NEGOTIATION SKILLS

Made by :ParulVerma (MB08) Prerna Munshi(MB04)

Outline
y What is negotiation y Characteristic of negotiation y Types of negotiation y Phases of negotiation y Preparation before negotiation y Opening the negotiation y Bargain and build a solution y Concessions y Closing stage y Pitfalls y Case study of BSNL on wage negotiation

What is Negotiation?
y It is a process by which the involved parties or group resolve

matters of dispute by holding discussions and coming to an agreement which can be mutually agreed by them. It also refers to coming to closing a business deal or bargaining on some product.
y It also means exchange of negotiable instruments such as bills

of exchange, cheques etc in exchange of goods, service or money

Characteristics of a Negotiation
y A preference to search for a solution rather than have a

fight
y Depends on: y Personalities of the people involved y History that exists between them y The persuasive ability of each

Types of Negotiation
o WIN WIN - Co-operative empathetic partnership agreements o WIN LOSE maximise own gain and others loss unstable agreements o LOSE LOSE y

Both the parties fail.

Phases Of Negotiation
y Preparation y Opening y Bargaining y Closing

Preparation before a Negotiation

y What are my objectives? y What does the other party want? y What information will influence the outcome? y How am I going to achieve my objectives? y What concessions can I make? y What part will other people play?

Opening the Negotiation

 Establish the issues y Agree on an agenda y Keep everything general at the beginning y Gain commitment early on, but only once all the negotiable

items are identified

 Gather information

Bargain and build a solution

y Start should be ambitious but defensible y Bargain y Concessions traded y Agreement reached

CONCESSIONS
y What is the best deal I can realistically get? y What concessions do I have; their cost to me and

value to the consultant?

y What is the limit of my authority? y When should I walk away; and at what cost to the

outcome?

CLOSING STAGE
y Vital to overall success y Record the details y Define the timetable and outstanding issues y Agree with the consultant that you both have the same

interpretation

PITFALLS
y Failing to prepare effectively y Being intimidated by status y Forgetting that the consultant has things to gain y Making assumptions about what the consultant wants y Talking too much and failing to listen effectively

CONTD..
y Giving away concessions for nothing y Conceding on important issues too quickly y Assuming deadlock means agreement is not possible y Being inflexible y Taking things personally

Case Study of BSNL on Wage negotiation

y BSNL wage negotiation was initiated on 15th December 2008 y Agreement was reached between the management and the United Forum of

BSNL unions
y Com. V.A.N Namboodiri had presented the demands of the non executives y The Wage negotiation had not started for the non executive till then , as per

the recommendations of the II Pay Revision Committee

CONTD
y The Wages in the comparable PSUs like ONGC, NTPC ,

Airport authority were higher and non executives in BSNL also were to be brought at that level.
y Other leaders from the staff side supplemented the points raised

by Com. Namboodiri .

Wage Revision Committee meeting, on 13.03.2009

Settlement on 3 issues were demanded :y y y

5 year periodically for wage revision. Interim relief HRA

Wage Revision Meeting on 01.04.2009

y Under the chairmanship of Shri R.K Batra , PGM (IR) BSNL y Officials side agreed for the wage agreement for 5 years

periodicity
y The official side agreed to recommend to the management for

grant of Interim relief

y The Staff side walked out from the meeting on 22nd April 2009

due to the negative attitude adopted by the management.

Meeting with CMD on wage revision

y Held on 29.04.2009 y With CMD BSNL and Director (HRD) y Management offered 4 months basic pay as IR y Staff side stated this as inadequate y Management was not prepared to issue orders on HRA y However , a settlement between United Forum and the management on

18.05.2009 in the backdrop of the two day strike notice issued by the United Forum.

y In the meeting of 5.6.2009 , management side informed

that the issue of 5 year periodicity was referred to DoT on 3.6.2009 for its approval.
y The union stressed the management to agree for

fitment benefit on par with top executives on pay +78.2% .

y On 19th November 2009, discussions were held on how the

revised scales could be constructed.

y On 4th Dec.2009, following consensus were reached:1. 2. 3.

Span of the pay scale will be increased from present 15 to 18 years span in all the scales. Multiplication factor for executives will be 1.91 and for the non executives , 2. Negotiation on perks.

References
y www.BSNLEmployeesUnion.com