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Organizational Psychology and HR

Collective Bargaining and Negotiation Skills

A Tariq Saeed Presentation Iobm , Cbm , March, 3, 2012

Collective Bargaining and Negotiation Skills- Overview

Review of previous study of IR , Conflict Resolution , Industrial Disputes + Ways to Settle Disputes + Grievances and Grievance Procedure .

Collective Bargaining . History of Collective Bargaining .

Changing Nature of Collective Bargaining

An Alignment with CHs 5-8 of the book (An introduction to Collective Bargaining & Industrial Relations by Harry Kartz & Thomas

The Negotiations Process and Strikes ( The Dynamics of Negotiation )

Distributive Bargaining ( win-loss ). Integrative Bargaining ( win-win ). Intra organizational Bargaining .( both sides have members with opposing views on core issues ). Attitudinal Structuring ( the degree of trust the respective sides feel or develop for each other ). Management Objectives . The Unions Targets . Local Labor Market Comparisons .

The Negotiations Process and Strikes

( The Dynamics of Negotiation )

The Firms ability to pay . Internal Comparisons. The Dynamics of Management Decision Making Process The union and Workers involvement in Negotiations The Cycle of Traditional Negotiations The Role of Strategy of Both Sides .

Negotiation Skills- Overview

An introduction to Negotiations. The Negotiation Process. Distributive Bargaining. Integrative Bargaining . Gaining Leverage through Power and Persuasion . Strategies for Negotiation. Impasse and Alternate Dispute Resolution Ethics, Fairness and Trust in Negotiation. The influence of Culture and Gender on Negotiation Closing the Deal.

Negotiation Skills
Negotiation is a way to resolve issues without resorting to actions that hurt or destroy relationships Not every interaction between two parties is a negotiation Every negotiation requires an interaction between at least two parties who have a relationship . The parties must be motivated to negotiate. That is , each party must need or at least perceive that he or she wants or needs something that the other party has or can control .Futher more both parties must be able to propose options, make decisions and deliver on their agreement. There are three types of negotiations : 1. Deal Making Decision .2. Decision making negotiation.3. Dispute resolution negotiations.

An introduction to Negotiations
There are FIVE BASIC SKILLS 1. The FIVE essential elements. 2. Bargaining Behaviors 3. Bargaining Styles 4. Collaborative Goals 5. Cognitive Biases

Five Elements of Negotiation

Multiple Parties and Their Interests Interdependency Common Goals Flexibility Ability to Make a Decision

The Parties and Their Interests

The parties to negotiation can be friends , coworkers, business owners ,vendors , world leaders, political leaders, our own neighbors or the unions and managements .

- the relationship / task frame

- emotional / intelligence frame - cooperative/ win- win frame

The Negotiators Traits of Skilled Negotiators Developing Negotiation Skills Bargaining Styles (avoiding , accommodating , collaborating , competing & compromising ) The Role of Emotions in Negotiations

Role of Emotions in Negotiations

Emotions : anger, happiness , fear , moods Emotional Intelligence : 1.self awareness.2self regulation.3.self motivation. 4. empathy.5. managing relations . Emotional power, intelligence and diplomacy .

Common Goals
The Content Goal : it is the substance of issue . The Relationship Goals :Define how the parties intend to relate to each other . Prospective Goal : The goal they identify at the start of a negotiation . Transactional Goals : those that either arise or become apparent during the negotiations . Retrospective Goals : those that emerge after a negotiation has concluded . Collaborative Goals : they attempt to identify and satisfy mutual goals .

Ability to Make a Decision

Cognition and Heuristics : cognition refers to the process of assimilation of information to make rational choices. Heuristics are the rules of thumb to simplify decisions . Biases : 1. availability bias. 2.representative bias or stereotyping . 3. self serving bias or egocentric .4. self enhancement bias. 5. impact bias.6. overestimates . Motivation : 1. Social motivation.2. Epistemic motivation. to process info relevant to the negotiation .3. Impression motivation : desire to make a good impression.

