Boh4m Human Resources Labour to Negotiation PDF

Human Resources Day 3 – BOH4M LABOUR RELATIONS Management Fundamentals - Chapter 12 2 Discussion Questions - Q&A 1. What is a union? 2. How is one formed? 3. Are unions becoming more or less powerful? Management Fundamentals - Chapter 12 3 Four Corners Activity “Unions are great for the wo...

Human Resources Day 3 – BOH4M LABOUR RELATIONS Management Fundamentals - Chapter 12 2 Discussion Questions - Q&A 1. What is a union? 2. How is one formed? 3. Are unions becoming more or less powerful? Management Fundamentals - Chapter 12 3 Four Corners Activity “Unions are great for the world” Move to one of the following four corners of the classroom based on the degree to which you AGREE with this statement (1 being completely agree, 4 being completely disagree). Management Fundamentals - Chapter 12 1 2 4 3 4 Figure 12.5 The traditional adversarial view of labormanagement relations. Management Fundamentals - Chapter 12 5 Study Question 5: How do organizations maintain a quality workforce? ➢ Unions can create difficulties for management by… ➢ Management can create difficulties for unions by… – Striking – Using lockouts – Boycotting – Hiring strike-breakers – Picketing – Seeking injunctions Management Fundamentals - Chapter 12 6 Negotiating ● Bargaining Power – Is an advantage that one side has over the other side • Ex) Labour’s bargaining power is that they are not easily replaceable due to either specialized skills or lack of alternatives in the markets caused by factors such as a low unemployment rate. – This would give bargaining power to labour because if they strike management will struggle to find replacement workers to carry on business operations • Ex) The business is nearly bankrupt and management asks for a wage decrease in order to maintain operations. – This would give bargaining power to management because labour will lose their jobs if they allow the company to go bankrupt. Management Fundamentals - Chapter 12 7 Negotiation Preparation ● To prepare for a labour-management negotiation, both sides need to decide upon the following terms: 1. Opening Position 2. Target 3. Resistance Point Management Fundamentals - Chapter 12 8 Negotiation Preparation ● Opening Position: – Is what your side (either labour or management) presents to the other side at the beginning of the negotiation • Ex) Management tells labour that their opening position is a wage decrease of 25%. Labour tells management that their opening position is a wage decrease of only 5%. In all likelihood, they will agree upon a solution that is somewhere in between their opening positions. • Ex) Management’s opening position is that the performance appraisal system will remain 100% graphic rating scale. Labour’s opening position is that the system will switch to 100% BARS. Management Fundamentals - Chapter 12 9 Negotiation Preparation ● Target – Is what your side (either labour or management) secretly wishes to achieve. – This is based off of the idea that neither side realistically expects to achieve their opening position. The target is their realistic goal. • Ex) Management’s opening position was a 25% decrease in wages but their target is actually a 16% decrease in wages. • Ex) Labour’s opening position was a 100% BARS rating scale but they are secretly targeting a 50% BARS with 50% critical incident technique. Management Fundamentals - Chapter 12 10 Negotiation Preparation ● Resistance Point – Is the point below which your side is secretly not willing to drop. – It is crucial that the true resistance point remains secret from the other side. • Ex) Management’s opening position in wage decrease was 25%, their target was 16%, but they are not willing to accept less than a 7% drop in wages. • Ex) Labour’s performance appraisal opening position was 100% BARS, their target was 50% BARS and 50% critical incident technique, but they are absolutely not willing to accept less than a 20% BARS system. Management Fundamentals - Chapter 12 11 Effective Negotiation 12 Rules to Effective Negotiation (1/4) ● Being informed and prepared is the first step ● Be firm but reasonable ● “Don’t Negotiate” – State the situation rationally and clearly as it applies to you and say what you need. – Only negotiate when you must. – Furthermore, let the other person make the first offer. ● Stay calm, level-headed, and professional at all times ● Always reject the first offer – People hold back. The first offer will not be the best one for you. Management Fundamentals - Chapter 12 13 Rules to Effective Negotiation (2/4) ● Lead with your list price (your opening position) – Do not negotiate with yourself. Be clear about what you want. It’s enough that you’ll need to already negotiate with the other person. ● Listen – The 80/20 rule. – Don’t give away any unnecessary information. Make them ask for something. ● Be patient – Take baby steps towards your resistance point ● Consider all negotiating topics (I’ll give a little bit on this point if you give a little bit on this other point) Management Fundamentals - Chapter 12 14 Rules to Effective Negotiation (3/4) ● Take your time – If the other side speeds things up, it probably means they’ve noticed an advantage and are trying to close quickly OR that you’ve made a mistake and they don’t want you to see it. – Slow it down. This isn’t a sale where you want to close quickly. Dictate the pace. ● Prioritize (try to give on your less important topics and take on your more important topics), but only divulge these priorities to your opposition if it is for a strategic reason. ● Always ask yourself “what is this worth to the other side?” and use that information to your advantage. Management Fundamentals - Chapter 12 15 Rules to Effective Negotiation (4/4) ● $10 to $30 – Value is subjective and dependent. Something might be worth $10 to your side but it may be more valuable (worth $30) to the other side. Look for opportunities to make these exchanges and focus on adding value to your side. ● NEVER tell the other side your bottom line (aka, your resistance point) – If it’s during the deal, they can use this to their advantage. – If it’s after the deal, it may leave them feeling bitter. ● Treat it like chess. See their perspective. Management Fundamentals - Chapter 12 16 Practice Negotiations Pick one of the following issues. With a partner, take two opposing sides. Try to come to an agreement. 1. Peace between North Korea and South Korea 2. Peace between Israel and Palestine 3. Conservative versus liberal tax policy 4. School uniforms versus non-school uniforms 17