Negotiation refers to discussing problems with an objective to reaching an agreement. When the management and the labor union find themselves at variance over certain issues they have to fall back on negotiation so that the disputes are settled. Both parties make offers and counter offers and finally the middle-of-the-road is arrived and the problem resolved. It is undesirable that one party put an undue pressure on the other.
Process of Negotiation
Negotiations between the management and the labor union pass through the following process.
Here both the parties review conditions and situations around them, carefully hear, and try to evaluate each other’s stand over the issue. They also identify their respective strengths and weaknesses.
It refers to reprimanding and making accusations against each other. Both parties justify their relevant position and reject each other’s stance. As a matter of fact, it is a stage of putting psychological pressures.
Simulation of Real Both
Here, both the parties build an artificial atmosphere and make it look real, parties act as if their stand on the issue is final and they cannot budge Position an inch. The labor union makes higher demands than it has in their minds.
This is the stage where the management and the labor union budge from Position their apparent stands before the possible stalemate is feared. In other words, they abandon their exaggerated and subborn positions and take Jo real demands.
At this phase a package deal is offered from both the sides and they agree to compromise to make the negotiations successful.
Now both groups understand each other and are ready to reach a mutual agreement. And hence a contract between them is signed.