Social psychologists have described different types of power that exist in society, and negotiators can leverage these types of power in negotiation as well.
There are multiple types of power in negotiation. Your best alternative to a negotiated agreement, or BATNA, is often your best source of bargaining power. By cultivating a strong outside alternative, you gain the power you need to walk away from an unappealing deal.
However, some positions, roles, and titles grant power simply due to the authority or control they exert over a wide range of important outcomes. Another form of power that you can bring to your negotiations is psychological power. In fact, it’s possible for you to have a psychological sense of power even when you lack objective power.
To take advantage of these types of power in negotiation, it’s important to prepare thoroughly. For example, learn as much as you can about what is possible or appropriate when heading into a salary negotiation or contract negotiations. Research industry norms, investigate precedent, and talk to others who are already employed at the firm or in the industry.
And remember that when preparing for a negotiation with a powerful counterpart, try to increase your own sense of power on as many of these levels as possible.
Question: I am in my final year of business school and starting to prepare for job interviews. I have heard many of the organizations that recruit on campus are not open to negotiating specific terms of employment. Rather, they offer everyone roughly the same deal terms. To what extent should I respect such conventions versus … Read When a Job Offer is “Nonnegotiable”
Planning for crisis negotiation scenarios, particularly in international negotiations, can help negotiators develop strategies before a crisis emerges. Here are some of the negotiation strategies European central bank leaders uses during the financial crisis to help prevent a market collapse.
… Read Crisis Negotiation: The European Financial Crisis
Among the many types of power in negotiation a negotiator can exhibit is an ability to exert control over the negotiation process. But what about those bargaining scenarios in which the negotiator unable to gain control of proceedings? How should she formulate her negotiation strategy?
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Negotiators involved in high-stakes mergers and acquisitions typically come to the table armored in meticulously tailored apparel and designer shoes. But as Dana Mattioli reports in a recent Wall Street Journal negotiation topics in business article, those who are trying to woo business from an apparel company often end up dressing down at the bargaining … Read In Business Negotiations, Dress the Part
The barriers women negotiators face when negotiating for jobs and career advancement are well known: Women who ask for more money or better opportunities can face a backlash for violating traditional gender norms.
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The transfer of an agreement from negotiators to lawyers or other professional deal drafters can introduce three main types of mistakes. Read on to discover how you can avoid making these same mistakes at the bargaining table during your next dealmaking negotiation session.
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When times are tight, contracts are often broken. These days, parties on both sides of sales agreements are struggling to fulfill their promises, and contract workers are having trouble getting paid by their employers.
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The Program on Negotiation at Harvard Law School
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