A Negotiation Process in a Dairy Company - Essay Example

Negotiation of of This paper takes a detailed look at a negotiation processused by a certain dairy company that is setting up a new enterprise. The dispute involves the management and the workers with this paper looking at this dispute from the angle of the workers. This paper tackles this dispute using a question by question approach starting from the most relevant question to the least relevant. It looks at the approach to be used by the workers to solve the dispute. It looks at possible ways to solve the dispute and possible conclusions they may come up with. In addition, the paper analyses all these questions room the workers point of view. Keywords: negotiation, management, workers When relating with fellow human beings whether in business, non profit organizations, legal matters or even personal relationships, negotiation skills are. According to Brown (2010), during negotiations, each person bargains for their end of the deal but mostly the outcome has to be for the benefit of everyone, that is, a win-win situation (p. 10-20). Before the negotiation process kicks off, a committee is set up in order to represent their respective clients to avoid any further conflict. The committee agrees on the approach to use, the context of negotiations, the tactics employed as well as the stages involved in the process. In this paper, a negotiation plan for an unnamed dairy company shall be looked at in detail, the strategies used, the most important issues to deal with as well as possible areas of conflict. This paper is written in relation to a case study which is a dairy products’ company that produces ice cream and a wide range of milk based countries. There is a major union involved which represents all the process workers-approximately a hundred in number. The union had approached the company to negotiate the company’s enterprise negotiation, and they have already held a couple of meetings to start up on the process of agreement. However, they have not come to any conclusions and are in need of an agreement soonest possible with the smallest number of meetings. For this paper the role of the union negotiators shall be taken up in order to reach a conclusion. Since most of the issues have already been clarified, this paper shall not go into depth on technical matters pertaining to the dairy industry of the company in question but instead shall take a more general view on the issues surrounding negotiation skills. In this case, the cooperative style is most suitable because the benefits are not limited with each company having a chance to gain. According to Ross (2006) this method helps the involved parties need grow a relationship based on trust and respect as they will continue working with each other on other projects. The most important issues that need to be looked at for the worker’s union would probably be matters pertaining hours spent at work, the pay involved as well as holidays for the employees (Shell, 2006, p. 234-43). Since issues involving annual leave, meal breaks and pay rates have already been resolved, the biggest issue left would probably concern the workers is about the basis of for increase of wages within the lifetime of the agreement. Employees would seek an increase in wages as the agreement becomes more profitable and in this way this increase in wages would be directly proportional to the profit incurred by the business. The management is of the opinion that the wages should be increased based on the level of productivity based on each individual worker in order to cut down on losses special because of ghost workers. Eventually they reach a consensus that wages will be increased individually based on the each person’s productivity since this productivity eventually causes an increase in sales and possible profit. However, at the end of the agreement each worker will get some extra pay depending on how profitable the venture was. Ross (2006) commented that working hours and shifts are also a major source of concern for the employees especially since they too need rest, a fact that the managers tend to oversee (p.20). It has already been agreed that the nominal weekly hours is 38 to be worked across a multi-week cycle but an hours’ roaster has yet to be established. The workers propose that five workers work on the project for two workers outside the normal routine everyday for a week, before another group of workers takes over. They also propose that those should be included as part of over time and those they should be paid on an hourly basis. The management is however not in agreement with this as they suggest that since this project will run con currently with the usual work load, all the workers should invest at least an extra hour in their work without being paid for overtime. After a serious argument it would be agreed that the workers should invest an hour into this project but they will each receive a bonus income. This was considered the practical solution since the project will earn extra revenue and the employees deserve their share if the income. For employees representation is very vital to avoid oppression by the management. For this reason, the establishment of a joint workplace committee would be the third most important factor to consider on the workers’ side (Roy et. al, 2005). Although the practical aspects for example the size and facilities have already been resolved, two critical issues remain; either the body should be a negotiating body or a consultative one and whether any company information should confidential from the committee. The workers would argue that no information should break kept confidential since they too have a right to know any inside information regarding the company. They also insist that the body should be a consultative one as opposed to a negotiating one since they want to be thoroughly involved in the process of making the venture a success. The management however wants the body to be a negotiating one since past experience has taught them that the workers will eventually strike in the course of the project and would like to divert any such mishaps. They also insist that the body should be confidential to avert leaking out the company secrets to other companies. After each side points out the advantages of their side, the management finally gives in and agrees for the body to be consultative but the workers too accept hat not all information will pass through this body. The skills requirement for each classification and the related training modules have been agreed upon but the process by which employees will be identified for, can nominate for training. The issue with this is that the workers want for each of them to be trained on the venture, a fit that the management can not afford. It would therefore be agreed upon that the company will fund for half of the training for each employee while the employee themselves each cater for the other half. This way a balance is established for both disputants. The least important issue for the union would probably concern the duration of the agreement. Guasco and Robinson (2007) suggest that workers would be willing to work for as long as it takes to complete it but the management would prefer if things were speeded up a little to save not only time but also valuable resources (p. 15-20). Time is however beyond their control since they are working on other normal operations of the company. It is therefore agreed upon that the project will be let to take its time but at the same time cutting on all possible costs. Negotiation has been used since time immemorial and it remains the single most peaceful way of settling disputes in time of conflict. Companies should be encouraged to take up this as a way of settling disputes since it also enhances relationships. Since conflict will remain a part of everyday life negotiation should be taken up to resolve existing conflict and avoid further conflict. References Brown, J. W. (2010). Additional Material on negotiation, Retrieved August 26, 2010,from http://www.unep.org/dec/onlinemanual/Compliance/NegotiatingMEAs/AdditionalResour ce/tabid/596/Default.aspx Guasco, M., & Robinson P. (2007). Principles of negotiation: Strategies, tactics, techniques to reach agreements . Entrepreneur Press Publishers. Ross, G., H. (2006). Trump-Style Negotiation: Powerful Strategies and Tactics for Mastering Every Deal.John Wiley and Sons Publishers. Roy L., Lewicki, R. J., Saunders, Barry, B., & Saunders, D. M. (2005) Negotiation: Readings, Exercises, and Cases (6 th Ed.), McGraw-Hill Publisher. Shell, G., R. (2006). Bargaining for advantage: Negotiation strategies for reasonable people. (2nd Ed.), Penguin Books. Read More