In negotiation, power is the ability to influence the other party’s behavior. It can come from a variety of sources, including:

There are various sources of power that negotiators can leverage to gain an advantage in the negotiation process. These sources of power include:

  1. Informational Power: Having access to valuable or unique information that the other party does not possess can be a significant source of power. Informational power allows a negotiator to influence the other party’s decision-making by providing critical data, insights, or market knowledge.
  2. Expertise Power: Demonstrating expertise, skills, or specialized knowledge in a particular field can enhance a negotiator’s power. When a negotiator is recognized as an expert, their opinions and recommendations carry more weight, making it easier to influence the other party.
  3. Legitimate Power: This power stems from a person’s position or title within an organization or society. For instance, a CEO or government official may have legitimate power, and their decisions can carry considerable weight in negotiations.
  4. Reward Power: A negotiator who can offer desirable rewards or incentives to the other party has reward power. These rewards could be financial benefits, promotions, favors, or any other positive outcomes that the other party seeks.
  5. Coercive Power: Coercive power is the ability to impose negative consequences or punishment on the other party. It can be wielded through threats, sanctions, or other means of punishment to dissuade the other party from pursuing certain actions.
  6. Referent Power: Referent power is based on the personal admiration, trust, and liking the other party has for a negotiator. When the other party respects and looks up to the negotiator, they are more likely to agree with their proposals.
  7. Network Power: Having a strong network of connections and alliances can enhance a negotiator’s power. A negotiator with extensive connections may be able to call upon support or collaboration from others, increasing their influence.
  8. Time Power: Time can be a crucial source of power in negotiations. Having flexibility with deadlines or being able to wait out the other party can create pressure on them to make concessions.
  9. Scarcity Power: If a negotiator possesses something rare or in high demand, they can wield scarcity power. The other party may be more willing to agree to their terms to gain access to that scarce resource.

Effective negotiators understand these different sources of power and use them strategically to achieve their negotiation goals. It’s important to note that the balance of power can shift during the negotiation process, and skilled negotiators adapt their approach accordingly.

Here are some examples of how power can be used in negotiation:

In all of these cases, the parties are using their power to influence the other party’s behavior. By understanding the different sources of power, you can increase your chances of success in negotiation.