Monday, January 11, 2010

Power shows the way to bargain

Bargaining power can be appraised in terms of subjective assessments by individuals involved in the bargaining process. In an organization, each side (employee as well as the employer) can guess the bargaining preferences and bargaining power of the other side. The extent to which the contents of agreements favor the interests of the employer or those of the employee is determined by the relative balance of bargaining power between the two parties.

Power or Influence that an individual enjoys determines the outcome of a bargain. Only when an employee is able to mobilize sufficient power then the bargain becomes apparent, as can be seen in case of Darrell Hair. Since Darrell Hair was one of the elite umpires, so he had the audacity to bring a non-negotiable offer to the table.

I believe making a non-negotiable offer is very arrogant and impolite. So in my career I will make negotiable offers but not non-negotiable offers. Again the negotiable offer would depend upon the market conditions. A proper research of industry standards would help in building bargaining power. Also it is very essential to assess ones’ bargaining power realistically. Overestimating may court resentment and lead the employer to search for someone less troublesome. At the same time underestimating may lead to undercharging oneself.

On the other hand, if I were the employer and received a non-negotiable offer then I will first analyze the disadvantages to me if I disagree to the proposal. If the situation is such that there is no way out other than obliging the offer then I would accept it. But otherwise I will try my best to see if I can negotiate with the employee or find a replacement for him. I believe that if an employer accepts a non-negotiable offer made by an employee then it is quite possible that such offers would be made in future as well and the process of appeasing the employee would continue…

1 comment:

UPENDRA KR said...
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