introduction to negotiation concepts
DESCRIPTION
Negotiations can also be thought of as a set of concerns from two parties. Negotiation is about resolving disputes on divergent interests.TRANSCRIPT
Introduction to Negotiation ConceptsRichard A. Posthuma, J.D., Ph.D., GPHR, SPHR 2010
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Negotiation
• Goals> Two parties can voluntary reach an agreement to
resolve a dispute.• Issues
> The things that they are talking about (e.g., wages, benefits, lawsuits)
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Positions
• Initial offer/demand. This is where you start the negotiation.
• Target point. This is where you reasonably would like to end up in negotiation.
• Resistance point. This is as far as you are willing to go to reach an agreement.
• BATNA. This is your Best Alternative To a Negotiated Agreement.> It often influences your resistance point.
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Employee’s Target Point
Employee’s Resistance Point
Employee’s Initial Request
Employer-Employee Wage Negotiation Example
Employee’s BATNAs (Another Job: $55,000;
Get MBA)
Employer’s Initial Offer
Employer’s Target Point
$50,000 $55,000 $60,000 $65,000
Employer’s Resistance Point
Employer’s BATNAs (Another Candidate, Outsourcing)
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• Negotiations can also be thought of as a set of concerns from two parties.
• For example:
• Employer’s concerns:• Lower costs• Higher output or productivity from employee
• Employee’s concerns:• Higher wages and benefits• Job security
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Dual Concerns and Conflict Styles: Employer vs. Employee
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Negotiation and Conflict StylesExample: Employer and Employee
Employee outcomes: Higher wages and benefits; job security
Integrative
Distributive
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Negotiation and Conflict StylesExample: Employer and Employee
Employee Concerns: Higher Wages and Benefits; Job Security
Compete Collaborate
Compromise
Avoid Accommodate
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Negotiation and Conflict StylesExample: Employer and Employee
Employee Concerns: Higher Wages and Benefits
Compete Collaborate (Wage cuts) (Skill training:
productivity or sales incentive compensation)
Compromise (50 / 50 split)
Avoid Accommodate(Outsource) (Big wage increases)
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Negotiation Summary
• Negotiation is about resolving disputes on divergent interests.
• Sometimes negotiations are distributive (win-lose).
• Negotiations can be collaborative, integrative win-win situations.
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