The case study explains the end goals of both parties and the extent to which they are willing to negotiate on a neutral ground in order to achieve a win-win situation.
Identifying the positions of each individual
Mark is the chief negotiator for the union in widget factory and Jane is the Chief Executive Officer (CEO) to negotiate a new contract for the union. The other parties involved are Jennifer assistant union leader helping Mark and Jane’s mediators helping her in negotiating the deal.
BATNA is the course of action that will be taken by a party if the current negotiations fail and an agreement cannot be reached. BATNA is the key focus and the driving force behind a successful negotiator (Fisher, & Ury, 1981).
Interests and BATNAs of Mark
Mark is the representative of employees and trying to fulfill the wishes of 400 employees who have sacrificed their pay for the last 2 years during the economic slowdown.
Mark’s opening position. Mark will be asking for $3.00 per hour pay rise and 2 additional days off per year to influence Jane’s resistance point by shocking her about employees’ expectations.
Mark’s concessions. He is willing to bargain with Jane for $1.50 per hour pay rise and 1 day additional paid days per year. Mark sent his assistant union leader (Jennifer) as a power play to show that he will only negotiate directly once Jane makes concessions.
Mark’s commitments and closing. Mark is adamant that no extensions will be granted and also prepared press release to create panic if the meeting fails and factory closes.
Finally, we can say that Mark is trying to bargain and not willing to negotiate with the management.
Interests and BATNAs of Jane
Jane is tired of old-school animosities between labor and management. She wants to partner with the employees for mutual gain.
Jane’s opening position. The widget industry is facing serious competition from foreign labor. But, Jane wants to keep the factory open and existing 400 employees on Job. Jane’s initial offer will $1.00 per hour and 1 day added paid time off.
Jane’s concessions. Jane is willing to discuss raises and increase vacation time. But, she wants contractual changes to include provisions that will allow greater flexibility in scheduling as well as some team-based management practices.
Jane’s commitments and closing. Jane wants to partner with workers and negotiate on contractual changes. Though, it may affect the future reputation of Jane in negotiating deals with workers. She wants them to be involved in team-based management practices and end the historically adversarial relationship.
Finally, we can analyze that Jane is trying to negotiate with the employees and wants mediators to help the negotiations go smoothly and collaboratively
Target point. It is the point at which the negotiator will conclude in a negotiation. Mark will not settle for less than $1.50 per hour in raises and 1 day additional paid days off per year. Jane is willing to negotiate on the salary increase. But, is adamant about partnering with the employees for mutual gain (Notini, 2005).
Resistance point. Mark asked for salary increases of $3.00 per hour and 2 additional paid days off per year as the resistance point. Jane wants to offer $1.00/hour and 1 day added paid time off as her initial resistance point.
Settlement zone. The settlement zone for Mark is $1.50 per hour in raises and 1 day additional paid days off per year. Jane wants any contractual changes to include provisions that will allow greater flexibility in scheduling as well as some team-based management practices (Spangler, 2012).