Question

How can personal and positional power influence negotiations? In your response, include your opinion on the importance of trust and honesty during negotiations.

Answer 1

Personal power in negotiation:        

Personal power in negotiation is nothing but the knowledge of the negotiation process. This includes the face to face influence & one’s reputation as negotiator. The knowledge & negotiation that one has helps them to follow a certain pattern & understanding these patterns can help them to make effective decisions.

Confidence in your ability to use face-to-face influence skills in managing the negotiation process helps you achieve high-quality agreements and helps maximize the value of the currencies available to you. Your skill level determines the range of tactics you can use as well as your ability to successfully implement them. Other parties expect that skilled negotiators will be able to put a deal together.

Positional power to negotiate:

Positional power seems to occur in every negotiation. When someone posses information or any tangible item which is considered as value by other then that individual is said to have positional power.

When you recognize that you have positional power then we can make suggestions or demand to the other person depending upon the situation in which case the proposal you put forth would be met or concessions be made to oblige your position. The person needs to be cautious in using his power because it keeps shifting throughout the negotiation & once lost can become a chance to the other negotiator.

Importance of trust & honesty in negotiations:

To build a long-term relationship in negotiation, work collaboratively and build agreements that benefit both sides. ... Positive negotiation relationships are important not because they engender warm, fuzzy feelings, but because they engender trust – a vital means of securing desired actions from others.

Ethics is the basis of doing the right thing, being honest and being fair. Anyone who has negotiated a high value deal knows very well that reputation is extremely important because it helps earn the trust of the other party. ... So, it's important to think twice before saying something during a hard negotiation.