Globalization
Chapter 8: Power and Persuasion
Part I - Improving the outcome through “Power”
I. Overview
What distinguishes successful negotiators from the rest is the consistent building of a strong power base. Power, in the context of negotiation, is defined as ‘the ability to induce the other party to settle less than it wanted’. Power is not an absolute commodity. What makes you powerful in some situations may be quite irrelevant in others. In this chapter, we will discuss how to leverage power in a negotiation by using your BATNA, traditional power bases, and persuasion. The word "power" has had a bad connotation for many years. It received this reputation because most people associate the word with one side dominating the other. We define power as the ability to influence people or situations. With this definition, power is neither good nor bad. It is the abuse of power that is bad. Leverage is often used synonymously with power. All negotiators want leverage; they want to know what they can do to put pressure on the other, persuade the other to see it their way, get the other to give them what they want, or change the other’s mind. Most negotiators believe that power is important in negotiation, because it gives one negotiator an advantage over other party. Using leverage tactics in negotiation usually arises from the followings: 1) To create power difference (used by negotiators in strong position) The negotiators try to gain more advantage to increase the probability of securing a desired outcome or to block the other party’s power moves. Such tactics enhance the capacity for one side to dominate the relationship and often serve as the groundwork for a distributive agreement. Unequal bargaining power might lead to distributive bargaining, because the party with the most power may have little incentive to give up its advantage.
2) To create power equalization (used by negotiators in weak position) The negotiator
Part I - Improving the outcome through “Power”
I. Overview
What distinguishes successful negotiators from the rest is the consistent building of a strong power base. Power, in the context of negotiation, is defined as ‘the ability to induce the other party to settle less than it wanted’. Power is not an absolute commodity. What makes you powerful in some situations may be quite irrelevant in others. In this chapter, we will discuss how to leverage power in a negotiation by using your BATNA, traditional power bases, and persuasion. The word "power" has had a bad connotation for many years. It received this reputation because most people associate the word with one side dominating the other. We define power as the ability to influence people or situations. With this definition, power is neither good nor bad. It is the abuse of power that is bad. Leverage is often used synonymously with power. All negotiators want leverage; they want to know what they can do to put pressure on the other, persuade the other to see it their way, get the other to give them what they want, or change the other’s mind. Most negotiators believe that power is important in negotiation, because it gives one negotiator an advantage over other party. Using leverage tactics in negotiation usually arises from the followings: 1) To create power difference (used by negotiators in strong position) The negotiators try to gain more advantage to increase the probability of securing a desired outcome or to block the other party’s power moves. Such tactics enhance the capacity for one side to dominate the relationship and often serve as the groundwork for a distributive agreement. Unequal bargaining power might lead to distributive bargaining, because the party with the most power may have little incentive to give up its advantage.
2) To create power equalization (used by negotiators in weak position) The negotiator