Business Negotiations - Coursework Example

Business Negotiations al Affiliation) Conflicts result from a disagreement between parties when of the parties feel either that the other is ignoring their needs or is acting in a selfish manner. The conflict between the union representatives and the CEO is an intra-organizational conflict because it is between the CEO and the employees of the organization who are being represented by the union. Moreover, it is also due to conflicting interests. The company has to lay off some employees or deduct their salaries due to the poor economic state of the company that cannot sustain all 35 employees.

However, the employees do not want to lose their jobs or have their salaries’ deducted because of the responsibilities they have. Negotiation is a good way to handle the conflict. It provides both parties with a forum to bring forward their grievances and the affected parties will work something out that could solve their differences.I have two options: to urge the union leaders act ethically and agree to have a mature and productive negotiation process where both parties can benefit or to claim bankruptcy which will justify my firing some employees and reducing their wages.

If the union leaders agree to have an ethical negotiation process, I will suggest the laying off some of the employees during this bad economic period, then rehire them once the condition is good; or convert some of the permanent employees to contracts such that they can be recalled during high peak seasons. Consequently, all employees can agree to stay in the company but have their wages reduced. The employees will have to understand that these decisions are not selfish but are circumstantial.

If the negotiation process results in laying off some employees, they will be given a three months’ notice during which they can look for other jobs or sources of income. The employees will be laid off, according to their productivity levels. Those with poor performance and poor productivity levels will be the first ones to get a compulsory leave (Reitz, Wall, & Love, 1998).ReferencesReitz, H.J., Wall, J.A. and Love_Stuart, M.S. (1998). Ethics and negotiation: Oil and Water or Good Lubrication?

Business Horizons, 41, 5-14.