Chapter 6 : LABOUR MANAGEMENT CO-OPERATION

In India, the attempt to regulate industrial relations through legislation started more than six decades ago, with the passing of Trade
Disputes Act (T .D.A.) in 1929. Prior to enactment of T.D.A.; the Government had been treating industrial disputes mostly as law and order
problems --any breach of contract on the part of workmen being a criminal offense. Subsequently, the Government realized the necessity to
provide some machinery to solve industrial disputes on merits. Thus, a bill for Prevention and Settlement of Industrial Disputes was drafted in
1924 which later took the shape of Trade Disputes Act in 1929.

The Royal Commission of Labour recommended certain revisions in T.D.A. which were carried out in the Act of 1934. The revised Act
provided for establishment of Courts of Enquiry and Boards of Conciliation to investigate and settle trade disputes. This Act also put a check
on sudden strikes or lockout in Public Utility Services, by banning strikes or lockouts in these services without giving due notice. The Act was
subsequently amended in 1938 to include provisions regarding appointing Conciliation Officers.

During the Second World War. the then Government had to adopt a number of emergency measures placing severe restrictions on trade
unions and industry through Defense of India Rules. Under Rule 81-A of the Defense of India Rules, all strikes were banned and the
Government was empowered to refer an industrial dispute for adjudication and enforce adjudication awards.

This rule, no doubt, proved very useful during the war, but at the end of the War, Government felt the need to replace it by a permanent
legislation. Thus, in 1947 the Industrial Disputes Act was enacted. This Act borrowed some of the features of Defense of India Rules and
some of Trade Disputes Act. However, it introduced two new features, namely "Works Committee" and "Industrial Tribunals". This Act still
remains in force with several amendments from time to time.

Although, setting up of the Works Committee gained legal status in 1947, such committees existed on voluntary basis even way back in
1920s. Tata Iron & Steel Co., Jamshedpur was one of the first industrial establishments to have a Works Committee to deal with grievances,
employee services and operational performance. These Committees had equal representation from management and workmen.

Realising the important role that communication between management and workers within an organization plays important role in the
promotion of a climate of mutual understanding and confidence resulting in increased efficiency of the undertaking and better satisfaction of
the workers, the ILO as early as in June 1967 adopted a Recommendation (No 129) commending the adoption of the system by employers'
and workers' organizations. According to this recommendation, a climate should be provided by the rapid dissemination and exchange of
information, as complete and objective as possible, relating to various aspects of the life of the undertaking and to the social conditions of the
workers.

It has also been urged that an effective policy of communication should ensure that information is given and that consultation takes place
between the parties concerned before decisions on matters of major interest are taken by management in so far as disclosure of the
information will not cause damage to either party. Bipartite bodies like Works Committees, Production Committees, Consultative Committees,
Joint Management Councils, Workers' Participation Schedule etc., also serve as effective media of purposefully communicating with the
employee.

Works Committee provide consultative machinery at the plant level for mutual settlement of differences. The main purpose is to discuss day
to day affairs in a cordial atmosphere and mutual goodwill. In case of any industrial establishment in which one hundred or more workmen
are employed or have been employed on any day in the preceding twelve months, the appropriate Government may, by general or special
order, require the employer to constitute in the prescribe manner a Works Committee consisting of representatives of employer and
workmen. It shall be the duty of the Works Committee to promote measures for securing and preserving amity and good relations between
the employers and the workmen.

Works Committee is not intended to supplement or supersede the union for the purpose of collective bargaining. They are not authorised to
consider real or substantial changes in the condition of services, Their task is only to remove away friction that may arise between the
workmen and the management in the day to day work. They cannot decide any alteration in the conditions of service by rationalisation. The
Works Committees normally deal with the working conditions, safety, welfare, educational, recreational activities etc.

GRIEVANCES MACHINERY

By the 1984 amendment of the Industrial Disputes Act, Government introduced the provision for setting up a grievance settlement machinery
which provided for well defined, adequate procedure for day to day grievance handling in industrial units. However, this amendment has not
been enforced till date, as a result, the grievance redressal machinery functioning in some establishments is purely on voluntary basis.

Once the above amendment is enforced, each industrial establishment shall be required to set up a grievance machinery to administer the
grievance procedure. The management shall be required to designate the persons from each department for handling grievances. Two or
more representatives of the workers along with equal number of departmental heads nominated by the management shall constitute
grievance committee.

In some industrial units, however, detailed procedure has been worked out with mutual agreement. The grievance machinery can be availed
of on the, request of workers against whom the order causing a grievance is issued. The operation of the order, however, need not be held
up till the grievance procedure is completely exhausted. The workmen must know the authorities to be approached and it should, therefore,
be incumbent on the management,to designate the authorities to be contacted at various levels.

COLLECTIVE BARGAINING

Collective bargaining is a procedure by which the wages and condition of employment of workers are regulated by agreement between their
representatives and employers. Collective bargaining demands from the labour and the management compromises and adjustment in the
public interest leaving apart their own interest. The Code of Discipline adopted in 1958 brought the concept of collective bargaining to the
forefront.

The Code enjoins that the dispute should be mutually settled at appropriate level through mutual bargaining, conciliation and voluntary
arbitration and that a mutually agreed grievance machinery should be established. The collective bargaining agreement is generally arrived at
by mutual discussion between the parties. There is no fixed number of representatives on either side' or each side. Collective bargaining
shall begin with a scheme from one side and offer and counter officers from one another.

JOINT CONSULTATIVE COMMITTEE

The scheme for joint consultative committee and compulsory arbitration for Central Government employees was introduced in October, 1966
with the object of promoting harmonious relations and of securing the greatest measure of cooperation between the government in its
capacity as employer and the general body of its employees in the matter of common concern with the object of increasing efficiency of
public services.

A number of establishments have set up consultative committees, welfare committees, canteen committees, safety committees and
production committees to discuss and advise the management on matter of common interest such as workers welfare, productivity, safety
etc. These committees are also a device for two-way communication between the management and the labour.

The Industrial Policy Resolution of 1956 stated that in a socialistic democracy, labour is a partner in a common task of it and should
participate in it with enthusiasm There should be a joint consultation and workers, technicians, should wherever possible, be associated
progressively in management.

The Nationalized Banks (Management of Miscellaneous Provisions) Scheme, 1970 framed under the Banking Companies (Acquisition and
Transfer of Undertaking) Act, 1970 inter alia, provides for the appointment of one Director from among the employees. In accordance with the
provisions of the order, directors have been appointed in all the Nationalized Banks. The scheme has been working satisfactorily. A scheme
of inducting representatives of workmen as Director on the ( Board of management of Public Sector Undertaking was introduced in 1971, on
an experimental basis in a few selected enterprises.

