NCM512 - Negotiation Strategies

Module 2 - Case

Bargaining I

Prepare! Prepare! Prepare!

Our module has focused on the preparation phase, leading to negotiations. Within these preparations, an important part, nay, crucial part, is identifying the interests and deciding on the positions to be taken.

The background material page, and the supplementary articles, provided to you, have all emphasized this issue.

The following article sheds a light on the general aspects of negotiations, looks into interest based negotiations, and then presents a case study.

Leventhal, L. (2006). Implementing Interest-Based Negotiation: Conditions for Success with Evidence from Kaiser Permanente. Dispute Resolution Journal. New York: Aug-Oct 2006. Vol. 61, Iss. 3; p. 50. Abstract: This article explores the theory behind interest-based negotiation and its application to the labor-management relationship. It examines the critical factors for the successful implementation of interest-based negotiation, and then looks at whether these factors are present at Kaiser Permanente. Interest-based negotiation is also called "interest-based bargaining" and "mutual gains bargaining." The process focuses "on understanding and building on interests" and uses "problem-solving tools" to avoid "positional conflicts and achieve better outcomes." Collective bargaining negotiations can involve a wide spectrum of issues, including wages, hours, job security, safety, health, employee benefits and work design. To use interest-based bargaining successfully, certain conditions should be present. Most important is a respectful working relationship between labor and management. An essential condition is an agreement to engage in interest-based bargaining. The following are conditions supporting interest-based negotiations: 1. identifying interests and positions, 2. relationship building, 3. positive working relationships, 4. internal coalition-building, 5. training in interest-based negotiations, and 6. changing the corporate culture.

The Case Assignment

After carefully reading through the article, please answer (in about 3 full text pages), the following question:

1.What are the respective interests of the two sides in the Kaiser Permanente conflict?

2.Explain, why it is an interest, and not a position.

3.Identify and discuss the possible Entering and Leaving points within the negotiation range, as they pertain to the two sides in this conflict.

Assignment Expectations

1.Please do NOT summarize the article (no need to point out how many people work at KP), but focus on the case question(s)!

2.Present the interests, positions, EPs, and LPs one be one, define them, and explain each one.

3.If you feel that the article does not provide you with all the details, you can make personal assumptions, to complete the picture.