NEGOTIATION AND SETTLEMENT

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Presented by

Annisa Monserrate 01

Cindy Dsouza 04

Delilah Tuscano 05

Farha Ali - 06


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FLOW OF THE PRESENTATION

Introduction to Negotiation

Principles & skills of Negotiation

Types of Negotiation

Negotiation Tactics

Process of Negotiation

Dos and Don'ts of Negotiation

Settlement

Conclusion

References

15/11/2010 2INDUSTRIAL RELATIONS


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INTRODUCTION

NEGOTIATION :

Process of communicating back and forth,

for the purpose of reaching a joint agreementabout differing needs or ideas.

A collection of behaviours that involves

communication, sales, marketing,psychology, sociology, assertiveness andconflict resolution.


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INTRODUCTION (Contd)NEGOTIATION IN IR :

Negotiation is a vital instrument in the privateordering of affairs among disputants and amongthose who seek to work out rules to guide theirfuture conduct in relation to one another.

Typified by trade union negotiations where ateam from the trade union seeks to gain betterpay and working conditions from a reluctant

management.


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PRINCIPLES OF NEGOTIATION

Minimum two parties & common interest

Initially start with different opinions

& objectives.

In the beginning, parties consider thatnegotiation is a better way of trying to

solve their differences.

Possibility of persuading the other party tomodify their original position


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PRINCIPLES OF NEGOTIATION

During the process, the ideal outcomeproves unattainable but parties retain theirhope of an acceptable final agreement.

Each party has some influence or power real or assumed over the others ability toact.

The process of negotiation is that ofinteraction between people usually this isdirect and verbal interchange.


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SKILLS NEEDED IN NEGOTIATION

The ability to define a range of objectives, yet beflexible about some of them.

The ability to explore the possibilities of a widerange of options.

The ability to be well prepared.

The ability to listen to and questionother parties.

The ability to set priorities.


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TYPES OF NEGOTIATIONS1. Day-to-day / Managerial Negotiations Within the organization

Related to the internal problems in the organization.

Regards to the working relationship between the groups ofemployees.

Interaction with the members at different levels in theorganization structure.

For conducting the day-to-day business, internally, thesuperior needs to allot job responsibilities, maintain a flowof information, direct the record keeping and many moreactivities for smooth functioning.


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2. Commercial Negotiations

Conducted with external parties. The driving forces - financial gains.

Based on a give-and-take relationship.

Successfully end up into contracts.

Relates to foregoing of one resource to get theother.

3. Legal Negotiations

Usually formal and legally binding.

Disputes over precedents can become assignificant as the main issue.

Contractual in nature and relate to gaining legal

ground


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Types Parties Involved Examples

1. Day-to-day/ Managerial

Negotiations

Different levels of

Management

In between colleagues

Trade unions

Legal advisers

Negotiation for pay, terms

and working conditions.

Description of the job and

fixation of responsibility.

Increasing productivity.

2. Commercial Negotiations Management

Suppliers

Government

Customers

Trade unions

Legal advisors

Public

Striking a contract with the

customer.

Negotiations for the price and

quality of goods to be

purchased.

Negotiations with financial

institutions as regarding the

availability of capital.

3. Legal Negotiations Government

Management

Customers

Adhering to the laws of the

local and national

government.


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NEGOTIATION TACTICS

MAKING THREATS

Certain threatful conditions need to be put inthe negotiation deal. If one fails to agree to

the terms of offer need to be emphasized. Afear of penalties avoids waste of effort andresources.

It is advisable to state to the other party thatnegotiations are not possible under stress. Areview of the other options available can bemade only on the basis of the merit of thecase.


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OFFERING INSULTS

Questions regarding the performance of the

Company and professional competence of

negotiators amount to insults. Another way of

adding insults is to criticize the quality of theproduct or service.

Stay calm. Do not lose your temper or offer

insults in return. State your position firmly andlead the conversation towards constructive

negotiations.


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BLUFFING

Sometimes false statements are made to

get done quickly with the negotiations.

Call off such bluffs. Refuse to agree to the

other partys terms and wait for a reaction.

Question all statements, and ask for evidence

to support any claims that appear doubtful.


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DIVIDE AND RULE

It is trying to develop a line between the

members of the opposite team by exploiting

potential disagreements among them and

appealing to the person most sympathetic tothe case.

