Assignment

On
INTEGRATING WITH THE
SCIENCE OF NEGOTIATION

SUBMITTED TO:
SUBMITTED BY:
Prof. nageswara singh
9091

HIBAH WASIF

NEGOTIATION:
It is a process of bargaining, where two parties, each of whom has something that
the other wants, is trying to reach an agreement, on mutually accepted terms.

ELEMENTS OF NEGOTAITION:
Process- The way individuals negotiate with each other. Includes the various
techniques and strategies employed to negotiate and reach to a solution.
Behaviour- How two parties behave with each other during the process of
negotiation .The way they interact with each other, the way they communicate with
each other to make their points clear all come under behaviour.
Substance- There has to be an agenda on which individuals negotiate. A topic is
important for negotiation.

TYPES OF NEGOTIATION IN ORGANIZATION:

1. Day-to-day / Managerial Negotiations:

Such types of negotiations are done within the organization and are related to
the internal problems in the organization.
Usually, the manager needs to interact with the members at different levels in
the organization structure. For conducting the day-to-day business, internally,
the superior needs to allot job responsibilities, maintain a flow of information,

direct the record keeping and many more activities for smooth functioning.
All requires entering into negotiations with the parties internal to the
organization.

2. Commercial Negotiations

Such types of negotiations are conducted with external parties.

The driving forces behind such negotiations are usually financial gains. They
are based on a give-and-take relationship.
Commercial negotiations successfully end up into contracts. It relates to
foregoing of one resource to get the other.

3. Legal Negotiations

These negotiations are usually formal and legally binding.

They are also contractual in nature and relate to gaining legal ground.

NEGOTIATION TYPES

CASE STUDY
CRISIS AT MARUTI SUZUKIS
MANESAR PLANT

OVERVIEW
India's largest passenger car company, accounting for over 45% of the

domestic car market

First company in India to mass-produce and sell more than a million cars
Annually exports more than 50,000 cars
Manufacturing facilities are located at two facilities Gurgaon and Manesar
It offers 14 brands and over 150 variants ranging from peoples car Maruti
800 to the stylish hatchback Ritz.

THE PROBLEM

PROBLEM FROM WORKERS VIEW POINT

Cockroaches and dead flies found in the food in the hurried lunch-break that
workers earn in the canteen km from the working station.
The tea was without tea leaves or sugar in the 7 minute break.
The company doctors gave heavy doses of instant medicines even on minor
complaint so that disruption of work could be prevented.
One days wage cut of Rs.1500, two days Rs.2200, three days cut of Rs.78000 is implemented, so that almost the total months wage is cut.
One second late into punching-card entry is a days wage cut, but they have
to give full production for that day too.
Forced to fill an undertaking form, which means that in case of any problem,
workers cannot raise any objections against management

WORKERS DEMAND

 Workers demand to establish an independent union Maruti Suzuki

Employees Union (MSEU)in the company.
Currently, the company has one recognized union Maruti Udyog Kamgar
Union which is dominated by workers at the Gurgaon plant.

MANAGEMENT VIEW OF PROBLEM

Unhappy workers have found out a new way to disrupt ongoing work at the plant by
creating serious defects in quality of the cars, so they would fail the compulsory
vehicle inspection (VI) quality test.

Workers indulging in deliberate attempts to reduce output and are

compromising customer interests.
Refused to sign good conduct form which aims at ensuring the production of
good quality products.
Employees are being charged with sabotage and causing quality problems in
the cars produced.
A series of serious quality problems have been observed in the vehicles
produced. For example, vehicle door was not properly clamped leading to
doors falling during production, wiring harnesses were found cut in produced
vehicle, dents were noticed on the body and critical components were not
fitted on to vehicles. Such deliberate acts, if not detected during quality
checks, would have led to serious implications and directly harmed
customers," a senior company official said.

ACTION TAKEN AGAINST EMPLOYEES

Suspension of 10 workers
Dismissal of five
Discontinued the services of six trainees.
Also suspended four workers for "instigating indiscipline.
Another four suspended in late July for manhandling supervisors.

 Charges of sabotage and causing quality problems in the cars produced.

On 14th August; police force of 500 send to occupy the factory to prevent
violent activities
The company terminated 11 workers and suspended 38 on August 29th and
30th on false charges demanding a good-conduct bond with the state police
and administration.
The Maruti Suzuki Employees Union (MSEU) is demanding as an immediate
measure, the withdrawal of the charge-sheet, termination, suspension of the 49
workers.

REASONS OF CONFLICT

1.
2.
3.

Identified reasons of the conflict.

Establishment of separate union for Manesar Plant
Code of Conduct- Falling standards of manufacturing.
Basic sanitary enhancements demanded by the workforce.

SOLUTION
Trade Union Establishment
Trade union would be established with prior conditions: 1. Members of the trade union to be nominated with consent of both workers and
management.
2. The leader of this union would be appointed by the management.
3. Technology oriented operations reducing demand of man power.

The employees will get an average salary hike of Rs 18,000 per month spread
over three years.
It is a satisfactory agreement considering that even a junior level employee
will get a hike of Rs 15,000 per month.
In response to the workers request for transport, the company agreed to
provide bus services in line with shift timings.
The workers will get transport allowance of Rs 1,200 per month.
Also agreed to increase the medical allowance of the workers apart from
increasing the number of yearly scheduled holidays to 12.

 A labour officer from the state government will be a permanent invitee to it and
review its proceedings Maruti Suzuki has also agreed to the formation of a
labour

welfare

committee to

promote

good

relations

between

the

management and the workers. The committee will comprise members of the
management and the workers.
Improved hygienic conditions
dissatisfaction.

at

workplace

reduced

employees