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Unit 4: Negotiation




          3.   Acceptance/Rejection Decision                                                    Notes
          4.   Prolonging  Negotiation and Renegotiation
          To achieve win-win situation in negotiation, the best strategy should include—providing your
          opponent information about your priorities and preferences (not your BATNA); unbundling
          issues; making package deals (not single-issue offers); making multiple offers simultaneously;
          structuring  contingence  contracts  that  capitalise  on  differences  in  negotiators’  beliefs,
          expectations, and attitudes; and using pre and post-settlement strategies. In their attempts to
          expand the pie, negotiators should not forget about claiming resources.
          Union-management collective  bargaining has  often been  used as a classic example  of the
          distributive bargaining process. Often, the tendency for the parties to use collective bargaining
          rests on a long history of perceived abuse and mistrust on both sides of the table. But recent
          work shows that integrative negotiation can be successful even in this context. Post and Bennett
          (1994) report the results of a five-step process that, when introduced into a union-management
          negotiation, successfully reduced grievances from 40 per year, under the previous contract, to
          two in 18 months under the new contract. It significantly reduced anger and hostility between
          the parties, and enhanced the spirit of cooperation in the plant. Those five steps were as follows:
          1.   A commitment phase, occurring twelve and six months before the expiration of the current
               contract, during which the parties commit to participate in a collaborative process, including
               commitments to harmonise negotiation philosophy, negotiation process, and articulate
               the respective interests of the parties.
          2.   An explanation phase, occurring one month before contract expiration, during which the
               parties hold their first meeting, present their respective proposals to each other, introduce
               supporting documentation, and set a time-table for remaining meetings.
          3.   A validation phase, occurring two to four weeks prior to contract expiration, in which the
               parties gather information from employees and employers about the validity of the interests
               expressed in the opening statements. This information is used to generate a  collective
               consensus about the relative importance and priority of the interests to the constituencies
               of both groups.

          4.   A prioritisation phase, occurring two weeks prior to contract expiration, in which the
               parties work together to develop a joint list of priorities based on the data. This process is
               often facilitated by a mediator, who uses the commitments generated in the commitment
               phase to help the parties represent their priorities genuinely and candidly.
          5.   A negotiation phase, occurring one week prior to the contract expiration, in which the
               parties meet in a series of frequent and intensive gatherings to negotiate a resolution to
               the prioritised list of interests. Once again, this process is often facilitated by a mediator,
               whose role is to vigorously ask questions of the parties, hold them to their agenda, and
               ensure that the negotiations proceed in an open and trusting atmosphere that this process
               requires the ongoing participation of a mediator, who acts as a referee and as a monitor of
               the parties’ commitment to stay with an integrative process. Whether the parties could
               learn to trust each other to sustain such a process without an active third party role is still
               a matter of debate.













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