7finding and using negotiation power.pptVIP

7 Finding and Using Negotiation Power Du Xiao-rong 7.1 Definition of Power Power: The capabilities negotiators can assemble to give themselves an advantage or increase the probability of achieving their objectives. Power over: Power used to dominate and control the other. Power with: Power used to work together with the other 7.1 Definition of Power E.g. “A is more powerful than B.” (1) Environmental power “A is more usually able to favorably influence his overall environment and/or to overcome its resistance than B.” 7.1 Definition of Power (2) Relationship power “A is usually more able to influence B favorably and/or to overcome B’s resistance than B is able to do with A” (3) Personal power “A is usually more able to satisfy his desires than is B.” 7.2 Sources of Power Informational sources of power The negotiator’s ability to accumulate and present data intended to support his/her own position and/or change the other’s point of view Information 7.2 Sources of Power Case: Second hand car negotiation Seller’s asking price: $ 1500; Buyer’s counter offer price: $1000 Seller’s reasons for the asking price: (1) How much paid for it (2) What good condition it is in and what attractive features it has Buyer’s reasons for the low counter offer: (1) It is 5 years old (2) The bike has nicks, dents, and rust parts (3) The tires are worn and need to be replaced (4) The budget of the buyer is limited 7.2 Sources of Power Expertise power Show off your credentials Act like an expert Providing evidence that other people have acknowdged our expertise 7.2 Sources of Power Power based on personality and individual differences 7.2 Sources of Power Power based on position in an organization Legitimate power (1) It may be acquired at birth (2) It may be acquired by election to a designated office (3) It is derived by appointment or promotion to some organiz