Chapter 8 Homework
(I) 2 MAIN POINTS
1.​ One main point from Chapter 8 is legitimate power and
resource power. Legitimate power is a formal title in some
organizations and using the power. Resource power is
having control over resources such as budgets or funding
associated with that position. ​An example of legitimate
power would be a teacher. They have a formal title to be
teachers and educate students. Resource power would be
for example, a manager that has control over financial
budgets for departments. They could have power of money,
supplies, human capital, time, equipment, critical services,
and interpersonal support.
2.​ Another main point from Chapter 8 is power based on
relationships such as goal interdependence, referent power,
and social capital. Goal interdependence causes parties to
collaborate and find mutually beneficial solutions because
success is tied together. Referent power is having the power
to persuade others to build strong partnerships because
people like you. Negative referent power would be when
parties distance themselves and others. Social capital is
when parties have common goals, which causes them to
respect each other by sharing information.
(II) 1 AHA COMMENTS FROM THE CHAPTER
●​ One thing that caught my attention was how to deal with
others who have more power. Three main points out of the
nine are never do an all-or-nothing deal, make the other
party smaller, and ask lots of questions to gain more
information. The book mentions to never do an all-or-nothing
deal because relying on a single opponent and creating a
make-or-break deal with them will leave the low-power party
vulnerable since they won't have an alternative. The book
mentions that you should make the other party smaller by
establishing multiple relationships and engaging in multiple
negotiations. The book also mentions that you should ask
lots of questions to gain more information. This shows their
willingness to cooperate and results in better outcomes. This
caught my eye because when I later get into negotiations
and the other has more power than me, I will keep in mind
all this advice.
(III) COMMENT ON THE IN-CHAPTER CASE
The Hunt Manufacturing Company was started by Douglas Hunt.
The Hunt manufacturing company makes machines that
mass-produce consumer plastic products like water bottles. Since
Hunt in 2000 stated that he wanted to retire at 70 years old and sell
his business, it was time. Rick Thomas was interested but then
performed a due diligence process and found out that there was a
pending lawsuit. The lawsuit was about how Lynn Stepgan, a
former sales director, was a victim of sexual harassment in the firm.
When Thomas found out, he stated that he didn't want to buy the
firm until the lawsuit was settled. Since Hunt got a heart attack, it
was difficult to have him settle the lawsuit, so then the directors
decided to call Rick Thomas, and he stated that there was no deal
if the lawsuit wasn't settled. This sounds difficult because if Hunt is
not able to settle the lawsuit, then Hunt won't be able to sell his
company unless there is an individual that would want to buy it with
the problems that it currently has. I believe that the next step would
be to keep reaching out to Hunt and persuade him that when he is
better, to settle the lawsuit.
(IV) COMMENT ON THE VIDEO(S)
Prof. Deepak Malhotra mentioned the fifteen pieces of advice. The
first is that the person must like you. If the other party doesn't like
you, it makes it difficult to get what you want out of a negotiation,
and never ask for something without having an explanation on why
you deserve it. An example that I can come up with is two parents
asking for full custody of a child. Parents must have a full
explanation on why each of them wants their child and if they don't
have an explanation, then they shouldn't even bother to even ask
for full custody. Another important piece of advice that Prof. Deepak
Malhotra mentioned was that you must signal to the other party
what is most important and what is less important because if your
worried about salary, location, job start date, and work hours and
you don't mention which are more important, the other party will
only give you the unimportant things. Stay engaged, influence, and
persuade the other party, and if they aren't moving in the direction
you want them to move are other factors that Prof. Deepak
Malhotra also mentioned. One piece of advice that caught most of
my attention was that if the other party isn't moving in your
direction, its not because they don’t like it; it could be because of
other things. Prof. Deepak Malhotra mentioned because they could
be busy, struggling at home, or other factors.
(V) COMMENT ON THE ASSIGNED LEARNING
EXERCISE
Skill8.4: I am not employing fair procedures in this case because I
am lying about telling the claimants that the company only left
$100,000 for paying claims when in reality they left $250,000. This
would be employing unfair procedures because then if I don't tell
them the truth and they settle with $100,000, I will get a bonus. So
for my own interest, I would be unfair. Although if I told the
claimants that the company has other expenses to pay and it is
true, then I would be applying a fair procedure, but me stating that
the money will be gone is unfair because the company left the
money without a deadline. Demanding the claimants to get a
representative would not be an unfair procedure, but providing an
incentive to the representative for them to settle is unfair because
the representative of the claimants can brainwash them into
believing anything just for the representative to gain more money.