Showing posts with label Negotiation. Show all posts
Showing posts with label Negotiation. Show all posts

Roles of a Manager for Managing Conflict

Behavioral guidelines for effectively implementing the collaborative (problem-solving) approach to conflict management are organized according to three roles. Guidelines for the problem-identification and solution-generation phases of the problem-solving process are specified for each role. Guidelines for the action plan and follow-up phases are the same for all three roles which are summarized below: 

1. Role of Initiator 

Step 1: Problem Identification 

1:1 Maintain Personal Ownership of the Problem 
  • Succinctly describe your problem in terms of behaviors, consequence and feelings.
  • Stick to the facts (e.g. use a specific incident to illustrate the expectations or standards violated). 
  • Avoid drawing evaluative conclusions and attributing motives to the respondent. 

1:2 Persist until Understood: Encourage Two-way Discussion 
  • Restate your concerns or give additional examples.
  • Avoid introducing additional issues or letting frustration sour your emotional tone.
  • Invite the respondent to ask question and express another perspective. 

1:3 Manage the Agenda Carefully 
  • Approach multiple problems incrementally, proceeding from simple to complex, easy to difficult, concrete to abstract.
  • Don't become fixed on a single issue. If you reach an end, expand the discussion to increase the likelihood of an integrative outcome. 

Step 2: Solution Generation (Make a Request) 
  • Focus on those things you share in common (principles, goals and constraints) as the basis for recommending preferred alternatives. 

2. Role of Responder 

Step 1: Problem Identification 

1:1 Establish a Climate for Joint Problem Solving 
  • Show genuine concern and interest. Respond em-pathetically, even you disagree with the complaint.
  • Respond appropriately to the initiator's emotions. If necessary, let the person "blow off steam" before addressing the complaint. 

1:2 Seek Additional Information about the Problem 
  • Ask questions that channel the initiator's statements from general to specific and from evaluative to descriptive. 

1:3 Agree with some Aspect of the Complaint 
  • Signal your willingness to consider making changes by agreeing with facts, perceptions, feelings or principles. 

Step 2: Solution Generation 
  • Ask for suggestions and recommendations.
  • To avoid debating the merits of a single suggestion, brainstorm multiple alternatives. 

3. Role of Mediator 

Step 1: Problem Identification 

1:1 Acknowledge that a Conflict Exists 
  • Select the most appropriate setting (one-on-one conference versus group meeting) for coaching and fact-finding.
  • Propose a problem-solving approach for resolving the dispute. 

1:2 Maintain a Neutral Posture 
  • Assume the role of facilitator, not judge. Do not be little the problem or berate the disputants for their inability to resolve their differences.
  • Be impartial toward disputants and issues (provided policy has not been violated).
  • If correction is necessary, do it in private. 

1:3 Manage the Discussion to Ensure Fairness 
  • Focus discussion on the conflict's impact on performance and the detrimental effect of continue conflict.
  • Keep the discussion issue oriented, not personality oriented.
  • Do not allow one party to dominate the discussion. Ask directed questions to maintain balance. 

Step 2: Solution Generation 
  • Explore options by focusing on the interest behind stated positions.
  • Explore the "whys" behind disputants' arguments or demands.
  • Help disputants see commonalities among their goals, values and principles.
  • Use commonalities to generate multiple alternatives.
  • Maintain a non-judgmental manner. 

Resolving Conflict through Negotiation 

1. Distributive Bargaining 

It is a negotiation that seeks to divide up a fixed amount of resources. Probably, the most widely cited example of distributive bargaining is labor management negotiations over wages. Typically, labor representatives come to the bargaining table determined to get as much money as possible out of management. Since every rupee more that labor negotiates increases management's cost, each party bargains aggressively and treats the other as an opponent who must be defeated. 

2. Integrative Bargaining 

In contrast to distributive bargaining, integrative problem solving operates under the assumption that there exist one or more settlements that can create a win-win solution between distributive integrative bargaining. 

Distributive versus Integrative Bargaining

Bargaining Characteristics

Distributive Bargaining

Integrative Bargaining

Available Resources

Fixed amount of resources to be divided

Variable amount of resources to be divided

Primary Motivations

I win, you lose

I win, you win

Primary interests

 Opposed to each other

Convergent or congruent with each other

Focus of relationships

Short-term

Long-term

It is a negotiation that seeks one or more settlements that can create a win-win situation. 

In terms of intra-organizational behavior, all things being equal, integrative bargaining is preferable to distributive bargaining because the integrative bargaining builds long term relationship and facilitates working together in the future. It binds negotiators and allows each to leave the bargaining, on the other hand, distributive bargaining leaves one party a loser. It tends to build animosities and deepen rifts and divisions when people have to work together on an ongoing basis.


Meaning of Unionism | Process of Unionization | Labour Legislation

Unionism is the process of forming union. A union is an organization of workers, acting collectively to protect and promote the interest of the workers. A union is an organization and has certain structure, goals and objectives and people with it. A union is relatively permanent, members of the union work collectively as a group. Individual interests are sacrificed for the sake of group interest.

