Industrial relations
Industrial relations is a multidisciplinary field that studies the employment relationship.[1] Industrial relations is increasingly being called employment relations because of the importance of non-industrial employment relationships. Many outsiders[who?] also equate industrial relations to labour relations. Industrial relations studies examine various employment situations, not just ones with a unionized workforce.
Contents
1 Overview 2 History 3 Theoretical perspectives o 3.1 Pluralist perspective o 3.2 Unitarist perspective o 3.3 Marxist/Radical perspective 4 Industrial Relations Today
5 See also
6 Notes
7 Further reading
Overview
Industrial relations has three faces: science building, problem solving, and ethical.[2] In the science building phase, industrial relations is part of the social sciences, and it seeks to understand the employment relationship and its institutions through high-quality, rigorous research. In this vein, industrial relations scholarship intersects with scholarship in labor
economics, industrial sociology, labor and social history, human resource management, political science, law, and other areas. In the problem solving phase, industrial relations seeks to design policies and institutions to help the employment relationship work better. In the ethical phase, industrial relations contains strong normative principles about workers and the employment relationship, especially the rejection of treating labor as a commodity in favor of seeing workers as human beings in democratic communities entitled to human rights. The term human relations refers to the whole field of relationship that exists because of the necessary collaboration of men and women in the employment process of modern industry. It is that part of management which is concerned with the management of enterprise - whether machine operator, skilled worker, or manager. It deals with either the relationship between the state and employers and workers organisation or the relation between the occupational organisation themselves.
Industrial relations scholarship assumes that labor markets are not perfectly competitive and thus, in contrast to mainstream economic theory, employers typically have greater bargaining power than employees. Industrial relations scholarship also assumes that there are at least some inherent conflicts of interest between employers and employees (for example, higher wages
versus higher profits) and thus, in contrast to scholarship in human resource management and organizational behavior, conflict is seen as a natural part of the employment relationship.
Industrial relations scholars therefore frequently study the diverse institutional arrangements that characterize and shape the employment relationship—from norms and power structures on the shop floor, to employee voice mechanisms in the workplace, to collective bargaining
arrangements at company, regional, or national level, to various levels of public policy and labor law regimes, to "varieties of capitalism" (such as corporatism), social democracy, and
neoliberalism).
When labor markets are seen as imperfect, and when the employment relationship includes conflicts of interest, then one cannot rely on markets or managers to always serve workers‘ interests, and in extreme cases to prevent worker exploitation. Industrial relations scholars and practitioners therefore support institutional interventions to improve the workings of the employment relationship and to protect workers‘ rights. The nature of these institutional interventions, however, differ between two camps within industrial relations.[3] The pluralist camp sees the employment relationship as a mixture of shared interests and conflicts of interests that are largely limited to the employment relationship. In the workplace, pluralists therefore champion grievance procedures, employee voice mechanisms such as works councils and labor unions, collective bargaining, and labor-management partnerships. In the policy arena, pluralists advocate for minimum wage laws, occupational health and safety standards, international labor standards, and other employment and labor laws and public policies.[4] These institutional interventions are all seen as methods for balancing the employment relationship to generate not only economic efficiency, but also employee equity and voice.[5] In contrast, the Marxist-inspired critical camp sees employer-employee conflicts of interest as sharply antagonistic and deeply embedded in the socio-political-economic system. From this perspective, the pursuit of a balanced employment relationship gives too much weight to employers‘ interests, and instead deep-seated structural reforms are needed to change the sharply antagonistic employment relationship that is inherent within capitalism. Militant trade unions are thus frequently supported.
History
Industrial relations has its roots in the industrial revolution which created the modern
employment relationship by spawning free labor markets and large-scale industrial organizations with thousands of wage workers.[6] As society wrestled with these massive economic and social changes, labor problems arose. Low wages, long working hours, monotonous and dangerous work, and abusive supervisory practices led to high employee turnover, violent strikes, and the threat of social instability. Intellectually, industrial relations was formed at the end of the 19th century as a middle ground between classical economics and Marxism, with Sidney Webb and Beatrice Webb‘s Industrial Democracy (1897) being the key intellectual work. Industrial relations thus rejected the classical econ.
Institutionally, industrial relations was founded by John R. Commons when he created the first academic industrial relations program at the University of Wisconsin in 1920. Early financial support for the field came from John D. Rockefeller, Jr. who supported progressive labor-management relations in the aftermath of the bloody strike at a Rockefeller-owned coal mine in Colorado. In Britain, another progressive industrialist, Montague Burton, endowed chairs in industrial relations at Leeds, Cardiff and Cambridge in 1930, and the discipline was formalized in the 1950s with the formation of the Oxford School by Allan Flanders and Hugh Clegg.[7] Industrial relations was formed with a strong problem-solving orientation that rejected both the classical economists‘ laissez faire solutions to labor problems and the Marxist solution of class revolution. It is this approach that underlies the New Deal legislation in the United States, such as the National Labor Relations Act and the Fair Labor Standards Act.
Theoretical perspectives
Industrial relations scholars have described three major theoretical perspectives or frameworks, that contrast in their understanding and analysis of workplace relations. The three views are generally known as unitarism, pluralist and radical. Each offers a particular perception of workplace relations and will therefore interpret such events as workplace conflict, the role of unions and job regulation differently. The radical perspective is sometimes referred to as the "conflict model", although this is somewhat ambiguous, as pluralism also tends to see conflict as inherent in workplaces. Radical theories are strongly identified with Marxist theories, although they are not limited to kosala
Pluralist perspective
In Pluralism, the organization is perceived as being made up of powerful and divergent sub-groups, each with its own legitimate loyalties and with their own set of objectives and leaders. In particular, the two predominant sub-groups in the Pluralist perspective are the management and trade unions.
Consequently, the role of management would lean less towards enforcing and controlling and more toward persuasion and co-ordination. Trade unions are deemed as legitimate
representatives of employees, conflict is dealt by collective bargaining and is viewed not necessarily as a bad thing and, if managed, could in fact be channeled towards evolution and positive change.
Unitarist perspective
In unitarism, the organization is perceived as an integrated and harmonious whole with the ideal of "one happy family", where management and other members of the staff all share a common purpose, emphasizing mutual cooperation. Furthermore, unitarism has a paternalistic approach where it demands loyalty of all employees, being predominantly managerial in its emphasis and application.
Consequently, trade unions are deemed as unnecessary since the loyalty between employees and organizations are considered mutually exclusive, where there can't be two sides of industry. Conflict is perceived as disruptive and the pathological result of agitators, interpersonal friction and communication breakdown.
