Nego Tech Prisca
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Transcript of Nego Tech Prisca
NAME: Prisca amaten bango
I.D NUM: bba- f1308 - 0322
COURSE: NEGOTIATION TECHNIQUES
LECTURER: MR DEV
TABLE OF CONTENT
Topics Pages
Introduction………………………………………………….………………………………………..3
Define parties and their goals and issues. ……………………………………………………………4-5
Q2. Compare and contrast the negotiation situation in these two branches. Culture& ways
of negotiation. How different do you see negotiation situation in these two countries………………6-7
Q3. Should company accept the requests? What is your suggestion? ………………………………..8
Q4. Compare and contrast the negotiation techniques used for two different requests. ……………..9
Q5. What kind of preparations would you have for the negotiation meetings? ....................................10
Conclusion …………………………………………………………………………………………….11
References……………………………………………………………………………………………...12
pg. 2
Introduction
This case study is written and evaluated to give better knowledge about what is negotiation and how culture background affects negotiation process.
pg. 3
Question 1
Employee is a person who is hired to provide services to a company on a regular basis in
exchange for compensation and who does not provide these services as part of an independent
business. The major aim of an employee is to work at their best and get good pay for it. An
individual who works part time or full time under a contract of employment, whether oral or
written, express or implied, and has recognized rights and duties. They are also called worker. In
this case, both parties are interdependence on each other. An employer owes their employee the
following duties, which again can be implied by the law or may be found in the employment
contract such as duty to pay the employee the agreed amount if the employee arrives for work
and is able to work, provision with work to do but if the employer does not give the employee
any work or if not working could damage the employee's reputation, observe health and safety
regulations, give employees correct information about rights under their contract, give
employees reasonable opportunity to have their complaints looked at and basically they must
show respect for each other. The major issue the employees are having is the poor quality work
life and inability of the employer or organisation to fulfill their promises on the increase in wages
and salaries as earlier agreed. Therefore, they embark on strike in order for their goals to be
achieved which is quality work life and substantial increment in their salaries and wages.
On the other part which is the Employer; is a legal entity that controls and directs employee or
worker under an implied contract of employment and pays him or her salary or wages in
compensation. These may be explained in the contract of employment, but there are certain
obligations and duties owed by an employee to their employer, even if the contract does not
mention them. These include doing what a reasonable employee would do in any situation, duty
to be honest, not to disrupt business, for example, taking part in industrial action, disclose
wrongdoing, carry out and follow orders of the employer as long as they are legal, not to disclose
the employers confidential information, work with reasonable care and skill, look after the
employers property if using it, not to compete in business against the employer while still
working for them as an employee, not to take bribes and be prepared to change when the job
changes. The goal of an employer is to make maximum use of the employees, low overhead cost
and production of goods with zero defects and maximization of profit but this goal is hampered
by the global recession causing revenue reduction and making it difficult for the employer to
pg. 4
keep to it promises with the employees. Things became worse when the employees in the US and
India branch embark on an indefinite strike in a bid to achieve their goals.
pg. 5
Question 2
Negotiation is a form of social interaction. It is the process by which two or more parties try to
resolve perceived incompatible goals (Carnevale, et al. 1992). The only similarities between
these two countries in negotiation is the Goal in negotiation whether contract or relationship.
This dimension refers to the primary goal of a business negotiation to arrive at a signed contract
or to build a relationship between the two parties (Salacuse, 2003). The two countries always
want to build relationship after a successful negotiation leading to win-win situation for both
parties. They exchange contacts and always want to do business again with each other. While the
Differences between India and United States during Negotiations are:
Attitude: win–lose or win–win?
Business negotiators tend to approach a negotiation with one of two basic attitudes: it is either a
process where both parties can gain or a struggle in which there is a winner and a loser
(Salacuse, 2003). Indian negotiators are known for win–lose or win–win outcomes, whereas US
demonstrated a greater preference for win–win results.
Time sensitivity: high or low?
It is important to check whether negotiators from a given country are punctual or late and
whether negotiators from a particular country negotiate slowly or are quick to make a deal.
Americans always like the parties to be punctual because they make decisions fast and believes
time is money while Indians conduct it with leisure and in a slow pace (Salacuse, 2003).
Personal style: informal or formal?
This refers to the way in which negotiators talk and interact with others, use titles, and dress
(Salacuse, 2003). Negotiators from India practice and adhere to formal procedures but the
atmosphere is friendly and much more relaxed while US negotiators does not like formality in
negotiation. All they concern themselves about is for their interest to be realized.
Communication: direct or indirect?
