MANTISSA COLLEGE DAMANSARA KUALA LUMPUR

NAME: I.D NUM: COURSE: COURSE CODE: LECTURER:

AYANLEKE JULIUS OLUWASEUN BBM-F1308-0324 NEGOTIATION TECHNIQUES MG 425 MR. SUREN DEV

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Table of Content Topic Introduction Q1:

Q2: Define parties and their goals and issues. Compare and contrast the negotiation situation in these two branches. Culture & ways of negotiation. How different do you see negotiation situation in these two countries? Q3: Should company accept the requests? What is your suggestion? 4

PETRO TRANS NEGOTIATION

Page(s) 2
3

Q4:

Compare and contrast the negotiation techniques used for two different requests. 6 7 8

Q5: References

What kind of preparations would you have for the negotiation meetings?

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Introduction Issues of Quality of Work Life are becoming an increasingly popular concept in this age. It basically talks about the methods in which an organisation can ensure the complete wellbeing of an employee instead of just focusing on work related aspects. It is a fact that an individual life cannot be divided into sections and any disturbance on the personal life will affect his or her professional life or other way. Therefore, organisations have started to focus on the overall development and happiness of the employee and reducing their stress levels without harming the economic health of the company. Each organisation has its own way of achieving this. However, organisation that does not integrate this care based system tends to lack best of workers.

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Question 1 When parties enter into a negotiation process to resolve conflict, they will bring a certain orientation to the table in their effort to settle the conflict. The two most basic orientations people adhere to when entering into negotiations are cooperative or competitive. A cooperative approach aligns with the process of interest based or integrative bargaining, which leads parties to seek win win solutions. Disputants that work cooperatively to negotiate a solution are more likely to develop a relationship of trust and come up with mutually beneficial options for settlement. The mutual gains approach is considered a constructive resolution process (David et al, 1986). An employer is an organisation, institution, agency, certified firm, nonprofit association, small business, store, or individual who hires a qualified person in the needed field of work. An agreement is reached in exchange for the persons work or services, the employer or the organisation pays compensation that may include a salary, an hourly wage, and benefits according to the specified minimum wage in the country. An organisation or employer has some certain goals and objectives they want to meet through the skills of their employees and their first goal is to maximise profits, minimise risks, minimise cost of production or operations and maximizing customer satisfaction, maximum utilization of human resources. The major issue the company is having with both of its branches in the US and India is the recent strike by the workers in these branches, seeking for quality work life and increment in wages and salary but due to the global economic meltdown, the company could not meet their demands even though it was presented in a disorganized manner (Arnesen and Eric, 2006). An employee is an individual who was hired by an organisation to do a precise job. The employee is hired by the employer after he or she has undergone certain test to see if they are qualified for the post. In workplaces represented by a union, the collective bargaining agreement covers most aspects of an employees relationship with the workplace. An employee trades his or her skills, knowledge, experience, and contribution in exchange for compensation from an employer. The goal of an employee is to be paid accurately and on time, adequate training, safe working conditions, compensations and incentives, full description of all the organisation policies and especially of their job responsibilities, and fair and positive feedback
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from supervisor. Employees in these branches are having problems with their employer because of the poor quality work life and the company inability to fulfill their promise on wages and salaries increment because they know most of these things are not only reasonable, but also are required by law (Arnesen and Eric, 2006).

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Question 2: In the two countries where Petro Trans is facing these problems, the only similarities in their ways of negotiation is that both of them is demanding for increase in quality state of work life and their wages even if it is small. There is a vast difference in their ways of negotiation considering difference in culture and beliefs. Here are some of the differences highlighted in the box below by (Kopelman et al, 2008).

United States of America

India

They establish rapport quickly and then move Negotiation in India is personal and they in to the negotiation proper. establish relationships

They only look for mutual gains whenever They so much believe in win-win situation possible. They are more concern about the because there is no fixed price in India. Both outcome of the transaction. Some say little parties negotiate on everything gain is always satisfying to them. Americans do not like full formality in business Indians negotiations follow formal procedures; negotiation. They believe forward movement the atmosphere is friendly and relaxed. To idea can emerge when the environment is not them negotiation in a free environment will so uptight. make the enemy comfortable and

compromise.

