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EssentialsofNegotiationPart02:CriticalNegotiationSubprocessesChapter08:FindingandUsingNegotiationPower©McGraw-HillEducation.Allrightsreserved.Authorizedonlyforinstructoruseintheclassroom.NoreproductionorfurtherdistributionpermittedwithoutthepriorwrittenconsentofMcGraw-HillEducation.WhyisPowerImportanttoNegotiators?Seekingpowerinnegotiationarisesfromoneoftwoperceptions.Thenegotiatorbelievestheyhavelesspowerthantheotherparty.Thenegotiatorbelievestheyneedmorepowerthantheotherparty.Therearequestionsoftacticsandmotives.Tacticsmayenhanceanegotiator’sownpowerordiminishtheother’spower.Motivesarewhythenegotiatorusestactics.Commonly,negotiatorscreatepowerdifferencestogainadvantageortoblocktheotherparty’spowermoves.Negotiatorsmayemploytacticstocreatepowerequalizationasawaytoleveltheplayingfield.Ingeneral,thoselessconcernedwithpower,orthosewithmatchingpower,haveeasierdeliberationsandreachacceptableoutcomes.2Box8.1:Interests,Rights,andPowerinNegotiationNegotiatorsfocusoninterestswhentheystrivetolearnaboutabouteachother’sinterestsandprioritiesasawaytoagreementsthatcreatevalue.Negotiatorsfocusonrightswhentheyseektoresolvedisputesbydrawingonrulesorstandardsgroundedinlaw,oronexistingcontracts.Negotiatorsfocusonpowerwhentheyusethreatsorothermeanstocoercetheotherpartyintomakingconcessions.Negotiatorscyclethroughallthreestrategiesduringthesameencounterandtendtoreciprocatethesestrategies.Startinganegotiationbyconveyingpowercanbringquicksettlementsifyourthreatiscredible.Power(andrights)tacticsmaybemostusefulwhentheotherpartyrefusestonegotiateorwhennegotiationsneedtoberestarted.Thesuccessofpower(andrights)tacticsdependsonhowtheyareimplemented.3ADefinitionofPowerPowerusedtodominateandcontroltheother(distributivebargaining).Fromthepowerholder’sperspective—powerover.Thereceiverfeelspowerlessanddependent.Powerusedtoworktogether(integrativenegotiation).Thepowerholderhaspowerwiththeother.Thereceiverfeelsempoweredandindependent.Environmentalpoweror“AismoreabletoinfluencehisenvironmentthanisB.”Relationshippoweror“AisabletoinfluenceBmorethanBisabletodowithA.”Personalpoweror“AisusuallymoreabletosatisfyhisdesiresthanisB.”Effectiveuseofpowerrequiresasensitiveanddefttouch.Notonlydoactorsandtargetschangebysituation,butthecontextchangesaswell.4SourcesofPower—HowPeopleAcquirePowerExpertpower.Derivedfromhavinguniqueinformationaboutasubject.Rewardpower.Derivedfrombeingabletorewardothers.Coercivepower.Derivedfrombeingabletopunishothers.Legitimatepower.Derivedfromaformaltitle.Referentpower.Derivedfromrespect.Thischaptertakesabroaderperspectiveonpower.Informationalsourcesofpower.Powerbasedonpersonalityandindividualdifferences.Powerbasedonpositioninanorganization.Relationship-basedsourcesofpower.Contextualsourcesofpower.5InformationalSourcesofPowerInformationpowercomesfromanegotiator’sabilitytoassembleandorganizedatatosupporttheirposition,arguments,ordesiredoutcomes.Innegotiation,itisthemostimportantsourceofpower.Theexchangeofinformationisalsoattheheartoftheconcession-makingprocess.Acommondefinitionofthesituationemergesandservesasarationaleforbothsidestomodifytheirpositionsand,eventually,arriveatamutuallyacceptableagreement.Powerderivedfromexpertiseisaspecialformofinformationpower.6PowerBasedonPersonalityandIndividualDifferencesCognitiveorientation.Theunityframebelievessocietyisanintegratedwhole.Theradicalframebelievessocietyisacontinualclashofinterests.Thepluralistframebelievespowerisequallydistributed.Motivationorientation.Focuson“energizingelements”ofthepersonalityratherthanideology.Dispositionsandrelatedskills.Groundedindispositionstobecooperativeorcompetitive.Moralorientationtowardpower.Individualsdifferintheirmoralviewsaboutpoweranditsuse.Moods.Moodscancreatepowerandpowerenhancestheimpactofemotionalexpression.7PowerBasedonPositioninanOrganization

