Scribd
Upload
38 views

Negotiation Skills: Session 10: Bargaining-An Integral Part of Negotiation

Bargaining is a form of distributive negotiation that focuses on dividing up value rather than creating it. It revolves around a single issue like price, salary, or other terms. Opening offers are important as they help establish anchors. Bargaining allows for price discrimination where higher prices can be charged to those who want or need an item more. Collective bargaining is a process where worker representatives negotiate with employers to improve pay and working conditions for a unified group of workers. It aims to reach agreements in good faith while respecting the roles and interests of both parties.

Uploaded by

Surajit Das
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
38 views

Negotiation Skills: Session 10: Bargaining-An Integral Part of Negotiation

Bargaining is a form of distributive negotiation that focuses on dividing up value rather than creating it. It revolves around a single issue like price, salary, or other terms. Opening offers are important as they help establish anchors. Bargaining allows for price discrimination where higher prices can be charged to those who want or need an item more. Collective bargaining is a process where worker representatives negotiate with employers to improve pay and working conditions for a unified group of workers. It aims to reach agreements in good faith while respecting the roles and interests of both parties.

Uploaded by

Surajit Das
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 15

Negotiation Skills

Session 10: Bargaining-an


Integral Part of Negotiation
What is Bargaining?
• A simple form of the distributive negotiation process
• It is both competitive and positional.
• It doesn’t seek to create value but instead focuses on
negotiators claiming value
• Bargaining very often revolves around a single issue—
usually price.
Purpose of Bargaining
• Price
• Service
• Supply
• Salary
• Employment matters (Collective Bargaining)
Opening Offer
• Understanding that your and the other negotiator’s
opening offers are the most powerful predictors
• Whichever negotiator is more successful in anchoring
their opening offer will enjoy more of the bargained
value
• Defining your walk-away level and not going beyond
Bargaining and Price

• Bargaining is an alternative pricing strategy to fixed prices


• It allows price discrimination
• A seller can charge a higher price to one buyer who is more
eager (by being richer or more desperate)
• Haggling has largely disappeared in parts of the world where
the cost to haggle exceeds the gain to retailers for most
common retail items
• However, for expensive goods sold to uninformed buyers
such as automobiles, bargaining can remain commonplace
Factors Affecting Bargaining
1 Where it takes place
i. Regional differences
2 Theories
i. Behavioral theory
ii. Game theory
iii. Bargaining and posted prices in retail markets
iv. Processual theory
Factors Affecting Bargaining (Contd.)
2. Theories
v. Integrative theory
vi. Narrative theory
vii. Automated bargaining
viii. Anchor Pricing
Bargaining at Workplace: Collective
Bargaining
• Collective bargaining is the process of negotiation during
meetings between representatives and their employer, often
to improve pay and conditions
• This process allows workers to approach employers as a
unified group
• The aim of collective bargaining is to reach an agreement
between employers and workers
• Members can contribute to discussions by talking to their
representatives while negotiations take place
Collective Bargaining- ILO
“All negotiations which take place between an employer, a
group of employers or one or more employers' organizations, on
the one hand, and one or more workers' organizations, on the
other, for:
• determining working conditions and terms of employment;
and/or
• regulating relations between employers and workers; and/or
• regulating relations between employers or their organizations
and a workers' organization or workers' organizations.” (Article
2)
Role of Workers’ Representatives
• Make sure that members’ views and concerns are fed into
the bargaining process;
• Keep members informed of developments;
• Canvas members’ views and make sure they are fed back into
the negotiation process;
• Encourage members to take part in ballots, surveys, etc;
• Keep members informed of the outcome of any negotiations
Workers’ Union and Collective Bargaining
• Trade Unions are registered as per provisions given in Trade
Unions Act, 1926. They resolve trade disputes
• “Trade dispute" means any dispute between employers and
workmen or between workmen and workmen, or between
employers and employers which is connected with the
employment or non-employment, or the terms of
employment or the conditions of any employed "workman“
• Recognition of Union is a matter of discretion in the hands of
the employer
Workers’ Union and Collective Bargaining
(Contd.)
• If the number of workmen in the particular establishment is
less than 100 then 10% of the total workmen is required to
form a trade union
• If the number of workmen in a particular establishment is
more than 100 then the minimum number of members
required to form a trade union is 100
• Over 94 percent of India's working population is part of the
unorganized sector
Criticism of Collective Bargaining
• Workmen covered by collective bargaining agreements earn
more than their non-unionized peers
• Rights at Work affirms the importance of the effective
recognition of the right to bargain collectively, but
unemployed people are ignored
• Workmen directly cannot go for collective bargaining and
due to corrupt practices often their interests are not
protected
Conditions for Effective Collective
Bargaining
• Making efforts to reach an agreement
• Carrying out genuine and constructive negotiations
• Avoiding unjustified delays
• Respecting the agreements concluded and applying them in
good faith
• Giving sufficient time for the parties to discuss and settle
collective disputes
• Representatives are honest and trusted
Concluding Remarks on Collective
Bargaining
• Bargaining in good faith aims at reaching mutually
acceptable collective agreements
• Where agreement is not reached, dispute settlement
procedures ranging from conciliation through mediation to
arbitration may be used
• The collective bargaining process also covers the phase
before actual negotiations - information sharing,
consultation, joint assessments - as well as the
implementation of collective agreements

You might also like