Question

Discuss the sources of power in bargaining. Give examples of use of power during the negotiation process.

Answer 1

There are many sources of power which one might use in negotiation:

1. Having patience is the biggest key a person has when in a negotiation. One must not lose his or her calm or temperament while negotiating.

Example: A person while negotiating must not lose temper and walk out of the room.

2. Secondly, it is extremely important to have knowledge of the area one is negotiating. It is vital to make logical statements while negotiating.

Example: The person if negotiating on corporate finance domain must have full knowledge about it.

3. Thirdly, a person should be aware of all the alternatives available with the other party. This would help him build the strategy around negotiation.

Example: If a person is doing a tender negotiation he should know the various options available with the other party.

4. Lastly, interpersonal skills play a key role in communication. A person must use a good choice of words, and body language for making the negotiation a success. He must make sure he does not make ambiguous statements while negotiating.