Negotiating to Reach a Common Agreement: Exploring Possibilities - Essay Sample

Introduction

Negotiation can be defined as a process by which two or more parties try to resolve their differences to seek a common agreement. The common group is achieved through exchanging offers and exploring alternatives. Negotiation is a procedure that involves a series of events and the choices are made in a systematic way. There have to be two or more parties for negotiation to occur. There must be disagreements and the need to resolve them. Therefore, the parties must explore possibilities to reach an agreement. The DNA of negotiation description offers a practical understanding of how the process works (Ott, Prowse, Fells, and Rogers, 2016 3562). The DNA spiral symbolizes the two parties competing for a position and can also cooperate in a negotiation. Fell (2016) presents components of DNA negotiation that enhances it. These elements include reciprocity, trust, power, information exchange, ethics, and outcome. The given negotiation involves Management 12 (M12) vs. Union 12 (U12). They hope to settle on Consultation Clauses which comprises on employers changes, working hours and superannuation. The purpose of the essay is to develop a critique that analyses the negotiation and evaluates the extent the Fells' DNA of negotiation is evident.

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During the negotiation between Management 12 (M12) vs. Union 12 (U12) several components of Fell's DNA were more influential in shaping the process. One of them is reciprocity, a basic feature in social interaction. In the given case, one party is reciprocated or matched by the other. Although the process of reciprocity does not occur throughout the negotiation, it is influential in shaping the progress and pattern of the negotiation between M12 and U12. For instance, M2 writes to U12 explaining that they need to negotiate for the enterprise agreement which covers consultation clauses, hours worked and superannuation. They fix the dates for the discussion and ask for U12 cooperation in achieving a beneficial outcome in a timely manner. On the other side, U12 reciprocates by stating that they agree with the outline and structure that M12 proposed. They also inform them that they are more than ready to discuss for a solution that will please the two parties. The reciprocity process continues where they request M12 to clarify what the Consultation Clauses entails hence making M12 to reciprocate with an answer and the pattern continues. According to Barthel (2009), the component of reciprocity allows the two parties to understand their position in the process as well as the needs of the other. It helps the two parties to develop a common goal for a mutual agreement. It is also important in the course of negotiation because it helps the parties to analyze their future in a detailed manner and identify the areas of concern in a focused way. Moreover, reciprocity has some factors of problem-solving mediation and establishes options to come up with a mutual agreement (Barthel, 2009 Para 3).

Trust is an important component of negotiation that influences the course of negotiation between M12 and U12. Trust is a sensitive issue because it is hardly expressed during the discussion (Staff, 2019 Para. 1). The Management 12 entered into a discussion with Union 12 because it wants to reach an agreement in good faith. The U12 party expects the M12 to act in good faith that will be mutually beneficial rather than exploitative way. Although a trust can be easily overestimated, U12 believe that everything would be conducted fairly and fairly. Therefore, they wish to settle it in accordance with their best common practice and experience, as well as in a friendly manner. U12 also trust that M12 will pay employees fairly and also consider the time they work overtime. They also have faith that all the new changing introduced by M12 will be notified to the employees immediately. The level of trust between the two negotiators influences the quality of the agreement they will then achieve (Olekalns and Smith, 2009 p 347).

Another important component of fell's DNA of negotiation is the exchange of information between the two parties. Information plays an important role in reaching an agreement and they negotiators will always need to know or clarify some clauses to each other. For instance, U12 requested M12 what their proposal entails on Consultation Clauses. The U12 proposed all the changes it wants under this class such as better working conditions for employees. Additionally, the obligation of management is in consultation with staff where possible, set targets, provide direction and ensure instructions are clear and reasonable. The two parties also exchanged information on working hours and the superannuation clause. On working hours the U12 provided information in good faith towards management 12 in four areas Hours of full-time employees, payment of overtime and penalty rates, the rostering issues and how part-time and casual workers are affected by the new working hours cycle. Negotiation involves exchanging information about possible solutions on one hand and assuming other options that are not mutually beneficial.

Bargaining can be classified as either distributive or integrative. In the provided negotiation between M12 and U12 there exist both competitive (distributive) and cooperative (integrative) negotiation. The distributive bargaining involves a situation where one party gains only if the other party loses something. In this case, both parties try to maximize their share but one end up gaining than the other (Shonk, 2019 Para. 1).

On working hours, the U12 proposed that late shifts from 9pm-6am will be an additional loading of 50%. This is working outside the ordinary hours and the Management 12 should pay them accordingly. However, this does not happen because there exists a win-lose situation on M12 side. They explained that some night shifts can exceed outside of the 7am-5pm bracket as certain roles within the bank require employees to work overnight. These roles are dependent on the various functions of Savings Bank Pty Ltd. Nevertheless, there is also competitive bargaining on Union 12 on emergency night shift cases where there will be an addition of 75%. The presence of distributive bargaining is also demonstrated in the Sunday and Saturday penalties where M12 pays an addition of 75% and not the requested 100% for full time and part-time employees (Irmer and Druckman, 2009 p. 230). However, U12 also enjoys distributive bargaining because the casual laborers will be paid 75% for Saturday penalty instead of the demanded 50%. Cooperative bargaining exists where there is a win-win agreement between the two parties (Fells and Prowse, 2016 76). On working hours Management 12 agrees to a four-week work cycle which will be 152 hours long for full-time employees as suggested by Union 12. On public holidays penalty rates suggested by management 12 are at 175% for casuals and are agreeing on 150% for Part time, full time and salary Based employees. On the superannuation clause, both the parties agreed to comply with the maximum rate of 12% salary sacrifice with 20% contributed from M12.

References

Barthel, T., 2009). A Practical Process for Reciprocal Negotiation. Retrieved from https://www.mediate.com/articles/barthelt2.cfm

Fells, R. and Prowse, P., 2016. Negotiations in the workplace: overcoming the problem of asymmetry. In Building Trust and Constructive Conflict Management in Organizations (pp. 75-92). Springer, Cham.Fells, R., 2016. Effective negotiation: From research to results. Cambridge University Press..p. 1-20

Irmer, C. and Druckman, D., 2009. Explaining negotiation outcomes: Processor context?. Negotiation and Conflict Management Research, 2(3), pp.209-235.

Olekalns, M. and Smith, P.L., 2009. Mutually dependent: Power, trust, affect and the use of deception in negotiation. Journal of Business Ethics, 85(3), pp.347-365.

Ott, U.F., Prowse, P., Fells, R. and Rogers, H., 2016. The DNA of negotiations as a set-theoretic concept: A theoretical and empirical analysis. Journal of Business Research, 69(9), pp.3561-3571.

Shonk, K., 2019. What is Distributive Negotiation and Five Proven Strategies? Retrieved from https://www.pon.harvard.edu/daily/dealmaking-daily/what-is-distributive-negotiation-strategies/

Staff, P., 2019). Negotiating Skills: Learn How to Build Trust at the Negotiation Table. P. 1. Retrieved from https://www.pon.harvard.edu/daily/dealmaking-daily/dealmaking-negotiations-how-to-build-trust-at-the-bargaining-table/