One of the important elements of the 20 Point Programme adopted by the Government in 1975 was the introduction of a scheme of workers'
participation in an industry at the shop floor and plant levels in manufacturing and mining sectors. Initially, the scheme was made applicable
to industries in the public or private sector, including departmentally-run organizations, employing 500 or more workers. The scheme was
made applicable to organizations like hospitals, post and telegraph, railway stations, booking offices, banks, road transport undertaking, State
Electricity Boards, public distribution system etc.

This scheme was adopted in three-tier system of participation, viz. at the corporate level, plant level and the shop floor level. The employer in
the private sector favoured only two-tier system of participation and not at the Board Level. The participating arrangement may cover the
following functions at different levels.

a. Shop level: Production facilitates storage facilities in a shop of material economy operation problems, wastage control, hazard safety
problems on equity, cleanliness, mainly targets and production schedules, cost reduction, programme formulation and implementation of
work system, design working, welfare measures related particularly to the shop.

b. Plant level: Operational areas, economic and financial areas, personnel matters, welfare, environmental etc.

c. Board level: At the Board level, the Workers' representative will participate in all the functions of the board. One of the special functions
assigned to the board would be reviewing the works of the shop floor and the plant levels, the participating forms will attempt to arrive at a
decision by consensus, but where no mutually acceptable consensus emerges, they will refer the matter to the next higher forum.

The management, the workers and the trade unions must develop mutual faith and confidence in the scheme of participative management
and understanding for this purpose, improved relations between labour and the management. The recognized trade union should nominate
persons for being trained in personnel management and other related matters. These educational and training programs should be organized
by the Government and the federations of the employees so that the workers' representative may have necessary skill and the confidence
and play a constructive role in the joint participative forum.

Employees were better if they are empowered -it makes the job more interesting and hugely increases their motivation and sense of
environment. Empowering people would mean enhancing involvement by providing collaborative working openness, cooperation,
encouraging innovation, delegating authority and by providing suitable learning opportunity and planned management development and
finding appropriate means to recognize and reward individual contribution.

The ever increasing competitive environment demands ways to reduce costs, eliminating waste and introduction of new technologies. Our
market share relies on value for money and reliable total quality services. The opportunity to make major strides forward in each of the
elements sits in our own backyard if only we can find the synergy which undoubtedly exist between different parts of the organization.

There have been several attempts in the past to bring out new comprehensive law on industrial relations. So far these efforts have not been
successful. The Ramanujam Committee had formulated its recommendation for a new industrial relations law including the trade union law.
On basis of these recommendations and after due deliberations the State Labour Ministers, representatives of employers, trade unions and
Government prepared a draft bill proposing amendment in Industrial Dispute Act and Trade Union Act. The cabinet approved the Draft of
Trade Union Bill and tried to introduce the Bill in Parliament. However, due to certain reasons the Bill could not be introduced and it is under
examination of parliamentary committee. The cabinet has not yet approved Industrial Relations Bill with the result the existing Industrial
Dispute Act still regulates the industrial relations in the country.

It may be mentioned that various industries are successfully negotiating Bipartite settlements. Adequate channels of communication have
been laid down at shop-floor, unit and plant level where difference are being reduced and resolved considerably. There has been a significant
improvement in industrial relations situation resulting in reduction in the number of man-hours lost and increased productivity. It is believed
that employees work better if they are empowered -it makes the job more interesting and hugely increases their motivation and sense of
involvement.
Chapter 7 : GRIEVANCE HANDLING

The process of integrating personal and organizational interests requires both, preventive and curative activities. A total absence of conflict /
dispute is unbelievable. Turning your back to conflicts is neither going to make them disappear nor resolve them. Disagreement and
dissatisfaction amongst employees is signals that something is wrong somewhere. It is an indication for re-examination of organizational
policies and practices, so that adjustments can be made to improve overall organizational effectiveness.

A grievance can be broadly defined as "any discontent or dissatisfaction, whether expressed or not and whether valid or not, arising
out of anything connected with the company that an employee thinks, believes or even feels is unfair, unjust or inequitable. This
definition would cover dissatisfaction which possess anyone or all of the following characteristics:

1. the grievance can be voiced or unvoiced,

2. written or unwritten,
3. valid and legitimate, or
4. untrue or completely ridiculous.

The only restricting factor is that the discontent must arise out of something connected with the company. Its form of expression or its
validity is unimportant. What is important is that some employee feels he has been wronged. This feeling of being wronged, if not resolved
will result in loss of employee's morale and thus, productivity. The manager has to be concerned with all discontents, regardless of his
personal opinion of its validity.

Grievance procedure is perhaps the most significant means of discovering and resolving employee complaints and dissatisfactions. On the
other hand an organization may become dissatisfied with a particular employee. A typical practice of most organizations includes program of
negative disciplinary action ending up with the maximum penalty of dismissal from the organization.

The first step in resolution of conflicts is their discovery and exposure. For this purpose upward channels of communication can be developed
to bring dissatisfaction to the surface. There has been increasing trend towards development of upward channels of communication. The
responsibility for this trend can be attributed to the growing recognition of the importance of good organization morale. Some of the important
channels for discovery of the conflicts of interest are as follows:

1. Direct Observation: A good supervisor should know the customary behavior of subordinates, and when significant changes in that
behavior occurs, there have to be possible motives. These motives may be apparent or suppressed. In addition to direct observation
of individual human behavior, the study of various records can also give a clue of the general in trouble.
2. Suggestion Boxes: Some companies going for this type of anonymous communication system which is concerned with bringing all
conflicts of interest to light. Anonymity may provide the courage to submit dissatisfaction, which will otherwise go unvoiced.
However, this channel of discovery of conflicts makes the resolution of conflicts very difficult. As the management has no idea
regarding the identity of the dissatisfied person, discussion is totally ruled out. The management can only investigate the problem
and correct the conditions, if so required, trusting that a grieved person will be satisfied. At the best this system is supplementary
device of grievance redressal.
3. Open -Door Policy: The open door policy is commonly announced but seldom works. Under this scheme a higher level executive
announces that his door is always open to anyone who would like to discuss anything. However, most employees recognize this
policy as a window dressing only. The manager is always busy or will have two minutes to give you in which time you can't even
arrange your thoughts, leave alone discuss your problems. Further, most of the employees are not comfortable discussing their
problems with the "top brass". True open door attitude towards subordinates on the part of the immediate supervisor is very helpful
in communication of problems / grievances.
4. Exit Interviews: If the conflict or disagreement is so great that the employee resigns, the exit interview provides one last opportunity
to discover the nature of the complaint. The exit interview, however, is very difficult to conduct effectively. If the employee is quitting
because of some dissatisfaction with the company, he is usually very reluctant to discuss it. Consequently, the exit interviewer must
exercise great skill in getting the true reason for resignation. By the time an exit interview occurs, it may be too late to salvage a
particular employee, however, information obtained will help in preventing others from leaving for the same reason.
5. Grievance Procedure: The most important channel for communication of dissatisfaction to management is a properly constituted
grievance procedure. Such a channel presumes that an employee has the courage to submit a complaint to the supervisor for
discussion. (The grievance procedure shall be discussed separately in detail).

