ORGANIZATIONAL BEHAVIOUR

UNIT III
GROUP DYNAMICS
MEANING
The word “dynamics” comes from the Greek word meaning “force” hence group dynamics
refers to the study of forces operating within a group.
The social process by which people interact face-to-face in small is called group dynamics.
Group Dynamics is viewed from the perspective of the internal nature of groups, how the
form, their structure & processes, & how they function & affect individual members, other
groups, & the organization.
CONCEPT OF GROUP
A group may be defined as the aggregation of small number of persons who work together for
common goals, develop a shared attitude, & are aware that they are part of a group &
perceive themselves as such.
FEATURES OF GROUP-
 Two or more persons
 Collective identity
 Interaction
 Shared goal interest
TYPES OF GROUPS
1. PRIMARY & SECONDARY GROUPS- a primary group is characterized by
intimate, face to face association & cooperation. The membership of such a group is
small & is based on intimate relationship. Example- families, friendship group or
neighbourhood groups. Secondary groups are more formal, generate & remote. The
members of secondary group may not have any interest in the problems & pleasures
of others.
2. MEMBERSHIP & REFERENCE GROUPS- a membership group is one which an
individual really belongs while a reference group is one with which the individual
identifies or to which he would like to belong.
3. COMMAND & TASK GROUP- a command group is composed of the subordinates
who report directly to a common superior. This type of group is determined by
organization chart. Example- a production manager & his subordinates in his
department. A task group is comprised of the employees who work together to
complete a particular task or project.
4. FORMAL & INFORMAL GROUPS- formal groups are those defined by
organization’s structure, with designated work assignments establishing tasks. In
formal groups, the behaviours that one should engage in are stipulated by & directed
toward organizational goals. Example- six members making up an airline flight crew.
 Informal groups are alliances that are neither formally structured nor organizationally
determined. These groups are natural formations in the work environment that appear
in response to the need for social contact. Example- three employees from different
departments who regularly eat lunch together.
CHARACTERISTICS OF FORMAL GROUP
 Organization structure is designed by the top management to fulfil certain
requirements.
 Organization structure is based on the principles of division of labour & efficiency in
operation.
 Organization concentrates more on the performance of jobs & not on the individuals
performing the jobs.
 The authority & responsibility assigned to each job have to be adhered by the job
holders.
 Coordination among members & their control are well specified through processes,
procedures, rules, etc.
CHARACTERISTICS OF INFORMAL GROUPS
 Informal groups are a natural outcome at workplace. It is not designed and planned.
 Informal group is created on the basis of some similarity among members. The basis
of similarity may be age, gender, place of origin, religion, personality characteristics
etc.
 Membership in an informal group is voluntary. A person may become member of
several informal groups at the same time.
 Behaviour of members of the informal group is coordinated & controlled by norms &
not by the norms of formal group.
COMPARISON BETWEEN FORMAL & INFORMAL GROUPS

BASIS OF COMPARISON FORMAL GROUP INFORMAL GROUP

Formation Planned & deliberate Spontaneous

Purpose Well- set goals Social Interaction

Structure Well structured Unstructured

Nature Official Unofficial

Focus Positions Persons

Leadership Superior Any one

Source of Power Delegated Given by group

Guidelines for behaviour Rules & procedures Group norms, beliefs & values
WHY DO PEOPLE JOIN GROUPS?
 Security- by joining a group, individuals can reduce the insecurity of “standing
alone”. People feel stronger, have fewer self-doubts, & are more resistant to threats
when they are part of a group.
 Status- inclusion in a group that is viewed as important by others provides
recognition & status for its member.
 Affiliation- groups can fulfil social needs. People enjoy the regular interaction that
comes with group membership. For many people, these on-the-job interactions are
their primary source for fulfilling their needs for affiliation.
 Power- what cannot be achieved individually often becomes possible through group
action. There is power in numbers.
