Chapter 6- Negotiation Models, Strategies, and Tactics – Flashcards

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Labor and management meet across a _______ because the ________ requires that the parties bargain in good faith.
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-negotiating table -National Labor Relations Act
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Neither party has to agree to any particular proposal as long as it continues to _______ .
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-bargain in good faith
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Collective bargaining has changed from _______ process by which labor and management sincerely attempt to address ________ interests.
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-confrontation -conflicting
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Respect for the process; however, does not change the fact that the collective bargaining process is ________, and it involves ________ and ________ .
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-adversarial -conflict resolution -compromise
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Describe the "Big Picture"
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this includes critical issues such as deadlines, outside influences, and general economic conditions
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Ground Rules
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The general procedures and policies that each party agrees to adhere to during negotiations. These are usually agreed to in writing before the negotiations and may include such items as time, date, location
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Attitude and negotiating model are greatly influenced by
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1. the parties' prior relationship 2. economic circumstances of the employer 3. employer's basic attitude toward unionization 4. leadership of the union
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Bargaining Tactics (8)
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1. Conflict 2. Concealment 3. Packaging 4. Throwaway Items 5. Caucusing 6. Flexibility 7. Compromise 8. Saving Face
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Concealment
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conceal goals to enhance opportunities for best possible settlement
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Packaging
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putting items together, thus decreasing the number of unresolved issues
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Caucusing
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openly discuss the merits of the proposal or willingness to accept it, or they can formulate a counterproposal
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Flexibility
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proposals should be studied and responded to by acceptance or counteroffer
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Saving Face
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at the end of labor-management negotiations typically involves the union negotiator claiming victory while management remains silent
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BATNA
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Best Alternative To a Negotiated Agreement- "walk away value"
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WATNA
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Worst Alternative To a Negotiated Agreement- Realistic assessment of not reaching agreement that determines what a party is willing to agree to in order not to reach an impasse
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"80/20 rule"
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80% of the deal agreed to in the last 20 % of the time spent in bargaining
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Distributive Bargaining
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Two parties strive to divide a fixed pool of resources, each trying to maximize their share of the distribution.
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Anchor
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An opening offer, often a number, and not necessarily a realistic number, that can influence the parties' assessment of the zone of potential agreement in the negotiation.
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What are the 3 types of anchors?
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1. Facts: Statement of what is presented to be a fact: Example: "Our offer is based on this list of other industry contracts settled in this region; the lowest wage increase in the past year was 3.5 percent." 2. Extreme offer: Example: "We believe our officers are special public servants who put their lives on the line every day and thus deserve a 10 percent wage increase this year." 3. Precedent: Example: "In the past 30 years, management has always, every time, agreed to retroactivity as a ground rule; we expect you to honor this practice."
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Bracketing
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The process of moving toward a middle point between the opening offers (or brackets), which is the logical bargaining process
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What are the types of negotiation Norms? (4)
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1. Relational - views or attitudes that regulate behavior and act as an informal control in a negotiation 2. Fairness - a need to maintain an appearance of consistency and fairness in both words and deeds 2a. Equality - 50/50 or split the difference; both sides gain 2b. Equity - organizational rewards/efforts compared to employees rewards/efforts 2c. Need - splits the difference between offers based on proportional needs of the party 2d. Status Quo - keeping all significant issues in their current state 3. Reciprocity - the tendency to respond to the actions of others with equal or similar actions 4. Good-faith bargaining
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Framing Positions
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Presenting an issue to the other side in a negotiation in a way that is convincing and causes the other side to "see" the proposal in a different light.
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Interest-Based Bargaining
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A negotiation method described as a "win-win" situation, in which resources are viewed as expandable and the parties attempt to both create as much value as possible for both sides and claim as much value as possible for their own interests.
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Interest-based bargaining strives to achieve 2 goals
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1. To create as much value as possible for both sides 2. To claim as much value as possible for their own interests
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Four key components; "principled negotiation" strategy?
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1. Emphasize positions versus interests 2. Separate people from issues 3. Focus on objective criteria 4. Develop mutual gains options
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Categorization Method (5 steps)
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STEP 1:Exchange information and identify all of the issues to be negotiated. Active listening STEP 2:Develop a common list of all issues that were discussed by either side during the first step and seek to classify each issue as STEP 3:Reaching final agreement on each of the compatible issues and removing them from further negotiation. STEP 4:Trading, or exchanging issues of approximately equal value; in some cases, several issues may be included in a single exchange. STEP 5:Resolution of any remaining issue(s), which often is accomplished through the distributive bargaining on each separate issue.
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Point of Crisis--if agreement cannot be reached. (3 main points)
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1. Neutral third party using mediation or arbitration 2. Job actions such as strikes or lockouts 3. "The crunch" - a deadline that will cause no decision to become final decision
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