Introduction
Negotiation is a process carried out by two or more than two parties to sort out a problem and reach a conclusive agreement. Negotiation includes all efforts made by these parties, e.g., exchange of information, development of options, discussion regarding the agreement and exploring possibilities for a final agreement (Kung and Chao, 2019). Negotiation has significant value that enables two parties to bargain and decide the matter with mutual understanding. In the negotiation, the union presented a straight role of negotiator to encourage the bank management to follow up the legal policies and employee rules that are commonly adopted by the other banking sectors and organizations in Australia. In the online negotiation, different influencing components were considered such as reciprocity, power, trust, ethical considerations of discussion, outcomes, exchange of authentic information, and levels of efficiency and fluency in the discussion. As the negotiation was descriptive and bargaining style of DNA negotiation induces influence on others. The approach of the present work is based on the critical analysis of negotiation and how it ends with a discussion on employees’ rights. At the end of the negotiation, the approach and agreement are evaluated to measure the effectiveness and to indicate the outcomes of the discussion. The effective negotiation between both parties is based on a practical understanding of the employees’ rights and a realistic approach towards the implementation of rules and regulations. The present report evaluates the key issues of ethics and strategy, trust, power, and information exchange. In short, the present work will demonstrate the DNA of negotiation in detail to elaborate on how and what components influenced the overall negotiation process.
Critical Review and Arguments
Most Influencing Component of DNA and Arguments
In this online negotiation, Saving Bank Pty Ltd and Financial Sector Union parties were well aware of their best alternative to this negotiated agreement. Both parties had negotiations according to the basic rules and standards of negotiation. Following ethical considerations and attention paid to the importance of the negotiation process enabled Saving Bank Pty Ltd and Union both parties reach the agreement without having conflicts (Vevere and Sannikova, 2018). ZOPA of this negotiation consisted of the set of all deals that were the least good for both parties in this negotiation as their respective BATNAs (best alternative to this negotiated agreement). The negotiation started with a professional style. At the first bank management team presented their views about the consultation clause and main requirements of the bank management team regarding leaves of employees and possible pay options (Fells, Caspersz and Leighton, 2018). While in this process union role was appealing, they listened to what was said by the management team and replied to these in a concise way with supporting reference material from articles and law as evidence.
Evaluating the whole negotiation process, we can conclude that ethics were the main component of the Fells DNA of negotiation that was more influential in shaping the course of whole online negotiation between the bank management team and employee’s union (Pekarek, Ilsøe and Fells, 2015). There are some key components that can share the whole negotiation process. These components include trust, power, information exchange, ethics, and outcomes (Fells, 2009). All these components are interrelated with each other, and a fine combination of these entire make a negotiator win the negotiation process (Pekarek, Ilsøe and Fells, 2015). These components are known as DNA of negotiation. According to the literature review, these components are integral to the strategies that a negotiator can adopt or use to make the negotiation process efficient.
Analyzing the online negotiation, it is concluded that the whole negotiation structure was dependent on the links between these components. Negotiation was influenced by ethics as Saving Bank Pty Ltd and Union both parties disclosed their interest-based positions in the negotiation, but before reaching any decision, they also acknowledge the point of view of the opposite party. During the negotiation, trust was also a critical component that enabled the negotiators to think about behavioral ethics in negotiation.
According to Fell, unethical behavior can cause distorts and conflicts. Ethical concerns with the use of power and information exchange (Zahroh and Sudira, 2014). Analysis of the whole negotiation presents that some highly acceptable tactics are used in the negotiation process. For instance, both parties (bank management and union) did not face difficulty with tactics that had connection or link with competitive bargaining. They asked for more and what they desired while concealing or hiding the real objective behind that demand. For instance, while negotiating bank managers were mainly focused on the agreement that benefits bank administration rather than searching for direct benefits for employees. Even some information was manipulated by the union to enforce the bank management team to accept what was desired by them.
Negotiation enabled both these parties to make an agreement (Fells, 2012). Actually, after the negotiation, the agreement was finalized between Saving Bank Pty Ltd and Financial Sector Union. The legal agreement binds the rights of clerical employees to perform their work according to the grades specified. The agreement contains legal binding along with documentation to discuss the conditions and terms regarding employment. The consultation process was discussed in the negotiation for the work standard and employment rules. During the negotiation, the grades for the working conditions were specified based on mutual understanding and collaboration between two parties (Fells, 2001).
The main concern of the negotiation was first to identify the required changes and decide the implementation process for the major changes in the banks. It was decided that banks are responsible for the notification and approval of work to the financial Sector Union. The discussion concluded that the implementation of new rules, plans and policies can induce impact on the working capabilities of the workers. Therefore, the new rules will be implemented after the three weeks of the final decision (Rogers and Fells, 2018). The changes in the regular or ordinary hours conditions for the work can induce an impact on the employees. Therefore, the changes will be implemented 5 days after the final decisions. The management sector is responsible for providing a complete report on the progress along with working hours to the financial sector union.
The complexity can be recognized in the negotiation process for practical recommendations. The discussion between Saving Bank Pty Ltd and Financial Sector Union covers strategic principles that have a clear focus on the context of employee rights. Although, the negotiation is interpersonal as well as sales-based negotiation that resolves the social, environmental, and legal issues of employees still some glitches are identified related to the final agreement (Afolabi and Idowu, 2018). The outcomes of the negotiation demonstrate that the goals and requirements were accomplished effectively. Since the nature of the negotiation is the descriptive and consultation process is also considered, therefore positive outcomes and results are drawn. The rules and regulations are redefined for the relevant changes and implementation time period for the new terms (Kung and Chao, 2019).
Excluding other components of negotiation also influenced the negotiation process, for instance, trust, power, and reciprocity. Trust positively influenced the negotiation. In the negotiation, Saving Bank Pty Ltd and Union both parties emphasized building trust. For this purpose, both parties even accepted the opinion of each other at first and then negotiated on these options later to finalize the agreement according to their requirements or desires. Lack of use of power also contributed to positivity. Saving Bank Pty Ltd and Financial Sector Union both negotiation parties were aware of the negative consequences of power. Therefore, rather than using power both parties focused on ethical behavior.
Moreover, the negotiation was a combination of both approaches integrative bargaining and distributive bargaining. Negotiation by the union is evidence of distributive bargaining as they elaborated on positional based interest in the negotiation. Union focussed on the winning strategy. Therefore, they sometimes did not give enough attention to management. While on the other hand, bank management was resistant to the targeted point in the bargaining process without losing ethical behavior.
Conclusion
In the present work, online negotiation was carried out between two parties representing saving bank management (party 1) and a union (party 2). The main focus of this negotiation was to decide how the employees should pay, annual leave, super annulation parental leave, work cycle roaster, and all other similar leaves to be taken by the bank employees. The whole critical review concludes that negotiation carried out by bank management and unions on how employees should pay annual leaves, and parental leaves were mainly influenced by ethics. Ethical behavior as the component presented in the Fell DNA of negotiation influenced the whole negotiation process and encouraged both parties to accept the opinion of each other to reach the mutually agreed upon agreement. The presence of ethical behavior and its support in building trust and reaching the agreement are the evidence of influence caused by ethics in negotiation. Moreover, the negotiation consisted of the combination of both integrative and competitive bargaining.
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