Posted: September 6th, 2023
Power and influence play significant roles
Negotiation Planning Strategy
• Sources of power (What leverage or power can people apply to achieve their goals?) o Power and influence • Define power and influence in the negotiation process. • Describe at least 2 sources of power and influence in negotiations. • Walk-away alternative o Best alternative to negotiated agreement (BATNA) • Discuss options and alternatives to agreements. • Discuss 2–3 tough or hardball negotiation tactics.
Power and influence play significant roles in the negotiation process. Power refers to the ability to influence the behavior or decisions of others, while influence is the act of using that power to shape the outcome of negotiations. Here are two common sources of power and influence in negotiations:
Expertise Power: This type of power arises from an individual or party’s specialized knowledge, skills, or experience in a particular domain. When negotiating, someone with expertise power can leverage their knowledge to influence the other party’s perception of value, propose innovative solutions, or present compelling arguments. Expertise power can be especially effective when the other party lacks the same level of knowledge or skill in the subject matter.
Relationship Power: Relationship power is derived from the strength of the interpersonal connections and alliances a negotiator has with others involved in the negotiation. Strong relationships built on trust, mutual respect, and shared interests can provide leverage in negotiations. Parties with relationship power may be able to gather support from influential stakeholders, gain access to valuable resources, or create coalitions to exert pressure or influence the outcome in their favor.
Walk-away Alternative (BATNA):
The Best Alternative to a Negotiated Agreement (BATNA) represents the course of action a party will pursue if the negotiation fails to reach a satisfactory agreement. It is crucial to have a strong BATNA because it provides leverage and a viable alternative to accepting an unfavorable agreement. By having an attractive walk-away alternative, negotiators can increase their power and influence in the negotiation process.
Options and Alternatives to Agreements:
During negotiations, it’s essential to explore various options and alternatives to reach a mutually beneficial agreement. By considering multiple options, negotiators can expand the potential value created and find solutions that address the interests of both parties. This may involve brainstorming creative ideas, exploring different pricing structures, identifying trade-offs, or considering alternative terms and conditions. Having a range of alternatives increases the chances of finding a solution that satisfies both parties’ needs.
Tough or Hardball Negotiation Tactics:
While negotiation should ideally focus on reaching a mutually beneficial agreement, some negotiators may employ tough or hardball tactics to gain an advantage. Here are a few examples:
Extreme Demands: This tactic involves making outrageous demands or setting extreme positions to shift the negotiation range in one’s favor. The goal is to create a perception of concession when the demands are eventually scaled back, making the other party more likely to accept a less extreme offer.
Escalation: This tactic involves escalating tensions or conflict during the negotiation process to put pressure on the other party. It can include threats, ultimatums, or even walking out of the negotiation temporarily. The aim is to force the other party into making concessions out of fear of losing the deal altogether.
Information Manipulation: Negotiators may attempt to manipulate or withhold information strategically to gain an advantage. This can involve selectively sharing or concealing information, misrepresenting facts, or presenting misleading data to influence the other party’s perception or decision-making.
It’s worth noting that while tough negotiation tactics can be effective in certain situations, they can also damage relationships and make it harder to reach a satisfactory agreement. It’s crucial to use them judiciously and consider the long-term consequences of employing such tactics.