IMPORTANCE OF NEGOTIATING SKILLS IN COLLECTIVE BARGAINING:

INTRODUCTION:

NEGOTIATIONS:
Negotiation is a way to resolve issues without resorting to actions that hurt or destroy relationships

Negotiation skills:
Not every interaction between two parties is a negotiation Every negotiation requires an interaction between at least two parties who have a relationship. The parties must be motivated to negotiate. That is each party must need or at least perceive that he or she wants or needs something that the other party has or can control .Furthermore both parties must be able to propose options, make decisions and deliver on their agreement. There are three types of negotiations: 1. Deal Making Decision. 2. Decision making negotiation. 3. Dispute resolution negotiations.

Negotiation and Collective Bargaining:

Collective bargaining is specifically an industrial relations mechanism or tool, and is an aspect of negotiation, applicable to the employment relationship. As a process, the two are in essence the same, and the principles applicable to negotiations are relevant to collective bargaining as well. However, some differences need to be noted. In collective bargaining the union always has a collective interest since the negotiations are for the benefit of several employees. Where collective bargaining is not for one employer but for several, collective interests become a feature for both parties to the bargaining process. In Negotiations in non-employment situations, collective interests are less, or nonexistent, except when states negotiate with each other. Further, in labor relations, negotiations involve the public interest such as where negotiations are on wages which can impact on prices. This is implicitly recognized when a party or the parties seek the support of the public, especially where negotiations have failed and work disruptions follow. Governments intervene when necessary in collective bargaining because the negotiations are of interest to those beyond the parties themselves. In collective bargaining certain essential conditions need to be satisfied, such as the existence of the freedom of association and a labor law system. Further, since the beneficiaries of collective bargaining are in daily contact with each other, negotiations take place in the background of a continuing relationship which ultimately motivates the parties to resolve the specific issues. The nature of the relationship between the parties in collective bargaining distinguishes the negotiations from normal commercial negotiations in which the buyer may be in a stronger position as he could take his business elsewhere. In the employment relationship the employer is, in a sense, a buyer of services and the employee the seller, and the latter may have the more potent sanction in the form of trade union action. Unfortunately the term "bargaining" implies that the process is one of haggling, which is more appropriate to one-time relationships such as a one-time purchaser or a claimant to damages. While collective bargaining may take the form of haggling, ideally it should involve adjusting the respective positions of the parties in a way that is satisfactory to all.

Good Collective Bargaining is Good Negotiating:

Good negotiators know what they want, and they also know what the other side wants. When these two wants are different- sometimes even directly oppositenegotiation begins. To change the outcome from win-lose to win-win, both parties must be aware of all the other wants and don't wants on both sides. In most cases, both sides will have many common concerns. Negotiating builds on similarities rather than differences. Most people also have prioritized their desires which means that some of their wants are more important than others. That's where the give and take begins. What are the parties willing to give up in exchange for obtaining what they want? If what they are willing to give up is something the other party wants, the trading begins. If you pay attention to the news youve undoubtedly heard accounts of labor negotiations occurring in your local community. Probably at some point the original demands or wants of both sides were mentioned, the key compromises of the final offer outlined, and the notice of agreement announced, perhaps by a labor attorney, a human resources director in a unionized company, the bargaining agent of a local union, or collectively by all the parties involved.

A Need to Appreciate the Collective Bargaining Process

In difficult times you hear about attempts to curtail collective bargaining for certain groups because its viewed as driving up costs. But remember, at some point, the opposing parties agree and reach a settlement. So, like so many things in life, including collective bargaining, its all about compromise, give-and-take, and win-win. How are your skills? Good negotiating skills help you participate in, as well as appreciate the collective bargaining process. And theyre also useful in lifes personal problems that involve negotiation, like borrowing a car, getting a time extension on a project, or asking for a raise or more hours on the job.