It is advisable to brief team members in

advance and decide on a position that isacceptable to everyone. The meeting should

be adjourned if a difference of opinion arises

within the team members.


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USING LEADING QUESTIONS

Asking such questions which leads to declare

a weakness in negotiating position which

ultimately forces concessions.

It is better to avoid answering questions,

where the intention and meaning is unclear.


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TESTING THE BOUNDARIES

Gaining on additional concessions through

minor infringements of the terms agreed,

resulting in substantial gain over a long period.

One should be clear on exactly what the

agreement is about. Draw up a clearly worded

statement of the terms agreed and hold the

other party to these at all times.


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NEGOTIATION PROCESS

The whole process of negotiation can be

broadly divided into 3 stages

yA preparation phase before the negotiation begins.

y The actual process of negotiating.

y The implementation and follow up of the agreement.



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PROCESS

1. Evaluate relative strengths

2. Set the objectives

3. Keep an eye on the other side

4. Decision regarding the style and the scene

5. Setting of the Agenda15/11/2010 18INDUSTRIAL RELATIONS


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PROCESS (contd)

6. Pleading your case

7. Timing and Adjournments

8. Arriving at an agreement

9. Effective Implementation

10. Handling Breakdown15/11/2010 INDUSTRIAL RELATIONS 19


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NEGOTIATION PROCESS

negotiation-process.gif

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NEGOTIATION

POINTS TO REMEMBER Present and maintain a professional attitude.

Control stress and tension

Avoid politics and egos

Take time to gather all facts and requirementsbeforehand.

Meet with the proper people who have theauthority to make decisions.

Know all the following Dos and Donts15/11/2010 21INDUSTRIAL RELATIONS


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DOS & DONTS OF NEGOTIATIONDos

Define the purpose and objectives of the meeting.

Know the event.

Have printed copies of meeting plans available.

Follow up frequently.

Communicate with clarity and outline everything in writing.

Make all agreements part of the written contract. Possess the authority to make a decision (or sign a contract).

Be ethical.

Ask questions.

Listen and pay attention.

Minimize all distractions. Verify all legal clauses of the contract

with an attorney.

Know the budget.



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DOS & DONTS OF NEGOTIATION

(contd...)Don'ts

Make unreasonable demands.

Insist on being the final authority.

Be inconsiderate.

Escalate and overestimate needs.

Hesitate to ask questions.

Be apprehensive about negotiating for everything required.

Promise what cannot be delivered.

Lie or misrepresent. Jump at the first offer.

Pass up a good deal based on a personality conflict.

Be intimidated.



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SETTLEMENT

Settlement means a settlement arrived at in

the course of conciliation proceeding and

included a written agreement between

employer and workmen arrived at otherwisethan in course conciliation proceeding where

such agreement has been signed by the

parties there to in such manner as may be

prescribed and a copy thereof has been sent

to the officer authorized in this behalf by the

appropriate government and the conciliation

officer



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CATEGORIES OF SETTLEMENT

There are 2 categories of settlement:

Settlement arrived at in the course of

conciliation

Settlement arrived at privately or

otherwise than in the course of

conciliation.



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PROCEDURES FOR SETTLING LABOUR

DISPUTE

Collective Bargaining

Negotiation

Conciliation and Mediation

Arbitration

Adjudication15/11/2010 26INDUSTRIAL RELATIONS


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CONCLUSION

The settlement of disputes, reached by

mutual discussion, debate and

negotiation, leaves no rancour behind

and helps to create an atmosphere ofharmony and co-operation.

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REFERENCES http://changingminds.org/disciplines/negotiation/styles/industrial_relations.h

tm

www.laymannetworks.com

www.wikipedia.com

http://www.jstor.org/pss/1340217

http://en.wikipedia.org/wiki/Negotiation

http://edergi.sdu.edu.tr/index.php/sduvd/article/viewFile/1687/1732

http://www.myarticlearchive.com/articles/5/025.htm

http://changingminds.org/disciplines/negotiation/eight-stage/eight-stage.htm

http://changingminds.org/disciplines/negotiation/styles/industrial_relations.h

tm15/11/2010 INDUSTRIAL RELATIONS 28


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NEGOTIATION AND SETTLEMENT