Once the grievance has been identified, steps have to be taken for its redressal. The dispute or grievance constitutes a managerial problem,
and if handled improperly would only result in aggravating the problem. Therefore, a scientific method is usually the most productive in
arriving at a satisfactory solution. The steps to be taken by the manager in handling a grievance are:

1. Receive and define the nature of dissatisfaction. The manner in which the supervisor receives the complaint or grievance is very
important. Many a times, it is observed that majority of the problem is resolved just by giving a sympathetic ear to the troubled
employee. Statements should not be prejudged on the basis of past experiences. It is also important that the supervisor should
attempt to define the problem properly, otherwise, it may necessitate solving of the problem over and over again.
2. Get the facts and circumstances. Getting full facts of the problem requires some effort. Facts must be separated from opinions
and impressions. It is helpful to obtain necessary facts if the supervisor posses and utilises some interviewing skills, as we are
dealing with human mind.
3. Analyse and decide. Once the problem has been defined and the facts are in hand, the manager must now analyse and evaluate
them, and then come to some decision. There is usually more than one possible solution. The manager must also be aware that the
decision may constitute a precedent within the department or the company. A wrong decision may have to be lived with in other
cases in the future.
4. Apply the solution. Even though the solution arrived at is adverse to the employee, some answer is better than none. The
employees often accept unfavourable decisions when such decisions are based on legitimate grounds that are explained to them.
Privilege and responsibility of communicating the answer to the employee should be delegated to the immediate supervisor. There
is too often a tendency by the higher management to communicate the favourable decisions personally and to route the
unfavourable decisions through the supervisor.
5. Follow up action. The objective of the grievance procedure is to resolve the disagreement between the employee and the
organization. The purpose of the follow-up action is to determine whether the clash of interest has actually been resolved or not. If
during follow up it were observed that the case has been handled unsatisfactorily, or a wrong grievance has been processed, then
the whole procedure would have to be repeated.

Some of the common errors made by the management in processing of the grievances are:

1. Stopping too soon in the search of facts.

2. Expressing a management opinion before all the pertinent facts have been discovered.
3. Failing to maintain proper records.
4. Resorting to executive action instead of trying to change the mind through discussions and meetings.
5. Settling a wrong grievance.

The objective of perfect organization morale is never attainable. However, the systematic processing of complaints and grievances will do
much to promote an integration of interests and thus, leading to harmonious industrial relations.

GRIEVANCE PROCEDURE

A properly constituted grievance machinery or procedure helps a great deal in redressal of grievances of the employees. This channel of
communication is vital to all ogranisations and the management who wait for the demand of a grievance procedure from the unions are not
fulfilling their basic obligation. The employees have a right to know about their privileges as well as obligations. Similarly, they should also
know where they stand in matter pertaining to justice. Employees should be made aware of the fact that they are not totally and irrevocably
under the thumb of their immediate superior. The mere fact that such a procedure exists is satisfying, even though an ordinary employee
never has an occasion to use it.

The primary value of a grievance procedure is that it can assist in minimising discontent and, dissatisfactions which may have adverse effect
upon the co-operation and productivity. A well laid down grievance procedure makes the job of industrial relations manager a little bit easier.
The procedure has also value in that it serves as a check on arbitrary management action. Being aware of the right of employee appeal
should help supervisor to avoid the tendency towards corruption, arbitrariness and victimisation. The grievance procedure therefore, tends to
emphasize a need for skill in handling and dealing with people over and above a skill in using authority and force.

The details of grievance machinery vary from organization to organization, having as few as two steps or as many as ten, depending upon
the size of the organization. The first and the last step are almost the same for all organizations, specially those that are unionised. Though a
labour union is not essential to the establishment and operation of a grievance procedure, it has been observed that a formally laid down
grievance procedure usually follows unionisation.

A four step grievance procedure can be as follows:

1. Discussion among the aggrieved employee, the supervisor and the shop / department representative.
2. Discussion between middle management and regional/plant level union representatives.
 3. Discussion between top management and apex level union representatives.
4. Arbitration

A FOUR STEP GRIEVANCE PROCEDURE

STEPS PARTICIPANTS
4 ARBITRATION
3 TOP MANAGEMENT + APEX UNION REP.
2 MIDDLE MANAGEMENT + PLANT UNION REP.
1 SUPERVISOR + SHOP REP. + AGGRIEVED EMPLOYEE

Initial Step

The greatest opportunity for the settlement of a complaint or grievance lies in the initial step of the procedure. The higher the discontent rises
in the organization, the more difficult it is to resolve. The give-and-take of the shop level is lost and face saving becomes more important at
higher levels. In a unionised organization, the first step of the procedure usually involves three persons: The aggrieved employee, the
immediate supervisor and the shop level union representative. A trained supervisor will resolve most of the grievance at the first step itself.
Only those grievances which touch upon policy matters should be allowed to be passed up to the second step. In most of the organizations a
stipulated period is fixed for arriving at a settlement.

Intermediate step

If the supervisor, the shop level union representative and the aggrieved employee are unable to work out a settlement of the grievance, the
dispute is placed on papers and sent to a higher step in the procedure. In a large organization there are number of intermediate steps,
involving the line management for the settlement of the grievance. From the union side intermediate level is represented by plant / regional
level office bearers. In many organizations the Personnel Department is involved in the procedure wielding the final say in the matter. This
violates a basic principle of line and staff relationship. It would be preferable if the industrial relations specialist studies the grievance and
advises and counsels the line management in their handling, but does not participate actively.