Rate Your Negotiating Skills

How are your negotiating skills: excellent, good, or can you improve in many ways? Roger Fisher and Douglas Stone of the Harvard Negotiation Project published a pamphlet in 1990 (updated in 2007) entitled 'Working it Out: A Handbook on Negotiation for High School Students' in which they outlined some key elements of negotiation:

Before discussing a problem, think about what you're going to say; and about what to do if the other side's best solution isn't acceptable Look at people when they speak to you so they know you are listening Don't simply hear what people say to you- think about what they say to you When someone tells you something you don't understand, ask that person to clarify the meaning When people speak to you, notice their facial expressions, their gestures, and their tones of voice Even when you disagree with what someone is saying, listen to all that person has to say Let others know that you understand the emotions they are feeling when they are speaking to you When you're very angry, still remain calm and ask questions to make sure you understand what the other person is saying Instead of stating your position, discuss your interests and try to encourage the other side to do the same Try to understand what the other side considers to be 'fair' and then establish a shared definition of 'fairness' Look for ways to solve problems that make both sides feel as if they 'won' Consider all possible options when trying to find a solution to a problem If possible, try to discuss a problem at a time when both sides are not distracted by other concerns Keep any promises you make as part of a solution to a problem

Some Basic Rules in Collective Bargaining Negotiations:

A negotiator should view negotiations as an exercise with both sides walking towards each other, rather than away from each other. This will enable the negotiator to keep in mind that the final objective is a satisfactory agreement. It will also lead to a search for, or identification of, common ground while also addressing the differences. A negotiator should be good at listening carefully to the other party who will, otherwise, feel that disagreement with his position is due to a lack of understanding. This is also necessary to encourage the other party to listen to you. Some indication should be given to suggest that the party has understood the other's position. Body language often communicates a party's reactions. A party should build its case in a logical sequence and, as far as possible, try to obtain agreement at each stage of the process. This will narrow the areas of disagreement and facilitate focusing on those aspects. Counter proposals and conditions attached to concessions should be indicated as early as possible, so that the basis on which a party is prepared to agree or compromise is understood. Whenever possible, invite the other party to look at the problem from the opposite perspective, e.g. a wage increase as an additional cost which, due to competitive pressures, requires management to find ways to absorb it. It is sometimes useful to ask the union for suggestions on how it can cooperate to facilitate absorption of the increase. It is usually preferable to avoid taking up at the outset the position that a particular item is not negotiable. It is more productive to request a party to justify its claim, and then point out why that claim is unreasonable. Taking up a non-negotiable position can lead to the perception that the position has nothing to do with the merits and that the party is not willing to listen. Skillful questioning is an effective way of compelling the other party to justify its claim on the merits, and even shifting the other party to a different point of view.

Human Resource Management And Negotiations:

Human Resource managers utilize negotiation skills regularly in a wide variety of areas. Encouraging line managers to get on-board with a new performance management system, recruiting a promising new job candidate, or vying to secure top management support of a new pay plan, all require excellent negotiation skills

in order to succeed (Anonymous, 2001). Further, a 2007 survey of salaries of Human Resource executives conducted by Watson Wyatt, a global consulting firm, and the Society for Human Resource Management (SHRM) indicates that the top Human Resources executive in a company who also has responsibility for labor relations (which includes negotiating collective bargaining agreements) collects the highest salary in the Human Resources field at a reported median total cash compensation of $218,000. A similar Human Resources executive without responsibility for labor relations earns a median reported income of $170,000 indicating the financial value to both the organization and the individual of having effective negotiating skills . Negotiation involves two parties coming together to forge an agreement. It usually involves one or more of three purposes: to reach new agreements or renew expiring ones; to resolve disagreements and prevent conflict from escalating; or to change behavior (Masters, Albright & Irr, 2003). Poorly conducted negotiations can lead to very costly problems such as breach-of-contract suits, lost business opportunities, the need to re-do work, and dissatisfaction of customers and/or employees .There is a strong likelihood that the parties to the negotiation process will interact on an on-going basis. As a result, it is important that the negotiations do not deteriorate into a situation that has a negative impact on the relationship when employees learn negotiating skills; the result is better relationships, characterized by improved communication and reduced dysfunctional conflict in the workplace.

