Leverage or power in negotiation preliminary considerations
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Leverage or Power In Negotiation Preliminary Considerations. What are power and influence? Power : Source of direct or indirect pressure exerted to advocate interests or win conflict Influence : Tactics to apply this pressure Why is power important to negotiators?

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Leverage or Power In Negotiation Preliminary Considerations

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Leverage or power in negotiation preliminary considerations

Leverage or Power In NegotiationPreliminary Considerations

  • What are power and influence?

    • Power: Source of direct or indirect pressure exerted to advocate interests or win conflict

    • Influence: Tactics to apply this pressure

  • Why is power important to negotiators?

    • Provides advantage or leverage to gain greater share of outcomes or preferred solution

    • Usually sought for one of two reasons:

      • Equalization: To counterbalance opponent power

      • Enhancement: To secure desired outcomes, to win


Power in negotiation preliminary considerations contd

Power In NegotiationPreliminary Considerations, contd

  • Defining power

    • Simple definition: Ability to bring about desired outcomes (in face of resistance)

    • Alternative definition: Ability to satisfy purposes in a situation relative to that situation

      • Relational aspect is important

      • Not simply a characteristic of an actor or party

      • Stresses how one derives power from a situation or context

  • Definition leads to emphasis on sources of power


Sources of power information and expert power

Sources Of PowerInformation and Expert Power

  • Information

    • Facts, evidence, viewpoints, data

    • Used to persuade the other to accept a particular view (perhaps a particular frame), solution

  • Expert power

    • Special case of info power -- person assumes importance apart from info

      • Interprets facts for us, makes them persuasive

      • Watch out for the “snow job” -- a variation of “good guy/bad guy”?


Sources of power resource control whoever has the gold

Sources Of PowerResource Control: “Whoever has the gold …”

  • Money: Cash, salary, bonuses, expenses, etc.

  • Supplies: Raw materials, parts, components

  • Time: If the opponent is under time pressure

  • Equipment: Tools, software, vehicles, etc.

  • Critical services: Installation, maintenance, technical support, transportation, training, etc.

  • Human capital: Labor, staff

  • Interpersonal support: Praise and encouragement, or criticism for bad performance


Sources of power legitimate power

Sources Of PowerLegitimate Power

  • Authority is usually derived from the social structure (e.g., organizational position, one’s place in the hierarchy or network). Can be obtained through inheritance (tradition), election, or appointment

  • Derivative sources: Reputation based on past performance enhances formal authority. Conversely, people stop listening to ineffective authorities


Sources of power informal authority

Sources Of PowerInformal Authority

  • Derives from one’s place in the structure or network even without formal authority

  • Key characteristics lending informal authority

    • Centrality: Amount of information passing through the “node”

    • Criticality and relevance: The key info and its processing

    • Flexibility: Discretion they can exercise

    • Visibility: Is the function known to others?


Sources of power personal power

Sources Of PowerPersonal Power

  • Credibility: Qualifications and expertise, trustworthiness and integrity, presence

  • Personal attractiveness (friendliness): Establishes personal relationship, showing warmth, empathy

  • Emotion: Appealing to passions, values, sense of what’s right

  • Persistence and tenacity: “Dogged determination” -- children are good at this!


Managing information power the persuasion process

Managing Information Power: The Persuasion Process

  • Traditional model emphasizes characteristics of the message, source (sender), and receiver

  • More recent model emphasizes two paths:

    • Central route: Conscious, cognitive (integrated with existing thought structures), e.g., “Our cell-phone service is useful if your car breaks down”

    • Peripheral route: More subtle, less conscious, less permanent as not integrated in thought structures, “Jamie Lee Curtis wants to party with you/Women are mechanically competent”


Characteristics of messages three main issues

Characteristics of Messages: Three Main Issues

  • Content: Facts and topics to be covered, the “what” to be communicated

  • Structure: How the message is constructed, or form

  • Persuasive Style: How the message is delivered


Message content making it persuasive

Message Content: Making It Persuasive

  • Make the offer attractive: What do they gain? Defuse their objections in advance

  • Frame it for a “yes”: One yes leads to another (build cooperative and agreeable spirit)

  • Make it normative: People want to do “the right thing.” Make agreement the right thing that should be done. Even just saying it is helps!

