Negotiation

Negotiation is a skill and an art. “In the workplace your ability to negotiate is equal to your success and happiness on the job” (Landau, 2018). It involves two or more individuals with practical tips and techniques to come in to a favorable conclusion. It can be defined as “as the process of making joint decisions when the parties involved have different preferences” (Mehnert, 2008).

Negotiation not only benefits an individual but impacts the organization as a whole. When negotiating, it is essential to be prepared about the context as well as with whom the negotiation will take place. Listening is also vital to avoid any miscommunication that might backfire. Being an exceptional communicator facilitates that every message is conveyed with clarity. Being indecisive or delusive is unhealthy for negotiations, so the “skill of deciding when to stop is key to successfully closing negotiations” (Landau, 2018).

Workplace conflicts are natural and evident in every organization. It only takes openness and willingness to work together to resolve conflicts. There are three ways a negotiation can end namely win-win, compromise, and win-lose. Negotiation with a win-win outcome is agreeing on a mutually beneficial outcome that will positively impact both the parties. In compromising both the parties have to give something up for the greater good and to reach an agreement. In win-loss negotiation the solution is preferred only by one party.

Sometimes the negotiators can follow two policies namely open door policy and closed door policy. In open door policy the negotiation and the final outcome is both made public and accessible to everyone whereas in closed door policy only the final outcome is made available to the public. A well-known example of open door policy in negotiation is when “retailing giant Costco has cut off inbound shipments of beverages from the Coca Cola Co. due to unresolved price negotiations” (Dominick, 2009). On the other hand, closed door policy is being adapted when cases require higher sensitivity and secrecy such as “health care negotiations in the U.S. Congress that will aim to reconcile the differences between House and Senate health care reform bills” (Karrass.com, 2010).

References

Dominick, C. (2009). Costco Uses Hardball Negotiation Tactics With Coca-Cola. [online] NLPA. Available at: https://www.nextlevelpurchasing.com/blog/costco-uses-hardball-negotiation-tactics-with-coca-cola.html [Accessed 20 May 2019].

Karrass.com. (2010). Closed Door Policy vs Coca Cola/Costco Negotiation. [online] Available at: https://www.karrass.com/en/blog/closed-door-policy-vs-coca-colacostco-negotiation/ [Accessed 20 May 2019].

Landau, P. (2018). How to Negotiate in the Workplace: A Practical Guide. [online] ProjectManager.com. Available at: https://www.projectmanager.com/blog/how-to-negotiate-in-the-workplace [Accessed 20 May 2019].

Mehnert, M. (2008). GRIN - Negotiation: Definition and types, manager's issues in negotiation, cultural differences and the negotiation process. [online] Grin.com. Available at: https://www.grin.com/document/116275 [Accessed 20 May 2019].

Employee Engagement

Employee engagement and employee happiness are two different concepts. Thus happy employees do not necessarily be engaged employees. Employee engagement can be defined as “the emotional commitment the employee has to the organization and its goals” (Kruse, 2012). Therefore emotionally committed employees genuinely care about their work and goal achievement. 

An engaged employee uses discretionary effort in performing his tasks. For an example a Procurement Executive at a certain multinational company works overtime when needed, without being asked by the top management. It is his own choice to walk an extra mile when the organization needs him.

 

There are four main elements pertaining to employee engagement namely commitment, motivation, loyalty and trust. Commitment involves how much an employee associates himself with the organization. They are fascinated by their work and passionate to achieve organizational goals. A motivated employee puts the best effort in performing his job role and on the other hand organization too could reward and recognize this effort to further motivate employees. Loyal employees actively engage with the organization and are accountable for every task performed. Trust prevails in an organization when both the employee and the employer share the same emotional bond to foster the organization.

 

Figure 1: Elements of Employee Engagement (Juneja, 2019).

Employers need to be highly mindful about how much their employees are engaged to them. “If you focus on rewards that are effective, promote re-consumption and are memorable long after, now there's a winning impactful rewards program that keeps employees engaged now and in the future” (Reddy, 2019). Hence a successful engagement program is vital and needs the leadership team to be actively involved. Further “employees who provide education and training opportunities for their team members recoup those costs through greater employee loyalty and engagement” (Daisyme, 2019).

Engaged employees provide good quality service to all the stakeholders resulting in higher stakeholder satisfaction. This leads to higher sales and increased profits and outcomes. “According to Towers Perrin Research, companies with engaged workers have 6% higher net profit margins” (Kruse, 2012). As engaged employees are an asset to any organization, the employers need to focus more on building a culture that enhances employee engagement. This will ultimately result in creating a workforce that genuinely foster success and wellbeing of an organization.

References

Daisyme, P. (2019). Struggling to Engage Employees? Try Approaching That Goal the Old-Fashioned Way.. [online] Entrepreneur. Available at: https://www.entrepreneur.com/article/326347 [Accessed 19 May 2019].

Juneja, P. (2019). Elements of Employee Engagement. [online] Managementstudyguide.com. Available at: https://www.managementstudyguide.com/employee-engagement-elements.htm [Accessed 19 May 2019].

Kruse, K. (2012). What Is Employee Engagement. [online] Forbes.com. Available at: https://www.forbes.com/sites/kevinkruse/2012/06/22/employee-engagement-what-and-why/#5fd451b7f372 [Accessed 19 May 2019].

Reddy, S. (2019). Five Mistakes that Hinder Employee Engagement. [online] Entrepreneur. Available at: https://www.entrepreneur.com/article/330099 [Accessed 19 May 2019].