Human Resource Management 2

1. Human Resource Management 2 • Negotiating and Bargaining • Nick Kinnie

2. Objectives • Identify the different arenas within which negotiating and bargaining take place • Understand the different types of negotiating processes • Identify the tactics that are associated with each type of negotiating process • Consider the conditions under which different negotiating processes take place • Give an opportunity to build on our learning of face to face interactions and apply these in a collective environment

3. Negotiating Arenas • Traditional view of negotiations • Buyers and sellers • Organisations • Politics • Group work • Personal lives

4. Negotiating Processes • Distributive bargaining • Conflict between the parties • Win/lose • Distributing gains and losses • Integrative bargaining • Co-operation between the parties • Win/win • Maximising areas of common interest

5. Shaping inter-group attitudes • Instrumental activities • Influence the relationship between the parties • Increase the influence of one party over another • Managing internal differences • Sub-groups within each party have own goals • Managing own and others’ internal differences • Differences over goals and means • Essential process for progress

6. Distributive bargaining tactics • Like, intend and must - bargaining zone • Best alternative to a negotiated agreement • Manipulate utility parameters • Employ commitment tactics

7. Bargaining Zone Trade Union Management Like 9% Intend 7% Must 6% Bargaining Zone Intend 4.5% Must 4% Like 2%

8. Discover information - delay showing your own hand • Manoeuvring - listen/look for signals • Adjournments • Saving face • Achieving movement - Concessions, invite proposals, hypothetical situations, trade-off

9. Integrative bargaining tactics • Identify the problem: timing and definition of agenda items • Understand the problem: needs and interests • Searching for different solutions: preparation and preliminary discussions • Selecting the best solution: utility and combining or dividing proposals

10. Conditions which facilitate integrative bargaining • Identification of a common goal • Both sides must be motivated to solve the problem • Information and language are key • Trust is central - often linked to history of the relationship

11. Shaping inter-group attitudes • Influence opponents’ attitudes • Sharing likes and dislikes • Establishing common associations • Stress common interests • Shifting rewards and punishments • Rewarding behaviour • Punishing behaviour

12. Managing internal differences • Boundary role • Expectations from within own party • Expectations from ‘opponent’ • Factional conflict • Disagreement over objectives • Disagreement over means

13. Conditions for internal differences • Motivational goals • Vertical differentiation • Heterogeneity of departments/functions • Perceptual goals • Compartmentalisation • Complexity • Emotional Goals • Tradition • Recent experience

14. Tactics for managing internal differences • Delay forming position • Persuade to change • Manipulate the situation • Rationalise the discrepancy • Obscure the position • Tacit bargaining