Marxist/Radical perspective
This view of industrial relations looks at the nature of the capitalist society, where there is a fundamental division of interest between capital and labour, and sees workplace relations against this background. This perspective sees inequalities of power and economic wealth as having their roots in the nature of the capitalist economic system. Conflict is therefore seen as inevitable and trade unions are a natural response of workers to their exploitation by capital. Whilst there may be periods of acquiescence, the Marxist view would be that institutions of joint regulation would enhance rather than limit management's position as they presume the continuation of capitalism rather than challenge it.
Industrial Relations Today
By many accounts, industrial relations today is in crisis.[8] In academia, its traditional positions are threatened on one side by the dominance of mainstream economics and organizational behavior, and on the other by postmodernism. In policy-making circles, the industrial relations emphasis on institutional intervention is trumped by a neoliberal emphasis on the laissez faire promotion of free markets. In practice, labor unions are declining and fewer companies have industrial relations functions. The number of academic programs in industrial relations is
therefore shrinking, and scholars are leaving the field for other areas, especially human resource management and organizational behavior. The importance of work, however, is stronger than ever, and the lessons of industrial relations remain vital. The challenge for industrial relations is to re-establish these connections with the broader academic, policy, and business worlds.
Industrial democracy
Industrial democracy is an arrangement which involves workers making decisions, sharing responsibility and authority in the workplace. While in participative managementorganizational designs workers are listened to and take part in the decision-making process, in organizations employing industrial democracy they also have the final decisive power (they decide about organizational design and hierarchy as well)[1].
Although industrial democracy generally refers to the organization model in which workplaces are run directly by the people who work in them in place of private or state ownership of the means of production, there are also representative forms of industrial democracy. Representative industrial democracy includes decision making structures such as the formation of committees and consultative bodies to facilitate communication between management, unions, and staff.
Rationale
Advocates often point out that industrial democracy increases productivity and service delivery from a more fully engaged and happier workforce. Other benefits include less industrial dispute resulting from better communication in the workplace; improved and inclusive decision making processes resulting in qualitatively better workplace decisions, decreased stress and increased well-being, an increase in job satisfaction, a reduction in absenteeism and an improved sense of fulfillment.
Co-determination
Main article: Co-determinationIn a number of European countries, employees of a business take part in election of company directors. In Germany, the law is known as the Mitbestimmungsgesetz of 1976. In Britain a 1977
proposal for a similar system was named the Bullock Report.
History
In late nineteenth century, and at the beginning of the twentieth century, industrial democracy, along with anarcho-syndicalism and new unionism, represented one of the dominant themes in revolutionary socialism and played a prominent role in international labour movements. The term industrial democracy was introduced by British socialist reformers Sidney and Beatrice Webb in their 1897 book Industrial Democracy. The Webbs used the term to refer to trade unions and the process of collective bargaining.[2]
While the influence of the movements promoting industrial democracy declined after the defeat of the anarchists in the Spanish Revolution in 1939, several unions and organizations advocating the arrangement continue to exist and are again on the rise internationally.
The Industrial Workers of the World advance an industrial unionism which would organize all the workers, regardless of skill, gender or race, into one big union divided into a series of
departments corresponding to different industries. The industrial unions would be the embryonic form of future post-capitalist production. Once sufficiently organized, the industrial unions would overthrow capitalism by means of a general strike, and carry on production through worker run enterprises without bosses or the wage system. Anarcho-syndicalist unions, like the Confederación Nacional del Trabajo, are similar in their means and ends but organize workers into geographically based and federated syndicates rather than industrial unions.
The New Unionism Network also promotes workplace democracy as a means to linking production and economic democracy.
Representative industrial democracy
Modern industrial economies have adopted several aspects of industrial democracy to improve productivity and as reformist measures against industrial disputes. Often referred to as
"teamworking", this form of industrial democracy has been practiced in Scandinavia, Germany, The Netherlands and the UK, as well as in several Japanese companies including Toyota, as an effective alternative to Taylorism.
The term is often used synonymously with workplace democracy, in which the traditional master-servant model of employment gives way to a participative, power-sharing model. NEGOTIATIION
Negotiation is a dialogue between two or more people or parties, intended to reach an
understanding, resolve point of difference, or gain advantage in outcome of dialogue, to produce an agreement upon courses of action, to bargain for individual or collective advantage, to craft outcomes to satisfy various interests of two people/parties involved in negotiation process. Negotiation is a process where each party involved in negotiating tries to gain an advantage for themselves by the end of the process. Negotiation is intended to aim at compromise.
Negotiation occurs in business, non-profit organizations, government branches, legal
proceedings, among nations and in personal situations such as marriage, divorce, parenting, and everyday life. The study of the subject is called negotiation theory. Professional negotiators are often specialized, such as union negotiators, leverage buyout negotiators, peace negotiators,
hostage negotiators, or may work under other titles, such as diplomats, legislators or brokers.
Negotiation typically manifests itself with a trained negotiator acting on behalf of a particular organization or position. It can be compared to mediation where a neutral third party listens to each side's arguments and attempts to help craft an agreement between the parties. It is also related to arbitration which, as with a legal proceeding, both sides make an argument as to the merits of their "case" and then the arbitrator decides the outcome for both parties. There are two opposite types of negotiation: Integrative and Distributive.
Distributive Negotiation
The term distributive means; there is a giving out; or the scattering of things. By its mere nature, there is a limit or finite amount in the thing being distributed or divided amongst the people involved. Hence, this type of negotiation is often referred to as 'The Fixed Pie'. There is only so much to go around, but the proportion to be distributed is limited but also variable. A distributive negotiation usually involves people who have never had a previous interactive relationship, nor are they likely to do so again in the near future. Simple everyday examples would be buying a car or a house.
Integrative negotiation
The word integrative means to join several parts into a whole. Conceptually, this implies some cooperation, or a joining of forces to achieve something together. Usually involves a higher degree of trust and a forming of a relationship. Both parties want to walk away feeling they've achieved something which has value by getting what each wants. Ideally, it is a twofold process. Integrative negotiation process generally involves some form or combination of making value for value concessions, in conjunction with creative problem solving. Generally, this form of
negotiation is looking down the road, to them forming a long term relationship to create mutual gain. It is often described as the win-win scenario.
There are many different ways to segment negotiation to gain a greater understanding of the essential parts. One view of negotiation involves three basic elements: process, behavior and
substance. The process refers to how the parties negotiate: the context of the negotiations, the
parties to the negotiations, the tactics used by the parties, and the sequence and stages in which all of these play out. Behavior refers to the relationships among these parties, the communication between them and the styles they adopt. The substance refers to what the parties negotiate over: the agenda, the issues (positions and - more helpfully - interests), the options, and the
agreement(s) reached at the end.
