CIPS L4m5 Commercial Negotiation · Free Practice Question Medium
Question 5
Personal power is only used in distributive approach. Is this statement true?
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A
Yes, because only distributive approach to negotiation requires strong personal power
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B
Yes, because one party will abuse coercive power to maximise the gain
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C
No, because personal power can be very helpful in integrative approach
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D
No, because only organisational power will optimise the negotiation outcomes
Reveal correct answer
Correct answer: C
Explanation
Power, or more precisely perceptions of power, are critically important in understanding the commercial negotiation process. From a commercial negotiation point of view (under any circumstances, either integrative or distributive approach), CIPS is interested in power from both a personal and organisational perspective. When you are negotiating on behalf of your employer, you bring the power of your organisation (its brand, reputation and purchasing spend) as well your own personal power (6 sources of personal power, based on French and Raven's power base model) to the negotiation.
In both integrative and distributive approaches, personal power plays an important role. It helps both parties push through negotiating barriers and secure commitment and final agreement
LO 1, AC 1.3
Discussion
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