The final company -union step

The final step to be undertaken by a company and a union is a discussion of the grievance between representative of top management and
apex union officials. It is very difficult to secure an integration of interests at this high level. The grievance has usually become an issue which
has political implications. Nevertheless, the step must be a last attempt for the two parties to come to some agreement by themselves.

Arbitration

If the grievance has not been settled by the top management and top union leadership, three possibilities remain:

The union can permanently or temporarily drop the issue;

The union can give a strike call; or
The case may be submitted to an independent and impartial arbitrator.

Arbitration is usually the final step in the grievance procedure. An arbitrator is an outside party who is brought in to settle a dispute, with an
authority w make a decision. An arbitrator may be appointed from case to case or may be appointed as a permanent official for the industry
or an organization or a union. Naturally, the person must be acceptable to both union and management. His salary is usually paid by both;
since it is important that no endue influence be brought to bear on his deliberation. Often college professor, lawyers, retired government
servants serve in such a capacity.

In certain organization an additional step of Mediation is inserted before the arbitration. Mediation is distinguished from arbitration in that a
mediator is a third party who enters a dispute with no power of decision. He can only suggest, coax, recommend or merely keep the two
parties talking to each other.
Chapter 8 : COLLECTIVE BARGAINING

Collective bargaining is process in which the representative labour organization and the representative of a business organization meet and
attempt to negotiate contract which specified the nature of the employee-employer-union relationship.

The term “collective" merely indicates that the representatives are trying to negotiate an agreement for groups of persons.

"Bargaining" is a process of meeting presenting demands, discussing, presenting counter-offers, haggling, cajoling, threatening and host of
other activities which go into the bargaining of an agreement.

Collective bargaining is a process which imposes certain restriction upon the employer. Unilateral action is prevented on appropriate
subjects. The conditions of employment can be changed only at fixed intervals, that too with the agreement of the labour organization.

The validity of this approach is well grounded in facts and logic. Most of the decisions which pertain to employer-employee relationship are
not of the objective, black and white type. As sum, we cannot be certain that the employee will arrive at the correct answer. For that mater,
there is no certainty that the decisions made through collective bargaining will be right, However, in matters involving equity and right
treatment, the voicing of everyone's interest will probably lead to better decision.

The process of collective bargaining is not easy and at times it is positively exasperating. It is, however, the best answer available for
problems that defy quantitative measurement and exact answers.

The process of Collective Bargaining is very complicated. Bargaining can take variety of shapes during the actual conduct. However, there
are certain fundamental procedures and stages which have to be followed. These stages are:

1. Pre-bargaining Stage: The pre-bargaining phase of the process is of vital importance. Data of all type should be maintained
religiously by the management as well as the unions. The data may include wages, hours, pensions, vacation and similar types of
remuneration. The time and effort utilised in the pre-bargaining phase avoids last minute crisis that leads to undesirable contract
provisions.

2. Selection of Negotiators: Team or committee approach is usually favoured, thereby, broadening the base of participation. Legal
Advisors may form a part of the negotiating team, however, he should not be the main negotiator, as collective bargaining is not
essentially a legal process.

In order to be able to negotiate successfully, negotiators must have substantial and factual knowledge of working condition, past
employer-employee relationships, financial position of the company, and the existing wage structure in the industry.

Keeping the Chief Executive of the firm out of the bargaining process is considered by many ,as a sound technique. If the Chief
Executive is present on the bargaining team he may be forced to give an instant "YES" or "NO" on issues that deserve more careful
consideration.

3. Bargaining Strategy: Due to the considerable importance attached to the labour agreement, it is essential for management to plan
its strategy and tactics carefully in preparation for the bargaining sessions. Strategy concerned with the plan and basic policy to be
followed in the process. Tactics are particular actions that are taken while at the bargaining table.

The key personnel must decide before hand as to the maximum concession that can be granted to the demands of the union. The
management must also determine which demands they believe to be serious objectives of the union and which constitutes "smoke
screen" demands. The management must keep their eye on the entire package throughout the bargaining session.

The final important agreement of management bargaining strategy is the adoption of a .basic attitude of not being afraid of a strike.
The union is fully aware of the fact that strike is their most important bargaining weapon, and is not opposed to using that weapon as
a threat. However, neither management nor union likes to have a strike, therefore, management should study this process and be
 able to distinguish when strike is being used as a threat and when it is an imminent event.

4. Bargaining Tactics: The very fact that the process is known as bargaining, it will involve acts and tactics that are calculated to
mislead the other party. Bargaining requires shrewd study of the other party and an awareness of the impact of one's actions on all
concerned. One of the commonly used tactics of the labour union is an attempt to get the management to settle in a piecemeal
manner, i.e, analysing and revising the existing contract clause by clause, before proceeding to the next point. This kind of
bargaining should be avoided by the management, who should view the agreement in its entirety and bargain for the entire package.
Desirable tactics are to give tentative agreement to each clause until the entire contract is wrapped up, at which time final
agreement can be given.

5. Contract 0f Agreement: The labour agreement stipulates the nature of relationship between the management and the labour for a
particular span of time. It binds the parties to the agreement to comply with the various clauses included in it. In other words, it can
be termed as a document which comprehensively list out the rights and obligations of the parties to the agreement.

Bargaining Pressures: In the event of failure to reach an agreement, various pressures are brought to bear upon the management by the
union, such as strike, picketing, and boycott. The basic management pressure is that of waiting until the absence of the payroll makes itself
felt on every union member. In some cases the management may also resort to extreme step of declaring a lock-out.

Third Party Resolution: In case, disagreement between the labour and the management becomes serious, a third party often enters the
controversy. The third party may be a fact finder, a mediator, or an arbitrator.

Fact finding involves an independent investigation into the dispute and submission of report, which is generally made public. It is
likely for the bargaining parties to modify their extreme positions, on the basis of the additional facts and public opinion.

Mediation is a process by which the third party attempts to stimulate the labour and the management to reach some type of
agreement. Mediators cannon decide the issues, they can only listen, suggest, communicate, explain and persuade.

Arbitration is a process in which the third party collect the facts from the two bargaining parties and proceeds to make a decision
which is usually binding on the labour and management both.

Both parties have a basic obligation to establish a constructive relationship of working harmony in the advancement of labour / management
peace. Such relationship would include:

1. Union and management acceptance of each other as responsible parties in the collective bargaining process,
2. An emphasis upon a problem solving attitude and an emphasis of excessive legalistic approach, and
3. An awareness of basic obligation to employees, stockholders, customers, and public at large.

At times, the dominant issues in collective bargaining tend to change. The issue of union recognition have been replaced by economic issues
of wages, working hours and working conditions. With the advent of mechanisation and automation, job security and supplementary
employee benefits have assumed greater importance.

