The Essentials of Negotiation - Term Paper Example

Task: Interpersonal Effectiveness - Negotiation Theme Introduction Negotiation is an aspect of interpersonal effectiveness that focuses on finding an amicable solution to complex issues that affect two or more parties. The dialogue process is set with an aim of reaching understanding and resolving emerging differences between various parties (Harvard Business School, 1). Negotiations can take various forms that include formal and informal. Formal negotiations are structured dialogue processes that are driven by a third party or the contesting factions with an aim of reaching an agreement (Harvard Business School, 3). It is effective in executing functional and distributive negotiations where various parties are involved. Informal negotiations are dialogue processes that take unstructured formula. It can be execute by the parties themselves under common agreement. It is crucial in finding solutions to internal or low profile conflicts that affect individuals. As noted by scholars for negotiations to yield best results the parties involved must exhibit realistic ideals, they must set reasonable, specific and attainable demands. This is to facilitate the development of amicable resolution with the capacity to satisfy the parties. Indeed, negotiation skills are fundamental in managing conflicts of the diverse nature and restoring mutual relationship. This is crucial especially with the increased challenges that affect individuals at a personal level or in organizational settings. It is imperative to note that negotiation is an effective and diplomatic way of finding viable solutions to various issues of contention between constrained parties (Harvard Business School, 278). It has been used in finding solutions in diverse settings of different nature that include political, social, economic and working relationship issues, for example, in Wal-Mart company. Companies are encouraged to initiate effective dialogue with their stakeholders when issues of dispute of arise. This is to facilitate the development of sustainable resolutions that are acceptable to all parties and that restores confidence. This paper discusses negotiation as an aspect of interpersonal effectiveness with Wal-Mart Company being under study. The Imperativeness of Negotiations and its Aims As noted, negotiation is a dialogue process that occurs between two or more parties with an intention of resolving or managing evident conflict that may compromise performance. Negotiations take place in business, non-profit making institutions and government bodies. The main aim of negotiation is engage the conflicting parties purposely to understand their positions or needs and initiate talks to find an amicable solution that satisfies the parties. In negotiations, everyone is expected to come with an open mind and be ready to win or lose since negotiations normally create a common ground of understanding (Harvard Business School, 3). Currently there are increased issues that affect operations in institutions. The issues that range from salary demands, better working conditions, improvement of infrastructure, communication channels and reward systems affect performance in various settings. These elements are critical since they touch on the stakeholder’s welfare and the administrators need to develop viable mechanisms of bridging the gaps or demands of the stakeholders to guarantee sound performance. Institutions or individuals who seek to record excellent performance in the current environment are under obligation to acquire beneficial negotiation skills to foster their coexistent (Harvard Business School, 3). This is vital since conflicts of diverse nature require management under superior ideals. That is the institutions or individuals should be able to understand the purpose of negotiation, apply favorable terms, be able to start engagement with the list demands and understand that negotiation involves losing or winning. The fundamental issues are paramount since negotiation of any nature cannot yield best results if the parties hold strong positions without the ability to compromise. The Company Wal-Mart is a renowned corporation that controls a huge number of workers at its headquarters and international subsidiaries. It produces and manufactures retail buyer that are distributed to consumers globally. The company has well dedicated management staff who exhibit commendable interpersonal skills that are evident with the exemplary performance that the corporation records under their leadership. Consequently, the company has set various departments that include complaint and conflict resolution units with distinct responsibility. They are to receive and work out modalities of resolving possible issues that may affect performance. Despite its dedicated management, the high reports on workers discrimination and poor pay were eminent. This prompted massive strikes in the recent past when workers protested due poor working conditions, low salary incentives and discrimination (Harvard Business School, 261). The workers demanded that they be paid a salary increase to enable them meet their demands. Although the company is credited for how it managed the crisis, the approach at the strike’s early stage was not exemplary. They reneged to initiate prior negotiations with the employees that exposed them to immense dysfunctional loses. What the Company Did and the Results The company found it necessary to engage the workers into high-powered negotiations to aid mutual understanding and resolve the issues that were on contention. In this regard, the company did organize formal negotiations where both parties participated through their representatives. The basis for the negotiations was to find a compromising position and understanding where