Another view of negotiation comprises 4 elements: strategy, process and tools, and tactics. Strategy comprises the top level goals - typically including relationship and the final outcome. Processes and tools include the steps that will be followed and the roles taken in both preparing for and negotiating with the other parties. Tactics include more detailed statements and actions and responses to others' statements and actions. Some add to this persuasion and influence, asserting that these have become integral to modern day negotiation success, and so should not be omitted.
Skilled negotiators may use a variety of tactics ranging from negotiation hypnosis, to a straight forward presentation of demands or setting of preconditions to more deceptive approaches such as cherry picking. Intimidation and salami tactics may also play a part in swaying the outcome of negotiations.
Another negotiation tactic is bad guy/good guy. Bad guy/good guy tactic is when one negotiator acts as a bad guy by using anger and threats. The other negotiator acts as a good guy by being considerate and understanding. The good guy blames the bad guy for all the difficulties while trying to get concessions and agreement from the opponent.[1]
When a party pretends to negotiate, but secretly has no intention of compromising, the negotiator is considered to be negotiating in bad faith.
The advocate's approach
In the advocacy approach, a skilled negotiator usually serves as advocate for one party to the negotiation and attempts to obtain the most favorable outcomes possible for that party. In this process the negotiator attempts to determine the minimum outcome(s) the other party is (or parties are) willing to accept, then adjusts their demands accordingly. A "successful" negotiation in the advocacy approach is when the negotiator is able to obtain all or most of the outcomes their party desires, but without driving the other party to permanently break off negotiations, unless the best alternative to a negotiated agreement (BATNA) is acceptable.
Traditional negotiating is sometimes called win-lose because of the assumption of a fixed "pie", that one person's gain results in another person's loss. This is not true, however, unless only one issue needs to be resolved, such as a price in a simple sales negotiation.
Getting to YES was published by Roger Fisher and William Ury as part of the Harvard
negotiation project. The book's approach, referred to as Principled Negotiation, is also sometimes called mutual gains bargaining. The Mutual Gains Approach has been effectively applied in environmental situations (see Lawrence Susskind and Adil Najam) as well as labor relations where the parties (such as management and a labor union) frame the negotiation as "problem solving". If multiple issues are discussed, differences in the parties' preferences make win-win negotiation possible. For example, in a labor negotiation, the union might prefer job security over wage gains.
If the employers have opposite preferences, a trade is possible that is beneficial to both parties. Such a negotiation is therefore not an adversarial zero-sum game. Principled Negotiation method consists of four main steps: separating the people from the problem, focus on interests, not positions, generating a variety of possibilities before deciding what to do and insisting that the result be based on some objective standard.[2]
There are a tremendous number of other scholars who have contributed to the field of
negotiation, including Holly Schroth and Timothy Dayonot at UC Berkeley, Gerard E. Watzke at Tulane University, Sara Cobb at George Mason University, Len Riskin at the University of Missouri, Howard Raiffa at Harvard, Robert McKersie and Lawrence Susskind at MIT, and Adil Najam and Jeswald Salacuse at The Fletcher School of Law and Diplomacy.[citation needed]and John D. Males.
Other negotiation styles
Shell identified five styles/responses to negotiation.[3] Individuals can often have strong
dispositions towards numerous styles; the style used during a negotiation depends on the context and the interests of the other party, among other factors. In addition, styles can change over time.
1. Accommodating: Individuals who enjoy solving the other party’s problems and preserving personal relationships. Accommodators are sensitive to the emotional states, body language, and verbal signals of the other parties. They can, however, feel taken advantage of in situations when the other party places little emphasis on the relationship.
2. Avoiding: Individuals who do not like to negotiate and don’t do it unless warranted. When negotiating, avoiders tend to defer and dodge the confrontational aspects of negotiating; however, they may be perceived as tactful and diplomatic.
3. Collaborating: Individuals who enjoy negotiations that involve solving tough problems in creative ways. Collaborators are good at using negotiations to understand the concerns and interests of the other parties. They can, however, create problems by transforming simple situations into more complex ones.
4. Competing: Individuals who enjoy negotiations because they present an opportunity to win something. Competitive negotiators have strong instincts for all aspects of negotiating and are often strategic. Because their style can dominate the bargaining process, competitive
negotiators often neglect the importance of relationships.
5. Compromising: Individuals who are eager to close the deal by doing what is fair and equal for all parties involved in the negotiation. Compromisers can be useful when there is limited time to complete the deal; however, compromisers often unnecessarily rush the negotiation process and make concessions too quickly.
Adversary or Partner?
Clearly, these two basically different ways of negotiating will require different approaches. To ignore this can be devastating for the result, but it all too often happens. Because in the
distributive approach each negotiator is battling for the largest possible piece of the pie, it may be quite appropriate - within certain limits - to regard the other side more as an adversary than a partner and to take a somewhat harder line. This would however be less appropriate if the idea were to hammer out an arrangement that is in the best interest of both sides. If both win, it's only of secondary importance which one has the greater advantage. A good agreement is not one with maximum gain, but optimum gain. This does not by any means suggest that we should give up our own advantage for nothing. But a cooperative attitude will regularly pay dividends. What is gained is not at the expense of the other, but with him.[4]
Bad faith negotiation
Bad faith is a concept in negotiation theory whereby parties pretend to reason to reach settlement, but have no intention to do so, for example, one political party may pretend to negotiate, with no intention to compromise, for political effect.[5][6]
Inherent bad faith model in international relations and political psychology
Bad faith in political science and political psychology refers to negotiating strategies in which there is no real intention to reach compromise, or a model of information processing.[7] The "inherent bad faith model" of information processing is a theory in political psychology that was first put forth by Ole Holsti to explain the relationship between John Foster Dulles‘ beliefs and his model of information processing.[8] It is the most widely studied model of one's opponent.[9] A state is presumed to be implacably hostile, and contra-indicators of this are ignored. They are dismissed as propaganda ploys or signs of weakness. Examples are John Foster Dulles‘ position regarding the Soviet Union, or Hamas's position on the state of Israel.[10][neutrality is disputed]
Emotion in negotiation
Emotions play an important part in the negotiation process, although it is only in recent years that their effect is being studied. Emotions have the potential to play either a positive or negative role in negotiation. During negotiations, the decision as to whether or not to settle, rests in part on emotional factors. Negative emotions can cause intense and even irrational behavior, and can cause conflicts to escalate and negotiations to break down, but may be instrumental in attaining concessions. On the other hand, positive emotions often facilitate reaching an agreement and help to maximize joint gains, but can also be instrumental in attaining concessions. Positive and negative discrete emotions can be strategically displayed to influence task and relational
outcomes [11] and may play out differently across cultural boundaries.[12]
Affect effect
Dispositional affects affect the various stages of the negotiation process: which strategies are planned to be used, which strategies are actually chosen,[13] the way the other party and his or her intentions are perceived,[14] their willingness to reach an agreement and the final negotiated outcomes.[15] Positive affectivity (PA) and negative affectivity (NA) of one or more of the negotiating sides can lead to very different outcomes.
