Question

Consider a situation where you are negotiating with your boss for a higher salary. Discuss the role of relationship and power in the negotiation process. If your boss has more power in the negotiation process for a higher salary, how would you counterbalance him or her? Do you think reputation, trust, or justice will play a role in the negotiation process with your boss? Why or why not?

Answer 1

Relationship has a great impact on Negotiation.Negotiation is a communication between individuals.In most of the cases the other person is the main focal problem.Negotiation is often not a way to describe an issue,but it is a way to learn more about the other party and increase interdependence.

There are 3 types of relationships in negotiation process.They are,

• Business only Negotiations:- In this type of negotiation relationships are unique and expectations for the relationship are limited and easily defined. For example - "Market Pricing".This is the way of putting value on things in which everything is reduced to a single value that allows for comparison of many qualitatively and quantitatively diverse factors.
• Friend only Negotiations:- Generally we are uncomfortable negotiating with friends.Because they are not competitive with each other.Negotiation in friendship may lead to block from achieving high level integrative agreements.
• Mixed Negotiations:- A relationship between parties that is personal and business related is commonly known as embedded relationships.There is much higher potential for emotions, and lack of creativity or innovation.

Power plays an important role in negotiation.Power is the ability to influence people or situations.Power is neither good or bad,but abuse of power is bad.

There are various types of power that can influence the outcome of a negotiation.I told can because if we have power and don,t use use it, it is of no value.Types of powers are,

• Position:- Power is conferred on the basis of position in an organisation.for example, if you are marketing manager you can influence decisions that affect the marketing department.
• Knowledge or expertise:- Knowledge in itself is not powerful,application of knowledge that confers power.It is important to take time prior to a negotiation to know the facts and statistics.

Trust,Reputation and justice play an important role in negotiation process.

• Individuals who are seen trustworthy have a great deal of power in negotiation.
• You are perceived as trustworthy if you have a reputation for doing what you say you are going to do.
• Justice plays a complex role in group decision making.