 Goal Achievement- there are times when it takes more than one person to accomplish
a particular task- there is a need to pool talents, knowledge, or power in order to
complete a job. In such instances, management will rely on the use of a formal group.
STAGES OF GROUP DEVELOPMENT/ TEAM DEVELOPMENT/ PROCESS
1) FORMING STAGE- this is initial stage is marked by uncertainty & even confusion.
Group members are not sure about the purpose, structure, task, or leadership of group.
What are we supposed to do together? Do I want to get involved in this? How can I
contribute? What will you expect of me? What are the pros and cons of being on this
team? Who are these people? Will we get along? What will you contribute? Can I
trust you? Etc
2) STORMING STAGE- this stage of development, as indicated by the term, is
characterized by conflict & confrontation. (In usually emotionally charged
atmosphere, there may be considerable disagreement & conflict among the members
about roles, duties, leader & control etc). Differences in opinion are more common
and are expressed more openly. Conflicts emerge around interpersonal issues and
tasks needs. Team members compete for positions, challenge goals, the group
influence and resist task requirements. Why are we doing this? What’s the point?
Why are we doing it this way? Why don’t we do it that way? Etc.
3) NORMING STAGE- in this stage the members begin to settle into cooperation &
collaboration. They have “we” feeling with high cohesion, group identity. This stage
is complete when group structure solidifies & the group has assimilated a common set
of expectations of what defines correct member behaviour. Like- Implementing the
team’s performance expectations. Re- establishing specific roles and operating
procedures. Defining rules for problem solving. Clarifying processes for resolving
team conflicts. Building team culture.
4) PERFORMING STAGE- this is the stage where the group is fully functioning &
devoted to effectively accomplishing the tasks agreed on in, the norming stage. How
can we improve this? Is there a better way? What more can we do? How can I help?
Etc.
5) ADJOURNING STAGE- this represent the end of group, which is ongoing,
permanent groups will never be reached. However, for project teams with a specific
objective, once the objective is accomplished, the group will disband or have a new
composition, & the stage will start over again.
GROUP DECISION MAKING
TECHNIQUES FOR IMPROVING GROUP DECISION MAKING
1) BRAINSTORMING- FACE TO FACE
• It is popular method for encouraging creative thinking in groups of about 8 people.
• It is built around 4 basic guidelines for participants:
 Generate as many ideas as possible
 Be creative, free whelming & imaginative
 Extend, or combine earlier ideas.
 Withhold criticism of other’s needs
• The success of brainstorming depends on each member’s capacity & willingness to
listen to other’s thoughts, to use these thoughts as a stimulus to spark new ideas of
their own, & then to feel free to express them. When this sequence takes place, a large
number of new ideas & different ideas can emerge.
There are two main principles that underlie brainstorming.
 One is DEFERRED JUDGEMENT, by which all ideas- even unusual & impractical
ones- are encouraged without criticism or evaluation.
 The second principle is that QUANTITY BREEDS QUALITY- as more ideas come
forth, eventually higher quality ones will be developed.
When these principles are followed brainstorming typically produces more ideas than the
conventional approach of combined thinking & judging.
2) ELECTRONIC BRAINSTORMING- FACE TO FACE
• In this process, group members sit at personal computer terminals- sometimes in
scattered locations- & receive a question, an issue, or a request for establishing
priorities.
• In response, they type in their own ideas as they arise.
• As multiple inputs are received, a set of the group’s ideas appear on their screens,
available for response, editing or even input of judgement or votes.
• Research shows that this process results in higher number of ideas generated (because
of the simultaneous generation & recording of ideas by participants) than through
traditional brainstorming process.
• In addition, members feel they have more opportunity for participation & more
flexibility, since they do not necessarily need to “meet” at the same time.
• It’s not essential that time should be same, at distinct places, through electronic media.
