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INTRODUCTION
The term negotiation often appears to be used synonymously. It is perhaps more useful to
regard negotiations as part of collective bargaining. The process of negotiating has been
described by Walton and MCKersie as the deliberate interaction of two or more complex
social units which are attempting to define or redefine the term of their interdependence.
Negotiation is a method by which people settle differences. It is a process by which
compromise or agreement is reached while avoiding argument and dispute. In any
disagreement, individuals understandably aim to achieve the best possible outcome for their
position. However, the principles of fairness, seeking mutual benefit and maintaining a
relationship are the keys to a successful outcome. Negotiation in industrial situations are
typified by trade union negotiations where a team from the trade union seeks to gain better
pay and working conditions from a reluctant management.
Although many companies are more enlightened about such negotiations these days, the
‘traditional’ confrontational methods are illustrative of a particular style and still may be
found in many other organizations.
Negotiation is becoming a necessary skill in today’s work environment. Because of the
Australian Workplace Relations Act 1996 bandits’ emphasis on bargaining in the workplace,
employees now need to ensure that they are confident in undertaking the negotiation, or that
their interests are represented in the negotiation by their union. Breakdowns in negotiations
need to be managed formally. The Australian Workplace Relations Act 1996 contains a
dispute resolutions procedure which organizations can follow, although it is recommended
that the organization have a trusted, formal grievance procedure which emphasizes the
speedy resolution of all grievances or conflicts.
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STAGES OF NEGOTIATION
In order to achieve a desirable outcome, it may be useful to follow a structured approach to
negotiation. For example, in a work situation a meeting may need to be arranged in which all
parties involved can come together.
1. Preparation
2. Discussion
3. Clarification of goals
4. Negotiate towards a Win-Win outcome
5. Agreement
6. Implementation of a course of action
1. PREPARATION
This stage involves ensuring all the pertinent facts of the situation are known in order to
clarify your own position. In the work example above, this would include knowing the
‘rules’ of your organization, to whom help is given, when help is not felt appropriate and the
grounds for such refusals. Your organization may well have policies to which you can refer
in preparation for the negotiation.
Undertaking preparation before discussing the disagreement will help to avoid further
conflict and unnecessarily wasting time during the meeting.
2. DISCUSSION
Key skills during this stage include questioning, listening and clarifying. Sometimes it is
helpful to take notes during the discussion stage to record all points put forward in case there
is need for further clarification. It is extremely important to listen, as when disagreement
takes place it is easy to make the mistake of saying too much and listening too little. Each
side should have an equal opportunity to present their case.
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3. CLARIFING GOALS
It is helpful to list these factors in order of priority. Through this clarification it is often
possible to identify or establish some common ground. Clarification is an essential part of the
negotiation process, without it misunderstandings are likely to occur which may cause
problems and barriers to reaching a beneficial outcome.
4. NEGOTIATION TOWARDS A WIN WIN OUTCOMES
A win-win outcome is usually the best result. Although this may not always be possible,
through negotiation, it should be the ultimate goal.
Suggestions of alternative strategies and compromises need to be considered at this point.
Compromises are often positive alternatives which can often achieve greater benefit for all
concerned compared to holding to the original position.
5. AGREEMENT
It is essential to for everybody involved to keep an open mind in order to achieve an
acceptable solution. Any agreement needs to be made perfectly clear so that both sides know
what has been decided.
6. IMPLEMENTING A COURSE OF ACTION
From the agreement, a course of action has to be implemented to carry through the decision.
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WHO IS NEGOTIATOR?
A person who discusses a problem with the aim of achieving agreement between different
people or groups of people.
Disputes and conflicts are a common sight in an industrial set up where labors are seeking
fulfillment of their demands. However, the sooner these issues are resolved the better it is.
The reason being that, any kind of conflict means loss in work days on account of temporary
shut down and thus loss in production. Not only this, a strike in a company gives a very
doubtful impression of the company and raises suspicion on the company’s credibility and
the labor relations of the company. Thus, the best solution in this regards is to implement
such industrial relations strategies that will benefit the company for years to come and keep
the employees happy as well.
A step in improving the labor relations in industries is by incorporating very practical HR
strategies which are conducive for both parties. Collective bargaining is the most accepted
and most followed strategy in this regards with an aim to satisfy your employees to the
fullest. This is a process where both the parties like trade unions which represent the workers
and the representative of the employers sit across the table and decide on the company
policies. These policies will be both accepted by the management and the workers and is
meant to resolve all disputes and conflicts arising in the company. The chief negotiator has a
major role to play in such situations as he puts forth the points from the side of a party and he
has to make the other party agree to his points. Mostly the points cover the economic
demographics of the company where remuneration is discussed for the employee. This is
termed as the bargaining and the bargaining preparation has to be carried out well before
hand with through study of the employee contract. The chief negotiator has to discuss and
formulate a plan for action so that the employee party is happy and have a motivation to
work. So the role of negotiator is very important.
Negotiators is a business professionals who act as a link between management and
employees. Negotiators may work for either a labor union or the management of a company
or organization.
THE PSHYCHOLOGICAL BASIS OF NEGOTIATOR
COLLECTIVE BARGAINING
It may be argued that the relative real power advantage between management and employees
is more important determinant of final outcome of any negotiations than the skill and abilities
of individual negotiator. Indeed some would say that because management abilities to
withhold employment permanently by closing the organization is seen as far more powerful
sanction than the employees limited abilities to withhold their labor on a temporary basis
management has an inherent power advantage in negotiation and is able to determine both
issue and limits of any negotiation.
Collective bargaining is specifically an industrial relations mechanism or tool, and is an
aspect of negotiation, applicable to the employment relationship. As a process, the two are in
essence the same, and the principles applicable to negotiations are relevant to collective
bargaining as well. However, some differences need to be noted. In collective bargaining the
union always has a collective interest since the negotiations are for the benefit of several
employees. Where collective bargaining is not for one employer but for several, collective
interests become a feature for both parties to the bargaining process. In negotiations in non–
employment situations, collective interests are less, or non-existent, except when states
