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INTEREST-BASED NEGOTIATION

INTEREST-BASED NEGOTIATION. Federal Mediation and Conciliation Services Human Resources and Skills Development Canada. Federal Mediation and Conciliation Service:. Dispute Resolution Services: - Conciliation and Mediation - Grievance Mediation - Arbitration Appointments

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INTEREST-BASED NEGOTIATION

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  1. INTEREST-BASEDNEGOTIATION Federal Mediation and Conciliation Services Human Resources and Skills Development Canada

  2. Federal Mediation and Conciliation Service: • Dispute Resolution Services: - Conciliation and Mediation - Grievance Mediation - Arbitration Appointments - Preventive Mediation Program - Labour-Management Partnerships Program (LMPP) • Legislation, Research and Policy

  3. Preventive Mediation Program - Relationship-by-Objectives (RBO) - Committee Effectiveness (CET) - Negotiation Skills and Facilitation - Collaborative Problem-Solving - Mediation - Grievance Resolution Workshop

  4. Workshop Objective: An Understanding of: • what IBN is • IBN steps • IBN techniques/skills • behaviour elements

  5. Beer Pricing Exercise

  6. Note: Profits are rounded up to the nearest $-million.

  7. The IBN Approach

  8. What is IBN? • collective bargaining • an adaptable process • a way of focusing on the process • a negotiation style which encourages creativity, information sharing, and participation • a useful tool for some people at some times

  9. What IBN is not ? • a quick fix or the solution to all problems • a way to get everything you want at the table • a way to avoid conflict • about being nice and polite and agreeing with everything • the flavour of the month • right for everyone

  10. Interest-Based Approach Principles • process counts • focusing on issues, not on the personalities • focuses on interests, not the positions • creating options to satisfy interests • jointly discuss to evaluate the options • postponing a commitment

  11. Traditional separate training send notice to bargain fixed mandate exchange demands push for position, argue, stall formal, face-to-face little discussion/many caucuses single spokesperson confrontation verbatim notes sign-off each item memorandum signed on completion Interest-Based joint training set joint ground rules flexible mandate jointly identify issues discuss interest, generate options informal, side-by-side much discussion/few caucuses everyone talks joint problem-solving flip-charts no sign-off memorandum signed on completion Negotiation Styles:

  12. Interest-Based ApproachSteps: • opening statement • agree on ground rules • establish the issues Preliminary • identify and share interests • generate options • develop criteria • evaluate options • closure Substance

  13. Step 1: Opening Statement: • Purpose: - sets tone - expectations - constituents • Contents: - commitment - process - common goals

  14. Opening Statement: The Union and the Company plan to make every effort to negotiate the collective agreement using the interest-based process. They will endeavour to share information openly and participate in discussions of a range options with the understanding that no final commitments will be made until the end. As the parties jointly face the challenge of the future, they share the following values: • client focus • the overriding value of people as a resource • union-management partnership • quality and continuous improvement

  15. Step 2: Ground Rules: • establish process: - expectations - ownership • logistics • rules • responsibilities • rights • behaviour

  16. Step 3: List of Issues: • identify and explain topic or subject of negotiations - broad, open-ended • establish common understanding of all issues to be discussed • prioritizing issues for the negotiation

  17. Focusing on Interests

  18. Identifying InterestsFocusing on Interests: • reflects concern about an issue • facilitates information sharing • promotes discussion of options • avoids starting the process with a disagreement • adds legitimacy

  19. Step 4: Identifying Interests: • Interest • one party’s concern, fear, need or worry on an issue • forms the basis for a future solution but is non-negotiable • purpose: to promote • discussion of various possible options • no exaggerated statements • gives much information • contains “I” or “we”statements • non-directive language Position • one party’s solution to an issue • make demands • is the close-ended solution • purpose: to communicate the single acceptable outcome • exaggerated statement • gives little information • contains “you” statements • directive language

  20. Identifying InterestsTypes of interests: • mutual interests • non-conflicting interests • conflicting interests

  21. Example Identification of Interests: • Issue: A car pool member who is frequently late. • Statements: a) “When I am late, my boss is on my case all day.” b) “ The next time you are even five minutes late, we are going to kick you out of the car pool.”

  22. Identifying Interests: • Position: Demand for higher overtime rate. • Possible interests: - increase members’ compensation - job creation - prevent abuse of overtime

  23. Generating Options

  24. Step 5: Generation of Options: Options - are one of a number of possible solutions to resolve an issue. Purpose: • to increase flexibility in the search for solutions • to develop a better solutions as a result of joint efforts • to provide the participants with ownership of the process • to increase commitment to the final outcome

  25. Generation of OptionsThe Process: Brainstorming • ensure full participation • create without evaluating, no criticism • work towards quantity not quality • propose options without judicial prejudice • guidelines: • - alternate the facilitator • - lead with the next number • - keep everything visible by posting • the completed sheets

  26. Generation of OptionsBlocks to Creativity: • fear • premature judgement • assuming single solution • assuming limitations • negative attitudes • perception

  27. Generating OptionsOvercoming Blocks: • informal setting • challenge assumptions • suspend judgement • analyze the problem in parts • recognize point of exhaustion

  28. Brainstorming Exercise

  29. Evaluating Options

  30. Step 6: Development of Criteria: • where possible, use objective standards • agreement on choice of criteria and options is done by consensus decision-making • jointly developed standards can provide a basis for deciding issues in a fair, acceptable and transparent manner Examples of Standards: - industry practice - market rates - past performance

  31. Step 7: Evaluation of Options: The Three-Cut Method: • Does the option satisfy interests? • Are the resources available? • Can the option be sold to others?

  32. Achieving Closure

  33. Step 8: Closure: • all issues discussed • objective is still a collective agreement • “No” is part of the process • packaging of issues • broad perspective • consensus decision-making

  34. Closure:

  35. Consensus Decision-Making

  36. ConsensusDecision-Making: • unanimous agreement on a single course of action reached through a cooperative, not a competitive process where each member can say: • I understand what is being proposed... • I had the opportunity to express my views and I understand the views of the others... • It was arrived at openly and fairly… • It is the best solution for us at this time • I will support the implementation of the solution

  37. Consensus Decision-MakingGuidelines: • listen and be open to persuasion • encourage participation • share information • treat differences as strengths • avoid agreeing hastily, bargaining or voting

  38. Communication and Effective Listening

  39. Communication: • put yourself in their shoes • discuss perceptions • focus on issues, not personalities • focus on future, not past • legitimacy of emotions • allow venting but avoid reacting

  40. Exercise on Perceptions

  41. Effective Listening: • 75% words ignored, misunderstood, forgotten • brain 8-10 times faster than speech • active listening - 17 seconds • not trained in listening

  42. Effective ListeningBad Listening Habits: • attention fakers • criticizers • bored listeners • difficult material blockers • note takers • mental rehearsers

  43. Summary: What it takes to Succeed: • genuine desire for change • commitment at all levels • long, broad view and is part of overall approach • flexible mandate and timeline • empowered negotiators • open sharing of information • communication with constituents

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