3) NOMINAL GROUP TECHNIQUE-
• It is structured group meeting which restricts verbal communication among members
during decision making process.
• It is meant to resolve differences on group opinion by having individuals generate &
then rank a series of ideas in the problem exploration, alternative generation, or
choice- making states of group decision making.
The process in Nominal Group Technique goes as follows:
a. The group leader outlines the problem requiring decision.
b. Each member writes down his ideas silently & independently presents his best single
idea on the problem.
c. When all members write their ideas, these are presented & evaluation before the
group members.
d. The members are asked to rank various ideas for decision making & the decision is
arrived at on the basis of this ranking.
e. If the group does not reach agreement, it repeats the ranking & voting procedures
until the group reaches some agreement & makes a decision.
f. Physical existence is must.
4) DELPHI DECISION MAKING-
• In Delphi decision group, a panel of relevant people is chosen to address an issue.
• Members are selected because they are experts or have relevant information to share
& the time available to do so.
• A series of questionnaires are distributed to the respondents, who do not need to meet
face-to-face (even identity is not disclosed). All responses typically are in writing.
• Panellists may be asked to identify future problems, project makes trends, or predict a
future state of affairs (e.g., corporate sales in ten years). Explanations of their
conclusions also can be shared.
• Replies are gathered from all participants, summarized, & fed back to the members
for their review.
• Then participants are asked to make another decisions, on the basis of new
information.
• The process may be repeated several times until the responses converge satisfactorily
& a final report is prepared.
5) DIALECTIC DECISION MAKING-
• Some face-to-face decision-making groups converge too quickly on one alternative
while overlooking others. Their incomplete evaluation of opinions may reflect either
the participant’s dislike of meetings or their lack of willingness to raise & confront
 tough issues. The dialectic decision making method, offers away of overcoming these
problems.
• The dialectic process begins with a clear statement of a problem to be solved.
• Based on this statement, alternative proposals are generated & participants identify
the explicit & implicit assumptions underlying each proposal. The group then breaks
into sub groups to study the proposals in the light of the problem. The entire group
meets after this exercise for the final choice. The choice may be made in terms of a
particular proposal based on its pros & cons, or there may be compromise of different
proposals, or new alternatives may be proposed.
 TEAMS
• A team is a small number of people with complementary skills who are committed to
a common purpose, set of performance goals & approach for which they hold
themselves mutually accountable.
• A team is a group whose members influence one another towards the accomplishment
of specifies objectives.
• In many organizations, employees work in regulars’ small groups called teams where
their efforts must fit together like the pieces of a picture puzzle.
TYPES OF TEAMS
1. Problem Solving Teams: -
• management confronts many different organizational problems daily. Example-
production systems that are not manufacturing products at the desired levels of
quality, workers who appear to be listless & uninvolved; & managers who are basing
their decisions on an inaccurate information etc.
• For assistance, in solving such formidable problems, management commonly
establishes special teams. A team is set up to help resolve a specified problem
within the organization is called a problem-solving team.
• The typical problem-solving team has 5 to 12 members & is formed to discuss ways
to improve quality in all phases of the organization, to make organizational processes
more efficient, to improve the overall work environment.
• After the problem-solving team reaches a consensus, it makes recommendations to
management about how to deal with the specified problem. Management may
implement these recommendations with or without modification & the problem-
solving team may be disbanded.
2. Self- Managed Teams-
• Also known as self-directed, a self-managed team is set up to plan, organize,
influence & control its own work situation with only minimal intervention &
direction from the top management.
• This creative team design involves a highly integrated group of several skilled
individuals who are cross trained & have the responsibility & authority to perform
some specified activity.
• For the success of such teams, the members of such teams should be selected
carefully & adequately trained.
3. Cross- functional teams-
• A cross functional team is composed of personal from functional areas (e.g., finance,
marketing, production, human resource etc.) of the organization who are all focused
on a specified objective.
 • These are made up of employees from the different work areas, who come together to
accomplish a task.
