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Week 9

This week we ask how can organisational change be embedded into organisations through Interest Based Negotiation (IBN)?

The Union Perspective

Case study Air New Zealand

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Wk 1 -How sound are the underlying theories, methods and ideas on change, that managers and consultants adhere to?

Wk2 -Why is it necessary to consider complex contexts and cross-cultural dimensions in organisations during change?

Wk 3 -Why and how do employees’ experiences of participation influence their perceptions and response to change, the effectiveness of organisational change and the success of the change?

Wk 4 -How, do we make sense of change and how do we respond to organisational change across the dimensions of cognition, affect and behaviour?

Wk 5-Why is it important to include perspectives of those people (stakeholders) who might be affected by the decision in the process of planning design and implementation of change?

Wk 6-How can a third-party change agent draw on a range of processes to facilitate collaborative change and embed a collaborative culture? The heatnetwork case

Wk 7 To What Extent Is Culture Change Possible Through Coaching and Mentoring?

Wk 8 What are the leadership and negotiation factors contributing to organisational change success or failure?

Wk 9 How can organisational change be embedded into organisations through an Interest Based Negotiation (IBN) approach to internal and union relationships ?

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Outline

What is interest based negotiation?

Conflict

Thinking about our own negotiations

Stories from the front line growing union membership

Air New Zealand

Assessment discussion

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Mary Parker Follett’s integrative or Negotiation also known as IBN

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  • A problem-solving approach
  • Focus on commonalties rather than differences
  • Address needs and interests, not positions
  • Commit to meeting the needs of all involved parties
  • Exchange information and ideas
  • Invent options for mutual gain
  • Use objective criteria to set standards

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Integrative or IBN Negotiation

Comparing IBN v competitive distributive Bargaining Process
(Fisher, Ury & Patton, 1999)

TRADITIONAL BARGAINING

Stated experience competitively

Identify Issues

Develop Positions

Develop Proposals

Meet to Negotiate

Argue and Justify

Demolish their Proposals

Compromise Power

Settle on Win/Lose

  • INTEREST BASED Negotiation Experience shared collaboratively
  • Identify Issues
  • Identify Interests
  • Develop Interest Statements
  • Meet to Discuss Interests
  • Identify Common Interests
  • Develop Options
  • Evaluate Options
  • Decide Based on SMART goals Agree or Settle on Mutual Gains
  • Agree to the best most satisfying option that meets the needs of stakeholders

Creating & Claiming Value

Creating Value

Claiming value

  • Often linked to integrative mutual gains approach
  • Otherwise known as win/win
  • Find solutions where both parties achieve their goals
  • Find ways to meet both parties objectives
  • Enlarge the pie
  • Identify more or different resources
  • Gain the best deal
  • The lions share
  • Win lose
  • Do what ever is necessary to get the largest piece of the pie

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Negotiation literature and slides from:

Lewicki, R.J., Barry, B., & Saunders, D.M. (2016).6 th Ed Essentials of Negotiation, New York, NY: McGraw-Hill/Irwin.

Negotiation literature and slides from: Lewicki, R.J., Barry, B., & Saunders, D.M. (2016).6 th Ed Essentials of Negotiation, New York, NY: McGraw-Hill/Irwin.

Competitive, win-lose goals

Misperception and bias

Emotionality

Decreased communication

Blurred issues

Rigid commitments

Magnified differences, minimized similarities

Escalation of conflict

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Dysfunctions of Conflict

Makes organizational members more aware and able to cope with problems through discussion.

Promises organizational change and adaptation.

Strengthens relationships and heightens morale.

Promotes awareness of self and others.

Enhances personal development.

Encourages psychological development—it helps people become more accurate and realistic in their self-appraisals.

Can be stimulating and fun.