The Negotiation Process

Preparation Ground Rules Initial Offer Posturing Decision on single issue or multiple issue negotiation

Four Basic Stages of Negotiation Process

Preparation : identify all issues, set priorities, develop support arguments. Opening Session ; Ground Rules, Framework for success, initial offers; posturing . Bargaining : single issue or multiple issue negotiations . Settlement : impasse, third pary interventions and the Closing. BATNA .

Distributive Bargaining. Integrative Bargaining . Gaining Leverage through Power and Persuasion .

Distributive Bargaining
Distributive bargaining is a negotiation method in which two parties strive to divide a fixed pool of resources, often money, each party trying to maximize its share of distribution. Distributive bargaining is a fixed sum game and the limited resource is often termed a fixed pie. The general nature of this bargaining is highly competitive and the object of the parties involved is to maximize their share of the fixed resources.

The Negotiation Process

Recognize a distributive bargaining Begin by determining a RESERVATION PRICE. Use Bracketing . Recognize and use common Social Norms to evaluate offers and make Counter Offers & reach a settlement point. Framing Offers and respond to offers.

Integrative Bargaining
Integrative bargaining is a cooperative approach to negotiation or conflict resolution .It is often refered to as a win-win or mutual gains approach The Integrative approach, involves making concessions to reach an agreement-but in addition, it involves searching for mutually profitable options and logical trade offs for negotiator search for better proposals than the obvious ones that meet only their own interests . Integrative techniques include a clear understanding of issues, open sharing of information and the joint exploration of solutions that benefit both parties .

The Two Types of Bargaining Strategies

Bargaining Characteristics
Available Resources Primary Motivations Primary Interests Focus of Relationships

Distributive Bargaining
Fixed Amount I Win, You Lose Opposed Short-Term
Gholipour A. 2006. Organizational Behavior. University of Tehran.

Integrative Bargaining
Variable Amount I Win, You Win Congruent Long-Term

Bargaining Zone Model

Your Positions
Initial Target Resistance

Area of Potential Agreement




Opponents Positions

The Negotiation Process

Learn the elements of integrative bargaining sharing interests, creating and claiming value, mutual gain objectives and valuing a long term relationship . Apply five steps of Categorization method. Identify all issues and focus on the interests of the parties involved . Practice Active Listening . Apply concepts of interest based bargaining (IBB) to negotiate and brainstorm options and joint problem solving.

Categorization Method
First Step. Begin with exchange of info and seeking all issues to be negotiated and concerns and interests of other party . The Second Step .Parties develop a common list of all issues of possible interest discussed in the first step. (compatible issues , exchange issues and distributive issues ). Third Step . Reaching final agreement on compatible issues and then removing them from further negotiation. Fourth Step . Involves the trade-off of issues . Fifth Step . The resolution of the last issue, or issues through distributive bargaining and integrative bargaining . Limitations of the Categorization Method.

keys to Successful Integrative Bargaining

Willing participation of both parties. Recognition of the Relationship. Collaborative Atmosphere .
1. 2. 3. 4. Packaging the issues . Tactics for Success. Questions to Advance Negotiations. Traps to Avoid .

Principles of IBB
Sharing of information. Willingness to forego power to leverage. Brainstorming to create options .
Focusing on issues, not personalities . Leaving past issues behind. Expressing interests, not positions . Both parties committing to IBB ADVATAGES / DISADVANTAGES OF IBB .

Gaining Leverage Through Power and Persuasion

Learn to use your BATNA to reach agreement. Recognize the sources of power in a negotiation. Learn to marshal persuasive arguments. Use both verbal and nonverbal communication to persuade . Learn when and how to use threats to get concessions.

Learning Power from your BATNA

BELIEVING you have a strong BATNA . Convincing others of the Strength of your BATNA. Changes in BATNA during negotiations .

Leveraging the Sources of Power

Reward Power and Coercive Power : Controlling Resources . Legitimate Power: Position or Authority Expert Power : Controlling Information. Reference Power : Personal Attributes .