4. Virtual Teams-
• Virtual teams use computer technology to tie together physically dispersed members
in order to achieve a common goal. They allow people to collaborate online using
communication links like wide area networks, video conferencing, or e-mail- whether
they are only a room away or continents apart.
• Virtual teams can do all the things that other teams do- share information, make
decisions, complete tasks. And they can include members from the same organization
or link an organization’s members with employees from other organizations (such a
suppliers & joint ventures etc.) they can convene for a few days to solve a problem, a
few months to complete a project, or exist permanently.
CREATING EFFECTIVE TEAM
Here are some of the factors which generally lead to a good & effective team-
• Establish a clear & compelling direction
• Having right people in the right place
• Right leadership style is to be used
• Rewarding good team behaviour in financial & non financial ways
• Making time to communicate with other team members
• Listening to ideas & advices from other team members
• Coaching junior member rather than bossing them
• Supporting each other because the team success requires all members to be successful
• Friendship- enjoying working together with a common purpose
• Celebrating success, etc.
DIFFERENCE B/W WORK GROUPS & TEAMS
All groups in the organization are not team, but all teams are groups.
 CONFLICT
DEFINITION
1. Conflict has been defined as the condition of objective incompatibility between values
and goals: as the behavior of deliberately interfering with another’s goal achievement:
and as emotionally in terms of hostility. Descriptive theorists have explained conflict
behavior in terms of objective conflict of interest, personal styles, reactions to threats,
and cognitive distortions.
2. Thomas has defined conflict as follows, “Conflict is a process that begins when one
party perceives that another party has negatively affected, or is about to negatively
affect, something that the first party cares about.”
3. Newstrom and Davis have defined conflict as follows, “Conflict in any situation is
which two or more parties feel themselves in opposition. It is an interpersonal process
that arises from disagreements over the goals or the methods to accomplish those
goals.”
FEATURES
On the basis of definition of conflict, we may derive its various features which are as follows:
-
1. Conflict arises because of incompatibility of two or more aspects of an element; it
may be goals; interests, methods of working, or any other feature.
2. Conflict occurs when an individual is not able to choose among the available courses
of action.
3. Conflict is a dynamic process as it indicates a series of events; each conflict is made
up of series of interlocking conflict episodes.
4. Conflict must be perceived and expressed by the parties to it. If no one is aware of a
conflict, it is generally agreed that conflict does not exist even though there may be
incompatibility in some respect.
CONFLICT EPISODE/ PROCESS/ STAGES
If we consider conflict as a dynamic process, a conflict between the two parties which
proceeds through the five stages, also takes into account the outcome of the previous conflict,
if any, that might have occurred between them. This aspect is important as various stages of
new conflict are likely to be governed by the previous conflict episode. The various stages of
conflict episode take place in the following manner: -
1. Latent Conflict- Each conflict episode begins with latent conflict. This is the stage in
which the conflict has not taken a shape, therefore, it is not apparent. It may occur in
sub- conscious mind. Some of the antecedents that establish conditions from which
conflict may occur are-
a. Competition for scarce resources
b. Communication barriers causing inadequate & distorted information
c. Divergence among sub unit goals and methods of work, and
d. Role ambiguities
Since there are different antecedents for conflicting situations, two or more types of latent
conflict may exist.
2. Perceived Conflict- Parties to the conflict may perceive about incompatibility of the
antecedents of conflict though, sometimes, this perception may be wrong. Perceived conflict
occurs because of the misunderstanding of the parties, caused particularly by the lack of
communication.
3. Felt Conflict- At this stage, parties to the conflict feel that they have some conflict among
themselves. Felt conflict differs from perceived conflict. A person may have serious
difference with another over some issues but this may not make him tense or anxious. It is the
personalization or internalization of differences that causes conflict. There may be
inconsistency in demands from the organization and individual needs may create
internalization of conflict situation. Similarly, conflict becomes internalized when the whole
personality of the individual is involved in the relationship.
