Often, however, a negotiator will state that their
authority is limited when in fact they either could reach the
proposed agreement or they know that the approval of the "higher
authority" is all but automatic. In such a situation, the
use of authority limits becomes a tactic.

One of the most common uses for the authority
limit tactic is to obtain a delay without directly asking for
one. In this way, the absent authority provides an opportunity
for the negotiator to go back, think through the positions of
each side, and to evaluate the proposed agreement.

The authority limit tactic can be used in a number
of other ways as well. For example, occasionally the negotiator
will say that they do not have the authority to reach an agreement
as proposed by the other party but must go back and check. They
later return to the bargaining table with an affirmative response.
The negotiator knew all along that he or she could have said yes,
but used the authority limit tactic instead for effect.

The negotiator might have been trying to show
the other party that he "really went to bat for him"
with the higher-ups. Alternatively he or she might be trying to
indicate that it was hard to get approval and that the other party
really can't hope for any more concessions in this negotiation.

Another use of the tactic is to obtain a "no"
from the authority even when the negotiator could have said no
themselves. The purpose here might be to reinforce and cement
the refusal to make concessions. It might also be an attempt to
make the negotiator appear as the good guy and the organization
or the higher-ups the bad guys. (Be careful about painting your
own organization as the bad guy too often. This tactic can tend
to backfire.)

Purchasers occasionally use the authority limit
tactic by delineating a range where they can make the deal and
indicating that anything in excess of that amount requires lengthy
review and approval. Thus, the purchasing agent might indicate
that he or she could purchase the instrument for $10,000, but
if the salesperson insists on $11,000, it has to go through an
approval process.

The salesperson might use the authority limit
tactic by stating that he or she knew that the boss would reject
the offer proposed by the buyer if it were just presented verbally.
However, the boss "just might" approve it if it were
presented in the form of a signed purchase order.

You should always be concerned about the authority
of the other party. Try to determine as early as possible their
level of authority, or at least what they state to be their level
of authority. If their authority is limited, you can try to involve
the decision maker. If this is not possible or you feel that it
is tactically inappropriate, continue the negotiations with an
acute awareness that the person you are dealing with either does
not have, or says that he or she does not have, the final authority.
One way to deal with this may be to use the person on the other
side of the table as messenger, getting points agreed to by the
person with authority step by step.

About The Author

Michael Schatzki is an experienced professional negotiator. Since
the inception of Negotiation Dynamics® in 1980, Mr. Schatzki
has appeared before hundreds of businesses, nonprofit organizations
and professional groups throughout the United States, Europe,
the Middle East and Asia. Mr. Schatzki also maintains an active
negotiating consulting practice. He regularly negotiates on behalf
of clients and assists clients in planning and conducting their
negotiations.

Mr. Schatzki combines the experienced negotiator's
depth of understanding with the breadth of knowledge gained in
designing programs for so many different kinds of businesses.
He has the unique ability to make the process accessible and understandable
and to provide participants with the tools that will allow them
to perform well in any negotiating situation.

Mr. Schatzki is the author of Negotiation:
The Art of Getting What You Want, published by Signet
Books.



Contact Information

Michael Schatzki, MPA, CSP

Negotiation Dynamics

Keynotes, Concurrent Sessions, Seminars and Consulting

http://www.NegotiationDynamics.com

Mike@NegotiationDynamics.com

(908) 766-3530