A constructive labour / management philosophy advocates free collective bargaining consistent with advancement of public interest. Both the
parties must recognize their obligations to handle this freedom. They should realise that abuse by either side will have far reaching effects on
the industrial harmony and the economy of the company, as well as nation as a whole.

THE BARGAINING PROCESS

Bargaining Process can be seen to be following an orderly step-by-step ritual. Certain clear patterns emerge, and four distinct phases
can often be discerned. In order to achieve a satisfactory resolution to bargaining, it is important that each phase is allowed to develop and
be fully played out. This ensures that negotiators achieve the sense of actively being involved in the bargaining process.

Skilled negotiators are aware of these phases occurring in the bargaining session, and prepare for them as part of overall strategy.
Identifying phases is particularly important when making decisions regarding the pacing of the bargaining, and timing the introduction of
tactics, making concessions, and final settlement offers.

1. Introductory phase
 Take process control from the outset (and maintain the momentum)
Settling-in (introductions, general small talk)
Building common ground at both personal and organizational levels
Climate development (opening remarks generating positive response)

2. Differentiation phase

Clarification of issues and testing of opening positions

Establishment of the outer limits of the bargaining range
Conflict management (healthy to have clear display of difference)
Emotion (recognize the need to express feelings about being upset)
Keep discussion of differences at organizational level (not personal attacks)
Separate conflict between parties from antagonism between people
Deadlock-breaking (identification of underlying needs)

3. Integration phase

Active reconnoitring of the bargaining range (looking for common ground)

Transition from inter-party exchange of position stating to an inter-personal exchange of joint problem solving
Carefully monitor style and climate variables
Shift from focus on the past to focus on the future long-term relationships
General tactics (creating options and building common ground)
Planned tactical concession-making, create reciprocity

4. Settlement phase

Summarising, recapitulation of the common ground

Final offers (credible, clear commitment, give prominence)
If other negotiator not final authority, get agreement-in-principle
Look in at both the organizational and personal levels
Consider development of a disputes settlement procedure

5. Post settlement phase

Implementation of agreement, monitoring compliance

Maintain other patty's esteem, building relationship for next time

BARGAINING TACTICS

The OUTCOME of bargaining depends not only on the relative strengths or weaknesses of the parties (content), but also on their perceived
power, and this can be significantly affected by the negotiators choice of tactics (process).

Tactics should not be confused with grand strategy, or your overall plan of approach to a bargaining. Rather, bargaining tactics are a
component of your strategy. They are the fine tuning mechanisms that assist in the implementation of strategy; they help provide the
leverage necessary to accomplish bargaining objectives. Used effectively, on a timely basis, the correctly chosen tactics can be a major
source of power. However, if they are poorly, they can become counter-productive.

Bargaining tactics have two main purposes:

1. To alter the other party's perception of their position.

By convincing them that their case has less value

2. To resist change to your own position

In resisting change to your position, always ask -"What tactic is being used to influence me?"

Once the bargaining tactics being used are perceived, they tend to lose their power.

The tactics listed below are examples of some of the main tactics that have been found to be effective in bargaining. The listing is not an
exhaustive one. Nor is it meant to be an endorsement of all the tactics included as some may be regarded as being ethically dubious.
However, it is important to be able to recognize a particular tactic when it is being used, in order to be able to counter its influence
successfully.

PREPARATORY TACTICS

Certain aspects of preparation for bargaining can be viewed as preparatory tactics which require decisions to be made during the pre-
bargaining time prior to actually entering into bargaining. These include deciding:

1. Who is to negotiate (individual or team): Special care should be given to the selection of the negotiator/s, the number of people
attending the bargaining, and to planning what roles they each should play.

2. Where to negotiate (venue and setting): The selection of the appropriate location for the bargaining conference, and then
carefully deciding the physical arrangements for the venue, can induce a marked effect on the interaction between the negotiators.
3. When to negotiate (timing): There is no 'right' time to commence bargaining. Each situation is different. Careful selection of the
right time, hour, day, week, or month is often one of the most powerful influencing factors affecting the OUTCOME of bargaining.
4. What to negotiate (facts): Have a pre-bargaining mutual fact-finding meeting prior to bargaining can be a very useful pre-
bargaining tactic. Not only does it allow joint evaluation of facts and validation of assumptions, but also allows the exchange of
information and helps to promote a climate of trust. It may also remove items from the need for further bargaining.
5. Which mode of contact (face-to-face or otherwise): A decision is required prior to bargaining as to which mode of contact will be
most appropriate to initiate the bargaining, and for ongoing contact. Consider how will the mode affect the bargaining climate and
the OUTCOME sought. Contact mode options include in writing (formal letter, informal memo, facsimile, telex), telephone (one-to-
one, teleconference), face-to-face (formal meeting, informal meeting, off-the-record).
6. How to negotiate (agenda): Careful attention to what is on the agenda (content) and how the agenda items are going to be
presented (process) is an important preparatory tactic in bargaining. Consider the preparation of the agenda seriously, for it has the
ability to shape the course of the bargaining significantly. It reflects the importance of the bargaining issues, and the relative power
of the parties, but don't become bound by the assumed 'legitimacy' of a printed document. The agenda always remains a negotiable
item. Note the following advantages and disadvantages of your side preparing the agenda.

Advantages of Preparing the Agenda:

can focus on or hide important bargaining issues.

can introduce secondary or even false issues (even imaginary issues can have trading value).
can co-ordinate agenda with other tactics.
can establish limits, set discussion rules, define terms.
can divide or combine issues to suit your situation.
can place issues in order that best suits you (e.g., a logical versus an emotional sequence).

Disadvantages of Preparing the Agenda:

reveals your position and assumptions before other party.

allows the other party time to prepare arguments and counters.

SELECTION OF NEGOTIATOR

18th Century Manuals of Diplomacy assert that: "The complete negotiator should have a quick mind, but unlimited patience, know how to
dissemble without being a liar, inspire trust without trusting others, be modest but assertive, charm others without succumbing to their charm,
and possess plenty of money and a beautiful (spouse)."
In choosing a negotiator, following important points should be considered:

Personal reputation.
Prior bargaining experience generally, and on the issues in conflict.
Status or position in hierarchy, if representing an organization.
Understanding of bargaining processes, bargaining training.

