a. During our negotiation with D.G. Barnhouse (DGB), we intend to utilize an integrative bargaining strategy with management. Before coming to this conclusion, we weighed the advantages and disadvantages of a distributive approach, however, we eventually decided to take an integrative and predominantly interest based stance versus a position based stance in our negotiations after assessing internal and external environmental factors. In addition, we settled on this strategy because we ultimately believe that management and the union share at the very least, one fundamental common interest, which is the firm’s financial stability. That being said, even with our plans to use integrative bargaining, we still plan to negotiate assertively to achieve …show more content…
For one, the company is facing difficult market conditions, and the amount of total power that the two parties have to share has been diminished by the sluggish demand for machine tools. The company has experienced a decline in gross profit on sales which decreased from 12,165,918 two years ago, to 10,695,299 last year. It is in union’s best interest to increase the total power in this situation because doing so increases the resources that both parties can divide. In addition, expanding total power improves the firm’s ability to pay and increase the demands that the union can reasonably make to …show more content…
The union will need to engage in intra-organizational bargaining in order to reach a greater consensus as to what is essential to our workers. By going through this process away from the bargaining table, we can come to the table with a firm and unified stance. We indent to do this in a number of ways. First, we can educate workers about how in actuality, their interests are aligned because a victory for the union is a victory for all members. For example, an improved pension plan does not only benefit older workers, but also younger workers because of the precedent that this proposed pension plan will set for their future pension plans. The same is true for job security. We will ensure the workers that we as their union are their agents in their desire to improve their wages and working conditions. This emphasis on unity will increase our relative power and aid us when it comes time for zero-sum bargaining. Consistent with our bargaining strategy, we would also like to work on building a trusting relationship with management in order to get the most out of integrative bargaining. We can do this over the course of the next several months by holding meetings with them to gauge where their interests lay. Through attitudinal bargaining we can lay the ground work for open and transparent dialogue about our objectives. These bonds increase the likelihood that integrative bargaining will succeed and reduce the likelihood of an
“Instead of approaching the problem in a competitive as distributive bargaining (claiming value only for one), the integrative negotiation the parties adopt an attitude aimed at solving the problem and seek a favorable outcome for both” (Business Blog Review, 2011).
The negotiation between Joe and Leigh had elements of distributive bargaining, but their relationship and the outcome of the negotiation were important to both parties, thus, this negotiation also had collaborative bargaining characteristics (Lewicki, Barry, & Saunders, 2010). When using this strategy, the objective is to maximize your outcome on the substantive issues while enhancing the quality of the relationship with the other party (Lewicki, Barry, & Saunders, 2011). In a job offer negotiation between two familiar parties, it is important to find a mutually satisfying solution to also enhance business performance.
I feel the labor relations system as currently constituted is effective for resolving disputes as long as both parties are committed to negotiating in good faith. Although, I feel the current system is effective a further explanation of the systems strengths and weaknesses will better explain the effectiveness of resolving disputes. It is in both the companies and the labor interest to negotiate with as little third party interaction to come up with an agreement. In times when there are disputes their different course of action that start from a least costly without giving up power in the decision to the possibility of becoming more costly to either party and give up the power in the decision. As discussed in the text when an organization and labor cannot come up with an agreement a third party may be asked to come in to negotiations to resolve a dispute which includes mediation, fact-finding, and interest arbitration.
Interest-based bargaining is a method in which it enables negotiators to realize that common interests exist and enables joint-problem solving to exist under a more traditional negotiation (Federal Mediation & Conciliation Services, n.d.). Whereas, distributive bargaining is when a fixed amount of resource exists, and because both parties want the same resources they must be divided and distributed among the two. This method is used when both parties do not foresee the need for a relationship to exist and the interaction is a one-time occurrence (Marzec, n.d.). When it came to the negotiations between the Union and the Company in this situation, an interest-based bargaining method was utilized. A relationship needed to be established between the two parties, because the potential for future negotiations to exist remains due to the nature of the two parties. Being able to realize that each side had common interests, it could enable an agreement to come together without either side having to give something
Solidarity is an important linchpin in any type of organization. In a labor union, it is even more so, it is the foundation of the organization. A limited amount of labor unions today have a level of unity that gives them the power to wield when it comes to negotiating contracts. Within the United States ports system, the success through labor disputes, bargaining, organization, and sense of community shows that more unions should follow the example set by the International Longshore and Warehouse Union (ILWU) when it pertains to union solidarity.
