Seminar Paper, 2008
10 Pages, Grade: 2,0
2 Negotiation – definition and types
3 Manager’s issues in negotiation
4 Cultural differences
5 The negotiation process
Ever since she entered the firm, Mrs. Müller has worked every year on Christmas Eve. This year she wants to be with her family, though. But none of her colleagues want to be there. Her boss needs every shop assistant available because of the Christmas sales. At the beginning of December Mrs. Müller asks the boss who will fill in for her on Christmas Eve.
Especially in today’s work setting, where a variety of people are being offered opportunities to be involved in making decisions affecting them and their work negotiation is significant. The more people are involved in the process; more disagreements are likely to arise over diverse matters such as wage rates, task objectives, performance evaluation, job assignment or work schedules (John Wiley & Sons, 2004). A manager of today has to be familiar with basic negotiation concepts and processes to deal with such day– to– day affairs.
In this assignment I want to give a short overview about what negotiation is all about and what different types can be distinguished (chapter 2). Then I want to focus on the manager’s main fields of action within negotiations (chapter 3) followed by some aspects of cultural differences (chapter 4). Finally I will explain the negotiation process (chapter 5).
At first I want to define the elementary terminology of this work.
Negotiation is the process of making joint decisions when the parties involved have different preferences. You can say negotiation to be a way of getting what you want from others in the process of making decisions. It is especially significant in today’s work settings, where a larger number of people is being offered opportunities to be involved in decisions affecting them and their work than, say, a decade ago.
There are four types of negotiation situations that managers will have to face. Managers should be prepared to participate in the following major action settings for negotiation:
Two – party – negotiation:
The manager negotiates directly with one other person. An example is a manager negotiating performance objectives with a subordinate.
Group – negotiation:
The manager is part of a team or group whose members are negotiating to arrive at a decision supported by all. A committee that must reach an agreement on recommending a new sexual harassment policy is an example for group negotiation.
Intergroup – negotiation:
The manager is part of a group that is negotiating with another group to arrive at a decision regarding a problem or situation affecting both. An example could be a negotiation between management groups from two different firms to form a joint venture or strategic alliance.
Constituency – negotiation:
The manager is involved in negotiation with other people and each individual party represents a broad constituency. A team representing “management” negotiating with a team representing “labour” to arrive at a collective bargaining agreement could illustrate this.
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