In negotiation they are always direct and Saying or usage of NO is harsh. They avoid it straight to the point by all means because they see it at as disrespecting to the other party and it can cause conflict of interest

United

States

negotiators

expect

quick They conduct business in a leisure pace. They

decision and solutions; as they you must have

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done

your

background

research

before do not believe in concept of time is money

coming and have your target point in mind

In negotiation, individuals with relevant Decisions are always made by the top knowledge and skills make decisions management of the team or organisation

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Question 3: As the chief negotiator of Petro Trans, I suggest the company should accept their request but before the intention of acceptance is made known, the chief negotiator must negotiate with the workers union representative; first to know their resistance point and try to modify them on the perception of their target because workers termination is not an option considering the amount intangible resources and training that has been invested in them and the drastic drop in production (Ury, et al 1999). Obviously, in this situation all they want is increment in their pay and quality work life. As the chief negotiator, I need to make them understand that the company cannot afford the percentage of increment they are asking for at the moment due to the economic recession but there is going to be a certain percentage increase in their wages and salaries and certainly quality work life will be improved by giving health care allowance, safety at work, retirement packages and more enhanced working environment (Leigh, 2005).

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Question 4 As the Petro Trans chief negotiator, Lowball/Highball tactics would be used to negotiate the requests by starting with a ridiculous low opening offer that they will never agree to and from there, the company can re-evaluate the opening offer by moving close to their resistance point or beyond the point (David, 1993). For example a labour management negotiation where the union first offer was to request for 45% but after this tactics was applied, they both agreed on 15% increment.. Furthermore, management may tell the union representatives that if they do not agree to the current that has been offered, the company is ready to close down and go out of the business remembering them how hard to secure job couple with the present economy downfall (Roy, et al 2010). As the company chief negotiator, I would prefer to negotiate separately considering the difference in geographical location, culture, currency, standard of living, labour laws and regulations and economy. Negotiating separately is the best option in this situation even though they are requesting for similar thing but because of the differences in culture, ideas and customs which are always consider first in every international negotiation. In order for the best outcome to be achieved, each branch must be addressed and well evaluated based on their society. (Salacuse, 2003). Negotiating differently with the stakeholders in the two branches will be helpful because of difference in their beliefs and the way things are done. For example in India, they negotiate on everything because there are no fixed prices while in the US not everything can be negotiated. In the US, many company engage in quality of work life for their workers as is very important to them and recommended by labour laws as well as individual right recognition, so they expect the same from Petro Trans while in India their standard of living is not so high, collective benefits is still allowed and little things can still be over looked which will be in the company favour. (Movius and Susskind).

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Question 5 As a negotiator, conduct some research about other company in the same industry, their wages and salaries, packages for quality work life and the individuals involved in the negotiating. In particular, find out about issues that can influence the other partys outcome. Study the company financial status because of the recession and how the outcome will affect the negotiation, like payment terms and budgets, and about the information you still need before you can begin negotiations. And most importantly, creation of strategy as a plan of action to determine the best way of achieving the negotiation goals and outlining the tactics consider beneficial. Effective planning help negotiators to be more focused on the outcome, logical and more realistic. After all this research, development of BATNA is important (Morton, 1998).

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References
Arnesen and Eric, U.S. Labor and Working-Class History (2006). Vol; 32064, pp. 650

David L., James K., and Sebenius, The Manager as Negotiator: Bargaining for Cooperation and Competitive Gain (1986). New York: The Free Press David C., Negotiation Tactics (1993).New York: University Press of America Incorporation Howard R., The Art and Science of Negotiation (1982).New Jersey: Belknap Press Kopelman, S. and Rosette, A.S., Cultural variation in response to strategic display of emotions in negotiations (2008). Special Issue on Emotion and Negotiation in Group Decision and Negotiation, Vol.17, pp. 65-77. Leigh L. T., The Mind and Heart of the Negotiator (2005). 3rd Edn: Prentice Hall Publisher Movius H. and Susskind L.E., Built to Win: Creating a World Class Negotiating Organization. Cambridge, MA: Harvard Business Press Morton D., Cooperation and Competition, in The Handbook of Conflict Resolution: Theory and Practice (1998), 1st Edn San Francisco: Jossey-Bass Publishers Roy J. L, Bruce B. and David M.S., Negotiation Techniques (2010). 6th Edn: New York: America. McGraw Hill International. Salacuse, J. W. The Global Negotiator: Making, managing, and mending deals around the world in the twenty-rst century (2003). New York, Palgrave Macmillan Publishers Ury W., Fisher R., and Bruce P., Getting to Yes: Negotiating Agreement Without Giving in (1999). 2nd Edn: Penguin USA

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