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HR IIB (Labour Relations) Chpt.7 - Negotiation

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Types of bargaining, negotiation tactics and the process.

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December 17, 2023
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Aretha mazingi
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Human Resources Management IIB by ProfessorBurgerQueen



Negotiation

- The central process of collective bargaining and dispute resolution

- The process whereby parties with differing wants and objectives reach a mutually
agreed outcome based on compromise

- What takes place when two parties have different views as to the desired outcome,
but neither party has the right or the ability to make a unilateral decision and enforce
the outcome on another


- Types of bargaining:
- Distributive bargaining : win-lose interaction

- Integrative bargaining : try to achieve a win-win outcome

- Intra-organisational bargaining: all constituencies present

- Attitudinal structuring, and building relationships: Understanding the
attitude of the opponent


Internal factors that have an impact on negotiations

- Bargaining power: depends on the ability to obtain concessions or shifts in position
from that of the other party

- Legitimate power: directly linked to the position the person holds in the organisation

- Referent power: the negotiators ability to influence others positively through strength
of personality

- Expert power: Derived from one’s personal knowledge of a particular area

- Coercive power: Ability to threaten someone into yielding to one’s demands

- Reward power: Stems from a person’s ability to provide reward for a desired
outcome


External factors that have an impact on negotiations

- Economic climate: Inflation, growth rate, microeconomic policies affect negotiations
- Political conditions: political climate which influences government’s labour policy
- Technology: Can make jobs redundant but also presents an opportunity to become
more flexible & productive
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