Tuesday, January 12, 2010

How Powerful is my Bargaining Power?

Do you think the individual is always at the receiving end and the "bargaining power" is always shifted in favour of employer?
Bargaining power of an individual often depends on his status, power and influence. In context of individual-organizational relationship, the bargaining power would depend largely on the “Need” i.e. who needs whom the most. Is it the employer who fears to lose business with the employee or the employee who needs a job desperately?

Based on the email, what are your observations on "bargaining power" in the context of individual - organizational relationship?

When the pool of suitable applicants is large, the employee has less bargaining power. If the business depends on the employee to large extent, then the bargaining power of the employee increases.
Inequality of bargaining power occurs as the employer often is in a stronger position to dictate the terms and conditions and also decides how much bargaining power to give the employee.
In this case, Darrell Hair realized his importance and the difference he could make to ICC, so he wrote such an email to ICC. He made the best use of his power to fulfill his interests.

Would you be able to make similar non-negotiable offer to your employer in any point of time in your career?

It is possible to make such a Non-Negotiable to my employer in case I realise that my “Market Value” is more than what I am getting. In order to make sure that I get (and if possible more) than what I deserve, it would be important to make such an offer to my employer.
But there are certain issues which I would like to take care of before making Non-Negotiable Offer:
• Am I in a position to make this offer? Am I easily replaceable in the organization?
• How important is my relationship with my employer to me and how this would be affected after making the offer?
• In case the offer is not accepted by my employer, what would be my course of action? Would I resign or negotiate the terms and stay with my current employer. In case I still plan to continue, would I be treated same as before.

Also, if you were to receive a similar one time non-negotiable offer from your employee, how would you handle this issue?
In case I receive such an offer from my employee, the decision would depend on the same conditions:
• Is the offer justified?
• Is he replaceable?
• Is the cost of accepting the offer more than expected profitability from the employee?
• To extent will the business be affected if his position is unfilled?

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