negotiation skills and bargening power.

1. 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.

2. NEGOTIATION SKILLS

3. • 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 ?

4. Definition :
• Negotiating is the process of communicating back and
forth, for the purpose of reaching a joint agreement
about differing needs or ideas.
• It is a collection of behaviours that involves
communication, sales, marketing, psychology, sociology,
assertiveness and conflict resolution.
• A negotiator may be a buyer or seller, a customer or
supplier, a boss or employee, a business partner, a
diplomat or a civil servant. On a more personal level
negotiation takes place between spouse’s friends,
parents or children.

5. 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)

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

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

8. Types Of Negotiation
1. Distributive Negotiation
2. Integrative Negotiation

9. 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.

10. 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.

11. Distributive V/s Integrative Negotiations
Sl.no
Characteristic Distributive Integrative
1. Outcome Win-lose Win-win
2. Motivation Individual gain Joint and individual gain
3. Interests Opposed Different but not
always Opposite
4. Relationship Short-term Longer or Short-
term
5. Issues involved Single Multiple
6. Ability to make
trade-offs
Not Flexible Flexible
Solution Not creative Creative

12. BATNA is ;
Best
Alternative
To
Negotiated
Agreement
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

13. Negotiation Process
FINALIZING THE DEAL
BARGAINING
INFORMATION SHARING
PREPARATION

14. Types Of Negotiation In Organizations

15. 1.Managerial Negotiations
Types Parties Involved Examples
Day-to-day/
Managerial
Negotiations
1. Different levels
of Management
2. In between
colleagues
3. Trade unions
4. Legal advisers
1. Negotiation for pay,
terms and Working
conditions.
2. Description of the job
and fixation of
responsibility.
3. Increasing productivity.

16. 2.Commercial Negotiations
Types Parties Involved Examples
Commercial
Negotiations
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

17. 3.Legal Negotiations
Types Parties
Involved
Examples
Legal
Negotiations
1.Government
2.Management
3.Customers
1. Adhering to
the laws of the
local and
national
government.

18. OBSTRACLES

19. 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;

20. 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;

21. 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;

22. COLLECTIVE BARGAINING

23. • 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

24. 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.

25. 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.

26. • 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

27. 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.

28. 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

29. 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…

30. 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.

31. 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…

32. Issues of collective bargaining
8. Disciplinary matters
9. Health and safety
10. Insurance and benefits
11. Union recognition
12. Union
activities/responsibilities
13. Management rights
1. Wages and working conditions
2. Work norms
3. Incentive payments
4. Job security
5. Changes in technology
6. Work tools, techniques and
practices
7. Staff transfers and promotions

33. 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.

34. 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.

35. COLLECTIVE BARGAINING MEMBERS
REGISTERED MEMBERS
PROFFESSIONALS
OTHER PROFESSIONALS
TECHNICAL EMPLOYEES
NON -PROFESSIONALS

36. COLLECTIVE BARGAINING
PROCEDURE

37. PROCESS OF COLLECTIVE BARGAINING

38. 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.

39. 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.

40. 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.

41. DISADVANTAGES
Reduced 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.