A study of the process of negotiations in the evolution of turnaround packages for sick industrial units

Abstract

Negotiation is becoming an important mode of decision making as well as of conflict resolution. Since better understanding of the process of negotiations is essential analyze the process of negotiation in the context of the evolution of turnaround packages for sick units. The objectives of the study are: • To understand the confluence of forces and factors in operation in a negotiation situation. • To analyze the process of negotiation in the three phrases – the pre-negotiations, the through-negotiations and the post-negotiations phrases – in terms of the structure (the key factors), the substance (the issues), and the strategies used. As the focus of the study was on understanding a process, the case method of research was used. Two sick industrial units that had been turned around were studied. Primary data (interviews with key negotiators) as well as secondary data (minutes of meetings, correspondence, newspaper clippings, reports) were collected to reconstruct the process involved in evolving a turnaround package. Thirteen negotiating situations were then identified – eight in the first case and five in the second. The turnaround process as well as the negotiating situations were analyzes using within case and cross case analysis in order to gain insights into the process of negotiations. The study helped in – a) The development of a conceptual framework for understanding the process of negotiations through all the phrases; b) Generating propositions related to the confluence of negotiation forces as well as the pre-negotiation, the through-negotiation and the post-negotiation phases. The findings of this study are of relevance to practitioners engaged in negotiations as well as negotiations trainers. The propositions related to negotiation processes which have emerged from the study will facilitate further empirical work in this field.