PRESANTATION ON NEGOTIATION SKILLS &

COLLECTIVE BARGANING

COURES NUMBER:EXT-507 (2+1)TITLE: HUMAN RESOURCE DEVALOPMENT

SUBMITED TO:DR. SANDHYA CHOUDHARY.

DPT OF EXTENSION.

SUBMITTED BY:RAGHAVENDRA P NANDARAGI..M.Sc (agriculture economics and

farm management).ROLL NO- 141C03.

NEGOTIATION SKILLS

• The word "negotiation" originated from the Latin expression, "negotiatus", which means "to carry on business".• The process of conferring to arrive at an agreement between different parties, each with their own interests and preferences.• “A give-and-take decision-making process involving interdependent parties with different preferences.”

What Is Negotiation ?

Definition :• Negotiating is the process of communicating back andforth, for the purpose of reaching a joint agreementabout differing needs or ideas.• It is a collection of behaviours that involvescommunication, sales, marketing, psychology, sociology,assertiveness and conflict resolution.• A negotiator may be a buyer or seller, a customer orsupplier, a boss or employee, a business partner, adiplomat or a civil servant. On a more personal levelnegotiation takes place between spouse’s friends,parents or children.

DEFINITION

“COLLECTIVE BARGAINING IS A PROCESS OF DISCUSSION AND NEGOTIATION BETWEEN TWO PARTIES, ONE OR BOTH OF WHOM IS A GROUP OF PERSONS ACTING IN CONTEST…. MORE SPECIFICALLY IT IS THE PROCEDURE BY WHICH AN EMPLOYER OR EMPLOYERS AND A GROUP OF EMPLOYEES AGREE UPON THE CONDITIONS OF WORK”

(THE ENCYCLOPEDIA OF SOCIAL SCIENCE)

FEATURES OF NEGOTIATION• Minimum two parties.• Predetermined goals.• Expecting an outcome.• Parties willing to modify their positions.• Parties should understand the purpose of Negotiation.

Why Do We Negotiate ?•To reach an agreement•To beat the opposition•To compromise•To settle an argument•To make a point

Types Of Negotiation

1. Distributive Negotiation

2. Integrative Negotiation

1.Distributive 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?”• A gain by one side is made at the expanse of other.• 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.• Thus, the deal is confined: there are not much opportunities

for creativity or for enlarging the scope of the negotiation.

2.Integrative Negotiation• In Integrative Negotiation, parties cooperate to achieve

maximize 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 negotiations tend to occur in following situations: Structuring of complex long-term Strategic Relationships or other collaborations. When the deal involves many financial and non-financial terms.

• In an integrative negotiation,, there are many items and issues to be negotiated, and the goal of each side is to “create” as much value as possible for itself and the other side.

Distributive V/s Integrative NegotiationsSl.no Characteristic Distributive Integrative

1. Outcome Win-lose Win-win

2. Motivation Individual gain Joint and individual gain

3. Interests Opposed Different but notalways Opposite

4. Relationship Short-term Longer or Short-term

5. Issues involved Single Multiple

6. Ability to maketrade-offs

Not Flexible Flexible

7. Solution Not creative Creative

BATNA is ;BestAlternativeToNegotiatedAgreement

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

BANTA

Negotiation Process

FINALIZING THE DEAL

BARGAINING

INFORMATION SHARING

PREPARATION

Types Of Negotiation In Organizations

1.Managerial NegotiationsTypes Parties Involved Examples

Day-to-day/ManagerialNegotiations

1. Different levels of Management

2. In betweencolleagues

3. Trade unions4. Legal advisers

1. Negotiation for pay, terms and Working conditions.

2. Description of the job and fixation of responsibility.

3. Increasing productivity.

2.Commercial NegotiationsTypes Parties Involved Examples

CommercialNegotiations

1. Management

2. Suppliers

3. Government

4. Customers

5. Trade unions

6. Legal advisors

7. Public

1. Striking a contract with the customer.

2. Negotiations for the price and quality of goods to be purchased.

3. Negotiations with financial institutions as regarding the availability of capital

3.Legal NegotiationsTypes Parties

Involved Examples

LegalNegotiations

1.Government

2.Management

3.Customers

1. Adhering tothe laws of thelocal andnationalgovernment.

OBSTRACLES

1st Obstacles to Negotiation• Sometimes people fail to negotiate because they do not

recognize that they are in a bargaining position.• Or, they may recognize the need for bargaining but may

bargain poorly because they do not fully understand the process and lack good negotiating skills.

