of course , trust -building per se can be an objective of negotiation. This may stem from the intrinsic value of trust in human relationships. Trust also enables parties to develop and preserve their relationship. For example, a primary goal of the Geneva summit between Reagan of US and Gorbachev of the Soviet Union was to cultivate certain mutual trust amidst the Cold War climate of suspicion and hostility. T rust can also serve as strategic means to ends other than relationship-building. In a commercial partnership founded upon trust, parties are more likely to share information, abstain from taking competitive advantage, and engage in longer-run exchange of favors.

To take a counter example from the world stage, negotiation between Israel and Hamas in Palestine suffers repeated setbacks partly because of longstanding mutual dis trust. T he creation or rehabilitation of trust can be difficult, especially against a history of deep-seated mistrust , and s ubstantive conciliatory measures may be required.

Just as the use of power tactics is not necessarily harmful, trust-based strategies are not universally be fitting. By committing to a trust-based relationship, the right to seek competitive advantage may be lost even when the benefits outweigh the costs. Types of trust: examples. Fostering understanding and friendly ties may therefore be a step to engender identification-based trust.

For example , Reagan and Gorbachev develop ed a cooperative relationship in the late s partly because they had repeated face-to-face talks over the years.

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Reagan also sought to cultivate a non-hostile atmosphere in these talks by appealing to common interests, actively diffusing tensions and using his sense of humor. Because friendship and liking tend to generate trust and assent — sometimes in a subconscious fashion — Cialdini observes that salespersons often befriend their customers before promoting their products.

Trusting someone in certain situations may thus come with risks of manipulation or exploitation. Yet it offers an interesting juxtaposition against identification-based trust. Moreover, backfiring is possible because, psychologically, p eople often react negatively when they perceive that someone is controlling their behavior or limiting their freedom.

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Looking at their flipside, the distinction between deterrence-based and identification-based trust resembles somewhat that between hard and soft forms of power. In conclusion, power and trust are both complex phenomena that can derive from different sources and take multiple forms in negotiation. As demonstrated above, the two concepts do overlap under certain situations. Given the importance of power and trust in negotiation and decision-making, it is hoped that th is paper has offered a more nuanced comprehension of their meanings and implications.

Learn to concentrate on the issues. However poorly you think the other person may have done in the negotiations, complement them. You were brilliant. One of my clients is a large magazine publishing company that has me teach Pricing Power Negotiating to its sales force. I told them that if they had been better negotiators, I would have taken less. Of course he would. Never boast and always congratulate the other side. I disagree. I view it as the ultimate in courtesy for the conqueror to congratulate the vanquished. When the British army and navy went down the Atlantic to recapture the Falkland Islands from the Argentinians, it was quite a rout.

Within a few days, the Argentine navy lost the bulk of its ships, and the victory for the English was absolute. The evening after the Argentinian admiral surrendered, the English admiral invited him on board to dine with his officers and congratulated him on a splendid campaign. Power Negotiators always want the other parties to believe that they won in the negotiations.

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Start the negotiation by asking for more than you expect to get. It ends with congratulating the other side. If you let these five power negotiation principles guide your conduct as you negotiate, they will serve you well throughout your business dealings, and will propel you into becoming a Power Negotiator. Your email address will not be published.

Click to Email. Summary Learn five techniques and the principles beneath them that business people need to become more effective power negotiators. There are several obvious reasons to adopt this approach: Their first offer might be much better than you hoped.

It gives you information about your counterpart before you have to disclose anything. It enables you to bracket their proposal. If they can get you to commit first, they might bracket your proposal. Then if you end up splitting the difference, they get what they wanted. The Power Negotiator who understands the importance of playing dumb keeps these options open: Asking for time to think things over so that he or she can thoroughly consider the dangers of accepting, or the opportunities that additional demands might bring.

Deferring a decision while he or she refers to a higher authority such as a committee or board of directors. Asking for more time to let legal or technical experts review the proposal. Begging for more concessions. Taking time to think under the ruse of checking notes about the negotiation. Here are several other examples of funny money techniques: Interest rates which are described as a percentage rather than a dollar amount. The amount of the monthly payments being emphasised rather than the true price of the item itself.

Cost per brick, tile, or square foot rather than considering the total cost of materials. An hourly increase in pay per person rather than the actual annual cost of the price increase to the company. Insurance premiums as a monthly premium rather than a yearly cost.

Bargaining Power in Negotiation

The cost of land described as a monthly payment. Concentrate on the Issues Power Negotiators know that they should always focus on the issues and not be distracted by the actions of the other negotiators. Roger Dawson is a negotiating consultant and a sales and management speaker. Get Newsletter!

Power and Trust in Negotiation and Decision-Making: A Critical Evaluation

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Negotiate This audiobook by Herb Cohen

Actions Shares. Embeds 0 No embeds. No notes for slide. Power of Negotiation Negotiation Power 1.

Interpersonal Power

What Is Negotiation Power! 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. Formal authority 2. 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.

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The radical: Characterized by beliefs that society is in a continual clash of social, political and class interests. That power is structurally imbalanced. Negative referent power is often used, particularly when parties seek to create distance or division between themselves and others or to label 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.

Network structure: Refers to the overall set of relationships within a social system e.

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  • 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. Particular resources are more useful as instruments of power and are highly Supplies: Raw material valued in the negotiation. National cultures differs in degree of power over, power with orientations are supported or encourage. 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.