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HR Knowledge : Manage workplace conflicts through negotiation - SHRM India

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Negotiations can also be thought of as a set of concerns from two parties. Negotiation is about resolving disputes on divergent interests.

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HR Knowledge : Manage workplace conflicts through negotiation - SHRM India

  1. 1. Introduction to Negotiation Concepts Richard A. Posthuma, J.D., Ph.D., GPHR, SPHR 2010
  2. 2. For more on Indian HR industry, click here Negotiation • Goals > Two parties can voluntary reach an agreement to resolve a dispute. • Issues > The things that they are talking about (e.g., wages, benefits, lawsuits) 2 © SHRM 2010
  3. 3. For more on Indian HR industry, click here Positions • Initial offer/demand. This is where you start the negotiation. • Target point. This is where you reasonably would like to end up in negotiation. • Resistance point. This is as far as you are willing to go to reach an agreement. • BATNA. This is your Best Alternative To a Negotiated Agreement. > It often influences your resistance point. 3 © SHRM 2010
  4. 4. For more on Indian HR industry, click here Employee’s Target Point Employee’s Resistance Point Employee’s Initial Request Employer-Employee Wage Negotiation Example Employee’s BATNAs (Another Job: $55,000; Get MBA) Employer’s Initial Offer Employer’s Target Point $50,000 $55,000 $60,000 $65,000 Employer’s Resistance Point Employer’s BATNAs (Another Candidate, Outsourcing) 4 © SHRM 2010
  5. 5. For more on Indian HR industry, click here • Negotiations can also be thought of as a set of concerns from two parties. • For example: • Employer’s concerns: • Lower costs • Higher output or productivity from employee • Employee’s concerns: • Higher wages and benefits • Job security 5 © SHRM 2010 Dual Concerns and Conflict Styles: Employer vs. Employee
  6. 6. For more on Indian HR industry, click here Negotiation and Conflict Styles Example: Employer and Employee Employee outcomes: Higher wages and benefits; job security Integrative Distributive 6 © SHRM 2010
  7. 7. For more on Indian HR industry, click here Negotiation and Conflict Styles Example: Employer and Employee Employee Concerns: Higher Wages and Benefits; Job Security Compete Collaborate Compromise Avoid Accommodate 7 © SHRM 2010
  8. 8. For more on Indian HR industry, click here Negotiation and Conflict Styles Example: Employer and Employee Employee Concerns: Higher Wages and Benefits Compete Collaborate (Wage cuts) (Skill training: productivity or sales incentive compensation) Compromise (50 / 50 split) Avoid Accommodate (Outsource) (Big wage increases) 8 © SHRM 2010
  9. 9. For more on Indian HR industry, click here Negotiation Summary • Negotiation is about resolving disputes on divergent interests. • Sometimes negotiations are distributive (win-lose). • Negotiations can be collaborative, integrative win-win situations. 9 © SHRM 2010
  10. 10. Thank you!! For more on Indian HR industry, click here

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