Phases and Strategies of Negotiations - Essay Example

?The strategy that we used for negotiation was “integrative bargaining”. The integrative bargaining technique came to fore during the 1970s. It was widely used back then for labour negotiations. Over the years it has evolved into a very popularly used method for negotiations at the table. It is now used in many organizations and vouches for a win-win approach towards deal making. It takes into account the interests of both the parties involved. (Charles, 2002) The phases that were involved were the beginning, middle and end phases in the strategy. The first issue that we had to deal with was reaching a basis for increase in wages during the life of the agreement. The objective of this issue before the negotiation was “Productivity benefit to be shared 60%-40% between the company and the workers”. The outcome after the negotiation was “Productivity benefit to be shared 70%-30% between company and workers”. The second issue was to reach common grounds over workplace agreements such as the process by which employees will be identified for and be nominated for training. The objective of the team before the negotiation was “Get the management to agree to pay training fees for employees. Vacancies should be first given to employees who are trained.” As for the outcome, the negotiation objective was achieved. The third issue that was raised was an agreement over hours’ roster, including implications for shifts and for over time. For this issue the objective before negation was : “employee will be paid across 1 week. Average weekly working hour would be 38 hours. There will be 6 working day per week (Mon-Sat). Working hour for over 2 hours in one working day, the payment will be 1.5 times.” However the objective was not achieved during negotiations and the outcome was: “Employee will be paid across two weeks. Average weekly working hour would be 38 hrs. There will be 6 working days per week (Mon-Sat). Working hour for over first 10 hours, payment will be 1.5 times. Over after 10 hours, payment will be 2 times (double pay).” The fourth issue raised was over the duration of the agreement. The duration is 2 years at the moment. The objective before negotiation was a duration span of more than 3 years and the outcome of the negotiation was 1 year 12 months. The fifth and the final issue was regarding the establishment of a joint work place committee-most of the practical arrangements (size, facilities etc) have been agreed and only two issues remain - whether the committee should be a negotiating body or a consultative one; and whether any company information can be kept confidential from the committee.Objective before negotiation was : “Employee can know have little access to financial information to make sure company have ability to pay their money. Employees can delegate small number of employees to join company's meeting. However, employees have to sign the contract with Dairy Co. to keep the information confidential.” The objective was achieved as both sides reached an agreement over it. There are various strategies that people can employ to negotiate. It is very important to make sure that the right strategy is chosen so that the results that follow are effective. The deal is to ensure that both manger and the employees can benefit from the strategy. (Jordon & Roloff ; 1997) Managers at Dairy Co want to sustain long term relationship with employees. This helped a lot during our preparation and our way through most of the phases of this negotiation. The management tried to be co-operative and hence an integrative strategy was opted for. Integrative bargaining is based on the premise that the table is open for both parties to co-operate and interact with each other to find a viable solution which upholds the interest of both parties. (Fells, 1998) The goal is essentially to maximize benefits for both sides or as they call it a, lead the negotiations to a “win-win” situation. The first phase that we identified was the “begin phase”. In this phase a lot of meetings were pursued to decide on various ways in which to negotiate. Both employees and managers were looking for ways to maximize benefits of each other and come up with a solution that benefits both parties. The motive was positive and it paved way for more co-operations and set the mood of the outcome later on. In the second phase, which was the middle phase, they started off bargaining. This phase was identified because it was expected that this will be a tense phase in which arguments will follow. Both sides will try to reach a compromise in this phase. At Dairy Co, while it helped in achieving the objective related to training of employees, it did not help reach the outcome associated with employee-company share of benefits. This was because amidst the arguments there was a deadlock and no party was willing to compromise further. So this phase was partly successful in drawing out some outcomes eventually. The last and the most important phase is the end phase in which both sides settle down on a particular solution. Dairy co found itself agreeable between managers and employees on three issues while a couple of them remained unresolved. (Rojot, 1991) Since this an integrative bargaining strategy, the phases and strategies adopted by me and the management both had their own role to play in the final outcome. In the beginning phase, we both exchange information regarding the five issues that were to be negotiation. It is important that in the phase a list of issues are set before both sides. Each issue should be classified as compatible, exchange or distributive. (Linda, 2005) The management and the employees at Dairy co resolved themselves to these practices. In the middle phase which was also the bargaining phase, the management tried to reach a final agreement on only compatible issues. These issues were then removed from any further negotiations. So while this helped in reaching a final agreement on compatible issues, the incompatible issues remained un-resolved. In the final stage or the end phase, any remaining issues were brought again but due to lack of common interests for both management and parties in issue related to overtime pay and duration of work agreements etc stood unresolved. So the overall negotiation process met with partial success. There are various keys to a successful integrative bargaining process. One of these is the recognition of the relationship. Integrative bargaining is more successful is both the parties involved look forward to a long term, positive and a sustainable relationship. Management at Dairy Co was particularly conscious and wanted long term relationship with its employees. This is something they clarified during the beginning phase of the negotiation. The employees were taken into confidence and felt valued. This is one of the main keys to successful integrative bargaining. The realization by both parties that they are being valued on both ends helped through the negotiation. Secondly, a collaborative atmosphere was set forward. For a collaborative atmosphere, co-operation is needed by both the parties. This is why in the beginning phase all issues that could be negotiated were discussed first at Dairy Co. The bargain was sealed in the middle phase while common pit falls were avoided. A collaborative atmosphere is a major key to successful integrative bargaining stint. Trying to avoid conflict is of utmost importance. Both parties need to vouch for it. The employees tried to package issues for trade. Packaging is a process in which two or three issues are put together in one proposal so that it provides something beneficial for both parties. (Peter, 2003) the set up of the union and the 70-30% is an example of a packaged deal that was set forward for both employees. Packaging helps if there are too many issues on the table. However in the case of Dairy Co there weren’t too many issues on the table so the task at hand was not that over whelming. The issues that were difficult to negotiate were dropped out eventually and the issues which could be coupled in a package for instance the setup of a union were packaged together. If it was in my hands, I would have met sure that all issues stood resolved towards the end of the negotiation. At Dairy-Co, issues on which there was no collaboration, negotiation was ruled out. If I was in their place, I would have ensured that all issues stood resolved. For issues like company-employee pay off and duration of works, I would have followed a distributive bargaining approach. Distributive bargaining maybe harsh but all negotiators must be prepared to use this method. This may not be the ideal way to reach an agreement but it is important help negotiators triumph over one issue or the other. In this way at least the issue gets resolved and in the case of Dairy Co, I would have kept the interests of the organization before the interests of the employees for non-collaborative issues. References: Charles Craver, The Intelligent Negotiator (New York: Roseville, CA: Prima, 2002), 85–87. Linda Putnam, “Are You Asking the Right Questions?” Negotiation 3 (March 2005): 7–9. Peter B. Stark and Jane Flaherty, The Only Negotiating Guide You’ll Ever Need (New York: Broadway Books, 2003), 13–16. Baker, A., Heiler, K. & Ferguson, S. A. (2009). The impact of roster changes on absenteeism and incident frequency in an Australian coal mine. 60 43-49. Fells, R. E. (1998). Overcoming the Dilemmas in Walton and McKersie’s Mixed Bargaining Strategy. Relations industrielles / Industrial Relations, 53 (2), 300-325. Jordan, J. M. & Roloff, M. E. (1997). planning skills and negotiator goal accomplishment. Communication Research, 24 , 31-63. Rojot, J. (1991). The Phases of Negotiation. Negotiation: from theory to practice, , 174-196. Read More