Positive affect in negotiation
Even before the negotiation process starts, people in a positive mood have more confidence,[16] and higher tendencies to plan to use a cooperative strategy.[13] During the negotiation, negotiators who are in a positive mood tend to enjoy the interaction more, show less contentious behavior, use less aggressive tactics[17] and more cooperative strategies.[13] This in turn increases the likelihood that parties will reach their instrumental goals, and enhance the ability to find integrative gains.[18] Indeed, compared with negotiators with negative or natural affectivity, negotiators with positive affectivity reached more agreements and tended to honor those
agreements more.[13] Those favorable outcomes are due to better decision making processes, such as flexible thinking, creative problem solving, respect for others' perspectives, willingness to take risks and higher confidence.[19] Post negotiation positive affect has beneficial consequences as well. It increases satisfaction with achieved outcome and influences one's desire for future interactions.[19] The PA aroused by reaching an agreement facilitates the dyadic relationship, which result in affective commitment that sets the stage for subsequent interactions.[19]
PA also has its drawbacks: it distorts perception of self performance, such that performance is judged to be relatively better than it actually is.[16] Thus, studies involving self reports on achieved outcomes might be biased.
Negative affect in negotiation
Negative affect has detrimental effects on various stages in the negotiation process. Although various negative emotions affect negotiation outcomes, by far the most researched is anger. Angry negotiators plan to use more competitive strategies and to cooperate less, even before the negotiation starts.[13] These competitive strategies are related to reduced joint outcomes. During
negotiations, anger disrupts the process by reducing the level of trust, clouding parties' judgment, narrowing parties' focus of attention and changing their central goal from reaching agreement to retaliating against the other side.[17] Angry negotiators pay less attention to opponent‘s interests and are less accurate in judging their interests, thus achieve lower joint gains.[20] Moreover, because anger makes negotiators more self-centered in their preferences, it increases the likelihood that they will reject profitable offers.[17] Opponents who really get angry (or cry, or otherwise lose control) are more likely to make errors: make sure they are in your favor.[1] Anger does not help in achieving negotiation goals either: it reduces joint gains[13] and does not help to boost personal gains, as angry negotiators do not succeed in claiming more for themselves.[20] Moreover, negative emotions lead to acceptance of settlements that are not in the positive utility function but rather have a negative utility.[21] However, expression of negative emotions during negotiation can sometimes be beneficial: legitimately expressed anger can be an effective way to show one's commitment, sincerity, and needs.[17] Moreover, although NA reduces gains in integrative tasks, it is a better strategy than PA in distributive tasks (such as zero-sum).[19] In his work on negative affect arousal and white noise, Seidner found support for the existence of a negative affect arousal mechanism through observations regarding the devaluation of speakers from other ethnic origins." Negotiation may be negatively affected, in turn, by submerged hostility toward an ethnic or gender group.[22]
Conditions for emotion affect in negotiation
Research indicates that negotiator‘s emotions do not necessarily affect the negotiation process. Albarracın et al. (2003) suggested that there are two conditions for emotional affect, both related to the ability (presence of environmental or cognitive disturbances) and the motivation:
1. Identification of the affect: requires high motivation, high ability or both.
2. Determination that the affect is relevant and important for the judgment: requires that either the motivation, the ability or both are low.
According to this model, emotions are expected to affect negotiations only when one is high and the other is low. When both ability and motivation are low the affect will not be identified, and when both are high the affect will be identify but discounted as irrelevant for judgment.[23] A possible implication of this model is, for example, that the positive effects PA has on
negotiations (as described above) will be seen only when either motivation or ability are low.
The effect of the partner’s emotions
Most studies on emotion in negotiations focus on the effect of the negotiator‘s own emotions on the process. However, what the other party feels might be just as important, as group emotions are known to affect processes both at the group and the personal levels. When it comes to negotiations, trust in the other party is a necessary condition for its emotion to affect,[14] and visibility enhances the effect.[18] Emotions contribute to negotiation processes by signaling what one feels and thinks and can thus prevent the other party from engaging in destructive behaviors and to indicate what steps should be taken next: PA signals to keep in the same way, while NA points that mental or behavioral adjustments are needed.[19]
reciprocal or complementary.[15] For example, disappointment or sadness might lead to
compassion and more cooperation.[19] In a study by Butt et al. (2005) which simulated real multi-phase negotiation, most people reacted to the partner‘s emotions in reciprocal, rather than complementary, manner. Specific emotions were found to have different effects on the opponent‘s feelings and strategies chosen:
Anger caused the opponents to place lower demands and to concede more in a zero-sum
negotiation, but also to evaluate the negotiation less favorably.[24] It provoked both dominating and yielding behaviors of the opponent.[15]
Pride led to more integrative and compromise strategies by the partner.[15]
Guilt or regret expressed by the negotiator led to better impression of him by the opponent,
however it also led the opponent to place higher demands.[14] On the other hand, personal guilt was related to more satisfaction with what one achieved.[19]
Worry or disappointment left bad impression on the opponent, but led to relatively lower
demands by the opponent.[14]
Problems with lab negotiation studies
Negotiation is a rather complex interaction. Capturing all its complexity is a very difficult task, let alone isolating and controlling only certain aspects of it. For this reason most negotiation studies are done under laboratory conditions, and focus only on some aspects. Although lab studies have their advantages, they do have major drawbacks when studying emotions:
Emotions in lab studies are usually manipulated and are therefore relatively ‘cold’ (not intense). Although those ‘cold’ emotions might be enough to show effects, they are qualitatively different from the ‘hot’ emotions often experienced during negotiations.[25]
In real life there is self-selection to which negotiation one gets into, which effects the emotional commitment, motivation and interests. However this is not the case in lab studies.[19]
Lab studies tend to focus on relatively few well defined emotions. Real life scenarios provoke a much wider scale of emotions.[19]
Coding the emotions has a double catch: if done by a third side, some emotions might not be detected as the negotiator sublimates them for strategic reasons. Self report measures might overcome this, but they are usually filled only before or after the process, and if filled during the process might interfere with it.[19]
Team negotiations
Due to globalization and growing business trends, negotiation in the form of teams is becoming widely adopted. Teams can effectively collaborate to break down a complex negotiation. There is more knowledge and wisdom dispersed in a team than in a single mind. Writing, listening, and talking, are specific roles team members must satisfy. The capacity base of a team reduces the amount of blunder, and increases familiarity in a negotiation.[26]
Barriers to negotiations
Die hard bargainers.