Leveraging Power Through Persuasion

Framing the Question . Creating Persuasive Arguments ( logos , pathos and ethos ) Using Persuasive Language. 1. Metaphor. 2. Humor . 3. Using props 4. Story telling . Focusing on the Listeners Perspective

Tools for Persuasive Communication

Verbal Communication Nonverbal Communication . The basic types of non verbal Communication includes : - Kinesics - Eye Movement -Facial Expressions - Gestures -Time and Space Stereotyping and Prejudice Understanding Emotions

Persuasion Through Process

Who to influence and How Shape Perceptions of interests and Goals Use a Negotiation Process That Fosters Buy-in

Leveraging Power Through Pressure Tactics

1. Change the circumstances . 2. Visibly and irreversibly restrict your options . 3. Expend resources to create a fallback position and make sure the opponent knows it . 4. Delegate the authority to carry out the threat so it is just a matter of execution at the appropriate time. 5. Develop a reputation for following through on threats . 6. Give a convincing preview of the future

The Strategy
Before choosing a strategy, carefully identify and consider three key elements , time( deadlines ), information and power. Develop increments of concession ,you can employ to reach a settlement . Employ a principled negotiation strategy by focusing on interests vs positions on issues. When negotiating with multiple issues, employ the MULTIPLE EQUIVALENT SIMULTANEOUS OPTIONS ( MESO ) STRATEGY or the Economic Matrix . If current negotiation s stalled or you may not achieve your objectives, consider using 3-D Negotiation approach which might enable you to change the negotiation set up .

Key Strategy Elements


The Five Broad Strategies

STRATEGY 1: Increments of concession .( BATNA, Split the difference , equal increments. Decreasing increments.) STRATEGY 2. Principled Negotiation . Position vs interests , Separate People from position, focus on objectives , develop mutual gain options . STRATEGY 3. MULTIPLE EQUIVALENT SIMULTANEOUS OPTIONS( MESO ) STRATEGY .Three basic Steps, 1.identify and prioritize three or more issues .2. Identify the different options or outcomes available for each issue. 3. Create three diff but approx equal offers . STRATEGY 4. The Economic Matrix . Bring several economic issues in one proposal, limit total value , provide options of equal value to the other party . STRATEGY.3. 3-D Negotiation .

Unethical Negotiating Tactics

1. Lies 2. Puffery 3. Deception 4. Weakening The Opponent 5. Strengthening Ones Own Position 6. Information Exploitation 7. Nondisclosure 8. Change of Mind 9. Distraction 10. Maximization
Gholipour A. 2006. Organizational Behavior. University of Tehran.

Ways to Settle Disputes

Impasse: settlement cannot be reached Impasses may be solved by these alternatives:
Conciliation Mediation Arbitration

Third Party Negotiations

Mediator Arbitrator Conciliator Consultant

Gholipour A. 2006. Organizational Behavior. University of Tehran.

Alternative Dispute Resolution (ADR) Techniques

Facilitation: Third party gets disputants to deal directly and constructively
with each other. disputants.

Conciliation: Neutral third party acts as communication link between

Peer review: Impartial co-workers hear both sides and render decision that
may or may not be binding. grievances confidentially.

Ombudsman: Respected and trusted member of the organization hears

Mediation: Trained third-party guides disputants toward their own solution. Arbitration: Neutral third-party hears both sides in a court-like setting and
renders a binding decision.

Gholipour A. 2006. Organizational Behavior. University of Tehran.

Decision-Making Biases That Impede Negotiations

Escalation of commitment
The mythical fixed pie Anchoring and adjustments Framing negotiations Availability of information

The winners curse

Gholipour A. 2006. Organizational Behavior. University of Tehran.

Effective Negotiator Behaviours

Plan and Set Goals
Gather Information

Communicate Effectively
Make Appropriate Concessions

Improving Negotiation Skills

Research your opponent Begin with a positive overture Address problems, not personalities Pay little attention to initial offers

Emphasize win-win solutions

Create an open, trusting climate
Gholipour A. 2006. Organizational Behavior. University of Tehran.

Any Questions?

Thank You
Shukran Jazeemun

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