Personal specifications of high aspiration level, confidence, ability to resist persuasion, high creativity, inventiveness, lateral thinking ability,
high frustration tolerance, patience, high degree of awareness/ attentiveness, proven listening skills, superior communication, presentation
skills. Ability to interact/ manage team dynamics, if part of a negotiating team

SOLO VERSUS TEAM BARGAINING

There are a number of advantages as well as a number of disadvantages of using a single negotiator as against a team of negotiators. These
should be reconsidered with every bargaining based on the impact they will have on the OUTCOME.

Sole Negotiator:

Vests responsibility in one person preventing divided opinion.

Can make on-the-spot decisions to gain concessions.
May be used to signify that bargaining is not considered important.
Requires learning all aspects of case, including technical (can have back-up team).
Easier to be less formal, more personal.

Team Bargaining:

Provides wide expertise, skills, better fact-finding.

Allows pooled judgement in decision-making, idea-generating.
Presents larger opposition, for political reasons, PR, surprise.
Allows larger participation, useful for training.
Allows use of sub-teams to concentrate on specific issues.
Danger of disagreement amongst team members.
Overcome by appointing a lead negotiator, and consider giving each team member a specific process role as well as a content
function to perform.
One important role is that of Process Observer.
To create divided opinion in other party's team.
Aim questions at weakest member.
Ask for everyone's different opinion.
Seek to get them talking out of turn, to vent emotions.

OPENING TACTICS

The opening moves in a bargaining are crucial as they convey information about each party's attitudes, aspirations, intentions and
perceptions of the other, and they may be used to explore the other party's overall posture before deciding on your own. The opening moves
also establish each party's outer limits and set the negotiating range. Overall the opening moves shape the bargaining climate that may
prevail for the entire bargaining. Finally, the opening moves establish perceptions about the power balance.

The basic opening move decision to be made is whether you should make the opening move yourself and present your position, or whether it
is to your advantage to have the other party make the opening move and present his or her position. The following points are seven
commonly used opening move options.

1. Make other party tender first offer: It may be to your advantage to get the other party to state his or her opening offer first,
particularly when he or she has a strong case. This will avoid you making a serious miscalculation if the other party's offer is better
than you expected. It also makes the other party concede he or she wants to settle and allows you to declare shock and to demand
more.
 2. Remain silent: Another way to get the other party his or her opening offer first is to do nothing and non-verbally indicate the other
party should start first. When the other party is anxious to commence the bargaining, remaining silent and appearing to be waiting
will often be sufficient to prompt that party into stating his or her position.
3. Suggest hypothetical other party's offer: If the other party seems to be waiting for you, and you do not width to start the
bargaining opportunity to specify a pre-condition before you will enter discussions; for example a specific demand or course of
action that must be taken before you are prepared to negotiate. Agreement by the other party gives you a psychological advantage,
the possibility of a substantial gain and fewer items on which to negotiate.
4. Make your first demand high: Research suggests that more favourable outcomes are achieved by those making extreme, even
unreasonable, opening demands, rather than more moderate ones. The advantage of making your first demand high are that it
avoids miscalculation, and that subsequent, almost as high demands, appear more reasonable. It is advisable to temper extreme
demands with some logical rationale to show the other party you are serious and reduce the possibility of his or her withdrawal.
5. Make major demands at beginning: It is often useful to place your major items of interest as a grouping of demands at the
beginning of the bargaining starting with those that the other party will find easiest to concede. This will help generate a climate of
success, goodwill and cooperation, and may condition the other party into agreeing more easily to later demands.
Conversely, it is sometimes possible to obtain major concessions at the end of a bargaining after the other party has interested
many hours, and expense, and wants a settlement in order to achieve a return on his or her time and money investment.
6. Lock yourself in: Sometimes it is useful to make your opening offer on the basis of it being your 'first-and-final offer'. Usually, you
base your position on extensive research, and the offer is made on the understanding that it is fair and firm and that you are not
holding anything back for further bargaining. This 'lock-yourself-in' tactic suffers from the problem of credibility. You need a
reputation, or some means to prove you are not bluffing; for example, give it prominence by making a public announcement.

GENERAL TACTICS

The following examples of general bargaining tactics should not be regarded as absolutes to bel used in isolation. They may be combined in
numerous ways and used in many different formulations. It is important to camouflage your tactics so that they are not readily recognisable
as such by the other party (and thereby lose their power).

In using any tactic, always give serious consideration as to whether the timing is right. Test the efficacy of the moment. Have regard to the
overall pacing of the bargaining. For example, has there been sufficient differentiation between the parties? Seek to introduce the tactic at the
time when its effect will have maximum advantage.

In deciding on your tactic or counter-tactic, keep assessing both parties' perception of the power balance, and the OUTCOME you want to
achieve. Check whether you are making your decision based on short-term payback considerations, or are you also keeping in mind the
long-term relationship consequences. Tactics may be used competitively to attain leverage over the other party, or co-operatively to
balance power and help build up the common ground.

Be confident. Use your chosen tactic with confidence. Think positively. Believe in your ability to be an effective negotiator. Enter each
bargaining with all the self-confidence you can muster.

