Introduction
Negotiation is a managerial role applied to problems when a solution is not readably available. It is used by those in a management position where tasks need to be accomplished.
This includes working with suppliers, distributors, labor unions, or employees to solve disputes.
The goal of negotiation is a long-term solution. Negotiation can be used as a resource tool during contract talks between unions and corporations. Managerial skills can include:
“The ability to act in a way that allows a person to perform well in their Role.” (George, p15)
Main body
Negotiating is most often used when group-level conflict occurs, such as labor union disputes. Different sides will meet to make offers and counteroffers to solve the dispute. A third-party negotiator is employed to oversee the argument, but often disputes are settled between groups without a third party.
The third-party negotiator is a skilled outsider who facilitates the bargaining process (George, p635). The third-party negotiator often is referred to as the mediator who takes a third-party neutral position. If all else fails, an arbiter may step in and act as a judge and “impose a solution” (George, p635). The goal of negotiating is to come to a “good agreement” (Northcraft, p193).
Often the parties involved will come to a mutual agreement. This is when both parties don’t get what they want but come to a mutual understanding (compromise) where each party gets some of what they asked for.
Negotiators need to be comfortable with what they will settle for during negotiations. This is called a BATNA (Best Alternative to a Negotiated Agreement) and may contain their reservation price (Northcraft, p193).
There are five common strategies: Competing, avoiding, collaborating, accommodating, and compromising. Competing refers to going into a negotiation to come out the winner.
Collaborating can be used along with the competing strategy. This strategy involves looking at the concerns of both parties and coming to a solution. The accommodating style includes giving in to the other party’s desires. Avoiding refers to not addressing the goals of the other party. And finally, compromising refers to “splitting the distance” (Northcraft, p192).
Splitting the difference refers to a quick solution to the problem at hand. An excellent example of compromising is the simple dilemma of two children wanting the last piece of the pie. The fairest solution would be that one child cuts the pie and the other chooses which pie he wants (a compromise) (Northcraft, p192).
The negotiating strategy used most often is the distributive strategy. This strategy is best used when the parties divide up the resources available. It is commonly used to allocate a fixed amount of resources (Northcraft, p695).
Another negotiating strategy is referred to as integrative bargaining. This strategy assumes that the pot has unlimited resources for the parties to separate (Northcraft, p194).
At this time in history, we see many businesses going out of business. Large corporations are no less affected by the current economic troubles. For those companies involved, some companies must deal with negotiation. The Unions are interested in maintaining an income for the employees that would be considered a working wage that they can use to maintain a standard of living they are accustomed to.
Negotiation is a valuable tool used to present both sides’ points of view.
The negotiator can be from within the company or union or an unbiased third party (an outsider).
Negotiators are experienced and assist companies and laborers. Negotiators help both sides table their agreements and disagreements.
Strategies used by negotiators and arbiters include competing, avoiding, collaborating, accommodating, and compromising. There are times when negotiations break down, and a third party comes in and acts as a judge. This is the judge. This judge will listen to both sides of the dispute and makes a judgment that both parties must abide by. Arbiters are often employed when both parties have reached a stalemate.
Conclusion
BATNA refers to the Best Alternative to a Negotiated Agreement. Therefore, negotiators from both sides need to decide beforehand what they would settle for.
Again, both parties may not walk away from the bargaining table with all they wanted.
Works Cited
George, Jennifer M. and Gareth Jones Organizational Behavior, 2002. Pearson Education, Inc. Prentice Hall Inc. Upper Saddle River, New Jersey, 07458.
Northcraft, Gregory B. and Margaret Neale.
Organizational Behavior, 1994. The Dryden Press, Harcourt Brace College Publishers.