1

Dharti Nimavat and Prathna Gupta

New Jersey City University
Business Negotiation
Daniel Julius
April 20, 2022

Chapter 8: Finding and Using Negotiation Power

Abstract:

The goal of this chapter is to learn about several approaches to defining "power" in negotiations

and why it is so important. It investigates several sources or grounds of power in negotiations.

Furthermore, the chapter explores alternative strategic methods for negotiators with more

authority and those with less power who must negotiate with those with more power. The chapter

examines the notion of power by demonstrating why negotiators value it and analyzing some of

the dynamics of its application in negotiations. It focuses on the sources of power that enable

negotiators to exercise influence. This chapter examines three key sources of power:

The power of information and skill

The power derived from personality and individual characteristics

The advantages of power obtained from one's structural position in an organization or network,

such as control over resources.

 2

Why is it important for negotiators to have power?

Power, according to most negotiators, is vital because it offers one negotiator an advantage over

the other. Negotiators with this advantage frequently wish to exploit it to get a bigger piece of the

pie or get their favored conclusion. Negotiators who are less concerned with their power

(compared to the other) or who have matched power—equally high or low—find that their

discussions flow more smoothly and easily toward a mutually gratifying and acceptable solution.

Negotiators who care about their power and attempt to match or exceed the other's power, on the

other hand, are likely looking for a solution that allows them to avoid losing the negotiation (a

defensive stance) or to win the negotiation (a dominant posture). As a result, while power plays

can provide a short advantage, they can also complicate talks and increase the risk of disaster.

Definition: Power

In a collaborative negotiation situation, power is more likely to be used to dominate and control

the other, whereas in an integrative negotiation context, power is more likely to be utilized to

collaborate with the other (Coleman, 2000b). The actor's view of power suggests that the power

holder creates and shares power with the other. Its dynamics reflect the benefits of

empowerment, such as better employee involvement, broad delegation of power, and a greater

ability to control with autonomy and personal integrity, and it experiences this power as

empowering and creating more independence, thus being more able to control one's own

outcomes.

Power sources and how individuals obtain power

The easiest way to understand the numerous ways in which power can be wielded is to start with

the numerous power sources. French and Raven (1959) recognized five basic categories of power
 3

in their original work on the subject: expert power, reward power, coercive power, legitimate

power, and referent power. The principal sources of power are divided into five categories:

1. Powerful information sources

2. Personality and individual differences influenced power

3. Organizational power based on position

4. Relationship-based power sources

5. Power sources that are contextual

The ramifications of uneven power

Differences in structural power (e.g., legitimate power, such as boss versus subordinate),

informational power (a person who is better prepared than the other), or just one negotiator

having a stronger BATNA than the other can all lead to power imbalances. The person with

greater power has more control over her own and others' outcomes in each of these scenarios

than the one with less power (Magee et al., 2007). Conflict perspectives and behaviors can be

drastically different depending on the parties' levels of power and dependency. Parties with equal

power are more inclined to cooperate, whereas parties with unequal power are more likely to

engage in combative activity, including threats, penalties, and exploitative behavior. The

relationship's more powerful party can influence the outcome of negotiations but does not always

do so.

Dealing with people that are more powerful than you

The power is frequently used against negotiators. Lower-power parties have few options for

dealing with big participants in corporate negotiations and partnerships.

 4

1. Leverage the power of competition

2. Maintain self-control

3. Leverage the power of competition

4. In order to learn more, ask a lot of questions.

5. Do everything you can to keep the process under control.

6. Avoid all-or-nothing deals.

7. Make yourself bigger

8. Make the other party smaller

9. Create momentum by completing deals in a specific order.

 5

References:

Lewicki, R. J., Barry, B., & Saunders, D. M. (2020). The Nature of Negotiation. In Negotiation
(8th ed.). essay, McGraw-Hill Education.