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Understanding Power Dynamics in Negotiations

Nov 4, 2024

Lecture Notes: Understanding Negotiation Power

Introduction

  • Main Topic: The concept of power in negotiations.
  • Key Message: Power is not inherent; it is a perception that exists within individuals.

Historical Example: Teddy Roosevelt

  • Context: 1912 US Presidential Election.
  • Challenge: Printed 3 million brochures with unauthorized image rights.
  • Situation: Photographer Mr. Moffett held rights to the image.
  • Solution: Campaign team perceived they had power by suggesting Moffett pay them for using his photo. Moffett agreed to pay $250 for the publicity.

Power Dynamics in Negotiations

  • Illustrative Story: Snack bar owner Giovanni and his perceived power.
    • Giovanni has power over the speaker when the pizza recipe is needed.
    • Perception changes based on the situation and the individual's needs.

Examples of Perceived Power

  • Parent-Child Relationship: Giovanni's son, Mario.

    • As a child, Mario perceives Giovanni as very powerful.
    • As an adult, the perception of power decreases.
  • Student-Teacher Dynamic:

    • Varied perceptions among students based on individual backgrounds and situations.
  • CEO vs. Public Perception:

    • Power is often perceived differently by onlookers vs. employees.

Extreme Example: Jim Stockdale

  • Context: US soldier captured during Vietnam War.
  • Action: Injured himself to avoid being used in a propaganda film.
  • Outcome: Regained personal power and confidence.

Modern Example: US Senator

  • Situation: Faced with an armed robber.
  • Action: Used reverse psychology to defuse the situation.

Key Lessons in Negotiation Power

  • True Power: Exists in perception, not in reality.
  • Negotiation Tip: Before negotiation, assess the worst-case scenario realistically.
  • Common Misconception: Even those perceived as powerful (e.g., CEOs, big bosses) often feel powerless due to their contexts.

Conclusion

  • Final Thought: In any negotiation, there is no real power, just the perception of it. Individuals have the power within themselves to change the dynamics.
  • Encouragement: Approach negotiations with confidence, understanding that power perceptions can be managed and altered.

Closing

  • Speaker's Wish: Successful negotiations for all participants.