Explain what the parties were negotiating for. What were their interests?
Indicate both the power position and the rights of the two parties
As the observer assess the following for both the worker and manager:
Was the managers decision rational, or not so rational, and why?
Were there emotions that came through in the negotiations? What were they and how did these impact the negotiations? How were they handled?
Did the manager stay with no? Why or why not?
Where did the party’s power come from?
Was persuasion used? If so, how and what were the outcomes?
What moves and turns happened in the negotiations and why?
Was there accountability created? If so how and why?
What concessions were made and why?
Did either party show signs of a master negotiator? If so, what were the signs and when in the negotiations did you spot them?
How was the negotiations closed? What suggestions would you make for improving the close?
Knowledge as a Key Factor in Salary Increase Negotiation
The negotiation is based on salary increase where the employee is demanding for a salary increase. The employee also wants the manager to put some various factors into consideration. The factors include an improved dental plan and a better coffee machine among others. On the other hand, the manager salary is aimed at reducing cost but not increasing the cost. Due to the differences in their standing the parties join together to discuss the matter and find solutions. The paper reviews the conversation development highlighting major occurrences in the conversation. The paper also gives a recommendation on the improvement of the weaknesses sighted during the conversation.
An employee has knowledge of the payment of wages in the market based on information obtained from other organization salary distribution. The knowledge gives an employee the power to bargain for wage increase since the company operates in the same business field as the others offering increased wages (Harris, 2018). The employees can also obtain information from research in an online platform that offers information concerning wages, for example, the national compensation survey. The information obtained acts as a reference to the argument raised by the employee. In addition, an employee can base his or her argument on the workload and delivery. On the other hand, the manager evaluates the performance of an employee to determine the salary allocation. The evaluation gives the manager the power to support the reasons behind salary increase rejection. The manager also has knowledge concerning the organization performance through which he or she justifies wage allocation.
The Manager makes decisions concerning issues affecting the business based on their effect on the business and rationality. However, under some circumstances, the decisions made are unjust to the opponent party. The circumstances include lack of adequate information on the topic of discussion, allocation of inadequate time for discussion on the given matter and application of limitation of limitations based on the power given to the manager by the organization (Certo, Connely & Tihanyi, 2008). The manager's decision is irrational since he bases it on the loss aversion other than the available information on the salary issue. In addition, the manager may consider an increase in salary as a risk to the company while as it can serve as motivation to the employees. As a result, the employees will increase their efficiency in the production.
During the conversation, emotions do arise and affect the negotiation development either positively or negatively. In the course of the conversation, the manager sticks to his no addition principle. As a result, the employee develops anger and press on the demand. The continued harsh demand provokes the manager making him or her angry. The manager responds by ruling the case unjustly against the employee. More so the manager threatens the employee of deployment. Following the intimidation created by the manager, the employee gives up on the demand to avoid further risk-taking (Lerner, Li, Valdesolo & Kassam, 2014). The emotions also develop to affect the relationship between the employee and the manager since they develop hatred and demoralization due to the injustice in decision making.
Expertise and Legislative Powers Used by Managers
In salaries increment, discussion disagreement always arises triggering emotions. The disagreement seems to be threats from a personal perspective. To manage the emotions in such a conversation, one should develop a way to capture their attention and control their mind activities. Among the ways include taking of a breath that helps develop relief by affecting emotional thoughts. In addition, one can take a break to cool their emotion (Gallo, 2017). The break helps lower the concentration on the matter at hand giving one a chance to explore other matters that are not involved in the discussion.
During the conversation, the manager insists that the company cannot afford to increase the employee’s salary. The manager bases his argument on the employee performance as well as business performance. He develops a risk-taking perspective that would lead the company to losses. More so the employee demand for a better coffee machine is regarded as more beneficial and does not contribute to the general development of the company. As a result, the request is rejected based on the managerial salary aim of reducing cost. The manager also reviews the roles and advantages extended to the employee by the company. Following these justifications, the manager rejects the demands made by the employee.
