Introduction
When choosing negotiators, airline companies should consider candidates’ appropriate talents, experience, and personality attributes. Negotiators should ideally have in-depth knowledge of the aviation sector and the potential problems that may occur. They must get their points through clearly, think critically, and develop innovative ideas that benefit everyone involved (McCarthy & Hay, 2015).
Choosing Negotiators
The business can choose employees to serve as negotiators or bring in outside experts with experience in the field. For the best results in negotiations, it is essential to have a team comprised of individuals from various backgrounds (Fisher et al., 2011). Team members should also be chosen for their capacity to collaborate, convey ideas clearly, and forge strong bonds with the many parties involved. The firm should ensure the negotiating team has the skills, expertise, and diversity necessary to negotiate successfully and create mutually beneficial outcomes. Hiring well-equipped negotiators to represent the company’s interests is crucial regardless of the situation.
Training Negotiators
An airline should provide in-depth training programs for its negotiators to ensure they have the information and skills to reach favorable agreements. Negotiation theory, tactics, and techniques, as well as difficulties that may occur during negotiations in a specific business, should all be covered in training (Malhotra and Bazerman, 2007). Role-playing exercises help better prepare negotiators for real-world situations. It is essential to review and critically analyze the organization’s current training procedures in negotiating skills to spot any flaws or opportunities for development. Employees who have undergone negotiation training can be surveyed, interviewed, and given feedback to form an accurate assessment (Reardon, 2014). Existing procedures may need more effective training programs, leading to less-than-ideal negotiation results. As a result, it is essential to provide continuing training and development programs for negotiators.
The airline firm must use subjective and objective measures to evaluate the negotiators’ performance. Input from teammates, negotiating counterparts, and the negotiator’s introspection are all subjective judgments. Metrics such as the number and value of successful negotiations, the length of the negotiation cycle, and the number of settled conflicts might all be used to provide an objective assessment.
Recommendations
The airline might apply the following suggestions to enhance the selection and training of negotiators:
- Develop a negotiation strategy that identifies the company’s goals and priorities. This will provide the foundation for the negotiation team’s approach and help them determine their Best Alternative to a Negotiated Agreement (BATNA).
- The organization might establish a systematic procedure with distinct criteria for hiring negotiators, such as their experience, credentials, and talents in the field of negotiation.
- By analyzing the results of prior negotiating endeavors, the business can learn from them and better educate bargainers.
- Professional negotiators require consistent education to keep up with the ever-changing field of negotiation. Company-wide training and workshops help keep negotiators abreast of developments in the area (Gates, 2022). Role-playing exercises can be particularly effective in providing practical experience and preparing negotiators for different scenarios they may encounter.
- Drive home the value of long-term partnerships and cooperative bargaining with other parties.
- Utilize interest matrix and ZOPA (Zone of Possible Agreement) to identify common ground areas and potential compromise areas.
- Develop a tactical plan that outlines specific actions during negotiations to achieve the company’s goals.
By implementing these practices, an airline company can improve the negotiation process and increase the likelihood of achieving successful outcomes.
The current process the Company Undertakes Before Any Significant Negotiation
The airline company follows a multi-step process before beginning any serious negotiations.
- The first step is establishing company goals, such as attracting top-tier pilots, flight attendants, and ground staff or improving the company’s reputation.
- The business then investigates the applicant’s history, expertise, and credentials in light of current market conditions and industry benchmarks (Santana et al., 2019).
- After that, the business plans its negotiation approach and allocates funds for hiring.
- The corporation tries to persuade the applicants to agree to its terms throughout the negotiating process, including compensation, benefits, working conditions, and the length of the contract (Santana et al., 2019).
- The firm may also attempt to establish rapport with the applicants by anticipating and responding to any objections or worries they may have.
However, there are several ways in which the current negotiation method could be enhanced.
- One suggestion is to work with the other parties involved to identify ways everyone may benefit (Novak et al., 2020). A candidate-centered approach means tailoring solutions to each individual’s wants and needs. Employers can attract and retain top talent by providing perks like flexible scheduling and individualized training and development programs that help them achieve their professional goals.
- Data-driven decision-making and analytics may also help negotiate. Market trends, compensation norms, and performance measurements might help the company evaluate its terms and applicants (Malhotra and Bazerman, 2007). With this strategy, the business may maintain its competitive edge and conform to industry norms.
- Finally, the corporation could invest resources in improving its negotiating abilities. Training and coaching recruiters and managers can increase communication, trust, and rapport (Santana et al., 2019). Overall, this investment will benefit the company’s reputation and bottom line since it will lead to more significant results and deeper connections with prospects.
Airline Company’s Post-Negotiation Review Process
After the negotiation is complete, the first thing an airline does is evaluate the outcome. The next phase is assessing whether or not the company’s goals were met during the discussion (Gates, 2022). The company plans to develop connections with partners to cut expenses. Analyzing the negotiation agreement and the firm’s and its partners’ results is necessary to determine its success or failure. At this point, it is essential to assess whether any problems developed during negotiations that would prevent the business from reaching its goals.
Step two of reviewing a negotiation is analyzing how it went. This phase entails analyzing the negotiating procedure to spot flaws and provide solutions. The focus of this phase is finding which tactics were successful and which may need some tweaking (McCarthy and Hay, 2015). To better understand the dynamics of successful negotiations, conducting surveys or interviews with important players might be helpful. As part of this process, the corporation may assess the performance of its negotiating strategy and tactics.
