Tiger Airways Singapore Pte Ltd- Singapore Airlines Limited is the holding company of Tigerair and established in 2004. This company is a leading airline company in Singapore, which is not only economic, but also offers numerous travel options at affordable price. It aims at providing best airline services to the customers. The Airline Company covers almost 40 destinations across Asia some of which includes Singapore, Bangladesh, China, Hong Kong, India, Indonesia, Macau, Malaysia, Maldives, Myanmar, Philippines, Taiwan, Thailand, and Vietnam. They not only offer numerous destinations to their customers but also ensure the safety and security of the customers. The company assures that their service is completely reliable and secure. Headquarter of Tigerair is located at the Honeywell Building in Changi, Singapore. The airline service is scheduled to commence from 15th September 2004 (Tigerair, n.d.).
On 30th March 2016, Tigerair entered into a sale agreement with Stellar Aircraft Holding 1 Limited, for the purpose of selling two Airbus A320 Aircraft. On 31st March 2015, these two aircraft are marked for sale, and their actual value was announced to be $71 million. Tigerair recorded a loss of $8 million on disposal after the completion of the sale process. The company took a huge amount of loan, and the amount received from the sale has been used to pay off the loan amount. In case, if the sale were completed at the end of the financial year then net cash position of the company would have increased from $3 million to $66 million as on 31 March 2015 (Tigerair, 2016).
I have been working in this company in the Operation Department from the past two years. The operation department manages the operational activities of the company. I am responsible for ensuring that all operations of the aircraft are executed legally and efficiently. My part of the job is to provide appropriate training to the crew and to ensure that they meet all the requirements related to licensing and other regulations.
Employees are considered as assets in a business organisation. One of the fundamental responsibilities of any organisation is an appraisal of the employees. An appraisal is a task, which includes negotiation. Negotiation involves the employees, the managers and the management of the organisation. During the process of appraisal, it is common that employees negotiate for higher salaries and promotions. At the end of the negotiation, there are usually two possibilities. Either both the employer and the employees are satisfied, or either of them is not. However, the satisfaction as well as the dissatisfaction, both completely depend on The Process Of Negotiation (Stark, n.d.). The consequence of the negotiation depends largely on the power possessed by each party, which may be explained in the following way:
Yourself: This power may be defined as a power of self-dependence. In other words, it means one who is not much dependent on others and this power is generally considered as BATNA, which stands for the best alternative to a negotiated agreement. In this type of power if an individual has strong BATNA before entering into negotiations, then he does not have to depend on the opposing party for fulfilling his needs as compared to those who has no alternative or one who is not self-dependant. Therefore, any person who has a strong alternative with powerful negotiation skills will prove to be a better dealmaker, and the result of the negotiation will be in their favour.
Sale Agreement with Stellar Aircraft Holding 1 Limited
Negotiators behave more proactively if during the process of business negotiation, their role is dominant and they have strong confidence. According to Adam D. Galinsky and Joe C. Magee, if an individual believes he is powerful, they receive power to negotiate the offer, which ultimately results in long-term gains and economic benefits. An employee possessing the power of self-dependence tends to receive numerous job offers from companies, and this places them in the position where they can negotiate better (Staff, 2016).
Sources of power: if employees are not content with their position in the company then they have the option to leave the company and find work in some other company. This acts as a major threat for the employer as it clearly hinders the operations of the company. Besides, it becomes very difficult to replace the efficient employees of the company immediately. Therefore, employees have greater power over the employee under such circumstances.
Head of the department- there are certain positions, which automatically grant power because of their authority or control on a number of operations in the company. This type of dictatorial power is defined as role power. Employees of the organisation, who have control over the resources as well, have the power to provide resources to those who need these resources. Similarly, they have the authority to take away the resources from those who are not in need of the resources. Some of the essential resources of an organisation are monetary resources, supplies, human capital, and support. All these resources are interpersonal related to each other.
Source of power: The primary source of authority of the head of the department is the high rank held in the organisation and authority they have in the organisation. This is the reason that at times the employees agree with the decision of his head in the negotiation. Therefore, high status in the organisation is a good source of power to win the negotiation (Davis, n.d.).
Employer: the third form of power that can be used in negotiations is mental power, and an individual may possess spiritual power when there is an absence of actual power. Professor Cameron Anderson states that the degree to what extent a person may feel the mental power varies from one person to another around. If an individual feels depressed, he may motivate himself by thinking of good times. Power does not come from a source, and on negotiations, it has likely effects, which can be both active and adverse. Therefore, it is advisable for an individual to deal with such power, which automatically encourages them and helps them to win the negotiation (Klenny, 2013).
Source of power: In case an employer holds a high rank in the organisation, then the employer may grant promotions and raises on an irregular basis, but there are many cases in which both employer and employees are fair negotiators. There are circumstances where the employer is compelled to reduce the salaries and benefits that are provided to the employees, and during this period the employer possesses power over an employee (Kottolli, 2006; Coburn, n.d.).
