Presented by:• Hooreen Tasneem• Fatima Salaam• Beenish Hussain

BARGAINING AND NEGOTIATION MANAGEMENT

When planning for one

year, there's nothing

better than planting

grain, when planning for

ten years, there's nothing

better than planting

trees, when planning for a

lifetime, th

ere's nothing

better than planting

men". Chinese philosopher

Collective bargaining is a process whereby organized labor and management negotiate the terms and the conditions of employment.

The process by which the mutual agreement incorporated between the management and the Worker’s Union is known as the collective bargaining agreement.

The term "collective bargaining" was first used in 1891 by economic theorist Sidney Web.

However, collective negotiations and agreements had existed since the rise of trade unions during the nineteenth century.

HISTORY

Practical Study of OGDCL

Exploration & Development of Oil & Gas

Resources.

MAIN PRODUCT LINE Crude Oil Gas LPG

MAJOR ACTIVITIES

Working pattern of OGDCL is different from other organizations.

The oil and gas fields are located in remote areas.

Tough working conditions leads to frustration of the workers during stay in fields.

How situation occurs

The objectives of the collective bargaining are given as:

1) Settle the conflicts2) To protect the interest of the workers through collective action.3) To resolve the difference between the workers and management 4) To avoid third party intervention in matters relating to employment.

Objectives

The collective bargaining process simultaneously triggers of the following:

1) Employee’s right.2) Employer’s duty.

In majority of the cases collective bargaining process deals with issues like:

1) Rate of wages, pay.2) Hours of employment, working conditions3) Employment policies4) Productivity settlement

NEGOTIATION

“Negotiation is the process ofcommunicating back and forth, for

thepurpose of reaching a joint

agreementabout differing needs or ideas.”

“A give-and-take decision-makingprocess involving interdependentparties with different preferences.”

Defined

1. Positive Attitude 2. Knowledge of the Negotiation

process3. An understanding of people4. A grasp of your subject5. Creativity6. Communication skills

Basic Elements of Successful Negotiation

To reach an agreement To beat the opposition To compromise To settle an argument

Why do we NEGOTIATE?

Relate: Building a relationshipExplore: Interests of both sidesPropose: One concrete proposal

addresses all underlying interestsAgree: Compromising & create

alternatives

Negotiation Process REPA

Distributive Negotiation Integrative Negotiation

TYPES OF NEGOTIATION

Parties compete over the distribution of a fixed sum of value. The key question in a distributed negotiation is, “Who will claim the most value?”

The Seller’s goal is to negotiate as high a price as possible; the Buyer’s goal is to negotiate as low a price as possible.

DISTRIBUTIVE NEGOTIATION

In Integrative Negotiation, parties cooperate to achieve maximum benefits by integrating their interests into an agreement. This is also known as a win-win negotiation.

The key questions is: “How can the resource best be utilized?”

INTEGRATIVE NEGOTIATION

BATNA is an acronym for:

Best

Alternative

To

a

Negotiated

Agreement

BATNA

BATNAs tell you when to accept and when to reject an agreement

When a proposal is better than your BATNA: ACCEPT IT

When a proposal is worse than your BATNA: REJECT IT

Why BATNAS Matter

“Best Alternative to a Negotiated Agreement”

Develop “your” BATNA - List your alternatives - Evaluate your alternatives - Establish your best as your BATNA

Consider “their” BATNA Have a Reservation Point – the least

you will accept List their alternatives – their BATNA

BATNA

A person goes for car purchase.

[To negotiate with showroom sales man for lesser price]

The car owner is not agreeing for the lesser price.

Than customer can ask for Radial tires[best alternative] with any increase in price further.

BATNA EXAMPLE