4. Manifest Conflict- This is the stage when two parties to the conflict show a variety of
conflictful behavior such as open aggression, apathy, withdrawal, work to rule, etc.
depending on the issues involved in the conflict and the stand that the parties may take.
5. Conflict Aftermath- At this stage, attempts are made to resolve the conflict through
conflict resolution mechanism. Depending on the nature of conflict resolution mechanism,
either the conflict may be suppressed or resolved amicably. If the conflict is merely
suppressed, the latent conditions of conflict may be aggravated and exploded in a more
serious form. If the conflict is resolved amicably, a basis for cooperative behavior is
established between the parties.
TYPES OF CONFLICT
1. FUNCTIONAL/ CONSTRUCTIVE CONFLICT-
 Functional conflict refers to confrontation between two ideas, goals and parties that
improve employee and the organization’s performance.
 The conflict which supports the goals of the group & improve its performance are
functional conflicts.
 Helps identify issues and underlying problems.
 Acts as a safety valve, releasing tension and anger.
 Encourages interaction and involvement.
 Promotes creativity.
 Facilitates problem solving.
 Promotes sharing of information.
2. DYSFUNCTIONAL/ DESTRUCTIVE CONFLICT-
 Dysfunctional conflict hinders and prevents organizational goals from being achieved.
 Conflicts that hinder group performance are dysfunctional conflict.
 Results in negative outcomes.
 Decreases work productivity and job satisfaction.
 Increases in absenteeism and turnover.
 A successful leader will be alert to destructive conflicts and take action.
LEVELS OF CONFLICT/TYPES/KINDS
 1. INTRAPERSONAL
 Involve actual or perceived pressures from incompatible goals or expectations within
a person.
 One’s perceptions differ from others; one’s judgment called into question. So
individual experiences two types of conflict in himself i.e., Goal conflict & Role
conflict.
 Goal Conflict occurs when two or more goals block each other.
 There can be three alternatives of Goal Conflict
 Approach- Approach Conflict
Choices- two positive and equally attractive alternatives
Example- two jobs= equally positive duties, pay, benefits, location
 Approach- Avoidance Conflict
Choices- something has both positive and negative consequences
Example- a great job in a lousy location
 Avoidance- Avoidance Conflict
Choices- two negative and equally unattractive alternatives
Example- two jobs= neither first choice in terms of duties, pay, location
2. INTERPERSONAL
 Between two or more individuals.
 Vertical Conflict- between hierarchical levels
 Supervisor-subordinate disagreements over resources, goals, deadlines, or
performance
 Horizontal Conflict- same level (coworkers, staff,, functional units)
 Goal incompatibilities; ambiguities, resource scarcities
 Power or value difference or interpersonal factors
3. INTRA- GROUP CONFLICT
 Arises in three situations
 When group faces a novel problem or task.
 Where new values are imported from social environment in to the group.
 Where a person’s extra group role comes into conflict with his intra group conflict.
4. INTER- GROUP CONFLICT
 Among and between groups for resources or more recognition
  Cross functional teams & task team
 Resolve such conflicts
5. INTER- ORGANIZATIONAL CONFLICT
 Related to competition and rivalry among firms in same industry
 Operating in the same markets
 Between suppliers and manufacturers, or between a company and a government
regulatory agency.
 Union- Management conflict.
ISSUES INVOLVED IN CONFLICT
There are four basic issues which may be involved in a conflict either exclusively or jointly
with others. These are facts, goals, methods and values.
1. FACTS- Conflicts may occur because of disagreement that the persons have over the
definitions of a problem, relevant facts related to the problem, or their authority and
power.
2. GOALS- Sometimes, there may be disagreement over the goals which two parties
want to achieve. The relationship between goals of the parties may be viewed as
incompatible with the result that one party may achieve the goal at the cost of the
other.