• parties must be aware of their alternatives to a negotiated

settlement :Weaker parties must feel assured that they will not be overpowered in a negotiation:parties must trust that their needs and interests will be fairly considered in the negotiation process.

Therefore;

2nd Obstacles to Negotiation• Negotiation seems to bring conflicts . Any

misunderstanding that arises between them will reinforce their pre-judices and arouse their emotions.

• To combat perceptual bias and hostility, negotiators

should attempt to gain a better understanding of the other party's perspective and try to see the situation as the other side sees it.

Therefore;

3rd Obstacles to Negotiation• if the "right" people are not involved in

negotiations, the process is not likely to succeed.

• Agreements can be successfully implemented only if the relevant parties and interests have been represented in the negotiations.

• So, all of the interested and affected parties must be represented. And, negotiators must truly represent and have the trust of those they are representing.

Therefore;

COLLECTIVE BARGAINING

• Collective bargaining: negotiation between employer and labour union usually on wag, hours and working condition.

• Negotiation: to confer with another so as to arrive at the settlement of some matter.

Meaning of collective bargaining

INTRODUCTION OF COLLECTIVE BARGAINING

The concept of collective bargaining was introduced very late in India as trade unions were found only in 20th century. The concept of collective bargaining attained significance only after 1962.

The phrase collective bargaining is said to be coined by Sydney and Beatrice Webb and Great Britain.

It is made up from two words collective which means “group” and bargaining which means “proposals and counter proposals”.

So it is a process in which the representatives of a labour organization & the representatives of business organization meet and attempt to negotiate a contract or agreement, which specifies the nature of employee-employer union relationship.

OBJECTIVES OF COLLECTIVE BARGAINING

Resolve differences over difficult issues.Protect the interests of workers through collective action.Carry out negotiations voluntarily, without interference

from a third party.Arrive at an friendly agreement through a process of give

and take.To arrive at an agreement on wages and other conditions

of employment.To have peaceful co-existence for the mutual benefits and

progress.To maintain employee-employer relation bi-laterally.

• Collective: Collective bargaining is a two way group process where the both party peoples sit together to negotiate.

• Strength: Both the parties in collective bargaining are strong and equal.

• Voluntary: Both parties come to the negotiation table voluntarily in order to go in particular negotiation. It is based on discussion, mutual trust and understanding.

• Formal: It is a formal process in which certain specific/related issues are to be regulated at National, organization and workplace levels.

• Flexible: It is a flexible and continuous process and not fixed or static. • Improvement: It is a method to improve the employer-employees

relation in organization and resolve management and employees conflicts.

CHARACTERISTICS

CONTD…• Representation: Collective bargaining is between the representatives of

group and management. The management does not directly deal with all the peoples. It carries negotiations with the representatives/executives of unions and association.

• Dynamic: Collective bargaining is dynamic, that go on changing over a period and grows and expand the way of agreement, the way of implementation and way of discussion.

• Continuous: Collective bargaining is continuous and begins with agreement, the implementation of agreement and further negotiations.

• Bipartiate Process: Because the employee and employers representatives negotiate directly face to face across the table.

CONJUNCTIVE OR DISTRIBUTIVE BARGAINING: Conjunctive bargaining is the most common type of bargaining & involves zero-sum negotiations, in other words, one side wins and the other loses. Both parties try to maximize their respective gains. They try to settle all economic issues such as wages, benefits, bonus, etc.

