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