both parties could feel satisfied (Harvard Business School, 101). The negotiations that lasted for seventeen days started with the conveyance of the demands and position of the parties on the table. Employees of the company stated their grievances from the least as required in well-structured negotiations. This was to advance the process and ease understanding between the parties. They did this as an inducement strategy despite their representatives being on course to ensure that the ultimate demands were met. On the other hand, the management started the negotiations from a static position where they were not able to show willingness to meeting the demands of the workers. The approach delayed the negotiations for days before the realization of meaningful gains. In particular, the company representatives applied dysfunctional strategy where they made offers to employees with reservations. They did not want to provide the demands of the employees due to the financial implications. This made them employ a win negotiation strategy where they undertook to provide employees with the demands in installments. That is the working conditions were to be improved progressively, and salary awards were also to be awarded within the agreed timelines. In the arrangements, the employees of the company could not get everything they demanded appropriately, but both parties left with some element of satisfaction. The results of the negotiations included the undertaking of management to improve working conditions and protect workers’ welfare. They also undertook to increase their remuneration in installments and provide other benefits. What went well and what did not Wal-Mart Company faced a severe workers strike in which workers demanded salary increase and creation of better working conditions. The company is credited for moving with speed to finding a satisfying solution. The company, through its management, instituted a negotiation team with its employees that worked expeditiously in finding a viable solution. The company was facing a dysfunctional crisis that threatened to paralyze its operations. This was evident since dysfunctional crisis results to destruction and decrease in productivity. The negotiation also took a dysfunctional approach where distributive negation ideals were under employment. The talks were driven under mutual respect with strong determination and realistic demands. The workers relayed their concerns and demands citing that their output was way above the incentives that they were receiving. The demands were partially met, and the company undertook to improve on its working policies. Evidently, the management jailed to resolve the issues promptly before the strike despite having the chance. They were reluctant in engaging the employees for a long period citing that their demands were unrealistic and even issuing threats of sacking them (Harvard Business School, 25). This exposed their negotiation capacity and willingness to question. They later came on the negotiation table after realizing the damage in terms of reduction in performance that they were incurring. What Things Should They Have Done The management of the company made the right decision in negotiating with the workers. However, the management should have engaged the workers before the strike began. This would have assisted the company to maintain a positive image and promote workers confidence. Moreover, operations would not have been paralyzed in case the negotiations or dialogue were made earlier before the strike (Harvard Business School, 67). The decision of management to meet the demands of the workers in installments was also a positive decision. It enabled operations to resume with both parties being satisfied. The management should not have argued that the demands of the workers were unrealistic. It only served to delay the negotiations and stall operations. Furthermore, the management should not have started the negotiation process through adoption of a static position. They should have first considered the grievances of the workers and then compare the implications that a continued strike would have on the company’s operations, finances and customers. The delay of the management to begin negotiations with the workers is what eventually led to decline in workers’ performance. Conclusion Negotiations are valuable business processes that assist in the determination of solutions to complex situations that involve two or more parties. Negotiations assists different parties reach an understanding and resolve differences. They take various forms and can be either formal or informal in nature. Organizations must have staff with excellent negotiation skills to assist in resolution of issues that may arise in the work place. Negotiation skills enable effective management of conflicts that may arise between the management and workers of an organization. Resolution of workers’ strike is an area in which negotiation skills can be employed. Wal-Mart is a renowned retail chain that experienced workers’ strike. The workers demanded better working conditions and an increase in remuneration. The strike forced the management of the company to engage the workers in interpersonal negotiation process. The management had tried to ignore the workers and stall negotiation. However, the management later noticed the importance of negotiation. Workers’ performance declined, and operations were stalled. The management and the workers negotiated and reached an agreement in which both parties had to compromise. Nonetheless, both parties were better off after negotiation. This case presented a perfect example of the importance of negotiation in business. Work Cited Harvard Business School. The Essentials of Negotiation, Boston: Harvard Business School Press, 2005. Print. Read More