Members of the union seek to promote and protect their mutual interests. Such interests can be economic, cultural, social or political. A union operates through collective bargaining. Labour and management come to the bargaining table to negotiate and reach a settlement acceptable to both of them.

Process of Unionization

This involves;
  • The laws should allow the formation of union. In Nepal, the trade union Act 1993 provides the legal basis for the formation of union. 
  • There is need of organizing together. The workers come together to protect their interests and fight for social in justice, discrimination at work and so on with the management.
  • A petition should be filed with the appropriate authority to register the union. In Nepal, the labour department acts as the registering agency for the government.
  • The election is held to elect the office, bearers of the union.
  • There is need of recognition of the duty elected union by the management.


Labour Legislation


Labour legislation refers to laws, rules, regulations and judicial decisions related to labour relations. It plays vital role in maintaining labour relations. Labour legislation creates legal rights and obligations between labour and management. The aim is to protect the rights and interest of the workers to provide them social justice.

Labour legislation plays two major roles:
  1. Protective roles: This promotes and protects the rights and interests of the workers. It creates contractual relations for employment by specifying: 
    1. Terms and condition of employment
    2. Working conditions
    3. Benefits and services for worker and his family compensation, including minimum wages and accident-related-compensation. 
  2. Regulatory roles: This is concerned with promotion and maintenance of better labour relations. It defines, clarifies and regulates labour relations. Examples are
    1. Right to work
    2. Collective bargaining
    3. Disputes and their settlement
    4. Equal employment opportunities to avoid discrimination
    5. Fair and equal treatment
    6. Safety of workers
    7. Welfare of worker and family
    8. Unions and related matters.


Labour Legislation in Nepal


Nepal had no effective labour legislation till 1959. The important legal acts are as follows:
  1. Nepal Factory and Factory Worker Act, 1959 (NFFWA): This was the first Act related with labour, where following provisions were made;
    1. Payment of wages, overtime and minimum wages to workers.
    2. Provident fund provision for permanent workers
    3. Welfare provisions, consisting of
      1. Leave, working hours
      2. Pension, provident fund, maternity benefits
      3. Compensation for injury/ disability/ death
      4. Medical facilities
      5. Rest room for taking rest by workers
      6. Children’s arrangements
        1. Worker’s right to form union
        2. Work committees to harmonize labour relation
        3. Employment of foreign citizens
        4. Right to strike and lockout, etc.
        5. Tribunal to settle disputes
  2. Bonus Act, 1974: This Act maintains the provisions of bonus to employees and workers. It specifies:
    1. The bonus shall not exceed 10% of the net profit.
    2. The amount of bonus to an individual will depend on the amount of monthly salaries and wages paid, but shall not exceed 6 months wages and salaries.
  3. Labour Act, 1992 (as amended in 1998): This Act replaced the NFFWA of 1959. The main provisions of this act related to:
    1. Employment and job security, firing of worker.
    2. Working hours.
    3. Remuneration and yearly pay increment
    4. Health and security
    5. Welfare provisions
    6. Settlement of labour disputes and conflicts
    7. Rule of conduct
  4. Trade Union Act, 1993: The main provisions of this Act are:
    1. It provides legal basis for organizing the trade union. It demands a minimum 10 workers to form a union and should have at least 25% of the total worker of the organization with it.
    2. It specifies objectives of a trade union as:
      1. Improve working conditions and work for socio-economic progress of workers.
      2. Maintain good relations with management
      3. Increase productivity and assist in organization’s development.
      4. Make provisions for recognition of authorized trade union for presenting demands to management.
      5. The provision has been made for Registrar of Trade Unions.
      6. Organization level trade unions can form Trade Union Association (TUA/, TUA then can form Trade Union Federation (TUF). The framework for labour legislation in Nepal is still in an early stages. Policies, laws and institutions are still evolving.
  5. Child Labour Act, 2000 (CL Act): The Act has following provision in it:
    1. Children below 16 years have been defined as child.
    2. Children below 14 years must not be employed as labour.
    3. Children must not be employed in any hazardous jobs as specified. For example: Construction sites, public transport and engineering project. Tourist related jobs, carpet dyeing, beer and liquor, plastic, glass, insecticides etc.
      1. Permission should be taken from the authorized government agency for employment of child.
      2. Child labour must not be used from 6 pm in the evening to 6 am in the morning.
      3. Child labour must not be employed for more than 6 hours per pay or 36 hours per week.
      4. There should be no discrimination in wage payment for child labour.
      5. Labour Department has power to inspect organizations employing child labour.

Punishment ranging from three months imprisonment or Rs. 10,000 fine or both are provided for violation of the law.

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Collective Bargaining and Importance of Collective Bargaining

Collective bargaining is one of the efficient ways of resolving industrial disputes. It is concerned with the relations between trade unions representing workers and the management representing employers. It is the distinct feature of modern industrial era. Industrial peace and harmony can be achieved only if there are healthy industrial relations in the country.