Lack of trust.
Informational vacuums and negotiator's dilemma.
Structural impediments.
Spoilers.
Cultural and gender differences.
Communication problems.
The power of dialogue.
Methods Of Negotiation
Negotiation can be categorized in different ways. Below are just a few ways that we can look at negotiation.
Integrative/Distributive
If we distinguish between integrative and distributive negotiations, we are saying that the parties are looking for different things as they approach the negotiation.
Integrative negotiations
Integrative negotiations are commonly referred to as ―win-win.‖ In this type of negotiation, each side is working towards a solution where everyone wins something. They can make tradeoffs, look at multiple issues, and try to expand the pie rather than divide it. Integrative negotiations foster trust and good working relationships.
Distributive negotiations
Distributive negotiations are referred to as ―win-lose.‖ One party gets what they want, and the other party has to give something up. This can be the case when you negotiate a lease on office space, for example. If you feel like you got a good deal and the property manager had to give something up for you, you ―won.‖ If you feel like the property manager had the upper hand and you got ripped off, you ―lost.‖ The parties‘ interests often seem to be opposed (although this may not be the case once you look at things creatively), and so this type of negotiation does not lead to lasting or positive relationships.
Inductive/Deductive/Mixed
The inductive method involves starting on small details and working upward until a settlement is reached. This can be the case where, for example, an employer and labor union are negotiating the details of an employee pension and investment plan. Small details are addressed one at a time.
Deductive negotiations start with an agreed upon strategy. They rely on established principles and a formula to frame the negotiation while the parties work out the details.
Mixed negotiations are the most common; they are a blend of inductive and deductive methods.
Soft/Hard/Principled
Soft and hard bargaining involves negotiating a position rather than interests. To avoid some of the common problems associated with bargaining over positions, negotiators who take a soft approach treat the participants as friends, seeking agreement despite great cost, and offering concessions as a way to create or preserve a positive relationship with the other side.
A soft bargainer behaves transparently, sharing their bottom line, which can leave them vulnerable to a hard bargainer who is competitive, hides their bottom line, and offers few concessions, if any. In a negotiation between a soft and hard bargainer, the hard approach will almost always come out with a much better deal.
In their book Getting to Yes, Roger Fisher, William Ury, and Bruce Patton recommend
principled negotiation, instead of hard vs. soft, because principled negotiation relies on interests rather than positions.
Alternative Dispute Resolution
Alternative Dispute Resolution (ADR) continues to be a popular alternative to negotiation. If negotiations stall, the result can often be a move to arbitration or litigation. However, arbitration and litigation can be expensive and time-consuming undertakings. Either of them can result in a solution that neither party is happy with (a ―lose-lose‖), and both processes are full of friction. ADR is an alternative that allows the negotiating parties to utilize a formal dispute resolution process. Using mediators or facilitation, parties work through the process together and try to come up with a winning solution. One factor that makes ADR different is the idea that the negotiating partners must be satisfied with the outcome. If a stalemate results with proper use of ADR, then the negotiations can move to arbitration or litigation as a last resort.
Non-Negotiable Positions vs. Options
There are several ways that you can handle non-negotiable positions or options. As a negotiator, you must not go to the table with an intention like, ―This is all the money we have, and so this position is non-negotiable.‖ If you dig your heels in on such a position, there will not be much point in negotiating at all. Similarly, if you elect to draw the line on a particular issue, you must know your limits and the room you actually have to negotiate.
For example, perhaps you approach your boss about a raise. The boss says no because he has no money left in the budget. Instead of giving up your idea of getting a raise (because you know that
you have already earned it), consider whether there are other things that would satisfy you, like attending a conference, taking a course, or working fewer hours each week.
If you are prepared with your justification for the raise before you approach your boss, and you also have a few alternatives based on your knowledge of the need for training, the availability of a conference budget, and so on, your chances of success are much greater.
Just because someone says no to your request does not mean you have asked the only question that is available.
A good negotiator is prepared to use several possible approaches and formulas. They often ask questions more than they provide answers. They can assess a situation, including the expertise of the parties involved, and adapt formulas to suit the occasion.
An employer‘s negotiator, for example, who comes to the table insisting that they have a winning formula for this round of negotiations, will raise the defenses of the other party instantly, even if the formula would have been ideal. At the beginning of a negotiation, it is important to establish a formula that will be agreed upon between the parties.
It is equally important to recognize when the formula is getting in the way of making progress because it is too rigid and needs to be tailored to the situation.
Quality management
Jump to: The term quality management has a specific meaning within many business sectors. This specific definition, which does not aim to assure 'good quality' by the more general
definition, but rather to ensure that an organization or product is consistent, can be considered to have four main components: quality planning, quality control, quality assurance and quality improvement.[1] Quality management is focused not only on product/service quality, but also the means to achieve it. Quality management therefore uses quality assurance and control of
processes as well as products to achieve more consistent quality.
Quality management evolution
Quality management is a recent phenomenon. Advanced civilizations that supported the arts and crafts allowed clients to choose goods meeting higher quality standards than normal goods. In societies where arts and crafts are the responsibility of a master craftsman or artist, they would lead their studio and train and supervise others. The importance of craftsmen diminished as mass production and repetitive work practices were instituted. The aim was to produce large numbers of the same goods. The first proponent in the US for this approach was Eli Whitney who
proposed (interchangeable) parts manufacture for muskets, hence producing the identical components and creating a musket assembly line. The next step forward was promoted by
several people including Frederick Winslow Taylor a mechanical engineer who sought to improve industrial efficiency. He is sometimes called "the father of scientific management." He was one of the intellectual leaders of the Efficiency Movement and part of his approach laid a further foundation for quality management, including aspects like standardization and adopting improved practices. Henry Ford was also important in bringing process and quality management practices into operation in his assembly lines. In Germany, Karl Friedrich Benz, often called the inventor of the motor car, was pursuing similar assembly and production practices, although real mass production was properly initiated in Volkswagen after World War II. From this period onwards, North American companies focused predominantly upon production against lower cost with increased efficiency.
