union, they have not done so yet. One reason might be that CEO John Mayberry worked hard to
negotiate effectively with his employees and to foster a supportive environment for all. He did this
by creating a performance culture, where employee bonuses and pay are tied to how well the com-
pany does. He also encouraged employees to learn from other companies, and even sent a few
employees around the world to see what other companies do and how they do it. Mayberry organ-
ized employees into teams, getting them to be accountable and to work together to solve prob-
lems, make plans and schedules, and provide team members with feedback. In other words, Mayberry
created a win-win situation. What steps can help ensure negotiations are effective?When parties are potentially in conflict, they may choose to negotiate a resolution.
Negotiation occurs in the interactions of almost everyone in groups and organizations:
Labour bargains with management; managers negotiate with employees, peers, and
senior management; salespeople negotiate with customers; purchasing agents negotiate
with suppliers; employees agree to answer a colleague’s phone for a few minutes in
exchange for some past or future benefit. In today’s team-based organizations, negoti-
ation skills become critical so that teams can work together effectively.
We define negotiationas a process in which two or more parties try to agree on the
exchange rate for goods or services they are trading.^59 Note
that we use the terms negotiationand bargaininginterchangeably.
Within a negotiation, one should be aware that individu-
als have issues, positions,and interests. Issuesare items that are
specifically placed on the bargaining table for discussion.
Positionsare the individual’s stand on the issues. For instance,
salary may be an issue for discussion. The salary you hope to
receive is your position. Finally,interestsare the underlying
concerns that are affected by the negotiation resolution. For
instance, the reason that you might want a six-figure salary
is that you are trying to buy a house in Vancouver, and that is
your only hope of being able to make mortgage payments.
Negotiators who recognize the underlying interests of them-
selves and the other party may have more flexibility in achiev-
ing a resolution. For instance, in the example just given, an
employer who offers you a mortgage at a lower rate than the
bank does, or who provides you with an interest-free loan that
can be used against the mortgage, may be able to address your
underlying interests without actually meeting your salary posi-
tion. You may be satisfied with this alternative, if you under-
stand what your interest is.
Interest-based bargaining enabled Vancouver-based
NorskeCanada (now Catalyst Paper Corporation) to sign a
mutually beneficial five-year contract with the
Communications, Energy and Paperworkers Union of Canada
in fall 2002, after just nine days of negotiations.^60 While the
union and NorkseCanada had experienced bitter conflict in
previous negotiations, in this particular situation both sides
agreed to focus more on the interests of the parties, rather
than on demands and concessions. Both sides were pleased
with the outcome.
Bargaining Strategies
There are two general approaches to negotiation—distributive
bargainingand integrative bargaining.^61 These are compared in
Exhibit 6-7 on page 206.
Chapter 6 Communication, Conflict, and Negotiation 205OB IN ACTION
Handling Personality Conflicts
Tips for employees having a personality
conflict
➔Communicate directlywith the other person to
resolve the perceived conflict (emphasize problem
solving and common objectives, not personalities).
➔Avoid draggingco-workers into the conflict.
➔If dysfunctional conflict persists,seek helpfrom
direct supervisors or human resource specialists.Tips for third-party observers of a
personality conflict
➔Do not take sidesin someone else’s personality
conflict.
➔Suggest the parties work things outthem-
selves in a constructive and positive way.
➔If dysfunctional conflict persists,refer the prob-
lem to the parties’ direct supervisors.Tips for managers whose employees are
having a personality conflict
➔Investigate and documentconflict.
➔If appropriate,take corrective action(e.g., feed-
back or behaviour shaping).
➔If necessary,attempt informal dispute
resolution.
➔Refer difficult conflictsto human resource spe-
cialists or hired counsellors for formal resolution
attempts and other interventions.Source:R. Kreitner and A. Kinicki, Organizational Behavior,
6th ed. (New York: McGraw Hill, 2004), p. 492, table 14-1.
Reprinted by permission of McGraw Hill Education.6 How does one
negotiate effectively?negotiationA process in which
two or more parties exchange goods
or services and try to agree upon the
exchange rate for them.