1. Request participation: Seek the other party's advice on resolving the matter. Ask them what would they do if they were in your
position.
2. Nibble: Approach your bargaining objective piece-by-piece. Keep making further small demands until possess whole pie.
3. Suggest a hypothetical: Make a prospective offer (kite-flying) to test the other's reaction (e.g "what if?"). Useful as avoids
commitment until ready.
4. Make false demands: When you have many demands, introduce a few false issues to disguise your serious interests.
5. Bluff: Give the impression you have more information than you actually do, or
6. Feint: Appear to move in one direction to divert attention from real goal.
7. Paradoxical intention: Get the other party to do something by pretending you don't want them to do it.
8. Do nothing: Skilled negotiators think carefully before reacting. Sometimes doing nothing is the most appropriate response.
9. Stall for time: Call an adjournment, reserve answer until later, request a cooling-off period, in order to relieve tension, give you time
to think etc. A similar tactic is to:
10. Withdraw I walkout: Where you refuse to negotiate further. If bluffing, be careful to explain your reasons and leave an opening
available to recommence bargaining. A similar tactic is:
11. Apparent withdrawal: When you pretend you have withdrawn, but you are really still available, or are maintaining control behind
the scenes.
12. Set limits: There are many different kinds of limits that may be established in bargaining. (e.g., Communication limits, geographical
limits, financial limits, and natural time limits such as weekends). A special case is to:
13. Set a deadline: Useful tactic as concessions are often made in the face of increasing time pressures.
14. Give ultimatum: State your offer on a clear 'take-it-or-leave-it' basis (but be wary of sounding offensive). Tactic requires credibility
and prominence.
15. Invoke competition: Playoff the other party against a second real or imaginary opponent. Having competition strengthens your
position.
16. Appeal to authority: Others are often impressed by your citing an authority that supports your case (e.g., Industry practice, legal
view, company policy, past precedent).
17. Use a third party: Get other people (e.g., an expert) involved, or suggest their opinion be sought.
18. Promote your achievements: Cite your excellent past achievements, and act shocked if the other party dares to question you.
19. Top any point: State you are better than any claim made by other party.
20. Promote positive benefits: Associate settlement you propose with positive benefits for other party (e.g., Prestige, increased
business).
21. Discredit associations: Associate other party or an aspect of their case with some unsavoury connection.
22. Make negative comments: Put the other party on the defensive by negatively commenting on or questioning them on their position
and condition.
23. Combine or divide demands: Rather than trying to get agreement on a difficult issue, combine it with another demand, or divide
one demand into two. Similar tactic is:
24. Bracketing: Where you make two (or more) related demands that approximate your objective, or just aim in the general target area
and, thereafter, cut down degree of error.
25. Shift levels: Change involvement in the problem to higher or lower level (e.g., Make it personal/organizational/national). Redefine
the issue in some other way. Similar tactic is:
26. Sudden shift: Make an unexpected shift in overall method, argument, approach, in order to surprise the other party and put off
balance. Related shift tactics are to:
o Change negotiator/s
o Change time
o Change place of bargaining
27. Reversal/ act the opposite: Act the opposite to what other party may consider appropriate, usual, or expected. Often just
considering a reversal assists in thinking of new alternatives. Be creative. Related tactic is:
28. Send two demands: Pressure other party to accept one (usually the less onerous).
29. Split the difference: Useful tactic for closing the gap quickly, or to test the other party's reaction. Note this tactic is often used as a
final offer.
30. Argue special case: Argue that the issue is a special case deserving of more favourable response (e.g., A non-standard item,
requiring a premium).
31. Inundate with information: Inundate the other party with a lot of information covering a wide area so as to end arguments before
they begin, or to provide a better chance for a breakthrough.
32. Give biased sample: Provide statistical (mis)information. Support your case by selecting the most favourable (biased) sample.
33. Pretend ignorance: To delay proceedings, or to put other party off their guard, act ill informed or pretend you don't understand. A
similar tactic is to:
34. Purposefully misunderstand: Deliberately misinterpret the other party and behave as if misinterpretation was fact.
35. Role reversal: Suggest each party act out the other's role and continue bargaining for a period ( off-the-record?)
36. Two negotiators playing different roles: Feigning internal dispute, one negotiator acts the bad guy (hard-liner, offers no
concessions, behaves emotionally) while the other plays the good guy (appears more reasonable, and seems willing to
compromise).
37. Re-open previously settled issues: Back track and raise additional demands, or re-open supposedly settled issues.
38. Low (or high) baiting: Make an unrealistic offer to lure other party into accepting, and at last moment you find a good reason to
change offer made.
39. Agent of limited authority: Negotiator acts as agent for a principal from whom she or he has to obtain final approval for settlement.
40. Fait accompli: Act and achieve goal, then wait and see if other party does anything about it. If they complain politely withdraw, or
feign your innocence/ignorance.
41. Admit error: If caught in difficult situation admit wrongdoings, and indicate having implemented corrective action and other party
should respect your honesty and respond helpfully.
42. Signal surrender: When in weak position signal surrender and plead for leniency. Indicate that you trust the other party to have pity
on you and not drive a hard bargain.
43. Make other appear unreasonable: During bargaining make a number of minor concessions, and then claim other lacking in
goodwill/sincerity if fails to reciprocate.
44. Feign anger (or real): Use a convincing display of anger as a bluff, or to signal that you regard the situation to be most serious. A
similar tactic is:
45. Appear irrational: Act in an irrational manner to throw other party off balance, or
46. Act aggressively: May achieve short-term concessions, but may also strengthen their resolve to hold out.
47. Act inscrutably: Remain poker-faced hiding your non-verbal reactions. Don't respond, remain silent, or avoid excessive talking.
Many people find silences hard to tolerate, causing increase in anxiety, and inexperienced negotiators may not wait for an answer
and will offer it themselves.
48. Make emotional appeal: Appealing to particular emotions concerning moral values, religious ideals, brotherhood, neighbourliness,
patriotism, can be an effective tactic.
49. Use humour: An often forgotten tactic is the ability of humour to lighten the tension, or to reduce the seriousness of the matter.
 Usually, best to make jokes against yourself. Remember to smile.
50. Make threat: Express intention to behave in a way that will be detrimental to other's interests unless he or she makes a concession.
51. Make promise: Promise further rewards at a later date if the other party concedes now.
52. Summarise position: Make frequent brief summaries of the current status of the bargaining or the common ground. Useful tactic to
give a sense of achievement, and bargaining is moving forward.
53. Be persistent (and patient): Keep on pushing your demands. Persevere, be determined, and don't give up. Requires stamina and
optimism but the persistent party who keeps on trying generally obtains a more favourable outcome in the long-run. But don't be
stubborn: know when to stop!

PLANNING COUNTER-TACTICS

The ability to identify a tactic, or group of tactics, being used by the other party enables the negotiator to select the most effective counter-
tactic by which to redress the balance of power in the bargaining. There are three steps to take in planning counter-tactics.

Step 1: Identify to yourself the tactic being used to influence you. It helps if you give that tactic a descriptive name that makes sense to
you.

Step 2: Stop and review the possible process options you have for countering the influence of the observed tactic. This often
requires that you slow the bargaining down to give yourself thinking time.

Step 3: Consciously decide the most appropriate counter-tactic for the OUTCOME you want to achieve. Particularly, consider whether
you wish to counter in a competitive or co-operative style.

In considering the many process options available, the following counter-tactics are commonly found to be productive in
redressing the power balance.

1. Disclose their tactic: Simply, describe the process you are observing out loud to the other party showing that you are aware of the
tactic they are using.
2. Use same tactic back: Once you have identified the other party's tactic, an easy counter-tactic is to match their tactic by using the
same tactic back.
3. Ask a question: Anyone of the negotiating questions reviewed before may be used as a counter-tactic.
4. Acknowledge and deflect: Accepting that the other party has a point (without agreeing that it is correct) and then deflecting to
another issue is often a good counter-tactic.
5. Time delay: Rather than deflecting to another subject, an alternative is to deflect to another time frame by requesting a time delay.
6. Ignore and persist: Doing nothing is always an option. You don't have to undertake a specific countering action. Simply ignoring
and not reacting to their tactic, and persisting with your own approach, can be an effective counter.
7. All tactics are also counters: Of course all tactics are also counter-tactics. Any of the tactics may also be equally useful as a
counter-tactic.

