InterestBased Bargaining - PowerPoint PPT Presentation

1 / 36
About This Presentation
Title:

InterestBased Bargaining

Description:

Why Consider Change In Your Approach To Bargaining? ... 'I win...you lose' Seeber. 10 'Win-Win' Negotiating ... 'I win...you win' Seeber. 11. In Most Negotiations... – PowerPoint PPT presentation

Number of Views:128
Avg rating:3.0/5.0
Slides: 37
Provided by: chrisc100
Category:

less

Transcript and Presenter's Notes

Title: InterestBased Bargaining


1
Interest-Based Bargaining
  • Ronald L. Seeber
  • Cornell University
  • April 19, 2004

2
Why Consider Change In Your Approach To
Bargaining?
  • Frustration with existing bargaining process.
  • Dissatisfaction with bargaining outcomes.
  • Inconsistency with other workplace processes and
    labor management interactions.

3
Conflict Is Healthy
  • Conflict is like pain,
  • Dont have to like it,
  • But it serves a purpose
  • Tells you that something needs fixing
  • Dont view negotiations as a sign of (or penalty
    for) failure . . . look at it as an opportunity
    for improvement.

4
Two Approaches to Negotiation
  • Positional Bargaining
  • the conventional approach
  • Interest-based Bargaining
  • also known as principled negotiations

5
Position
  • A Position Is
  • a single answer or solution to a problem,
  • one which the other party frequently cannot
    accept.

6
Interest
  • An Interest is
  • a fear
  • a need
  • a worry
  • a concern

7
Basis Elements of Negotiation
The outcome of any negotiation will reflect the
extent and manner in which the parties deal with
the basic elements of negotiation.
  • POWER
  • Ill have it my way because I can.
  • RIGHTS
  • Ill have it my way because Im entitled to it.
  • INTERESTS
  • Ill have it my way because I need it.

8
Fundamentals of Positional Bargaining
Most people think negotiators have two choices
  • Win-Lose Choice
  • Assumption the pie is fixed
  • Negotiators have a direct conflict of interests
    and objectives
  • Win-Win Choice
  • Assumption the pie can be expanded
  • Negotiators have compatible interests and
    objectives

9
Win-Lose Negotiating
  • When one partys goals are in direct conflict
    with those of the other party
  • Win-lose negotiating is the equivalent of
    playing a zero-sum game
  • I winyou lose

10
Win-Win Negotiating
  • When one partys goals are not in fundamental
    conflict with another partys goals
  • Win-win negotiating is the equivalent of
    playing a non-zero or variable sum game
  • I winyou win

11
In Most Negotiations...
  • The parties objectives are partly conflicting
    and partly compatible
  • The negotiators have mixed motives
  • They may be able to expand the pie but
    ultimately they need to divide it

12
Characteristics of Positional Bargaining
  • Open with an extreme position
  • why is this such a common practice?
  • Trade concessions toward mid-point (compromise)
  • if more attention is paid to positions, is less
    time devoted to meeting the underlying interests
    of the parties?

13
Characteristics of Positional Bargaining
  • Use tactics to keep other party off balance
  • Argue merits of your position, defending it from
    attack by the other party
  • Discredit the positions and claims of the other
    party
  • what are the possible effects of doing this?

14
Potential Limitations of Positional Bargaining
  • Effects on the negotiation process
  • Effects on the relationship between the parties
  • Effects on trust and other attitudes
  • Effects on brainstorming and creativity
  • Do these limitations matter to you?

15
Integrative Solutions
  • Assumes that interests seldom, if ever, clash
    inherently
  • Human imagination in devising new alternatives is
    the major key to integrating interests and
    successfully concluding negotiations.
  • Compromise is one form of integration, but should
    be solution of last resort

16
Premises of Interest-Based Bargaining
  • Most negotiations are not purely win/win or
    win/lose
  • Bargaining over positions can have negative
    consequences
  • Life isnt usually a zero-sum game

17
A Rose By Any Other Name . . .
  • Getting to Yes Negotiation
  • Win-Win Negotiation
  • Principled Negotiation
  • Integrative Negotiation
  • Mutual Gains Negotiations (MGN)

18
Range of Application
  • Can be used whether
  • single or multiple issues
  • two or more parties
  • formal or informal bargaining
  • relaxed or volatile situations
  • all or only one party intends to use it