3. METHODS- Even if the goals are perceived to be the same, there may be difference
over the methods- procedures, strategies, tactics, etc.- through which goals may be
achieved.
4. VALUES- There may be differences over the values- ethical standards, considerations
for fairness, justice, etc. These differences are of more intrinsic nature in persons and
may affect the choice of goals or methods of achieving them.
CONFLICT MANAGEMENT
5 WAYS TO MANAGE CONFLICT
 Avoidance
 Competition(A)
 Accommodation(B)
 Compromise(C)
 Collaboration(D)
CONFLICT CONTINUUM
 I win, you lose (Competition-A)
 I lose or give in (Accommodate-B)
 We both get something (Compromise-C)
 We both “win” (Collaborate- D)
1. COMPETITION
 Plus
 The winner is clear
 Winners usually experience gains
 Minus
 Establishes the battleground for the next conflict
 May cause worthy competitors to withdraw or leave the organization.
2. ACCOMMODATION
 Plus
 Curtails conflict situation
 Enhances ego of the other
 Minus
 Sometimes establishes a precedence
 Does not fully engage participants
3. COMPROMISE
 Plus
 Shows goodwill
 Establishes friendship
 Minus
  No one gets what they want
 May feel like a dead end
4. COLLABORATION
 Plus
 Everyone “wins”
 Creates good feelings
 Minus
 Hard to achieve since no one knows how to achieve.
 Often confusing since players can “win” something they didn’t know they wanted.
TIPS FOR MANAGING WORKPLACE CONFLICT
Managing conflict means you need to develop several styles and decide which is valuable at
any given point of conflict.
 Build good relationships before conflict occurs.
 Do not let small problems escalate; deal with them as they arise.
 Respect differences
 Listen to others perspectives on the conflict situation.
 Acknowledge feelings before focusing on facts
 Focus on solving problems, not changing people.
 If you can’t resolve the problem, turn to someone who can help.
 Remember to adapt your style to the situation and persons involved.
HOW CAN CONFLICTS BE MANAGED SUCCESSFULLY?
DIRECT CONFLICT MANAGEMENT TECHNIQUES
1. WIN-LOSE
 Competition
 One party achieves its desires at the expense and to the exclusion of the other party’s
desires.
 Stand for your rights; defend your position- which you believe is correct.
2. WIN-WIN
 Collaboration
 Achieve each other’s goals.
 Acceptable by both parties.
 Establishes a process whereby all parties involved feel a responsibility to be open and
honest about facts and feelings.
 Explore the disagreement to learn from each other.
 Results in problem solving or situation improvement.
3. LOSE-LOSE CONFLICT
 Avoidance
 Everyone simply pretends that the conflict does not really exist and hopes that it will
go away.
 Accommodation or smoothing
 Involves playing down differences among the conflicting parties and highlighting
similarities and areas of agreement.
 Compromise
 Each party gives up something of value, but neither party’s desires are fully satisfied.
4. WIN-LOSE CONFLICT
 Competition
 One party achieves a victory through the use of force, superior skills, or domination.
 Authoritative Command
 Use of formal authority to dictate a solution and specify who gains what and who
loses what.
5. WIN- WIN CONFLICT
 Collaboration or problem solving
 Recognition by all conflicting parties that something is wrong and needs attention,
and it stresses gathering and evaluating information in solving disputes and making
choices.
 Collaboration and problem solving are preferred to gain true conflict resolution when
time and cost permit.
6. WIN-WIN
 Achieve each other’s goals.
 Be acceptable to both parties.
 Establish a process whereby both parties see a responsibility to be open and honest
about facts and feelings.
 NEGOTIATION
 Wall has defined negotiation as follows: -
“Negotiation is a process in which two or more parties exchange goods and services and
attempt to agree on the exchange rate for them.”
