Page 251 - DMGT521_PROJECT_MANAGEMENT

Project Management

Notes Somehow the term ‘Collective Bargaining’ and ‘Negotiation’ have been often used
synonymously. It would be more logical and meaningful to consider negotiations as part of
collective bargaining. ‘Collective Bargaining’ refers in the structural and/or institutional
arrangement relations and also covers the parties, goals, environments, and contents as well as
the process often used for resolving the conflict of interest between the management and unions.
Whereas the negotiation processes has been described by Walton and McKersieas “the deliberate
interaction of two or more complex social units which are attempting to define or redefine the
terms of their interdependence”. Gottschalk defines negotiation process as “an occasion where
one or more representatives of two or more parties interact in an explicit attempt to reach a
jointly acceptable position on one or more divisive issues.” The term negotiation as described
by Micael Salamon as “the interpersonal process used by representatives of management and
employees/unions, within the various institutional arrangements of collective bargaining, in
order to resolve their differences and reach agreement. Negation is a process for resolving
conflict between tow or more parties whereby both or all modify their demands to achieve a
mutually acceptable compromise.
Negotiation can be characterised as:
1. an explicit and deliberate event;
2. it takes place between the representatives of parties concerned;

3. the process which intends to settle the disputes/differences between the parties involved;
4. the outcome of the negotiation is dependent (party) on the relative power relationship
between the parties involved.

14.2.2 The Prevalence of Negotiation

This is an age of negotiation. Almost each and every aspect of our lives is subject to one or the
other form of negotiation. Sometimes we negotiate several times a day also, though we don’t
realise doing so.

Negotiations, governments, employers, employees, unions, management, husbands, wives,
parents and children all negotiate whether it is a national or international problem, negotiation
is the solution, e.g. summit of super negotiation between Israel and Arabs or Palestinians.
Labor disputes are far more visible and get extensive news coverage than commercial disputes
which are as frequently but public and visible. Go slows, strikes, bans and lock-outs have
become quite familiar dramas. Industrial relations disputes do get more publicity and coverage,
as in this case both the parties try to win public support and sympathy to strengthen their sides.
Whereas commercial emotions are generally held in private kind of environment, party to have
edge over the competitors and to protect the companies images.
There has been substantial in the use of the term “Negotiation” in the commercial context.
Negotiating in this context is not merely selling but its extension where the interested parties
having agreed to do business need to agree on the terms and conditions. Myriads of interest
groups negotiate with their local authorities/government for various social welfare, rights and
amenities. Negotiated settlement for marriage between the parents of prospective couple for
the size of dowry, has been a common practice and far more decisive factor than the compatibility
of the prospective partners. Now negotiation has become quite common and effective in divorce
settlements. Lawyers specialise in representing their clients in such negotiation. Husbands,
wives, and lovers negotiation in go under. One thing which’s common in all such cases and
makes negotiation necessary is that the parties involved may have varying degrees of powers
but not absolute power over each other. We are forced to negotiate because we are not fully in
control of events.

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