  • Suggest agreement in principle as an interim step


Structuring the message for persuasion

Structuring The Message For Persuasion

  • Order: Not in the middle. Primacy and recency effects

    • Attractive, familiar, controversial messages at beginning

    • Uninteresting, unfamiliar, unimportant to receiver at end

  • Two-sided message: Recognize alternate view and preempt it in advance (I.e., anticipate objections)

  • Big ideas may be more digestible in small doses, especially if parts are known to be “tasty” (or previously accepted)

  • Repetition. Repetition.

  • Conclusions: Most effective if they’ve drawn them. Can you count on that? If so, leave it “open.”


Persuasive style how to pitch the message

Persuasive Style: How To Pitch The Message

  • Encourage active participation

  • Use metaphors, with due caution

  • Incite fears, possibly with threats

  • Create distractions to absorb energy they normally devote to building counter-arguments

  • Use more intense language, but there’s an optimal level that’s not always the most intense

  • Violate receiver’s expectations


Characteristics of sources

Credibility

Qualifications and competence

Trustworthiness

Self-presentation or presence

Composure

Sociability (friendly and open)

Extroversion

Personal attractiveness

Friendliness: Establish personal relations (Ingratiation: Excess flattery, taking friendliness a bit too far?)

Strategies:

Compliments

Attractiveness

Helping the other

Perceived similarity

Emotion

Characteristics of Sources


Receiver characteristics

Receiver Characteristics

  • Attending to the other

    • Eye contact

    • Body position

    • Other nonverbal cues

  • Exploring or ignoring the other’s position

    • Selectively paraphrase

    • Reinforce points you like in their position

  • Resisting the other’s influence

    • Develop your BATNA

    • Public commitments

    • Inoculation against their arguments


Context factors compliance strategies

Context FactorsCompliance Strategies

  • Strategies used to gain compliance

    • Reciprocity - normally expected in concessions

    • Commitment - let them sample, try it on, borrow it

    • Social proof - we look to others to guide us, e.g., celebrities, stars

    • Use of reward and punishment, or threats involving these (pressure tactics)

    • Scarcity - offer something unique and rare

  • These can be used to manipulate or deceive

  • We resent such use on us. Should we use them?

  • Stay tuned for chapter on ethics


Application of power strategies of influence

Application of PowerStrategies of Influence

  • Persuasion: Using info and expertise

  • Exchange: Resources, “quid pro quo”

  • Legitimacy: Position in authority structure

  • Friendliness and ingratiation

    • Friendliness: Developing a relationship, showing support, concern, liking, appreciation, respect

    • Ingratiation: “Expedient friendliness” is often resented, but some can use it effectively

  • Praise or verbal reinforcement


Application of power strategies of influence continued

Application of PowerStrategies of Influence, continued

  • Assertiveness: Strong, forceful style and manner

  • Inspirational appeal: Info with an emotional message and a vision of the future

  • Consultation (“ACBD”) -- Redundant?

  • Pressure: Using strategic info plus sanctions

    • Tends to be used by parties high in power, but also as a response by less powerful to power … escalation?

    • Short-term compliance, but alienates the other

  • Coalitions: Endorsement or coordinated use of other influence tactics


Power in negotiation summary

Power In Negotiation -- Summary

  • It’s important to negotiators for different reasons, depending on their intent

    • To neutralize a power disadvantage

    • To gain a competitive advantage

  • Power is perhaps best understood in terms of its sources

  • Various influence strategies can be used, separately or in combination, to apply power or exert leverage


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