For the different parties to justify their point of view they need to have power in support of their interests. Managers do exercise their expertise nature to justify their perspectives. The expertise level is developed through specialization. Through the experience, the manager has the necessary knowledge needed to solve and analyze factors affecting the organization and employees for example salary increase (Ramezani, Nedaee, Alimohamadi & Firouzjah, 2013). Manager also exercise their legislative powers given to them by the organization following their high ranks in the business ranking. On other hand, employees do use information developed mostly by the company management. Among the key information used to support their ideology are promises made by the company on their welfare more so on salary increase and welfare development. The employee demands for the execution of the promises as was illustrated by the business management.
Leaders develop the persuasive character to influence the employee into their way of thinking. Persuasion plays a great role in determining the outcome of a meeting. The effective character within leaders helps persuade the employee to consider the general good of the company other than their own well-being. The character application helps in developing logic behind an argument. As a result, the emotional reaction is influenced to allow for cooperation (Dellaert & Davydov, 2017). In return, the employees give in to the logic developed by the manager. In developing the character, the leader selects the best tactic of approach with respect to the target audience.
Emotions in Negotiation Development
During the negotiation development, various activities took place among them been listening to the argument developed by either party. Due to failure in negotiations in power is enacted and incentives posed. The use of power lowers the reaction by the employee due to the fear of facing the consequences arising from the incentives posed. As a result, the management manages to intimidate the employee. In return, the employee gives up on the demands and gives in to the company’s recommendation.
The decision reached following a discussion is determined by the accountability of the parties involved (Bouwan, Thiel, Deemen & Rouwette, 2017). In the above discussion, the manager is accountable for meeting the business goal of reducing cost. On the other hand, the management fails by developing injustice decisions on the employee’s petition. The employees fail in accountability by giving up the demands and following the organization directions.
Concession involves coming up with strategies that will help solve the problem raised. the conversation undertook the process of developing strategies that will help avoid the situation in future. Both parties engaged in a study of the effectiveness and relevancy of the matters raised. after the analysis the parties came up with a memorandum of understanding that entailed the strategies to be adopted by the organization.
Following the experience developed by the manager, he was able to develop effective communication that showed mastery of the topic. Also, the employee was able to develop significant negotiation skills based on the information obtained from the research. The superiority developed by both parties assured for mastery of negotiation skills.
The closure of the negotiation was reached after an agreement was developed. The developed memorandum was signed to signify the development of an agreement. In addition, the parties developed a procedure that would ensure the realization of the developed strategies. However, the development did not give time for weighting of the strategic decision developed. As a result, the decision may fail in future due to poor evaluation (Katz, Kochan & Colvin, 2015). Recommendations are made for the consideration of evaluation of strategies developed.
Business negotiations are necessary for the management of crisis within an organization. During the negotiation, the parties involved should analyze the issues raised and determine their relevancy to the business goals. The parties involved should initiate and develop a healthy discussion of the matters raised. the development will help avoid conflicts in the course of the negotiation. Lastly, the parties involved should develop a memorandum of understanding that will help solve the challenges.
Bouwan, R., Thiel, V., Deemen, V. & Rouwette, E. (2017). Accountability and coalitions: evidence from a negotiation experiment. Public administration review, Vol. 78 Issue 1, pp. 37-47
Certo, T., Connely, L. & Tihanyi, L. (2008). Managers and their not so decisions. Kelley school of business, Indiana University, pp. 113-119. Retrieved from www.sciencedirect.com
Dellaeart, M. & Davydov, S. (2017). Influencing: the skill of persuasion: building commitment and getting results. Center for creative leadership, pp. 1-13
Gallo, A. (2017). How to control your emotions during a difficult conversation. Retrieved on 28th October 2018 from https://hbr.org/2017/12/
Harris, B. (2018). Information is power: fostering labor market competition through transparent wages. Kellong school of management. The Hamilton project, pp. 1-20
Katz, C., Kochan, A. & Colvin, A. (2015). The negotiations process and structures. ILR Collection. Pp. 121-164. Retrieved on 28th October 2018 from https://digitalcommons.ilr.cornell.edu/articles
Lerner, S., Li, Y., Valdesolo, P. & Kassam, K. (2014). Emotion and decision making. Manuscript submitted for publication in the annual review of psychology, pp. 1-38
Ramezani, N., Nedaee, T., Alimohammadi, H. & Firouzjah, A. (2013). Managers power bases, employees job stress and intent to stay. European journal of experimental biology, Vol. 3 Issue 6, pp. 14-21
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