Walter A. Shewhart made a major step in the evolution towards quality management by creating a method for quality control for production, using statistical methods, first proposed in 1924. This became the foundation for his ongoing work on statistical quality control. W. Edwards Deming later applied statistical process control methods in the United States during World War II, thereby successfully improving quality in the manufacture of munitions and other strategically important products.
Quality leadership from a national perspective has changed over the past five to six decades. After the second world war, Japan decided to make quality improvement a national imperative as part of rebuilding their economy, and sought the help of Shewhart, Deming and Juran, amongst others. W. Edwards Deming championed Shewhart's ideas in Japan from 1950 onwards. He is probably best known for his management philosophy establishing quality, productivity, and competitive position. He has formulated 14 points of attention for managers, which are a high level abstraction of many of his deep insights. They should be interpreted by learning and understanding the deeper insights. These 14 points include key concepts such as:
Break down barriers between departments
Management should learn their responsibilities, and take on leadership
Supervision should be to help people and machines and gadgets to do a better job
Improve constantly and forever the system of production and service
Institute a vigorous program of education and self-improvement
In the 1950s and 1960s, Japanese goods were synonymous with cheapness and low quality, but over time their quality initiatives began to be successful, with Japan achieving very high levels of quality in products from the 1970s onward. For example, Japanese cars regularly top the J.D. Power customer satisfaction ratings. In the 1980s Deming was asked by Ford Motor Company to start a quality initiative after they realized that they were falling behind Japanese manufacturers. A number of highly successful quality initiatives have been invented by the Japanese (see for example on this page: Taguchi, QFD, Toyota Production System. Many of the methods not only provide techniques but also have associated quality culture (i.e. people factors). These methods are now adopted by the same western countries that decades earlier derided Japanese methods. Customers recognize that quality is an important attribute in products and services. Suppliers recognize that quality can be an important differentiator between their own offerings and those of competitors (quality differentiation is also called the quality gap). In the past two decades this
quality gap has been greatly reduced between competitive products and services. This is partly due to the contracting (also called outsourcing) of manufacture to countries like India and China, as well internationalization of trade and competition. These countries amongst many others have raised their own standards of quality in order to meet International standards and customer demands. The ISO 9000 series of standards are probably the best known International standards for quality management.
There are a huge number of books available on quality management. In recent times some themes have become more significant including quality culture, the importance of knowledge management, and the role of leadership in promoting and achieving high quality. Disciplines like systems thinking are bringing more holistic approaches to quality so that people, process and products are considered together rather than independent factors in quality management. The influence of quality thinking has spread to non-traditional applications outside of walls of manufacturing, extending into service sectors and into areas such as sales, marketing and customer service.[2]
Principles
Quality management adopts a number of management principles[3] that can be used by top management to guide their organizations towards improved performance. The principles include:
Customer focus
Since the organizations depend on their customers, therefore they should understand current and future customer needs, should meet customer requirements and try to exceed the expectations of customers.[4] An organization attains customer focus when all people in the organization know both the internal and external customers and also what customer requirements must be met to ensure that both the internal and external customers are satisfied.[5]
Leadership
Involvement of people
People at all levels of an organization are the essence of it. Their complete involvement enables their abilities to be used for the benefit of the organization.[4]
Process approach
The desired result can be achieved when activities and related resources are managed in an organization as process.[4]
An organization's effectiveness and efficiency in achieving its quality objectives are contributed by identifying, understanding and managing all interrelated processes as a system.[4]
Continual improvement
One of the permanent quality objectives of an organization should be the continual improvement of its overall performance.[4]
Factual approach to decision making
Effective decisions are always based on the data analysis and information.[4]
Mutually beneficial supplier relationships
Since an organization and its suppliers are interdependent, therefore a mutually beneficial relationship between them increases the ability of both to add value.[4]
These eight principles form the basis for the quality management system standard ISO 9001:2008.[4]
Quality improvement
There are many methods for quality improvement. These cover product improvement, process improvement and people based improvement. In the following list are methods of quality management and techniques that incorporate and drive quality improvement:
1. ISO 9004:2008 — guidelines for performance improvement.
2. ISO 15504-4: 2005 — information technology — process assessment — Part 4: Guidance on use for process improvement and process capability determination. 3. QFD — quality function deployment, also known as the house of quality approach. 4. Kaizen — 改善, Japanese for change for the better; the common English term is
continuous improvement.
5. Zero Defect Program — created by NEC Corporation of Japan, based upon statistical process control and one of the inputs for the inventors of Six Sigma.
6. Six Sigma — 6σ, Six Sigma combines established methods such as statistical process control, design of experiments and failure mode and effects analysis (FMEA) in an overall framework.
7. PDCA — plan, do, check, act cycle for quality control purposes. (Six Sigma's DMAIC method (define, measure, analyze, improve, control) may be viewed as a particular implementation of this.)
8. Quality circle — a group (people oriented) approach to improvement.
9. Taguchi methods — statistical oriented methods including quality robustness, quality loss function, and target specifications.
11. Kansei Engineering — an approach that focuses on capturing customer emotional feedback about products to drive improvement.
12. TQM — total quality management is a management strategy aimed at embedding awareness of quality in all organizational processes. First promoted in Japan with the Deming prize which was adopted and adapted in USA as the Malcolm Baldrige National Quality Award and in Europe as the European Foundation for Quality Management award (each with their own variations).
13. TRIZ — meaning "theory of inventive problem solving"
14. BPR — business process reengineering, a management approach aiming at 'clean slate' improvements (That is, ignoring existing practices).
15. OQM — Object-oriented Quality Management, a model for quality management.[6] Proponents of each approach have sought to improve them as well as apply them for small, medium and large gains. Simple one is Process Approach, which forms the basis of ISO 9001:2008 Quality Management System standard, duly driven from the 'Eight principles of Quality managagement', process approach being one of them. Thareja[7] writes about the mechanism and benefits: "The process (proficiency) may be limited in words, but not in its applicability. While it fulfills the criteria of all-round gains: in terms of the competencies augmented by the participants; the organisation seeks newer directions to the business success, the individual brand image of both the people and the organisation, in turn, goes up. The competencies which were hitherto rated as being smaller, are better recognized and now acclaimed to be more potent and fruitful".[8] The more complex Quality improvement tools are tailored for enterprise types not originally targeted. For example, Six Sigma was designed for manufacturing but has spread to service enterprises. Each of these approaches and methods has met with success but also with failures.
