Question

What are the key differences among the four sub-processes of bargaining?

Why is building trust so difficult?

Answer 1

Four sub-process of bargaining

The four sub-process of bargaining are :-

• Distributive bargaining
• Integrative bargaining
• Intra-organizational bargaining
• Attitudinal bargaining

Distributive bargaining

In this process, the advantage of one person will be the loss of another. Hence, it is also known as zero-sum bargaining. If we take the example of a firm, the gain of a worker is the loss to the management. Similarly, when the bonus is not given, management will gain and that is what becomes a loss to the workers. Hence, this sub-process will create problems in bargaining. Power of bargaining can solve this.

Integrative bargaining

In this process, both the persons will be benefited and hence one more name called win-win bargaining. A joint benefit will be there in this sub-process. In the case of a firm, both management and the workers will be benefited. As an example, we can say that if the labor productivity rises, the management will be more profitable and the workers will be more wages. Generally, issues happening in the firms are the reason for this sub-process. We can see this sub-process mainly when a new technology is introduced into a firm.

Intra-organizational bargaining

This sub-process of bargaining comes into frame when separate preferences and goals were set up by the both the groups, here say, the members management and the workers. For example, workers union may consist of both aged employees as well as young employees. Elder ones wishes to get more attractive retirement benefits whereas the younger ones may wish to get attractive wages. It can be mainly seen in the public sector.

Attitudinal bargaining

This sub-process brings out the influence of culture of a person and happen by the influence of one person in the bargaining over the other one. This bargaining contains an emotional background. Trust is the basis of attitudinal bargaining. In case of firms, if the workers have utmost trust over the management of the firm, integrative bargaining will be easy and both of the parties will gets benefited.

Trust can be build between workers and management by conducting a meeting in terms of negotiation. There, they can share their opinions regarding the issue. The personal qualities of the people engaging in the negotiation are very important to build a trust. Management people who shows large way of authority to the workers cannot come into a compromise through negotiation. They will exhibit their personal ego towards the workers and failed to build a trust in the mind of the workers. This will lead to loss of integrative bargaining. Lack of communication with the employees is another reason. Trust involves delegation of authority to the lower level employees, yeah, for sure, it may involve risk factor. Without risk, there will not be any trust.