 Negotiation basically involves bargaining. The dictionary meaning of negotiation is
bargaining for the purpose of mutual agreement. Thus, negotiation may be defined as
follows:
“Negotiation is the process in which two or more parties (individual or groups) attempt to
reach agreement on issues on which they have differences.”
NATURE OF NEGOTIATION
 It requires involvement of two parties
 Requires flexibility
 It is a process not an event
 Needs effective communication
 Win-win situation for the parties involved
NEGOTIATION PROCESS
Negotiation is a process which involves several steps as shown: -

Thus, following steps are involved in negotiation process: -

1. Preparation for negotiation
2. Definition of ground rules
3. Negotiation
4. Negotiated Agreement, and
 5. Agreement implementation
1. Preparation for Negotiation- Preparation for negotiation is as important as the
negotiation itself. Garry Luxmoore, a licensee with effective negotiation services, an
Australian negotiating consulting firm, opines that “up to 83 percent of the outcomes
of the outcomes of the negotiations are influenced by pre- negotiation process. It is,
thus, important to do homework.” Preparation for negotiation involves following
activities-
a. Collection of information about the nature of conflict requiring negotiation, its
history, and causes to understand the conflict in right perspective.
b. Understanding of the perception of the other party about the conflict and its likely
effect on both the parties.
c. Determination of target point as well as resistance point for outcome of negotiation.
2. Definition of Ground Rules- Once the preparation for negotiation is completed, ground
rules for negotiation are framed out in consultation with other party to negotiation. Ground
rules include the following aspects: -
a. Who will do the negotiating?
b. Where will the negotiation take place?
c. What time constraints, if any, will apply?
d. To what issues will negotiate be limited?
e. Will there be a specific procedure to follow if any impasse is created?
During this phase of negotiation process, parties to the negotiation submit their proposals
demands.
3. Negotiation- At this stage, both the parties engage in negotiating with each other at a time
and place fixed for the purpose. At the negotiating table, both the parties explain, clarify, and
justify the original proposals.
Based on this, actual process of give and take starts. For this purpose, one of two approaches
can be adopted: piecemeal approach and total approach, an issue can be taken, deliberated,
and decided without linking it to another.
In this way, all issues are decided. In order that negotiation proceeds smoothly, the items first
taken are those on which consensus is expected without much discussion, leaving the more
contentious issues to be settled at the end.
In total approach, all the issues are discussed but issue –wise decision is not arrived at as no
issue is settled independently. Every issue is kept open until the whole negotiation process is
ready to crystalize into a total agreement.
4. Negotiated Agreement- When both the parties arrive at some mutually-acceptable
agreement at initial negotiation or through overcoming negotiation impasse, the agreement is
entered into between the parties. In certain cases, there is a need for ratification of the
agreement, for example, in the case of labor union-management agreement , ratification is
required by union and management.
5. Agreement Implementation- When the agreement is finalized, it becomes operational
from the date indicated in the agreement. The agreement must be implemented in terms of its
letters and spirit by both the parties. During the process of agreement implementation, there is
a possibility that some provisions may create problems in the organization because of poor
drafting of provisions. If mechanism has been provided in the agreement itself, this problem
can be overcome through this mechanism. Where no such mechanism is provided, it can be
sorted out through mutual consultation between the parties concerned.
FACTORS AFFECTNG NEGOTIATION
1. Place a meeting
2. Authority
3. Time Credibility
4. Information
5. Excellent communication skills
6. Attitude
7. Subjective factors like personal relationships, fear, mutual obligation, future
considerations, practical wisdom etc.
TYPES OF NEGOTIATION
1. Integrative Negotiation- Also known as win-win strategy/ bargaining.
a) Separate people from problem
b) Focus on the interest not on position
c) Invent options for mutual gains
d) Insist on using objective criteria
2. Distributive Bargaining- Also known as win-lose strategy.
a. I want it all
b. Time wrap
c. Good Cop, Bad cop
d. Ultimatum