Employers initially resisted unions as they were seen as a ‘tool of worker power’, and some countries even banned the groups all together (Baoill 2011). Although these restraints have been lifted, restrictions and guidelines have been put in place by government bodies to govern union activity; and employees internationally have the right to form unions (Baoill 2011).
One thing unions should try to avoid is the dreaded strike. This is one of the most negative things for public perception. For example the 1981 New York City garbage strike that left the city with stacks of garbage they has not been picked up. This leaves a nasty taste in the public mouths regardless if the union is doing well for its employees. Unions need to try to use more distributive bargaining techniques that show they are willing to work with the city and everybody is trying to meet a common goal. Overall unions need to be more transparent with the public, as most people now of days see unions as self-center groups that kill businesses. If an union puts out its objective out to the public it would leave less to the imagination. Once unions start to adopt these suggestions they will start to see public perception change about
If you feel that forming a union is beneficial and would help improve our working conditions, there are a few steps that need to be completed
While this new agreement might be very beneficial for the management team to become successful once again, it may not be such a good alternative to the union or it members; for they might just consider it being impasse. Once an impasse has been determined, either party can then move forward by taking things into their own hands; by simply doing away with the impasse or dismissing it. By just taking the appropriate steps to overcome any differences between the two negotiating parties; by listening to
Getting to YES, Negotiating Agreement Without Giving In is an excellent book that discusses the best methods of negotiation. The book is divided into three sections that include defining the problem, the method to solve it, and possible scenarios that may arise when using these methods. Each section is broken down into a series of chapters that is simple to navigate and outlines each of the ideas in a way that is easy for any reader to comprehend. There are also several real life explanations for each issue that make the concepts easier to apply and understand. These ideas are reflective of a method developed by the Harvard Negotiation Project called “principled negotiation”. This method combines the two ideas of soft and hard negotiation
This reduces the ability of IBB to be utilized continuously or for both parties to agree that is effective since there is a difference with how labor and management are approaching negotiations. Survey data also found that two-thirds of management and 40% union respondents reported using IBB in following negotiations (Cutcher-Gershenfeld & Kochan, 2004). Cutcher-Gershenfeld et al. (2001; 20) found that when new negotiators implement IBB, instead of negotiators with established relationships, IBB was more preferred than positional bargaining. This is understandable, as new negotiating teams are less likely to have established adversarial relationships from past negotiating attempts, making them more open to trying to use collaborative bargaining. Since trust from collective bargaining has not affected these new negotiators, there is a greater opportunity for each party to identify the common interests and work towards them, rather than focusing on past experiences. The data available in the literature shows that IBB does improve labor-management relations through increased trust, but this improvement also correlates to the type of agreement that is reached (Boniface & Rashmi,
I’ll suggest setting negotiation or appeal strategies particular different group of workers. To be specific, associating the benefits offered with specific job performance is a good strategy to allow for greater flexibility in labor union’s work. For example, instead of arguing for them, transforming labor union as a platform to offer training in negotiation skills or acknowledging the necessity of safeguarding legal rights may work better. It’s necessary to think about how to actually stand at the perspective and act for their benefits. Labor union is unionized to protect employees’ rights, but specific strategies can’t be unionized since the diversity keeps increasing in today’s business world.
In this essay, integrative bargaining will be the overall strategy for the management. The negotiation issues strategy for the issue of increase of wage and roster will be creative compromise, following with issues of training and contract duration are concede and finally work place committee is contend. The purpose of using this strategy is that, hopefully to reach an outcome of win-win situation where both parties walk out as winners. This creates value for employees and management making both parties happy and work in harmony.
When entering into contract negotiations, the objective of each side is to obtain a contract of greatest benefit to their organization. This desirable outcome never happens by chance; it is always the result of careful planning. A critical part of this planning is understainding the role of power. This includes determining who possesses the power in bargaining, and establishing strrategies to bargain with individiuals who have more power than you. This power is needed to obtain the advantage in negotiating which will increase the liklihood of obtaining the goal (Lewicki, Saunders & Barry, 2011). Once in the heat of negotiation, it can be too late to try to catch-up on planning which failed to occur before the negotiation process began.
“The second integrative negotiation strategy of “problem solving” involves learning more about the underlying interests of both parties and searching for new solutions to meet those interests” (McCracken, Salterio, & Schmidt, 2011). When stakeholders invest time by researching the other party’s interest, taking the time in the preparation stage can save time and headaches later.