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ZEZ Company is in the business of designing and printing bottle labels for soft drinks distributors. The company is, at present, facing very difficult times as recessionary economic conditions have had a negative impact on the demand for its customers' products, which in turn is having a knock-on effect on the demand for ZEZ Company's labels. As a result, the senior management team has been investigating how the company can become more efficient to make sure its future survival.
Explain the different stages of negotiation that should take place to ensure the negotiation process between senior management and the trade union representatives is effective.
Negotiation involves argument and persuasion in order to strengthen one's own case by undermining the opposition. It happens when there is no established set of rules for resolving the conflict and parties are committed to search for an agreement rather than fighting openly. Negotiation is often essential within organisations to resolve conflicts of interest among two or more parties which have arisen because the parties have dissimilar objectives and is a useful and civilised way of settling disputes.
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