Characteristics of effective Negotiations :

One essential characteristic of effective negotiators is their ability to listen to the other party. Good relationships are built on trust and understanding and these are developed through listening. Asking probing questions and listening carefully to the responses can provide much needed information about the other side and will likely lead to more progress than simply pushing ones own agenda explains that it is important to listen for the difference between one partys position and its interests. He defines position as where a party stands on the issues, while interests are defined as the underlying concerns that determine the partys position. Negotiations can reach a stalemate when neither party will budge on its preconceived position By listening carefully, the effective negotiator can determine the other partys interests and provide a solution to satisfy those interests while allowing the party to amend its position identify other characteristics of effective negotiators. These include:

1. Having a vision of what is to be achieved 2. Confidence 3. Ability to disagree when necessary 4. Ability to move on when things are not working out as desired 5. Communication and persuasion skills 6. Empathy 7. Open mindedness 8. Persistence 9. Tolerance of criticism 10. Tolerance of risk 11. Ability to be a team player

Four Basic Stages Of Negotiations Process:

1.Preparation : identify all issues, set priorities, develop support arguments Preparation Objectives: A party wishing to arrive at a satisfactory conclusion or arrangement through collective bargaining should first identify the objectives of the exercise. Some objectives common to employers are the following: i. Ensuring that the enterprise is not rendered uncompetitive ii. The need to keep wage increases below the level of productivity increases and/or within the inflation rate. iii. Guarantees of industrial peace during the period of operation of the agreement As far as possible managers should be consulted in determining objectives; their priorities should be solicited, and they should be aware of the company's views in regard to objectives so that they could be tested against the managers' views. It is insufficient to merely determine objectives. A tentative plan to achieve these objectives, which can be modified during the course of the negotiations, could be formulated. Such a plan should include the company's requests to the union. For instance, work reorganization to increase productivity to absorb the cost increases consequent upon collective bargaining may form part of the company's plan. Negotiations on the union's demands are generally an ideal setting in which management can achieve some of its objectives through agreement. In order to achieve this, the management must be clear about its own priorities. If there is an existing collective agreement, it would be a useful starting point. An analysis should be made of how it has worked; its unsatisfactory features from the company's point of view should be identified, and the changes necessary determined..

 2.Opening Session ; Ground Rules, Framework for success, initial offers; posturing 3. Bargaining: single issue or multiple issue negotiations. 1. Distributive bargaining is a negotiation method in which two parties strive to divide a fixed pool of resources, often money, each party trying to maximize its share of distribution. Distributive bargaining is a fixed sum game and the limited resource is often termed a fixed pie. The general nature of this bargaining is highly competitive and the object of the parties involved is to maximize their share of the fixed resources 2. Integrative bargaining is a cooperative approach to negotiation or conflict resolution .It is often referred to as a win-win or mutual gains approach The Integrative approach, involves making concessions to reach an agreement-but in addition, it involves searching for mutually profitable options and logical trade offs for negotiator search for better proposals than the obvious ones that meet only their own interests. Integrative techniques include a clear understanding of issues, open sharing of information and the joint exploration of solutions that benefit both parties . 4.Settlement : impasse, third pary interventions and the Closing Impasses may be solved by these alternatives: Conciliation Neutral third party acts as communication link between disputants. Mediation: Trained third-party guides disputants toward their own solution. Arbitration: Neutral third-party hears both sides in a court-like setting and renders a binding decision. 5. BATNA: BATNA means 'Best Alternative to a Negotiated Agreement'. This is your alternate plan when the talks start to wobble out of control. It can also be your trump card to make the deal happen to your advantage, or walk away from it altogether. Let's illustrate BATNA by using a simple example. In the first scenario, let's say that you are a buyer who goes to a supplier to purchase some badly needed parts to

complete a project. The supplier senses your urgency; his eyes begin to gleam with anticipation. You want the lowest price possible while he wants the higher price. Oh! Oh! You have no fallback position. You're both in the boat, but it's the supplier who's holding the oars, so guess who decides where the boat makes land? The power of your BATNA is a matter of scale. When you have a strong alternative solution to a lousy proposal, you have leverage to build a more potent proposal. If not, then you can turn to your best alternative solution. A strong BATNA is like a warm, fuzzy insurance policy. A strong alternative provides you with two possibilities. Either you settle an agreement with more favorable terms, or you have the option to simply say, 'No dea1!' BATNA doesn't come in a package. It comes from planning and preparation. It is a twofold process. First, you have to determine all your available options. Then, you must also realistically estimate your counterpart's alternatives. Each is equally important. Otherwise, it will be impossible to gauge the strength of your best alternative in relation to their best alternative. Some of the most crucial factors which should be considered include;

The cost - Ask yourself how much it will cost to make the deal relative to the cost of your best alternative. Cost estimation may entail both the short term and the long term. It boils down to figuring out which of your options is the most affordable. Feasibility - Which option is the most feasible? Which one can you realistically apply over all the rest of your available options? Impact - Which of your options will have the most immediate positive influence on your current state of affairs? Consequences - What do you think or estimate will happen as you consider each option as a possible solution?