Some of the common differentiators between success and failure include commitment, knowledge and expertise to guide improvement, scope of change/improvement desired (Big Bang type changes tend to fail more often compared to smaller changes) and adaption to enterprise cultures. For example, quality circles do not work well in every enterprise (and are even discouraged by some managers), and relatively few TQM-participating enterprises have won the national quality awards.
There have been well publicized failures of BPR, as well as Six Sigma. Enterprises therefore need to consider carefully which quality improvement methods to adopt, and certainly should not adopt all those listed here.
It is important not to underestimate the people factors, such as culture, in selecting a quality improvement approach. Any improvement (change) takes time to implement, gain acceptance and stabilize as accepted practice. Improvement must allow pauses between implementing new changes so that the change is stabilized and assessed as a real improvement, before the next improvement is made (hence continual improvement, not continuous improvement).
Improvements that change the culture take longer as they have to overcome greater resistance to change. It is easier and often more effective to work within the existing cultural boundaries and make small improvements (that is Kaizen) than to make major transformational changes. Use of
Kaizen in Japan was a major reason for the creation of Japanese industrial and economic strength.
On the other hand, transformational change works best when an enterprise faces a crisis and needs to make major changes in order to survive. In Japan, the land of Kaizen, Carlos Ghosn led a transformational change at Nissan Motor Company which was in a financial and operational crisis. Well organized quality improvement programs take all these factors into account when selecting the quality improvement methods.
Quality standards
The International Organization for Standardization (ISO) created the Quality Management System (QMS) standards in 1987. They were the ISO 9000:1987 series of standards comprising ISO 9001:1987, ISO 9002:1987 and ISO 9003:1987; which were applicable in different types of industries, based on the type of activity or process: designing, production or service delivery. The standards are reviewed every few years by the International Organization for
Standardization. The version in 1994 was called the ISO 9000:1994 series; consisting of the ISO 9001:1994, 9002:1994 and 9003:1994 versions.
The last major revision was in the year 2008 and the series was called ISO 9000:2000 series. The ISO 9002 and 9003 standards were integrated into one single certifiable standard: ISO
9001:2008. After December 2003, organizations holding ISO 9002 or 9003 standards had to complete a transition to the new standard.
ISO released a minor revision, ISO 9001:2008 on 14 October 2008. It contains no new requirements. Many of the changes were to improve consistency in grammar, facilitating
translation of the standard into other languages for use by over 950,000 certified organisations in the 175 countries (as at Dec 2007) that use the standard.
The ISO 9004:2009 document gives guidelines for performance improvement over and above the basic standard (ISO 9001:2000). This standard provides a measurement framework for improved quality management, similar to and based upon the measurement framework for process
assessment.
The Quality Management System standards created by ISO are meant to certify the processes and the system of an organization, not the product or service itself. ISO 9000 standards do not certify the quality of the product or service.
In 2005 the International Organization for Standardization released a standard, ISO 22000, meant for the food industry. This standard covers the values and principles of ISO 9000 and the
HACCP standards. It gives one single integrated standard for the food industry and is expected to become more popular in the coming years in such industry.
ISO has also released standards for other industries. For example Technical Standard TS 16949 defines requirements in addition to those in ISO 9001:2008 specifically for the automotive industry.
ISO has a number of standards that support quality management. One group describes processes (including ISO/IEC 12207 & ISO/IEC 15288) and another describes process assessment and improvement ISO 15504.
The Software Engineering Institute has its own process assessment and improvement methods, called CMMi (Capability Maturity Model — integrated) and IDEAL respectively.
Quality software
The software used to track the four main components of quality management through the use of databases and/or charting applications.
Quality terms
Quality Improvement can be distinguished from Quality Control in that Quality
Improvement is the purposeful change of a process to improve the reliability of achieving an outcome.
Quality Control is the ongoing effort to maintain the integrity of a process to maintain the reliability of achieving an outcome.
Quality Assurance is the planned or systematic actions necessary to provide enough confidence that a product or service will satisfy the given requirements.
there are 4 types of trade unions:-
1. craft unions-this union represents workers with a particular skill
2. industrial unions-this union represents all workers in one industries with different skills 3. general unions-this union represents workers with different skills
4. white collar unions-this union represents special skills like engineer or something
Read more: http://wiki.answers.com/Q/What_are_the_types_of_trade_unions#ixzz1y4rBsT8z Trade unions are formed to protect and promote the interests of their members. Their primary function is to protect the interests of workers against discrimination and unfair labor practices.
Trade unions are formed to achieve the following objectives: Representation
Trade unions represent individual workers when they have a problem at work. If an employee feels he is being unfairly treated, he can ask the union representative to help sort out the difficulty with the manager or employer. Unions also offer their members legal representation. Normally this is to help people get financial compensation for work-related injuries or to assist people who have to take their employer to court.
Negotiation
Negotiation is where union representatives, discuss with management, the issues which affect people working in an organization. There may be a difference of opinion between management and union members. Trade unions negotiate with the employers to find out a solution to these differences. Pay, working hours, holidays and changes to working practices are the sorts of issues that are negotiated. In many workplaces there is a formal agreement between the union and the company which states that the union has the right to negotiate with the employer. In these organizations, unions are said to be recognized for collective bargaining purposes.
Voice in decisions affecting workers
The economic security of employees is determined not only by the level of wages and duration of their employment, but also by the management‘s personal policies which include selection of employees for lay offs, retrenchment, promotion and transfer. These policies directly affect workers. The evaluation criteria for such decisions may not be fair. So, the intervention of unions in such decision making is a way through which workers can have their say in the decision making to safeguard their interests.
Member services
During the last few years, trade unions have increased the range of services they offer their members. These include:
o Education and training - Most unions run training courses for their members on employment rights, health and safety and other issues. Some unions also help members who have left school with little education by offering courses on basic skills and courses leading to professional qualifications.
o Legal assistance - As well as offering legal advice on employment issues, some unions give help with personal matters, like housing, wills and debt.
o Financial discounts - People can get discounts on mortgages, insurance and loans from unions.
o Welfare benefits - One of the earliest functions of trade unions was to look after members who hit hard times. Some of the older unions offer financial help to their members when they are sick or unemployed.
Importance of Industrial Relations:
Industrial Relations Home » Importance Of Industrial Relations
The healthy industrial relations are key to the progress and success. Their significance may be discussed as under –
Uninterrupted production – The most important benefit of industrial relations is that this ensures continuity of production. This means, continuous employment for all from manager to workers. The resources are fully utilized, resulting in the maximum possible production. There is uninterrupted flow of income for all. Smooth running of an industry is of vital importance for several other industries; to other industries if the products are intermediaries or inputs; to exporters if these are export goods; to consumers and workers, if these are goods of mass consumption.