19
Interest-Based Bargaining As A System
  • Assumptions
  • taken for granted
  • Principles
  • general guides for action
  • Techniques
  • specific things to do and not do
  • Structures
  • props, physical layout
  • Steps (Micro Macro)
  • sequence of activities

20
Principles of Interest-Based Negotiations
  • Premise
  • Dont bargain over positions
  • Methods
  • Separate the people from the problem
  • Focus on interests, not positions
  • Invent options for mutual gain
  • Insist on using objective criteria
  • Know and use your BATNA

21
Does Where You Stand Depend On Where You Sit?
  • UNION
  • Equal treatment
  • Democratic decision-making
  • Challenge to authority
  • Mutual protection
  • Seniority
  • Past practice
  • Guarantees
  • MANAGEMENT
  • Hierarchical
  • Factual decision-making
  • Control individuality and competition
  • Performance
  • Efficiency
  • Ambiguity
  • Flexibility

22
Obstacles to Creating Options
  • Premature judgment
  • Looking for a single answer
  • Assumption of a fixed pie
  • Attitude that solving their problem is their
    problem

23
Objective Criteria?
  • Market Value
  • Prevailing Wage/Price
  • Various Price Indices
  • Cost of Living
  • Precedent
  • Scientific Judgment
  • Professional Standards
  • Legal Decisions
  • Moral Standards
  • Equal Treatment
  • Tradition
  • Community Practice

24
Should You Have a Bottom Line?
  • How do you establish a bottom line?
  • Should you establish your bottom line in advance
    of negotiations?
  • If you have a bottom line, should you let your
    opponents arguments affect it?
  • Should you reveal your bottom line to your
    opponent?
  • if yes, when?

25
BATNA Best Alternative To a Negotiated Agreement
  • Another approach to the bottom line
  • How do you determine a BATNA? Ask yourself two
    questions
  • What will you have if you dont reach agreement?
  • Will what you have if you dont reach agreement
    be better than what you get if you do reach
    agreement?

26
BATNA Best Alternative To A Negotiated Agreement
  • Why bother?
  • Protects you against accepting an agreement you
    should reject, or rejecting an agreement you
    should accept (benchmark).
  • Better than - Lets negotiate first and see what
    happens, or If things dont work out, then I
    will figure what to do.

27
BATNA Best Alternative To A Negotiated
Agreement
  • Should you disclose your BATNA?
  • Yes, if it is extremely attractive - this
    shortens the dance
  • No, if you have a poor BATNA - disclosing it will
    only weaken your hand

28
Consequences of Establishing and Focusing on
Bottom Line
  • PRO
  • Protects you from accepting a very bad agreement
  • CON
  • Limits your ability to benefit from what is
    learned in negotiations
  • Shuts off receiving information that may lead you
    to change your mind
  • Inhibits imagination

29
What Is A Good Conclusion?
  • Is it better than alternatives away from the
    table (BATNA)?
  • Does it satisfy my interests?
  • Am I well satisfied?
  • Is the other side acceptably satisfied?
  • Did it minimize transaction costs?
  • Is it compliance prone?
  • Does it improve my relationship with the other
    party?

30
Contract Negotiation ApplicationStep 1 -
Pre-Training Discussions
  • Trainer(s) meet separately with principal
    managers and union officials to discuss MGN
    generally, and more specifically the training and
    options to follow.

31
Contract Negotiation ApplicationStep 2 - Training
  • A two day off-site program of simulation-based
    learning of personal skills and negotiation
    structures supportive of mutual gains bargaining.

32
Contract Negotiation ApplicationStep 3 -
Groundrules
  • The subject of ground rules and a listing of
    options is raised at the conclusion of the
    training (step 2), but thorough discussion and
    decision-making is reserved for another day.
    This allows individuals some time to think
    privately, and also permits the two committees to
    meet separately first.

33
Contract Negotiation ApplicationStep 4 -
Negotiations
34
Contract Negotiation ApplicationStep 5 -
Post-Negotiation Review
  • Fairly soon after the conclusion of the
    negotiations, it can be beneficial for the two
    committees to meet once more to review the
    process of the recently concluded bargaining, in
    order to identify those aspects which seemed to
    work well, and those that did not.

35
Correlates of Successful Implementation
  • Joint readiness for process change
  • Part of broader patterns of labor and management
    interaction
  • An external focus
  • Immediate usage
  • Sober expectations

36
Questions or Comments?
  • Ron Seeber
  • 607-255-4371
  • rs60_at_cornell.edu
Write a Comment
User Comments (0)
About PowerShow.com