The XYZ Airport Services

We are the team representing the XYZ Airport Services to negotiate with the Airport Authority, attempting to reach an agreement of contract renewal. Here is the strategic plan of negotiation, adopting the skills of negotiating and influencing, which are a complex network of interacting skills and must be used together to turn out the best mutual agreement.We create value by listening very carefully to the Authority's needs and interest, and help them to learn about ours then look for ways to integrate the interests together, when we get our needs and interests met, we claim value. Balancing these two tasks is essential (McRae,1998).

Skills of NegotiationAccording to Guirdham (2002), negotiation is the process of back and forth communication aimed at reaching agreement with the Airport Authority in our case, when we are both sharing and opposing some interests. (definition)Stages of effective negotiationWe have to follow the four stages of effective negotiation (Week 7 video clip; Fowler, 1996:136):Prepare: It is analytical and the essential part of working out the trade-offs, central issue, subjective and barriers. This has to concentrate on the common interests of both parties - to solve the problems of delay in luggage delivery to rebuild the reputation and renew the contract. We have to value, which are the most valuable for XYZ and cheap to give away plus to make sure we get all facts and all assumptions are valid.

Debate: Launch out what we want but not necessary what we settle for; questioning and listening rather than interrupting with counter-argument. This is the stage to work out a beneficial mutual solution / agreement, because a success of contract renewal in this case is more important than winning.Proposal: We take the "if-then" theory to have more exchange of the proposal by interaction - promise to improve the workforce management in a given period in exchange of purchasing new equipments and facilities in both terminals by the Authority.Bargaining: This is a trade for specification.

To be successful in leading to settlements, there is a need to have a "thorough and exhaustive determination of the outer limits of the range" that both the parties will renew the contract; then investigate the most promising areas that the agreement might be reach; finally, have to force the Airport Authority to make a decision by "precipitating a decision-making crisis" (Guirdham, 2002:402).Negotiating stylesIn order to negotiate effectively, it is preferable to adopt the negotiating style N2, which concerns a high context / high relationship. This is the best win-win strategy, that negotiation is seen as a collaborative skill, and sharing common interests, attempting to working out a joint solution for problems and respecting each other's needs (Bath, 2003b).Alternatively, N5 could possibly be another option, which concerns a moderate context / moderate relationship. In this either win-win or win-lose strategy, it is about compromise sought, meeting other party half way, splitting the differences and looking for trade-offs. Under certain circumstances, we may have to prepare to negotiate for any trade-offs and solutions, preventing from any possibility of deadlocks (Bath, 2003b).

All the other N1, N3 and N4 negotiating styles are not chosen and might have to be avoided, due to the ineffectiveness to achieve agreement.Other tactics and skills neededTo be effective and skilled negotiators, the following tactics and skills are needed during the negotiating process (Fowler, 1995; Fowler, 1996):Knowledge: The negotiators have to seek information actively, develop a broad understanding of the general context and the situations of both sides. Our team will consider the issue from the Authority's viewpoint, to look for weaknesses in our own case (our poor management of local workforce) and for strengths in Authority's (the poor facilities of the terminals). Only with a broad knowledge we could feel confident and at ease in the negotiation. This enables us a well-prepared plan, which is essential to collaborate with the Authority, consider from their viewpoint, response quickly to the outcomes and avoid break off of negotiations.

Skill: We will avoid too frequently using of the words "I" and "You" which is a negative habit to over-personalize issues inappropriately, as we should concentrate on the issues; listen and question more than talk and make statements, learn from the Authority then show our understanding.Concessions: We will prepare to make concessions if necessary, signal our final offer and retaining our credibility; set objectives to decide the best achievable, improve our management to influence them for new facilities, with alternatives suggestions. Also, a bottom line will be drawn for the worst outcomes that would still be acceptable. However, failures would be possible, if the Authority refuses to compromise or consider the alternatives, a damaging breakdown may occur.Skills of InfluencingAs a lower-power member, XYZ Airport Services may do better to use Influencing techniques that do not depends on power, to "change in people's behaviour and / or attitude that results from yielding to interpersonal or social pressure" (Guirdham, 2002:319).

Theories chosen pg 320General Reward Theory: sincerity, competence, intelligence etc. as rewards that people like would be adopted as a basic theory to influence the Authority's representatives. However, it is too simple to predict all the case of liking (Guirdham, 2002).Repetition approaches: the broken record, will be adopted when necessary, leading people to like a message but avoid over repetition as it can be counter productive (Bath, 2003a).

Fear appeal: would be used, we need power, well intentioned and informed the Airport Authority the consequences in a form of friendly warning, ensuring a pleasant atmosphere (Bath, 2003a; Guirdham, 2002).Two-sided appeals: is considerable. We may try to present other viewpoint of both sides and answer it, and rely on the strength of the message. It is important with educated people like the representatives from the Authority (Bath, 2003a).

CollaborationWe will collaborate as it is the most productive style of problem solving in negotiating tactics, which concentrates on the issue to be resolved and sets aside personal feelings of winning or losing. We will be able to clearly send the message to the Authority to discuss for a joint agreed solution (Fowler, 1995).With the chosen theories of negotiation and influencing, our team of XYZ Airport Services will negotiate and collaborate with the Airport Authority, aiming to achieve mutual agreement. We do not expect everything that the Authority wants; instead, give them alternative solutions that work best for our company.