Union Issues:
1. Parking: There has been a 25% increase in the number of employees in the plant over the past year. As a result, there is no longer adequate space in the employee parking lot (employees get spaces on a first come first served basis). Many employees now have to park on the street (if they can find spaces) or they must pay $6.00/day to park in the commercial lot across the street. The employees want the company to build a new parking garage where the current parking lot is to

accommodate the increase in cars. While management is opposed to this capital investment, it may be willing to subsidize the cost of employee parking at the commercial lot up to $3.00/day. 2. Day off: The employees are pushing for an extra day off in this years contract specifically Thanksgiving Friday. They currently are off on New Years Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. The company has been considering this extra holiday for some time and may support this; however, you plan to hold out and use this concession only if necessary.

Management Issues:
1. No Smoking Policy: Currently smoking is allowed in one of the two break rooms and on the grounds of the plant. Management would like to eliminate smoking completely while on company premises. Union members who smoke are very committed to maintaining smoking areas on-site and have agreed to allow the union leadership to police the smokers to ensure that they adhere to allowed break times. However, given the recent news that health premiums could be reduced under a no-smoking policy, some nonsmoking members are pressuring the bargaining team to compromise on this issue. 2. Dress Code: The current dress code is not being followed employees often show up for work wearing ripped and dirty jeans and t-shirts, dirty sneaker and baseball caps. After struggling with enforcement of the dress code for years, management has decided that the best solution is for all employees to be required to wear coveralls at work. However, management believes that these should be purchased by the employees at their own expense - $45/pair. The union members are not in favor of a dress code as they do not interact with the public and feel this is an unnecessary expense. Take about 30 minutes to discuss your options and your strategy with the members of your bargaining team. Delineate your demands clearly and then discuss what compromises you may be willing to accept. Are there trade-offs you might be prepared to make in return for the satisfaction of your most important issues? You will then begin negotiating with the union team. In collective bargaining, the union typically takes the lead in making initial proposals; the company reacts. And remember, under the NLRA, you have an obligation to bargain in good faith which means:

1. You must make counterproposals when you reject the opposing partys proposal. 2. You must not constantly change your position with regard to your contract terms. 3. You must not engage in evasive behavior. 4. You must make a serious attempt to adjust differences to reach an acceptable common ground. Bargaining means more than mere negotiations it means negotiations with a bona fide intent to reach an agreement if an agreement is possible. You will have about 45 minutes for this part of the negotiation. After the initial negotiation session you will meet with your own team again. Take about 30 minutes to discuss the proposals made by the other team and to decide where you might be willing to compromise to achieve an agreement and where you are determined to remain firm. Finally, you will bargain with the union team one more time in an attempt to settle the outstanding issues and come to an agreement. Again, youll have about 45 minutes for this final phase of the bargaining session. At the conclusion of this session we will discuss the terms and conditions negotiated by each team, the settlement each attained, and where you felt the greatest problems arose and why.

Post-Negotiation Debriefing:
At the conclusion of the exercise each labor-management team should present its collective bargaining agreement. This will generate discussion among the other teams which can be facilitated by the instructor. Some issues to consider in the discussion include: 1. Were both parties satisfied with the agreement? If not, why? This is an opportunity to discuss the importance of a win-win outcome and the differences between integrative and distributive bargaining as defined by Walton and McKersie (1965). 2. Do you feel that the other team negotiated fairly and in good faith? Did they attempt to come to an agreement? 3. Which issue was the hardest to negotiate (students often indicate the smoking issue was difficult because the teams are often non-smokers having to represent the interests of smokers). Did you get stuck on an issue? Did you move on and come back later? Did that help?

