Negotiation Case Study

Negotiation is a long standing art which has developed into a major mode of decision making in all aspects of social, political and business life, even though there is always a feeling that it is no more than a substitute for direct, decisive action. In employment we have developed the institutions of collective bargaining as a means of regulating some parts of the employment relationship between employer and organised employees. The essence of the process is to find not just common ground between two parties but a new relationship with greater constructive potential than the one that preceded it. To some this is the cornerstone of industrial democracy and the effective running of a business, but to others it is seen as impairing efficiency, inhibiting change and producing the lowest, rather than the highest, common factor of cooperation between management and employees. There is growing concern among union leaders as well as in parts of management that there is a lack of both experience and expertise in bargaining (Taylor 2005).

Negotiations are dynamic processes because they are energetic or a force in which the parties involved communicates to exchange offers, make concessions, raise threats, or otherwise influence each other in order to reach an agreement. While it is obvious that the outcomes of negotiations are to a large extent determined by the preceding negotiation process, existing negotiation research has often been criticized for focusing too much on outcomes, and paying only scarce attention to the process (Weingart and Olekalns, 2004). Negotiation processes are inherently communication processes because the both parties interact closely with each other. During the last 7years, communication and the exchange of messages during negotiation have been increasingly studied because it not help in interacting but also helps to have an agreement.

Negotiation can be defined as a dialogue between two or more people or parties, intended to reach an understanding, resolve point of difference, or gain advantage in outcome of dialogue, to produce an agreement upon courses of action, to bargain for individual or collective advantage, to craft outcomes to satisfy various interests of two person or parties involved in negotiation process. Negotiation is a process where each party involved in negotiating tries to gain an advantage for themselves by the end of the process. It is intended to aim at compromise (Wikipedia 2011).

Effective negotiation is an important skill for all members of an organisation. It requires situational awareness, the ability to create effective social networks, excellent communication skills and just a little bit of planning. Evans (2010), states that there are three district stages in a negotiation situation.

• Pre-Negotiation

• During Negotiation

• Post-Negotiation

Pre-