BREAKING BARGAINING DEADLOCKS

Deadlocks mostly occur in bargaining when either one or both parties are not having their important needs met. Skilled negotiators
understand that the deadlock is generally in the content, and not in the process. To find the key to unlock the deadlock, undertake the
following steps:

Step 1. Accurately identify other party's needs that are not being met

Step 2. Review the process of how you are managing the bargaining and stop discussing the content of the matter on which you are
deadlocked (e.g., check your bargaining style -how is your behavior affecting the other party; check the bargaining climate -how much trust
is there?).

Step 3. Act to create some kind of process movement that is seen by the other party as potentially moving the bargaining towards
meeting their needs, without causing resourcefulness and lateral thinking.

Following are possible deadlock-breaking process options:

1. Discuss common purpose.

 2. Summarise and confirm the areas of agreement.
3. Re-define issue/s in some different way.
4. Introduce new subject, new information, or a wider issue.
5. Look for similarities to build on.
6. Find a bridging issue (e.g., an area of overlapping needs).
7. Recollect previous good association.
8. Review past or future needs.
9. Review future consequences of failure to reach agreement now.
10. Discuss what alternatives remain (and try one for a trial period).
11. Establish a task force (with members from both sides).
12. Ask a hypothetical question.
13. Request participation, ask for their help.
14. Discuss what process to use to break the deadlock (e.g., brainstorm options).
15. Appeal to an authority, suggest use of a third party.
16. Suggest mediation.
17. Introduce humour, tell a story.
18. Change negotiators.
19. Change time/ place of bargaining.
20. Be empathic, use questioning technique.

MAKING AND GETTING CONCESSIONS

The bargaining relationship and its ultimate OUTCOME is shaped by the moves and counter-moves made by either party. Concession-
making presents a continuing dilemma in terms of what concessions to make, how to make them to best advantage, and the overall timing of
when to make them. The following suggestions are useful guidelines.

GAINING CONCESSIONS

Make the other party make the first concession: Research indicates that the negotiator who makes the first concession suffers a
psychological disadvantage and tends to end up with a less favourable outcome. If you become obligated to make the first concession,
ensure you do so only on the basis of obtaining something in return.

Help other party concede by providing a rationale: In making a concession, the negotiator suffers, both loss of position and loss of 'face'.
Concessions are difficult to retract and uncertainty often exists as to how long to hold out. Further, making concessions implies ineffective
bargaining and consequent loss in self-esteem. To overcome these perceived disadvantages, skilled negotiators plan how they can help
other party to concede by providing them with a rationale for making the concession (e.g., Demonstrate that a 'miscalculation' has been
made; indicate that concession is of low value giving you little; reduce visibility of concession to others).

Whenever other party makes a concession -lock-in-their commitment: Throughout the bargaining, whenever the other party makes a
concession repeat aloud their offer: 'echo' it back by using a reflective question. Not only does this confirm your understanding of the other
party's offer, but more importantly, it locks in their commitment step-by-step throughout the bargaining making it more difficult for the other
party to retract later. Additionally, echoing may cause them to justify the offer thereby indicating other possible areas for you to pursue.

Closely observe the sequence of concessions made by the other party

Important information is conveyed by how concessions are made. Note the types of concessions, their magnitude, frequency and
rate of change in concession making. Following each concession made by the other party, check your assumptions and review
your strategy. For example, does the concession suggest:

1. any change in the other party's objectives-needs, settlement point?

2. any change in the other party's strategy-style, climate, tactics?
3. any other possible areas Where the other party might make concessions?
4. any change in the other party's perception of you -capable, a push-over?

MAKING CONCESSIONS

Carefully plan the process of your concession-making: Continually, review what the sequence and rate of your concession-making is
conveying to the other side. Skilled negotiators consider how they are going to make the concessions tactically as part of overall strategy.
This means you must plan the process of concession, making as well as the content (i.e., the type and quantum) of your concessions.

Propose your concessions tentatively - test the 'water': A void a too early commitment by offering your concessions on a tentative basis,
and then closely monitor the other party's response to your cautions offer, both verbally and non-verbally. Asking a hypothetical question is a
useful technique to make an offer without commitment.

Exchange concessions -invoke reciprocity: Whenever possible make full use of the social convention of reciprocity. A void offering your
concessions unilaterally. The skill is to offer them on the basis that your concession is offered in exchange for the other party's concession in
return. The technique is to make what is commonly called a conditional offer: "What if we were to 'do x' then would you
'do y'?

Make the other negotiator work hard -then offer your concession as a reward: The skilled negotiator requires that the other negotiator
provide good reasons why s/he should concede. Then using the process of bargaining your concession becomes a reward for the other
party's hard work and effective negotiating. Agreeing to an offer is a process concession in itself. Rewarding the other party in some way
often results in your achieving more easily gained and larger concessions in return.

Never make concessions without first thinking through the consequences: A skilled negotiator recognises pressures such as
requirement for a quick response, and is very careful to ensure that they don't result in short-term decision making. Accordingly, when making
concessions, never make an offer without thinking through both the short-term and the long-term consequences, particularly considering your
long-term relationship with the other party.

Additional process points to consider when making concessions include:

1. Sarting out tough and weakening systematically covertly suggests to the other negotiator that he or she are negotiating effectively
and raises their self-esteem.
2. Concede sparingly and avoid making too frequent concessions.
3. Trade lower value concessions for higher value gains, but over-value your concessions and, under-value theirs.
4. Curb your instinct for reciprocity.
5. Make small concessions appear larger by making your concessions on multiple minor issues simultaneously.
6. Ensure you retain sufficient for final commitment.

MAKING FINAL OFFERS

Your final offer must be made as a definitive, concise and firm commitment. It must leave the other party with the clear impression
that there is nothing more to come. This is assisted by the following:

1. Ensure there has been sufficient bargaining process and the other party is ready.
2. Give the final offer prominence, make it focal point.
3. Summarise agreement so far (common ground) and link to final offer.
4. Consider making a final concession conditional on agreement.
5. Ensure consistent verbal and non-verbal are indicative of finality.
6. Credibility is enhanced by being more formal, at the organizational level.
7. Lock the other into implementation action, or get time commitment.