This is referring to the mode of interaction between the negotiators because some countries
prefer direct and simple communication, while others employ an indirect (Salacuse, 2003). The
patterns of response in USA is direct and straight to the point while negotiators from India belief
pg. 6
that use of some words such as No, Never is harsh and disrespecting but instead they respond
with soft and gentle tone but still responding indirectly.
Emotionalism: high or low?
This is the tendency to act emotionally and to display emotions while negotiating is captured in
(Salacuse, 2003) sixth dimension. Indian most time have the tendency of letting their emotions
overrule them and affect the negotiation process but the Americans do not operate with emotions
instead they prefer facts with good Batna.
pg. 7
Question 3
As the Petro Trans chief negotiator, I suggest that the company should negotiate with the
employees or the union first before accepting their request. The purpose of this negotiation is to
resolve the pending issues amicably in other for both parties to win and operations can start again
in both branches. Despite the current financial state of the organisation as a result of economy
breakdown, the company cannot afford to lay off all the employees because of their know-how
about the company work and amount of resources that has been invested in them. Also, the
organisation cannot afford to jeopardize the goodwill built over the years. Another critical reason
why the organisation should accept their request is to avoid going public in terms of filling a law
suit against the company for extortion and poor quality of work life which they are likely to win
and the organisation may not recover from it again. For example, now many Americans are
striking back in court, since the height of the recession in 2008, more workers across the nation
have been suing employers under federal and state wage and hour laws. The number of lawsuits
filed last year was up 32% vs. 2008, (USA Today, 2012).
pg. 8
Question 4
This negotiation can kick off by using lowball tactics on the union representatives by starting
from an extreme offer which is far away from their request. The main motive of doing this is to
get the union representative to reduce their request, state their resistance point or move beyond.
Although using this tactics can be risky, as the union might see it as a waste of time but both
parties having it mind how hard it is to get job as a result of the economy recession especially the
Indians because of the unemployment rate. A little bit of chicken tactics can also be added if
they are not ready to come down on the opening offer, which if the agreement is not reached the
company may decide to close down its operations because of its present state financially. (Roy, J.
2010).
As the chief negotiator, I will desire to negotiate separately because of the differences in culture,
currency, exposure, level of education, economy, labour laws and standard of living. Negotiating
differently with the union representative from both branches will enable each branch to be
addressed based on their laws and standard of operations in their location. In India, they belief
everything is negotiable, so they know that the company will still negotiate and they are open to
it unlike the US where not all things are negotiable. Also, there are no stricter measures to their
labour laws and policies and their standard of living is quite low compare to their counterpart
while in the US they have high preference for quality work life, currency is high, well exposed,
employees are well educated, individual rights is protected at all times and their labour union is
functioning and active. Therefore, negotiating separately will make things easy for the company
as India branch is likely to be more of advantageous to the company but otherwise is the case in
the US (Kurz, 2000).
pg. 9
Question 5
Be clear about what to achieve before starting the discussions and do some research and get
advice about the situation before negotiation (Roy, et al 2010). For example, checking the
industry to see how other companies packages are in terms of quality work life and wages paid to
their employees. General knowledge of labour union laws in each branch must be understood
including how they negotiate. Company financial situation must be properly checked to be sure
if the outcome of the negotiation will not affect its existence. From all this, as a negotiator, it
would be able to gather its best alternative to a negotiated agreement.
pg. 10
References
Carnevale, P. and Pruitt, D.G (1992) Negotiation and Mediation. Annual review of Psychology.
Vol 43, pp. 531-582.
Kurz, W. C. F (2000) International business negotiations in the United States: In James R.
Silkenat, and the ABA guide to international business negotiations: A comparison of cross
cultural issues and successful approaches. Chicago: ABA Publishing.
Kras, E. S (1989) Management in two cultures: Bridging the gap between U.S. and Mexican
managers, Yarmouth Mexico Intercultural Press
Roy, J. K., Bruce, B., and David, M. S (2010) Negotiation, 6th Edn New York, McGraw Hill
International
Salacuse, J, (1991) Making global deals: Negotiating in the international marketplace, 2nd Edn
Boston, Houghton Mifflin Publishers
Salacuse, J., (1998) Ten ways that culture affects negotiating style: Some survey results.
Negotiation Journal, vol. 14(3), pp. 221–235.
Salacuse, J. W. (2003) The Global Negotiator: Making, managing, and mending deals around the
world in the twenty-first century. New York, Palgrave Macmillan
USA today, a daily Newspaper 19-4-2012- more American workers sue employees
pg. 11