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Functions and Benefits of Conflict

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The Dual Concerns Model

11.bin

1. Contending /competing

  • Actors pursue own outcomes strongly, show little concern for other party obtaining their desired outcomes

2. Yielding/ capitulating

  • Actors show little interest in whether they attain own outcomes, but are quite interested in whether the other party attains their outcomes

3. Inaction / avoiding

  • Actors show little interest in whether they attain own outcomes, and little concern about whether the other party obtains their outcomes

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Styles of Negotiation & Conflict Management

4. Problem solving/collaborating

  • Actors show high concern in obtaining own outcomes, as well as high concern for the other party obtaining their outcomes

5. Compromising 50/50 concessions sharing

  • Actors show moderate concern in obtaining own outcomes, as well as moderate concern for the other party obtaining their outcomes

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Styles of Conflict Management

1. Identify the problem (s)

  • Each person tells their story uninterrupted and summarizes

the issues from their perspective

  • Collaboratively identify and define the overall problem

2. Identify interests and needs of each person

3. Brainstorm creative options for solution

4 Evaluate and select options

5. Record your agreements reached

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Key Steps in the Integrative Negotiation Process

  • Define the problem in a way that is mutually acceptable to both sides “how might we>>>?”
  • State the problem with an eye toward practicality and comprehensiveness
  • State the problem as a goal and identify the obstacles in attaining this goal
  • Depersonalize the problem
  • Separate the problem definition from the search for solutions

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Identify and Define
the Problem

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  • Create a free flow of information
  • Attempt to understand the other negotiator’s real needs
  • Interests and objectives
  • Emphasize the commonalties between the parties and minimize the differences
  • Search for solutions that meet the goals and objectives of both sides

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Principles of the Interest based /Integrative Negotiation Process

  • Interests: the underlying concerns, needs, desires, or fears that motivate a negotiator
  • Substantive interests relate to key issues in the negotiation
  • Process interests are related to the way the dispute is settled
  • Relationship interests indicate that one or both parties value their relationship
  • Interests in principle: doing what is fair, right, acceptable, ethical may be shared by the parties

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Understand the Problem Fully—
Identify Interests and Needs

  • There is almost always more than one
  • Parties can have different interests at stake
  • Often stem from deeply rooted human needs or values
  • Can change
  • Numerous ways to surface interests
  • Surfacing interests is not always easy or to one’s best advantage

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Observations on Interests

  • Invent options by redefining the problem set:
  • Compromise
  • Logroll
  • Modify the pie
  • Expand the pie
  • Find a bridge solution
  • Cut the costs for compliance
  • Nonspecific compensation
  • Subordination
  • Generate options to the problem as a given:
  • Brainstorming
  • Surveys
  • Electronic brainstorming

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Generate Alternative Solutions

  • Narrow the range of solution options
  • Evaluate solutions on:
  • Quality
  • Objective standards SMART GOALS
  • Acceptability
  • Agree to evaluation criteria in advance
  • Be willing to justify personal preferences
  • Be alert to the influence of intangibles in selecting options
  • evaluate complex options involve neutral experts in evaluation

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Evaluate and Select Alternatives

  • Reality check options differences in expectations and risk/time preferences
  • Keep decisions tentative and conditional until a final proposal is complete
  • Minimize formality, record keeping until final agreements are closed

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Evaluate and Select
Alternatives

  • Build Trust in the process through honest open communication
  • Clear and accurate communication
  • Learn and understand of the dynamics of integrative negotiation
  • Air New Zealand embedded this approach throughout the organisation
  • Repaired union relationships

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To Facilitate Successful Integrative Negotiation

Negotiation literature and slides from:

Lewicki, R.J., Barry, B., & Saunders, D.M. (2016).6 th Ed Essentials of Negotiation, New York, NY: McGraw-Hill/Irwin.

Negotiation literature and slides from: Lewicki, R.J., Barry, B., & Saunders, D.M. (2016).6 th Ed Essentials of Negotiation, New York, NY: McGraw-Hill/Irwin.

UNIONS & IBN
Greenwood & Ward 2019

  • Embedded in the object of the Employment Relations Act 2000
  • Problem solving approach to negotiating and mediation service through MBIE
  • Unions reflected IBN bought better outcomes and growth and increased membership
  • Pathways to progression rather than on size fits all
  • Organisations and unions worked together
  • Shift in thinking and practise form the old ways of battling the boss as the enemy
  • Tension and resistance to change form within the unions
  • Strategic advantages sharing of information more than consultation
  • Partnership approach unpacking the problems together
  • Increased job security creative options for solution
  • Better health and safety compliance

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