Collective bargaining is defined to cover the negotiation, administration, interpretation, application and enforcement of written agreement between employers and unions representing their employees settling for the joint understanding as to policies and procedures governing wages, rates of pay, hours of work and other condition of employment, so the collective bargaining is the technique of solving an industrial disputes. The term collective bargaining can be defined as;

According to E. B. Flippo,“Collective bargaining are a process in which the representatives of a labour organization and the representatives of the business organization meet and attend to negotiate a contract or agreement which specifies the nature of the employee-employer union relationship.”

Thus, the collective bargaining is the process of voluntary agreement. It is an agreement under which employees jointly or collectively undertake to resolve their existing or future conflicts or differences through negotiation usually between interested parties and if necessary, with the assistance of the third party. The agreement is known as labour contract or a union contract or labour management agreement. It gives the mutually agreed terms and conditions of services and represents voluntary arbitration and never a compulsory adjustment.

Importance of Collective Bargaining


Collective bargaining is considered as important for shaping better labour relation because of the following reasons.
  • It is flexible means of adjusting wages and conditions of employment to changing economic, social, political, technological and other factors. Both the parties can meet whenever they desire and can adopt the term and conditions suited to the changing environment.
  • It is an effective method of regulating the conditions of employment of the worker by trade unions.
  • Collective bargaining is helpful in fixing standards of every worker and establishing a code of conduct defining rights, duties and obligations of each party. In other words, through collective bargaining some kinds of industrial jurisprudence is created.
  • Collective bargaining results in better understanding and empathy between employer and workers. When issues regarding wages, incentives, grievances and complaints are discusses at the bargaining table, there is absolutely no room for misunderstanding between workers and management.

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Concept of Labour Relation and Process of Labour Relation

Labour relation is the relationship between the organization, management and workers. It was looked upon a fire fighting function to resolve labour disputes. A labour relation involves industrial or trade union relations, dealing with people collectively by the processes of involvement and participation, and handling grievances.

An important aspect of trade union relations is negotiating. Labour relations are affected by economical, social cultural, political, legal, technological and occupational force. It covers the area like unionism, collective bargaining, discipline, labours legislation etc.

According to Johannes Schregle, “Labour relations denote the relationship between workers and employers, between worker’s organizations and employers organizations and between their respective organizations and public authorities.”

 

According to HA Clegg, “ Labour relation is the study of workers and their trade unions, management, employer’s association and the state institutions concerned with the regulation of employment.”

In modern sense, labour relations is concerned with three major actors;
  • Workers, represented by trade unions
  • Employers, represented by employers associations
  • Society, represented by the government and various pressure groups. 

The actors in labour relations are concerned with managing the interrelationships among the various actors of it and the key actors are:
  1. The workers: They are one who possesses skills and who does the real job. Workers are represented by trade union. Trade union works to protect the social and job security of the workers as well as promotes healthy relationship between the management and the workers.
  2. Employers: They give job to the workers and negotiate terms and conditions of employment with the unions. They are represented by employer’s associations as well as which protects the interest of employers.
  3. Society: There is government and pressure groups under this category. The government regulates and controls the rules and regulates the concerning labour and other things. It enforces the compliance of laws. There are special interest groups, who lobby and pressurize government to enact or withdraw laws to protect the interests of labour or employers.

Actors of Labour Relations


Process of Labour Relation

The process of labour relations consists of following steps.
  1. Unionization: The process of labour relations begins only with the formal establishment of a union and its recognition by the employers.
  2. Dispute or conflict situation: They are the conditions, which impose in uniting of workers. There arise some disputes between the management and employee regarding the wages, benefits, working conditions or terms of employment or other welfare activities and to solve them there is need of developing better labour relations.
  3. Collective bargaining/ negotiation: The union and the management sit on at one table to bargain or negotiate the problems and demands of the workers.
  4. Settlement of contract: This is the compromise between union and the management and is in written form and agreed upon by the management and union members.
  5. Contract administration: The agreed upon contract are administered by; communicating the contract to all union members and management personnel. Implementing it, interpreting the contract and grievance resolution and monitoring of activities during the contract period.

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Negotiation

The technique for solving project conflict is negotiation. Negotiation maintain the differences. It brings agreement. Most project conflicts tend to be related to rights, contractual obligations and environmental factors.

A project manager must have negotiating skills in order to settle the dispute and conflict in project. Negotiation is needed in the following conditions
  • Subcontractors are used in the project.
  • Functional departments are involved in the project through matrix structure.
  • Management of variations are needed after the project is underway.
Models of Negotiation
  1. Partnering: Projects enter partnering agreements through negotiation for outsourcing parts of project. This avoid litigation and promotes cooperation.
  2. Chartering: A project charter is used as a written agreement between the project manager and functional manager. It details the project outputs, budget, schedule and human resource requirements.
  3. Scope change: Agreement is reached for change in the scope of the project through negotiation.
Key principles of Negotiation
  • Separate the people from the problem: Tackle substantive problems. The project's objectives should not be harmed.
  • Allow honesty between the negotiators.
  • Aim for win-win solution. Invent options for mutual gain.
  • Insist on using objective criteria for negotiation.