For Example, Unions negotiate for maximum wages & the management wants to yield as little as possible – while getting things done through workers.

TYPES OF BARGAINING

COOPERATIVE /INTEGRATIVE BARGAINING: Integrative bargaining is similar to problem solving sessions in which both sides are trying to reach a mutually beneficial alternative, i.e. a win-win situation. Both the employer & the union try to resolve the conflict to the benefit of both parties. Both sides share information about their interests and concerns and they create a list of possible solutions to best meet everyone’s needs.

CONTD…

CONTD… PRODUCTIVITY BARGAINING: A form of collective bargaining

leading to a productivity agreement in which management offers a pay raise in exchange for alterations to employee working practices designed to increase productivity. Productivity bargaining has been described as "an agreement in which advantages of one kind or another,

such as higher wages or increased leisure, are given to workers in return for agreement on their part to accept changes in working practices or in methods or in organization of work which will lead to more efficient working.

COMPOSITE BARGAINING: Workers believed that productivity bargaining agreements increased their workloads. Rationalization, introduction of new technology, tight productivity norms have added to this burden and made the life of a worker some what uneasy. As an answer to such problems, labor has come in favor of composite bargaining. In this method, labor bargains for wages as usual, but goes a step further demanding equity in matters relating to work norms, employment levels, manning standards and enviornmental hazards etc.

CONTD…

Issues of collective bargaining

8. Disciplinary matters9. Health and safety10. Insurance and

benefits11. Union recognition12. Union

activities/responsibilities13. Management rights

1. Wages and working conditions2. Work norms3. Incentive payments4. Job security5. Changes in technology6. Work tools, techniques and practices7. Staff transfers and promotions

POINTS TO KEPT IN MIND BEFORE COLLECTIVE BARGAINING

Be sure to set clear objectives for every bargaining item, and be sure you understand the reason for each.

Do not hurry.When in doubt, discuss with your associates.Be well prepared with firm data supporting your position.Always strive to keep some flexibility in your position.Don't concern yourself just with what the other party says and

does; find out why.Be alert to the real intentions of the other party-not only for

goals, but also for priorities.

CONTD… Be a good listener. Build a reputation for being fair but firm. Learn to control your emotions and use them as a tool. As you make each bargaining move, be sure you know its

relationship to all other moves. Measure each move against your objectives. Pay close attention to the wording of every clause negotiated; they

are often a source of grievances. Remember that collective bargaining is a compromise process. Try to understand people and their personalities. Consider the impact of present negotiations on those in future

years.

COLLECTIVE BARGAINING MEMBERS

REGISTERED MEMBERSPROFFESSIONALSOTHER PROFESSIONALSTECHNICAL EMPLOYEESNON -PROFESSIONALS

COLLECTIVE BARGAINING PROCEDURE

PROCESS OF COLLECTIVE BARGAINING

PROCESS OF COLLECTIVE BARGAINING

The collective bargaining process involve five steps:

Propose : It involves the initial opening statements and the possible options that exist to resolve them.

Discuss : Both parties decide the rules that will guide the negotiations.

Prepare: This phase involves composition of a negotiation team.

CONTD…• Bargain: Negotiations are easy if a problem

solving attitude is adopted. This stage comprises the time when ‘what ifs’ and ‘supposals’ are set forth and the drafting of agreements take place.

• Settlement: This stage is described as consisting of effective joint implementation of the agreement through shared visions, strategic planning and negotiated change.

ADVANTAGES•Participation in decision making process.•All union members and management must confirm to terms of contract without exception•Process exists to question manager’s authority if member feels something was done unjustly.• Improve professional relationships.•Professionalism can be promoted.•Protect patients from inadequate and unsafe care.• Give economic security.• Ensure that all will get fair pay, good benefits and safe working conditions.• Provide power.•Establish effective channels of communication with decision-makers.

DISADVANTAGESReduced individuality.

Other union members may outvote one’s decisions.

Disputes are not handled with individual and management only.

Must pay union dues even if one does not support unionization.