Negotiation

NEGOTIATION
PROCESS OF NEGOTIATION
• Preparation and planning
• Definition of Ground Rules
• Clarification and justification
• Bargaining and problem solving
• Closure and implementation
Types/forms of Negotiation or negotiation
strategies
• 1. Adversarial negotiation: Adversarial negotiation occurs most often in
distributive negotiation situations. In this type of negotiation, the parties
openly compete against each other. Each party acknowledges that the stakes
are high and that if one side wins, the other will lose. Adversarial negotiation
can involve bad-faith negotiation tactics, where one party’s dishonesty about
willingness to negotiate can lead to breakdowns in the process.
(competitive/Aggressive)
• 2. Distributive negotiation: A distributive negotiation, also known as a zero-
sum negotiation or a win-lose negotiation, is a negotiation over a fixed or finite
resource. Distributive negotiation requires any party’s gain to come at the
other’s expense. This type of negotiation requires clear priorities, persistence,
and control over your emotions, as they can be contentious and difficult.
3. Integrative negotiation: This type of negotiation, also known as
collaborative negotiation, can occur when parties negotiate over more
than one area or resource. This makes it possible for both parties to
come out ahead, which is why you can also refer to this as a win-win
negotiation. In a win-win situation, while both parties may have to give
something up, both can also gain something in the bargaining process.
4. Multiparty negotiation: As the name suggests, the multiparty
negotiation type involves more than two parties seeking a solution. The
complexity of multiparty negotiations, which require careful
organization, makes them challenging. However, more negotiating
parties often means more opportunities for gain. This increases the
odds of integrative outcomes, where all parties make concessions to
reach a mutually beneficial result.
5. Principled negotiation: Principled negotiation relies on the principles
and standards of the negotiators to come to an integrative agreement.
This is a preferred negotiation type, as it seeks to find a solution that
works for all parties and to avoid hard bargaining or deception. A
principled negotiator is always on the lookout for mutual gain.
6. Team negotiation: Team negotiation occurs when each party has a
team of negotiators working in concert. Negotiation teams require
coordination and specialization, and can challenge inexperienced
negotiators. The distribution of responsibilities can lead to greater
effectiveness from the team as a whole. This collaborative approach
helps teams prevail in complex negotiations.
Importance Of Negotiation
• Building Relationship
• Communication
• Conflict Resolution
• Builds confidence
• Decision making
• Active listening
Worker's participation in Management
• Workers’ participation in management is a process by which subordinate
employees, either individually or collectively, become involved in one or more
aspects of organizational decision making within the enterprises in which they
work.
• Workers’ participation in management is an essential ingredient of Industrial
democracy. The concept of workers’ participation in management is based on
Human Relations approach to Management which brought about a new set of
values to labour and management. Traditionally the concept of Workers’
Participation in Management (WPM) refers to participation of non-managerial
employees in the decision-making process of the organization.
• Workers’ participation is also known as ‘labour participation’ or ‘employee
participation’ in management.
Features of Workers Participation In
Management
• Participation means mental and emotional involvement rather than
mere physical presence.
• Workers participate in management not as individuals but collectively
as a group through their representatives.
• Workers’ participation in management may be formal or informal. In
both the cases it is a system of communication and consultation
whereby employees express their opinions and contribute to
managerial decisions.
Objectives of Workers Participation in
Management
The objectives of workers’ participation in management are as follows:

• TO promote internal democracy
• To raise level of motivation of workers by closer involvement.
• To provide opportunity for expression and to provide a sense of importance to
workers.
• To develop ties of understanding leading to better effort and harmony.
• To increase workers accountability
• To raise quality of work life
• To ensure better communication
Forms of Participation
1. Suggestion Scheme:
Under this scheme, a suggestion committee is constituted consisting of equal number of members from
management and workers. A suggestion box is installed at an appropriate place in the organisation. Workers are
invited and encouraged to put their suggestions for improving working of the organisation into the suggestion box.
The suggestion committee periodically scrutinizes the suggestions given by the workers. Good suggestions are
accepted and implemented and also rewarded. This encourages workers to make more and better suggestions.
2. Works Committee:
Under section 3 of the Industrial Disputes Act, I947, and the appropriate Government may require an enterprise
employing 100 or more workers, to constitute a works committee with equal number of representatives from the
employees and the management. The main purpose behind Constituting works committees is to evolve ways and
means for maintaining cordial and harmonious relations between the employees and the management.
3. Joint Management Councils (JMCs):
JMCs were introduced first in 1958. These councils are formed at plant level with equal number of representatives
from employers and employees. These are mainly consultative and advisory ones. Hence, neither the workers nor
the employers take them seriously.
The responsibility of the JMCs is relating to matters such as working conditions indiscipline, absenteeism, training,
safety, accident prevention, preparation of holiday schemes, etc. However, it was alleged that JMCs and work
committees appeared similar in their scopes and functions. Further, multiplicity of bipartite consultative bodies did
not serve any purpose.
• 4. Board Representation:
• Under this scheme, one or two representatives of workers are nominated or elected on the Board
of Directors. The basic idea behind incorporating workers’ representation on the Board of
Directors is to safeguard the workers’ interest, usher industrial harmony and good relations
between the workers and management. This is the highest form of workers’ participation in
management.
• The Government itself, as an employer, introduced this scheme in several public sector enter
prises such as Hindustan Antibiotics Ltd., Hindustan Organic Chemicals Ltd., National Coal Mines
Development Corporation, Bharat Heavy Engineering Ltd., National Textile Mills, etc.
• This scheme required the verification of trade union membership, identification of the
representative union and selection of a worker director who is selected out of a penal of three
persons furnished to the government by the representative union within a prescribed period.
• Subsequent to the nationalization of banks in 1970, the Government, under the Nationalized
Banks (Management and Miscellaneous Provisions) Scheme 1970, introduced the nomination of
workers’ representatives as directors to the Boards – one representing employees arid the other
representing officers for a tenure of 3 years.
• According to a study of the scheme introduced in the nationalized banks conducted by the
National Labour Institute, the scheme has failed in its objectives because of the contentions
raised about the scheme by both employees (trade unions) and employers.
5. Co-partnership:
Co-partnership means employees participation in the share capital of their own
company. Under this scheme, workers are induced to buy equity shares of the company.
Workers may be allowed to make payments in installments, advanced loans or even give
financial assistance to enable workers to buy equity shares. Workers hold sixty-one per
cent of the shares of Otto India, Calcutta and forty-one per cent of the shares of Sehgal
Sanitary Fittings, Jallandhar, for example.
As shareholders, workers take part in the management by way of electing their
representatives to the Board of Directors. However, the workers’ participation under this
method is limited. Hence, trade unions in India do not favour this scheme.
Nonetheless, workers’ participation in management through co-partnership scheme was
approved logical in India by the Supreme Court in its judgment in Navneet R. Kamani vs.
R.K. Kamani, in 1984, by allowing workers to takeover a sick unit. Kamani Tubes, New
Central Jute Mills, Kamani Metals and Alloys, Powder Metals and Alloys and HCS Ltd., are
the examples of enterprises in which workers through shareholding participate in
management by their respective workers’ co-operatives.
6. Workers Complete Ownership:
Under this scheme, workers acquire complete control of management of
their enterprise through an elected board or/and Workers’ Council. This
system of participation is also called “self management. This prevails in
Yugoslavia. In this system, two different sets of persons perform two
distinct types of functions, namely, managerial and operative.
This system of participation is characterised by virtues like workers’
identification with their organisations, loyalty and responsibility to
organisations, etc. This ushers in industrial harmony and peace for the
organisation. Expectedly, trade unions favour this form of workers’
participation in management.
Besides, the following are the alternative forms of workers’ participation in
management-
Collective Bargaining, Empowerment, Quality Circles.
Importance of Workers Participation In
Management
• Unique motivational power and a great psychological value.
• Peace and harmony between workers and management.
• Workers get to see how their actions would contribute to the overall
growth of the company.
• They tend to view the decisions as `their own’ and are more
enthusiastic in their implementation.
• Participation makes them more responsible.
• They become more willing to take initiative and come out with cost-
saving suggestions and growth-oriented ideas.

Negotiation

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NEGOTIATION

The objectives of workers’ participation in management are as follows:

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