Employee Negotiations and Power Relationships
The strategy used for this business negotiation: For the purpose of consultation, we use the ‘Know Your BATNA' strategy. Many negotiators who underestimate themselves because they are not able to perceive the power they have within themselves. In several situations related to business negotiations, an individual has more power than he actually thinks he has. If one wants the negotiation process to be successful, then it is necessary that you provide all those things which other party needs and meet the necessary requirements of the party. It is mandatory that individual demonstrates a positive attitude at the time of negotiation and take care of some necessary things such as tone of voice and body language while interacting with the other parties, etc. (Gibson, 2011).
It is important for all negotiators that they know about their BATNA that is, their Best Alternative to a Negotiated Agreement. There are some negotiators who make mistakes and commence the negotiation process without any knowledge about their BATNA. They should spend adequate time for recognising their BATNA and work upon their BATNA accordingly. Employees must settle down for those terms that are similar to their BATNA, and it must be noted that employee does not reveal their BATNA during the negotiation process and not even during any informal conversation. Lastly, the essential factor, which is related to any business negotiation, is, to be honest about their BATNA during the negotiation process. Business ethics do not support false information or any form of fraudulent conduct, and it is highly imperative to maintain business ethical standards during a negotiation process (Kolmackova, 2011).
Following is the ten-step negotiation process, which is required for the purpose of successful business negotiation:
Prepare for negotiation: it is necessary that an individual must be prepared before entering into a negotiation, or he would not succeed in it. In order to start with the preparation one must ensure that you are clear about the results you want from negotiation. One is required to understand the needs and requirements of the other party as this research would help in evaluating the strengths and weaknesses of the other side. We may also seek help from various experts such as accountant and technical expert to help us prepare for the negotiation process.
Proper timing: schedules are paramount for every business negotiation, and it is necessary that individual must deal with everything timely. Therefore, it is necessary that person must know what he is asking for and the time when he is asking for the same. An employee must ensure that the relationship between the employer and the employee is not ruined.
Leave behind your ego: A good negotiator must conduct the negotiations in such way that other party feels like that final agreement was their idea, and overall they win the negotiation.
Improve your listening skills: A good negotiator must be a good listener too who pays full attention to the other party with patience, and after that, they represent their views. They must not interrupt the other person in the middle of the conversation, and it is best if they allow the other party to talk first. This attitude also helps the individual to follow the oldest maxim of business negotiation which states that whoever mentions the first number loses the deal (Thompson, 2013).
Strategy for Successful Business Negotiation
Ask what you want: another factor of successful negotiating is 'Go High or Go Home', and it is necessary that an employee tenders his highest price. Price must be justifiable. As long as an employee presents his contentions in a convincing manner, he must not feel reluctant to set high goals. There should be no ultimatums in the business negotiation deals, and the concept which states either accept the negotiation or leave the same should be followed (NG, 2014). During the negotiation process both the parties must present their views and express their individual demands to each other, and this conversation must be conducted keeping in mind, the business ethics standard. It is an opportunity available to both the parties as when they are engaged in a business negotiation that they can acknowledge and notify each other of the main issues as to why these problems are important and how they are co-related with each other. In this, both the employee and the employer may exchange such information or documentation, which are necessary to understand the matter (Luyet & Tamm, 2012).
Anticipate compromise: both sides are making plans and ready to provide concessions to each other, and both the employer and the employee try to offer their best deal. However, one must never accept the first offer made by the other party even if that offer is better than one had expected. One must pretend to be disappointed and decline the offer but in a polite manner because it might be possible that other parties may give better offers (Prinkley, 2012).
Offer and expect commitment: another essential factor is a commitment, which must be genuine because if the other party does not provide absolute commitment, then are chances that the deal may come to an end. Therefore, it is necessary that each party is aware of the comfort level of another party, and deals that do not demonstrate an absolute commitment must be averted.
Don't make their problems yours: in most business negotiations the employers tend to give reasons for not being able to agree with the offers of the employees. They expect the employees to consider these problems, but it is advisable that the employees deal with each problem in such manner that they are competent to give solutions to their problem. Therefore, it is suggested that the employees do not compromise with their goals after hearing the problems of the employer (The Sloan Brother, 2017).
Stick to your principles: an individual or a business owner, every person has their set of principles and values, which they cannot compromise on, and in case the business negotiation is against an individual's beliefs it is better that person ends the deal or follow one's ethical principles.
Close with confirmation: any meeting which was held for the purpose of negotiating, it is advisable that the deal ends with approval. In the event the parties do not come to any decision, they must consider the necessary factors and areas of agreement again. Such decision must be made which ensures confirmation by the employer, the employees and the management. Further, it must also make sure that neither of the parties is prejudiced. It is mandatory that such confirmation concludes with formal letters and e-mails (E-Myth, 2009).
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