Introduction
Negotiation as an integral part of a business process requires special attention and skills. The success of a business is frequently dependent on the ability of negotiators to resolve the arising conflicts efficiently and achieve the best possible outcome. The negotiation which will be analyzed in this paper was witnessed in a medium-size company operating in the sphere of design while experiencing a period of decline.
Main Objectives
First of all, it is necessary to provide some background information concerning the negotiation considered in this paper. The negotiation occurred in the period of the company’s crisis as the number of clients’ orders had reduced considerably. At that time, the company was facing restructuring, and significant layoffs were expected. The negotiation was held between the management of the company and the representatives of the employees.
Initially, the interests of the parties appeared conflicting as the company’s goal was to cut costs without affecting the quality and the continuity of the working process. The employees, on the other hand, were interested in their job security. Evidently, the restructuring was of a high utility to the company but low to the staff. Thus, the success of the negotiation seemed to depend on whether value could be created.
Considering the type of this negotiation, it was an integrative one as the efforts were made to take into account the interests of both parties. While the employees were aware of the company’s struggling situation and the inevitability of layoffs, the management did their best to consider the staff’s interests. The common goal became to reach a wise decision in those complicated circumstances.
Both parties had to work on their positions to achieve the best possible solution in the conditions of conflicting interests. Finally, the position taken by the company’s management was to carry out the layoffs on a reduced scale and to offer some of the remaining staff different internal positions. The employees bargained for a higher compensation package in case of a layoff and retraining courses, funded by the company. It seems that the employees saw restructuring as an opportunity to change their employment position and guarantee themselves more security during the period of unemployment. Thus, value was created, and mutually beneficial outcomes were sought in the negotiating process.
During the negotiation, the positions were discussed, and some adjustments were made. As a result, the company provided the laid-off employees with the compensation package on better conditions. The severance payment was increased by 7% instead of 10% demanded by the employees originally. Retraining courses were funded by the company for the employees who were offered transitions within the firm. Although the company had to meet additional expenses in the form of increased severance payments and retraining courses funding, the company managed to cut costs at the necessary level to remain in business. At the same time, the employees’ interests were secured as much as it was possible in those conditions. It is clear that efficient conflict resolution ensured these balanced outcomes.
Conclusion
To conclude, the negotiation witnessed in this company, although representing a potentially high-conflict issue, was integrative since both parties made efforts to find a better outcome. As a result, despite the complexity of the problem, some win-win opportunities were found, and balanced solutions were achieved. It can be demonstrated that integrative negotiation is possible through compromising and perspective-taking even when the interests of both parties seem incompatible.