4. Do you perceive that one team, or one member of a team, was an obstacle to an effective agreement? Why? 5. Did you have a negotiating plan? Did you follow it? This is an opportunity to discuss the importance of planning for negotiations. Most textbooks with a chapter on the negotiating process will provide steps to follow in preparing for negotiations. The steps generally include making sure that you (1) know what you want (2) have a pretty good idea of what the other side wants (3) ensure that you can separate positions from interests (4) brainstorm to build options (GrensingPophal, 2001; Masters, Albright & Irr, 2003). 6. Did your team members get along? Why or why not? 7. Did you believe that you were able to maintain a constructive relationship with the other team? 8. Do you believe that one team gave in too quickly? Why? 9. Who made the first offer? Why? 10. Who took the leadership role in the negotiations? Was this person appointed or did his or her leadership role evolve?

Collective Bargaining Process

Collective bargaining generally includes negotiations between the two parties (employees representatives and employers representatives). Collective bargaining consists of negotiations between an employer and a group of employees that determine the conditions of employment. Often employees are represented in the bargaining by a union or other labor organization. The result of collective bargaining procedure is called the collective bargaining agreement (CBA). Collective agreements may be in the form of procedural agreements or substantive agreements. Procedural agreements deal with the relationship between workers and management and the procedures to be adopted for resolving individual or group disputes. This will normally include procedures in respect of individual grievances, disputes and discipline. Frequently, procedural agreements are put into the company rule book which provides information on the overall terms and conditions of employment and codes of behavior. A substantive agreement deals with specific issues, such as basic pay, overtime premiums, bonus arrangements, holiday entitlements, hours of work, etc. In many companies, agreements have a fixed time

scale and a collective bargaining process will review the procedural agreement when negotiations take place on pay and conditions of employment. The collective bargaining process comprises of five core steps: 1. Prepare: This phase involves composition of a negotiation team. The negotiation team should consist of representatives of both the parties with adequate knowledge and skills for negotiation. In this phase both the employers representatives and the union examine their own situation in order to develop the issues that they believe will be most important. The first thing to be done is to determine whether there is actually any reason to negotiate at all. A correct understanding of the main issues to be covered and intimate knowledge of operations, working conditions, production norms and other relevant conditions is required.

2. Discuss: Here, the parties decide the ground rules that will guide the negotiations. A process well begun is half done and this is no less true in case of collective bargaining. An environment of mutual trust and understanding is also created so that the collective bargaining agreement would be reached.

3. Propose: This phase involves the initial opening statements and the possible options that exist to resolve them. In a word, this phase could be described as brainstorming. The exchange of messages takes place and opinion of both the parties is sought.

4. Bargain: negotiations are easy if a problem solving attitude is adopted. This stage comprises the time when what ifs and supposals are set forth and the drafting of agreements take place.

5. Settlement: Once the parties are through with the bargaining process, a consensual agreement is reached upon wherein both the parties agree to a common decision regarding the problem or the issue. This stage is described

as consisting of effective joint implementation of the agreement through shared visions, strategic planning and negotiated change.

Six Steps For Negotiation Preparation:

The most commonly overlooked aspect of negotiation is preparation. We say things like, "We're just in the negotiation stage of the deal ..." There is no more profitable expenditure of time than the time spent preparing to negotiate. Here's your checklist: 1. Know what you want and don't want... Most of us have a general idea of what we want or want to avoid in a deal. Unfortunately, general objectives tend to render general results ... leading to second guessing and dissatisfaction. Instead, write a paragraph describing in detail what you want and don't want from the transaction, then, edit this description furiously until it is laser focused and precise.

When we are crystal clear on our objective(s) and rationale(s) for their acquisition, we are most likely to achieve desired results. 2. Know what your counterpart wants and doesn't want... Now do the same for your counterpart. Write the description of what your opposite is looking for and seeking to avoid. This exercise tends to be a real stumper ... and eventually a real eye-opener. Knowing our counterpart's goals, objectives, and sought after results helps us see commonalities that lead to creative solutions. 3. Know what concessions you are willing to give... What must you absolutely achieve to consummate a successful bargain? What terms, conditions, and extras could you live without? Every great negotiator knows there must be give and take on both sides for agreements that make sense. 4. Know your alternatives... Remember when you bought your first car? Mine was a 1956 T-Bird. The guy I bought mine from told me, "I like you and want to sell you the car ... but there's another person coming over in 30 minutes who also wants the car." Wow, did the dynamics of the negotiation shift on the spot. Having an alternative vendor or supplier really helps your level of confidence. 5. Know your counterpart and your subject matter... A lot of information is available to us on personality styles, body language, and neuro-linguistic programming. Remember transactions take place between people ... and people view the same facts and appeals differently. Subject matter is simple ... Know it cold-there is no excuse for being ill informed ... and lost credibility is rarely recovered. 6. Rehearse You know how to get to Carnegie Hall! It's the same road to negotiation success Practice - Practice -Practice! Attend swap meets and flea markets ... They are wonderful opportunities to sharpen your skills. Remember use it or lose it!

