Organizational Negotiations

E.L. Thompsons, LLC is a well-established contractor in the construction industry that provides drywall and interior buildout services for many well-known hotels, universities, and commercial properties across the southeast. They were established in the year 1934 and ownership of the company has been passed through generations of different leaders. In 2001, ownership had reduced from four partners, to two. As the two remaining owners, both shared a 50/50 ownership of the entire organization. Both partners passionate about their leadership, but encountered conflicting views on how to effectively run the organization as time passed. As the relationship between the owners deteriorated, Mr. Samuels contributed less time carrying out his duties, and lost interest his role in the company. His actions began to effect the business financially and damaged several relationships with the organizations clients. In 2014, George Samuels announced that he was willing to sell his 50% to Mr. Lane. Both sought the legal-council of different corporate attorneys, and separately prepared to enter negotiation. In August of 2015, both owners and their lawyers sat down together to initiate the negotiation, discuss the separation, and to make a starting offer. The offer was refused, and both parties left the table without reaching a settlement. The following week, after further counsel, a counter offer was made by Mr. Lane’s representative to Mr. Samuel’s representative. This offer was also rejected and followed by three more counter offers over the next two months. In October, both parties reached an agreement that determined an amount, a number of installments, as well as a severance package that satisfied the needs and interests of those involved. The negotiation provided took place internally, and was fully resolved privately between the two owners. In this paper, we will identify the constituents and agents found in the negotiation process, describe the cultural and audience impacts that were found in the negotiation, describe and analyze the factors that played a role as well as their effectiveness, develop additional factors that could have improved the negotiation performance, and finally, provide a description of the ethical approach and the role it played throughout the negotiation process.

Identify the constituents and agents, and describe their role in the negotiation process.

Identify cultural and audience impact on the negotiations (if any)

Describe two of three factors (power, influence, coalitions) that contributed to or supported the negotiation strategies, and analyze their effectiveness. 

Develop two or three additional factors (power, influence, coalitions) that could have been used to improve negotiation performance, and explain why these factors may or may not be more beneficial.

Duty Ethics and its Impact on the Negotiation Process

In consideration of the four different ethical approaches, in this situation, there was clear evidence that it was the hope of Mr. Lane to continue on with the organization. He clearly communicated and expressed his desire to keep his employees feeling secure in their jobs and to continue growing and prospering as a team. The most suitable approach in this situation is described as Duty Ethics which, “emphasize that individuals ought to commit themselves to a series of moral rules or standards and make decisions based on those principles.” (Lewicki, 2015). Mr. Leeds provided, through his actions during negotiation, that he held the best interest of his employees and their families at a high importance. In his negotiations, he was determined to continue providing employees with their jobs and to make sure they were all fully taken care of throughout and after the negotiation was resolved. His motivation and commitment to not back down and to continue his efforts in taking full ownership resulted in his ability to uphold his own moral rules and standards.

Conclusion

Organizational negotiations take place every day in organizations across the globe. The methods and strategies used within the negotiation process are commonly used as an effective tool in conflict resolution, settling differences, and reaching agreements that ultimately facilitate the driving force of success on many levels. The effectiveness of negotiations made within or between organizations are determined by different factors that all play a major role in reaching an agreement and resolving the issue at hand. It is through the use of organizational negotiations that companies can proactively facilitate the long term success and sustainability of their future.

References

Lewicki, R. J., Saunders, D. M., & Barry, B. (2015). Negotiation (7th ed.). Boston, MA:

McGraw-Hill.