Reduction in Industrial Disputes – Good industrial relations reduce the industrial
disputes. Disputes are reflections of the failure of basic human urges or motivations to secure adequate satisfaction or expression which are fully cured by good industrial relations. Strikes, lockouts, go-slow tactics, gherao and grievances are some of the reflections of industrial unrest which do not spring up in an atmosphere of industrial peace. It helps promoting co-operation and increasing production.
High morale – Good industrial relations improve the morale of the employees.
Employees work with great zeal with the feeling in mind that the interest of employer and employees is one and the same, i.e. to increase production. Every worker feels that he is a co-owner of the gains of industry. The employer in his turn must realize that the gains of industry are not for him along but they should be shared equally and generously with his workers. In other words, complete unity of thought and action is the main achievement of industrial peace. It increases the place of workers in the society and their ego is satisfied. It naturally affects production because mighty co-operative efforts alone can produce great results.
Mental Revolution – The main object of industrial relation is a complete mental
revolution of workers and employees. The industrial peace lies ultimately in a
transformed outlook on the part of both. It is the business of leadership in the ranks of workers, employees and Government to work out a new relationship in consonance with
a spirit of true democracy. Both should think themselves as partners of the industry and the role of workers in such a partnership should be recognized. On the other hand,
workers must recognize employer‘s authority. It will naturally have impact on production because they recognize the interest of each other.
Reduced Wastage – Good industrial relations are maintained on the basis of
cooperation and recognition of each other. It will help increase production. Wastages of man, material and machines are reduced to the minimum and thus national interest is protected.
Thus, it is evident that good industrial relations is the basis of higher production with minimum cost and higher profits. It also results in increased efficiency of workers. New and new projects may be introduced for the welfare of the workers and to promote the morale of the people at work. An economy organized for planned production and distribution, aiming at the realization of social justice and welfare of the massage can function effectively only in an atmosphere of industrial peace. If the twin objectives of rapid national development and increased social justice are to be achieved, there must be harmonious relationship between management and labor.
The main objectives of industrial relations system are:-
To safeguard the interest of labor and management by securing the highest level of mutual understanding and good-will among all those sections in the industry which participate in the process of production.
To avoid industrial conflict or strife and develop harmonious relations, which are an essential factor in the productivity of workers and the industrial progress of a country.
To raise productivity to a higher level in an era of full employment by lessening the tendency to high turnover and frequency absenteeism.
To establish and promote the growth of an industrial democracy based on labor
partnership in the sharing of profits and of managerial decisions, so that ban individuals personality may grow its full stature for the benefit of the industry and of the country as well.
To eliminate or minimize the number of strikes, lockouts and gheraos by providing reasonable wages, improved living and working conditions, said fringe benefits.
To improve the economic conditions of workers in the existing state of industrial managements and political government.
Socialization of industries by making the state itself a major employer
Vesting of a proprietary interest of the workers in the industries in which they are employed.
Dunlop's Contribution To Industrial
Relations
Industrial Relations Home » Dunlop's Model
One of the significant theories of industrial labor relations was put forth by John Dunlop in the 1950s. According to Dunlop industrial relations system consists of three agents –
management organizations, workers and formal/informal ways they are organized and
government agencies. These actors and their organizations are located within an environment – defined in terms of technology, labor and product markets, and the distribution of power in wider society as it impacts upon individuals and workplace. Within this environment, actors interact with each other, negotiate and use economic/political power in process of determining rules that constitute the output of the industrial relations system. He proposed that three parties—employers, labor unions, and government-- are the
key actors in a modern industrial relations system. He also argued that none of these institutions could act in an autonomous or independent fashion. Instead they were shaped, at least to some extent, by their market, technological and political contexts.
Thus it can be said that industrial relations is a social sub system subject to three environmental constraints- the markets, distribution of power in society and technology.
Dunlop's model identifies three key factors to be considered in conducting an analysis of the management-labor relationship:
1. Environmental or external economic, technological, political, legal and social forces that impact employment relationships.
2. Characteristics and interaction of the key actors in the employment relationship: labor, management, and government.
3. Rules that are derived from these interactions that govern the employment relationship. Dunlop emphasizes the core idea of systems by saying that the arrangements in the field of industrial relations may be regarded as a system in the sense that each of them more or less intimately affects each of the others so that they constitute a group of arrangements for dealing with certain matters and are collectively responsible for certain results‖.
In effect - Industrial relations is the system which produces the rules of the workplace. Such rules are the product of interaction between three key ―actors‖ – workers/unions, employers and associated organizations and government
The Dunlop‘s model gives great significance to external or environmental forces. In other words, management, labor, and the government possess a shared ideology that defines their roles within the relationship and provides stability to the system.
Bargaining Form And Tactics
Industrial Relations Home » Bargaining Forms and Tactics
A collective bargaining process generally consists of four types of activities- distributive bargaining, integrative bargaining, attitudinal restructuring and intra-organizational bargaining. Distributive bargaining: It involves haggling over the distribution of surplus. Under it, the economic issues like wages, salaries and bonus are discussed. In distributive bargaining, one party‘s gain is another party‘s loss. This is most commonly explained in terms of a pie. Disputants can work together to make the pie bigger, so there is enough for both of them to have as much as they want, or they can focus on cutting the pie up, trying to get as much as they can for themselves. In general, distributive bargaining tends to be more competitive. This type of bargaining is also
known as conjunctive bargaining. Integrative bargaining:
This involves negotiation of an issue on which both the parties may gain, or at least neither party loses. For example, representatives of employer and employee sides may bargain over the better training programme or a better job evaluation method. Here, both the parties are trying to make more of something. In general, it tends to be more cooperative than distributive bargaining. This type of bargaining is also known as cooperative bargaining.
Attitudinal restructuring:
This involves shaping and reshaping some attitudes like trust or distrust, friendliness or hostility between labor and management. When there is a backlog of bitterness between both the parties, attitudinal restructuring is required to maintain smooth and harmonious industrial relations. It develops a bargaining environment and creates trust and cooperation among the parties. Intra-organizational bargaining:
It generally aims at resolving internal conflicts. This is a type of maneuvering to achieve consensus with the workers and management. Even within the union, there may be differences between groups. For example, skilled workers may feel that they are neglected or women workers may feel that their interests are not looked after properly. Within the management also, there may be differences. Trade unions maneuver to achieve consensus among the conflicting groups.