Most negotiators rarely, if ever, thoroughly prepare to negotiate. But this is the magic! Try this checklist before you negotiate ... Your returns will improve dramatically.

Current Trends in Collective Bargaining

Collective bargaining may take place at the national, industry or enterprise level. In no country does it take place exclusively at one level only. However, in many industrialized countries, especially in Europe, the existence of strong employers' organizations and trade unions have resulted in many important agreements being concluded at the national or industry level, supplemented by some enterprise level bargaining. In the USA, however, bargaining at the enterprise level has been the more usual practice, other than in specific sectors such as coal, steel, trucking and construction. In Japan national level bargaining has been the exception, and it has been supplemented by a substantial amount of enterprise level bargaining, facilitated partly by union structures which are enterprise-based. In many Asian countries relatively low rates of unionization have militated against national and industry level bargaining, and enterprise level bargaining has been more common. This accounts for the relative noninvolvement of some Asian employers' organizations in collective bargaining. Japanese employers and workers have demonstrated how a combination of enterprise level bargaining and shop floor mechanisms (such as joint consultation) enables the parties to take into account specific enterprise conditions and also to increase productivity. The tendency during the last decade - and especially in the 1990s - even among industrialized countries with a highly centralized bargaining system, is towards enterprise level bargaining. This is true of even a country like Sweden with a strong employers' organization, a strong trade union movement, and a previous tradition of centralized bargaining. In the 1990s the avowed policy of the Swedish Employers' Confederation has been to move negotiation to the enterprise level. Decline in union membership and an increase in corporate power in Europe have contributed to this trend. But most importantly, restructuring of enterprises flowing from intense competition has created the need to focus on enterprise level issues such as flexible working time, removal of narrow job classifications, new work organization, promotion of more worker involvement schemes and decentralized decision-making. Many employers view centralized bargaining as facilitating more equal distribution of incomes, but depriving employers of the ability to use pay as an instrument for productivity enhancement and to compensate for skills and performance. The push by

employers for flexibility in the context of increasing global competition has raised many issues which are more appropriately dealt with at the enterprise level. Some of the many concerns of employers such as productivity and quality, performance, and skills development to retain or gain competitive edge and to make rapid changes to adapt to the global marketplace are likely to increase the movement toward more enterprise level negotiation.

The Growing Importance Of Negotiation Skills And Deal Making :

We live in a new Deal Economy where everybody needs to make deals in order to succeed. Yet negotiation skills are seldom taught or practiced. Sometimes people assume that negotiation is very easy and there is nothing they need to learn about it. This leaves people at risk of being left behind as the deal economy gathers pace. Technology is partly responsible for the increasing importance of deal-making skills. Technology has made the world a much smaller and more inter-connected place, so we all need deal-partners to help us reach a potentially much wider audience. Technology also enables everybody to compete in everyone elses space, so we all need deal partners to help us compete effectively. Technology also means that we have to respond quicker than ever to market opportunities before they disappear, so we all need deal-partners to help us execute at pace. The most successful people at creating these deal-partnerships will be those who are the most effective negotiators. Do you have the key attributes of these individuals? Firstly, they tend to bring an effective attitude to the negotiating table. Research shows that good negotiators feel positive about them, and believe that they can win. They also believe that a win for the other side is important. In any long term partnership both parties to the deal need to feel like winners. So win/win is the most effective negotiating attitude. Variations to that approach tend to create negative outcomes. For example, if you play lose/win (where a win for the other side is more important... ..Than taking care of your own needs), then you are very unlikely to end up with what you want. If you play win/lose (where you dont care what happens to the other side), you will just create problems later on nobody likes to feel like a loser. Sometimes