Feedback collection is the third phase of post-negotiation evaluation. This phase entails polling the company’s partners, workers, and consumers for their opinions. Questionnaires, interviews, and focus groups can be used to gather responses. Gathering feedback is essential to enhancing the negotiating process and producing better results in the future (Reardon, 2004). Feedback may help a company better understand its negotiation strengths and weaknesses and its partners’ requirements and expectations.
Documentation is the final phase of post-negotiation evaluation. Step five is writing down the negotiation outcomes, responses, and negotiating approaches. The post-negotiation review process yields valuable information that should be documented so the organization may use it in future negotiations (Fisher et al., 2011). As part of the documentation process, one may be asked to compile a report detailing the findings of their post-negotiation analysis. A negotiation summary, an appraisal of the negotiation process, and an analysis of the conclusion may all be included in the report. Compiling a database or repository of information pertinent to future discussions is possible as part of the documentation process.
Importance of Reviewing the Negotiation Process
The Airline firm should evaluate its post-negotiation review process to see where it succeeded and fell short in the negotiation process. To better prepare for future talks, the corporation may learn from the successes and failures of this session. The airline might assess its performance in the negotiating process by conducting a post-negotiation evaluation. Areas of strength, such as preparation for the negotiation, and areas of weakness, such as communication or negotiating abilities, can be pinpointed in this way (Bouarfa et al., 2021). The firm will be better prepared for future negotiations if its strengths and weaknesses are first identified.
Reviewing past negotiations aids airlines in becoming more proficient negotiators. The corporation can learn from its mistakes in negotiating, such as in its preparation or negotiation strategies (Gates, 2022). If the corporation can figure out how to enhance its negotiating skills, it will have a better chance of success in the future. The airline may better communicate with customers and other stakeholders by reviewing past talks. A business can enhance its communication skills by examining its employment during negotiating (McCarthy and Hay, 2015). The data gathered may then be used to train employees on effective communication strategies for future negotiations.
Proposed Improvement for Airline Recruiter
Training programs for airline recruiters that emphasize customer service, safety protocols, and interpersonal communication skills are advocated as a means through which the airline industry as a whole may better equip its workforce. This type of training may be given regularly to keep workers abreast of developments in their field and the best interests of the company as a whole (Fisher et al., 2011). Pilots and flight attendants, for example, might receive specialized training from the company to make sure they have the knowledge and abilities they need to do their jobs well.
The airline company can benefit from standardizing its negotiating process to maximize its effectiveness. One way to do this is to establish protocols and rules for use in negotiations by all staff members. Everyone will benefit if everyone is on the same page about the rules and procedures for conducting negotiations (Reardon, 2004). The company can also provide negotiation training to equip employees with the tools they need to negotiate successfully.
The airline company might implement a regular evaluation procedure to evaluate staff performance. To do this, managers should conduct performance reviews at least once a year (Malhotra & Bazerman, 2007) and share the results with their staff. This way, management can ensure everyone on the team is pulling their weight and contributing to the company’s success. Reviewing practices may also aid in determining whether workers need further coaching to do their jobs effectively.
Example of a Negotiation Scenario
I was involved in the discussion between the airline and the firm that provided food for flights as a recruiter for the airline. The airline has been searching for ways to cut catering costs without sacrificing the quality of meals. On the other hand, the supplier is concerned about keeping their profit margin stable without sacrificing product quality. The airline began the negotiation by explaining its main issues and demands before suggesting a decrease in the lunch price. They presented numbers and measurements to prove the cut could be made without sacrificing service or meal quality. The supplier then described their issues and suggestions for cutting expenses, such as using different products or fewer menu items. They backed up their recommendations with numbers and measurements.
After that, both sides made counter-offers and compromised until they achieved an arrangement that was satisfactory to both. The airline firm might have done better in this discussion if the supplier had been granted incentives to reach specific cost-cutting objectives. For instance, they proposed a contract extension conditional on the supplier achieving a specified cost savings target without lowering food quality. This pushed the provider to get resourceful in cutting expenses without compromising quality.
Conclusion
Negotiating is crucial for an airline firm to achieve its objectives in a highly competitive and complicated market. Customers, employees, suppliers, and regulatory agencies are examples of the stakeholders who must be considered throughout the negotiation process. Airlines should take the initiative to find possible areas for negotiation and craft a comprehensive negotiating strategy that considers all parties’ needs. If airline companies can learn to negotiate effectively, they can boost profits, strengthen ties with key partners, and provide better service to passengers.
Reference List
Bouarfa, S., Aydoğan, R. and Sharpanskykh, A. (2021) “Formal modeling and verification of a multi-agent negotiation approach for airline operations control.” Journal of Reliable Intelligent Environments, pp.1-20. Web.
Fisher, R., Ury, W.L. and Patton, B. (2011). Getting to yes: Negotiating agreement without giving in. Penguin.
Gates, S. (2022). The negotiation book: Your definitive guide to successful negotiating. John Wiley & Sons. Web.
Malhotra, D. and Bazerman, M.H. (2007). “Investigative negotiation.” Harvard business review, 85(9), p.72. Web.
McCarthy, A. and Hay, S. (2015). Advanced negotiation techniques. Berkley: Apress. Web.
Novak et al. (2020) “Implications of crew rostering on airline operations.” Transportation Research Procedia, 44, pp. 2-7. Web.
Reardon, K. (2004). The skilled negotiator: Mastering the language of engagement. John Wiley & Sons. Web.
Santana, M., Valle, R. and Galan, J.L. (2019) “How national institutions limit turnaround strategies and human resource management: a comparative study in the airline industry.” European Management Review, 16(4), pp.923-935. Web.