Why Using Your Power In A Negotiation Isn’t Always A Good Idea
Link: https://www.fastcompany.com/3056079/why-using-your-power-in-a-negotiation-its-always-a-good-idea
This article explains that a party with higher power in a negotiation shouldn’t necessarily use its power to gain the best outcome for itself. This might seem counter-intuitive, because one would assume that it is always best to try and get the maximum outcome. However, that is not the case because negotiations are not made in a vacuum in the real world. By negotiating in a way that maximizes the gain of all parties involved, people are more likely to negotiate with you in the future. This can help you gain higher outcomes in the long run. The article mentions how Walmart, which was in a position of power, made a negotiation with detergent manufacturers that benefited the manufacturers vs. Walmart. However this could have been positive for Walmart as it gained a good reputation.
The suggestions that the author of the article had can be backed by what we learned in class. We learned that the power that someone has increased as they gain more connections. If someone in high power makes a negotiation that negatively affects his connections, he is likely to lose connections and power. Therefore making mutually benefiting negotiations and increasing your reputation and number of connections can increase your power and outcome in the long run.