BARGAINING AND NEGOTIATION MANAGEMENT

Presented by: Hooreen Tasneem Fatima Salaam Beenish Hussain

Collective bargaining is a process whereby organized labor and management negotiate the terms and the conditions of employment. The process by which the mutual agreement incorporated between the management and the Workers Union is known as the collective bargaining agreement.

HISTORY
The

term "collective bargaining" was first used in 1891 by economic theorist Sidney Web. However, collective negotiations and agreements had existed since the rise of trade unions during the nineteenth century.

Practical Study of OGDCL

MAJOR ACTIVITIES
Exploration & Development of Oil & Gas Resources. MAIN PRODUCT LINE Crude Oil Gas LPG

How situation occurs

Working

pattern of OGDCL is different from other organizations. The oil and gas fields are located in remote areas. Tough working conditions leads to frustration of the workers during stay in fields.

Objectives
The objectives of the collective bargaining are given as: 1) Settle the conflicts 2) To protect the interest of the workers through collective action. 3) To resolve the difference between the workers and management 4) To avoid third party intervention in matters relating to employment.

 The

collective bargaining process simultaneously triggers of the following: 1) Employees right. 2) Employers duty.

 In

majority of the cases collective bargaining process deals with issues like: 1) Rate of wages, pay. 2) Hours of employment, working conditions 3) Employment policies 4) Productivity settlement

NEGOTIATION

Defined
Negotiation is the process of communicating back and forth, for the purpose of reaching a joint agreement about differing needs or ideas. A give-and-take decision-making process involving interdependent parties with different preferences.

Basic Elements of Successful Negotiation

1. 2. 3. 4. 5. 6.

Positive Attitude Knowledge of the Negotiation process An understanding of people A grasp of your subject Creativity Communication skills

Why do we NEGOTIATE?
To reach an agreement To beat the opposition To compromise To settle an argument

Negotiation Process
Relate:

REPA

Building a relationship Explore: Interests of both sides Propose: One concrete proposal addresses all underlying interests Agree: Compromising & create alternatives

TYPES OF NEGOTIATION
Distributive

Negotiation Integrative Negotiation

DISTRIBUTIVE NEGOTIATION

Parties compete over the distribution of a fixed sum of value. The key question in a distributed negotiation is, Who will claim the most value?

The Sellers goal is to negotiate as high a price as possible; the Buyers goal is to negotiate as low a price as possible.

INTEGRATIVE NEGOTIATION
In

Integrative Negotiation, parties cooperate to achieve maximum benefits by integrating their interests into an agreement. This is also known as a win-win negotiation. key questions is: How can the resource best be utilized?

The

BATNA
BATNA is an acronym for:

Best Alternative To
a

Negotiated Agreement

Why BATNAS Matter

BATNAs tell you when to accept and when to reject an agreement

When

a proposal is better than your BATNA: ACCEPT IT a proposal is worse than your BATNA: REJECT IT

When

BATNA
Best Alternative to a Negotiated Agreement Develop your BATNA

- List your alternatives - Evaluate your alternatives - Establish your best as your BATNA

Consider their BATNA Have a Reservation Point the least you will accept List their alternatives their BATNA

BATNA EXAMPLE
A person goes for car purchase. [To negotiate with showroom sales man for lesser price] The car owner is not agreeing for the lesser price. Than customer can ask for Radial tires[best alternative] with any increase in price further.