people end up playing lose/lose (where its more important to punish the other side than to worry about a win for either party). You can guess what kind of outcome that destructive attitude creates. Bringing a win/win attitude to the table is often a function of properly understanding the bargaining power on either side. Who holds the aces? People often under-estimate the bargaining power they have on their side by focusing exclusively on the market power of the other side. Yet there are many other sources of bargaining power, including expertise, information, and the power of numbers, and access to influential networks. Marshal your bargaining power and you can feel positive about any negotiation. Secondly, effective negotiators know how to manage the negotiation process. Most negotiations follow a set pattern, with a number of recognizable and distinct stages. If you know what stage you are at and how to handle that stage then that automatically gives you an advantage over the side, which will generally be completely confused side as to what is going on at any particular stage. The first stage is preparation. We all lead such busy lives that time spent on preparation can seem like something of a nuisance. In fact, however, it is an investment of time fail to prepare and you prepare to fail. Good negotiators take the time at this stage to map out their approach in advance. They also consider what their mega win position is (their ideal position, which will comprise their .opening bid), together with their bottom line position (the point at which they will walk away from the deal). The distance between these two positions gives them the space in which they can negotiate. The next stage of the negotiation will be climate setting. Whats going to be the atmosphere in which the negotiation takes place? Effective negotiators consider whether they want the negotiation to be warm (with a friendly atmosphere), hostile (very pressurized and fast-moving), cool (very objective and data driven) or wacky (fun and off the wall). Different climates suit different kinds of negotiation. The third and fourth stages of a negotiation are exploring wants and needs. Good negotiators know that you cant expect to engineer a win/win outcome if this stage is skipped in the rush to get to the haggle. Its important that each party understands what the other side wants. Wants are organizational requirements like price, quantity and delivery dates. Its even more important to understand what the other side needs. Needs are the underlying emotional requirements that

each side has from the deal. These are critical to understand, because they underpin the whole negotiation, and yet they are often unspoken. Does the other side have a security or reassurance need? Are they desperate? Do they need to achieve something unique as a result of the deal? Do they need respect or esteem? Great negotiators are adept at working this out and using it positively. Now the parties are ready to move on to the bidding stage of the negotiation. This is where the offers come on to the table. Good negotiators know the importance of bidding high. Generally speaking as a negotiator, the more you ask for the more you get. They also know the importance of being convincing when you bid ...You know what they are up to. Sometimes pull behavior is required focusing on the needs of the other side. This is when its important to listen, explore and focus on common ground all very useful in the early climate-setting and exploring stages. Other behaviour options include joining - inspiring others to work with you on the deal, and parting behavior taking your energy out of the deal by calling for a break. Parting behavior can be especially useful in the bargaining phase when the atmosphere can be pressurized and fast moving, and breaks enable the parties to regroup and re-energies. The good negotiator knows that effective behavior is not just a question of selecting the right behavior for the right occasion, but also a question of modeling that behavior effectively. Research shows that 93% of the effect of what we say consists not of the words we use but of the music and the dance. The music includes the way we use our voice its pitch, rhythm, pace, tone. The dance is the way we use our body our facial expressions, eye contact, gestures, the way we fidget. If you find that youre chosen behavior doesnt work it may be that you are either out of tune with the required music or out of step with the required dance, so the impact of your behavior is reduced. Skilled negotiators also go out of their way to avoid negative behaviors, whether these are aggressive or passive. You will rarely see an effective negotiator use threats, or be sarcastic, or patronizing or presumptuous or dismissive. Nor will you see them model weak behaviors such as imploring or begging, or avoiding. So, effective negotiators know the importance of managing the 3 angles of successful negotiation attitude, process and behavior. They will be more equipped than anyone else to prosper in todays new deal economy.

The Importance Of Good Negotiation Skills To Your Business Success:

Having good negotiation skills can be the difference between success and failure in the business world. Those that know how to negotiate tend to rise to the top of whatever industry they are in. At the same time, those that do not know how to negotiate tend to stay where they are or fall backwards. If you want to be successful in the industry, a study of developing negotiation skills should be at the forefront of your mind. Here are a few things to consider about the importance of good negotiation skills to your business success. One of the primary benefits of having good negotiation skills is that you will be able to save money. If you represent your business or if you are negotiating for yourself, you will be able to negotiate a cheaper price when buying something. When making large purchases, you need to be able to negotiate with the sales representative and get a better price. If you simply take the price that is being offered to you, it is very possible that will get taken advantage of. Learning how to negotiate will allow you to save substantial amounts of money over a period of time. Another important reason for developing good negotiation skills is that you will be able to make more money for your business as well. If you are trying to sell a product or secure a contract, you need to be able to negotiate in order to make it happen. By doing this, you will be able to secure a larger selling price and increase your profit margins. Increasing profit margins is one of the biggest objectives for most businesses. If you can learn how to do this, you will be invaluable to your employer and this will be directly related to your business success. In addition to being a better negotiator, you will also develop several other traits that are essential in business. Many of the same skills that you use in negotiation will translate over to other areas of the business. For example, when learning good negotiation skills, you will learn how to be an effective listener. In order to be successful in negotiation, you have to be able to listen to the other person to see what they want. This skill will be very valuable to you in other areas of the business. If you are a manager, you will need to be able to listen to your employees to see what motivates them. If you are dealing with customers, you need to be able to listen to what they are telling you so that you can find a product or service that match their needs.

When you are aiming to achieve business success, developing good negotiation skills should be at the top of your priority list. This is by far one of the most important skills that you can develop as a businessperson. It can easily take you from where you currently are to where you eventually want to be.

Practical study
History of Telenor: Telenor Pakistans parent organization Norwegian Telegraph Administration was founded in 1855 as a telegraph services provider. In 1969 The Norwegian Telegraph Administration changed its name to Norwegian Telecommunications. In 1995 Norwegian Telecommunications changed its name to Telenor. Today Telenor is an international provider of high quality telecommunications, data and media communication services. It ranks as worlds 7th largest mobile operator with a total of 164 million subscribers in its mobile operations. Telenor Pakistan: Telenor Pakistan launched its operations in March 2005 at that time it was the largest direct European investment in Pakistan. It is a leading telecom operator of Pakistan. Telenor Pakistan is the fastest growing network in Pakistan. It provides coverage in many remote areas. Telenor Pakistan has 2500 direct and 25000-plus indirect employees. It has a network of twenty three sales and service centers, more than 200 franchisees and about 100,000 retail outlets Mission: Telenors primary goal is to create greater value for our shareholders, customers, employees and partners, and for society in general Vision: Telenors vision is simple: We're here to help

Core Values: Telenor has four core values

Keep Promises Make it Easy Be Inspiring Be Respectful

Collective Bargaining: In Telenor the line managers of the concerned department are responsible to raise the voice of their subordinates and they act as arepresentative whenever the issues of collective bargaining are needed. Responsibility to Bargain collectively: Telenor recognizes the right to freedom of association and collective bargaining in mature labor environments. In such environments Telenor allows its employees to freely elect representatives among the employees, unless this would represent a breach of national laws and regulations.

Strengths: In Telenor all the matters concerning the employees issues with job or in terms of relations with the corporate are all written in the company policies and procedures in a structured manner. There is a comprehensive demarcation between the moral and legal codes of conduct which is communicated to the employees at induction program and also written in the employee portal. Employee relation and moral guidelines are an integral part of the corporate culture of Telenor. Employee rights at work place that are promulgated by the law of the land and the rights that are prevailed in the corporate charters both are implemented in Telenor. In Telenor, employer relation with employees is highly feasible, accessible and encouraged at all levels of organization hierarchy. The special arrangement by the Telenor as the Regulatory and Interconnection Strategy Department acts as a precedent to handle corporate legal affairs.

Weaknesses: In Telenor, due to the rigid shift structures, social integration among employees is not of satisfactory level. Due to the non-unionization culture of Telenor the employee representativeness is not appropriate. Opportunities: By working in Telenor an employee can have an exposure of multinational organization where the legal and employee rights issues are fully intact. The egalitarian culture prevailing in Telenor gives an insight to its employees a transparent and fair treatment through which an employee can fully utilize his abilities. Conclusion & recommendations: The traditional collective bargaining process has served the region well and remains indispensable to the maintenance of good industrial relations practices. However, the prevailing scope of collective bargaining as a system of management-labor relations cannot adequately address many of the challenges faced by pakistani enterprises in new era of globalization .The study revealed that it is the common view of trade unionists, human resource managers and labor administrators that the prevailing approach to collective bargaining does not fully address all issues of common concern to management and workers. In particular, the agenda does not adequately address the issue of competitiveness of companies, human resource development and company policy decisions affecting workers.