Page 99 - DMGT519_Conflict Management and Negotiation Skills

Unit 4: Negotiation

2. Set clear objectives Notes
3. Anticipate possible reactions
4. Work out strategies – (structure and sequences).
5. Preparation provides a road map not a straitjacket intended to be straight forward
to the point and effective and not restrictive.
Objective should be SMART:
Simple - Easy/precise

Measurable - Qualifiedly, as far as possible
Achievable - Not too high beyond the counting capabilities of other side.
Realistic - Must help organization and add value
Timed - Time frame within which you can judge the success

Basics required for thorough preparations are as follows:
Data, practices, information, rules, laws, repercussions–financial and otherwise etc.
1. Government legislations – what flexibilities do they allow? How can they be utilized
to the bent advantages.
2. Company’s rules/policies – how rigid/flexible are they? Have or have not exception
made in the past? Can they be justified?

3. Prevailing wage rates/fringe-benefits in the area; industry, nationally in other
industries.
4. Productivity figures – linkage of productivity with wages. History of recent
settlement.
5. Previous agreements
(i) In other companies

(ii) Within the company.
6. Past, present and future profitability/loss of the company and
7. Customs/practices in the company.
8. Wage-cost:

(i) Basic wage
(ii) Overtime
(iii) Shift-premium
(iv) Fringe-benefit

9. Work out basket of alternatives.
10. Calculate the cost of different alternatives.
11. Fix the bottom line.
12. Obtain approval.

Do not assume that the other party does not know the above facts – they know as much as
you do, at least.

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