1. © 2007 Prentice Hall Inc. All rights reserved. Power & Politics Negotiations

2. © 2007 Prentice Hall Inc. All rights reserved. A Definition of Power Power A capacity that A has to influence the behavior of B so that B acts in accordance with A’s wishes.

3. © 2007 Prentice Hall Inc. All rights reserved. Bases of Power: Formal Power Coercive Power A power base dependent on fear. Reward Power Compliance achieved based on the ability to distribute rewards that others view as valuable. Formal Power Is established by an individual’s position in an organization; conveys the ability to coerce or reward, from formal authority, or from control of information.

4. © 2007 Prentice Hall Inc. All rights reserved. Bases of Power: Personal Power Expert Power Influence based on special skills or knowledge. Gate Keeping Power Influence based on possession by an individual of the access to an organization or source of power.

5. © 2007 Prentice Hall Inc. All rights reserved. Politics: Power in Action Political Behavior Activities that are not required as part of one’s formal role in the organization, but that influence, or attempt to influence, the distribution of advantages or disadvantages within the organization. Legitimate Political Behavior Normal everyday politics. Illegitimate Political Behavior Extreme political behavior that violates the implied rules of the game.

6. © 2007 Prentice Hall Inc. All rights reserved. Politics Is in the Eye of the Beholder E X H I B I T 13–3 “Political” Label “Effective Management” Label 1. Blaming others vs. Fixing responsibility 2. “Kissing up” vs. Developing working relationships 3. Apple polishing vs. Demonstrating loyalty 4. Passing the buck vs. Delegating authority 5. Covering your rear vs. Documenting decisions 6. Creating conflict vs. Encouraging change and innovation 7. Forming coalitions vs. Facilitating teamwork 8. Whistle blowing vs. Improving efficiency 9. Scheming vs. Planning ahead 10. Overachieving vs. Competent and capable 11. Ambitious vs. Career-minded 12. Opportunistic vs. Astute 13. Cunning vs. Practical-minded 14. Arrogant vs. Confident 15. Perfectionist vs. Attentive to detail Source: Based on T. C. Krell, M. E. Mendenhall, and J. Sendry, “Doing Research in the Conceptual Morass of Organizational Politics,” paper presented at the Western Academy of Management Conference, Hollywood, CA, April 1987.

7. © 2007 Prentice Hall Inc. All rights reserved. Employee Responses to Organizational Politics E X H I B I T 14-5

8. © 2007 Prentice Hall Inc. All rights reserved. Impression Management (IM) IM Techniques : Conformity Apologies Self-Promotion Flattery Favors Association IM Techniques : Conformity Apologies Self-Promotion Flattery Favors Association Impression Management The process by which individuals attempt to control the impression others form of them. E X H I B I T 14–7

9. © 2007 Prentice Hall Inc. All rights reserved. Negotiation A process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them. BATNA The Best Alternative To a Negotiated Agreement; the lowest acceptable value (outcome) to an individual for a negotiated agreement.

10. © 2007 Prentice Hall Inc. All rights reserved. Bargaining Strategies Integrative Bargaining Negotiation that seeks one or more settlements that can create a win-win solution. Distributive Bargaining Negotiation that seeks to divide up a fixed amount of resources; a win-lose situation.

11. © 2007 Prentice Hall Inc. All rights reserved. Staking Out the Bargaining Zone E X H I B I T 15–6

12. © 2007 Prentice Hall Inc. All rights reserved. Third-Party Negotiations Mediator A neutral third party who facilitates a negotiated solution by using reasoning, persuasion, and suggestions for alternatives. Arbitrator A third party to a negotiation who has the authority to dictate an agreement.

13. © 2007 Prentice Hall Inc. All rights reserved. Third-Party Negotiations (cont’d) Conciliator A trusted third party who provides an informal communication link between the negotiator and the opponent.

14. © 2007 Prentice Hall Inc. All rights reserved. Factors Influencing Dyadic Negotiations

15. © 2007 Prentice Hall Inc. All rights reserved. Context  Context means the situational factors that affect the process of negotiation and its outcomes. These are divided in two broad categories. –Structural factors affecting negotiations Dead lines Power (social power, BATNA) Integrative potential –Other people affecting negotiations Third parties Constituencies

16. © 2007 Prentice Hall Inc. All rights reserved. Negotiators  Several authors have noted that negotiation research typically focuses on structural and situational features. The thoughts and plans of negotiators and their actual bargaining behaviors are treated as something of a ‘black box’.  The influence of negotiators can be divided in two broad categories, i.e. –Interaction process: It consists of: influence tactics (Assertion, Rational argument, manipulation) communication processes –Negotiator cognitions: It consists of: planning information processing affect and individual differences.

17. © 2007 Prentice Hall Inc. All rights reserved. Dyadic Negotiations Context Structural Power Dead Lines Integrative potential People Constituencies Third parties Negotiators Negotiator Cognitions Planning Info Processing Affect Individual Differences Negotiator interaction process Influence Tactics Communication