(StructuralPower)Herewediscusstwodifferentapproachestostructurethatcaninfluencenegotiatingpower.Thefirstwayisconsistentwithmoretraditionalapproachestoorganizationalstructure.Ahierarchyofjobsformingatraditionalorganizationalchart.Thesecondwayisconsistentwithanewerapproachtoorganizationalstructurethatconsidersnetworks.Itshowshowanegotiator’slocationinanetworkcancontributetobargainingpower.8PowerDerivedfromTraditionalOrganizationalHierarchyLegitimatepowerisderivedfromapositioninahierarchy.Thefoundationofoursocialstructure,acquiredby:Birth.Election.Appointment.Legitimateauthority.Cannotfunctionwithoutconsentofthegoverned.Thereisalsothelegitimatepowerofreciprocity,equity,andresponsibilityordependence.Resourcepowerisderivedfromthecapacitytogiveorwithholdresources—suchas:Money,supplies,humancapital,time,equipment,criticalservices,orsupport.Controllingresourcesisamajorpowersourceinorganizations.Rewardsandpunishmentscanbetangibleorintangible.Youmustdealwiththepowerholder.Powerholdermustbewillingtoallocateresourcesdependingoncomplianceorcooperation.9PowerBasedonLocationinaNetworkInanetwork,thelines(ties)representflowsandconnectindividualsorgroups(nodes)whoactuallyinteractwitheachother.Tiestrengthisthestrengthofrelationshipswithothers.Strongertiesindicategreaterpowertoinfluencetheother.Tiecontentistheresourcethatpassesalongthetiewithanotherperson.Ifcontentbuildstherelationship,tiescreatetrustandgainstrength.Networkstructureistheoverallsetofrelationshipswithinasocialsystem.Centralityholdspowerforthenode’soccupant.Criticalityandrelevanceisiftheinformationisessential.Flexibilityisiftheindividualhasdiscretiontowhogainsaccess.Visibilityisifthetaskisvisibletoothers.Anodecanbeamemberofacoalitionorsubgroup.10PowerBasedonRelationshipsGoalinterdependencehasastrongimpactonhowlikelypartieswillbetoconstructivelyusepower.Cooperativegoalsshapethe“powerwith”orientation.Inducesexpectationsofassistance,greatersupport,persuasionovercoercion,andtrustingattitudes.Competitivegoalsshapea“powerover”orientation.Enhancespowerdifferencesandtheuseofpowertoachievepersonalgoals.Referentpowerisbasedonanappealtocommonexperiences,acommonpastorfate,ormembershipinthesamegroup.Moresalientwhenonepartyusesthecommonalitytoincreasetheirpower.Referentpowercanbenegative.Usedwhenpartiesseektocreatedistancebetweenthemselvesandothers.Ortolabeltheother.11ContextualSourcesofPowerAstrongBATNAisasourceofpower.Itincreasesthelikelihoodofmakingafirstoffer.ItincreasesyouroutcomeswhencomparedtonothavingaBATNA.Itprovidesleverageandconfidence—don’thavetoagreetotheoffer.Leadstoasenseofentitlementandhigheraspirations.Cultureshapeswhatkindsofpowerareseenaslegitimateandhowpeoplereacttoinfluence.Maycontainrulesaboutuseofpower.Differindegreeofpowerorientation.“Powerdistance”differsbynationalculture.Culturetranslatesintoembeddedstructuralinequalitiesinasociety.Agents,constituencies,andexternalaudiencescansignificantlychangethepowerdynamics.12DealingWithOthersWhoHaveMorePowerNeverdoanall-or-nothingdeal.Diversifyriskbyenteringi

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