Saturday, September 21, 2019
The effects of power Essay Example for Free
The effects of power Essay The power of union and the management although different in nature both affects the outcome of a negotiation. The power of the union is based on numbers whereas power exercised by management is power conferred upon it by the nature of the business. In negotiations, there is always a point of equilibrium where both parties are going to benefit from the exchange and which is the most profitable point for both parties. However, this point of equilibrium can be manipulated into moving towards either side by the power the two parties possess.  The effects of the power exercised management and the power exercised by the union during negotiations differ as to the situation or the environment, when the company is involved in a business that requires highly technical employees, the union will probably have a stronger bargaining power than the management especially since the workers are under short supply. In cases where the management is required to face-off with a union that is composed of low-skilled employees and the situs of the company is abundant on such resource, then management will be able to steer the negotiations towards the direction that is most favorable to it. Balancing of power            Balancing of power can be equated as the power of both parties negating each other and thus ending in a state of equilibrium wherein both parties have reached the best possible solution to their problems. Balancing of power can only be achieved if both parties â€Å"assume that mutual gains are possible, and should not assume that one party must suffer for the other to benefit†(McCarthy, 1991). Balancing of power is important because it is in this state that both parties are benefited without sacrificing too much of their demands.            There are several ways to maintain this balance of power and prevent its abuse. One tactic is to understand others’ interests, another is to analyze the sources of power available to all parties – but not being paralyzed by it, another tactic is to consider other options making your position flexible thus reducing the risk of the other party easily influencing or manipulating you, and also, you must understand your personal style, your own strengths and weaknesses to know what you are capable of and protect oneself from the other party’s bluffs (Kochan, 2005). Power over employment status            Power that is normally exercised by management is the power over the employment status of an employee. Although several state policies and internal company policies are aimed to prevent the abuse of this power when dealing with individual workers, it is still commonplace that management easily manipulates the lowly worker into succumbing to its wishes under the pressures of losing his or her job. It is because of this power that there can be no effective communication between a worker and management in conflict situations. When entering into conflict negotiations, the ideal state is that the parties are on equal footing, however, there can be no equality when the other party has control over your livelihood.            Regardless of this power that management holds, the lowly worker can seek redress from the courts on grounds of equity. Courts knowing the imbalance between the two parties are more inclined to rule in favor of the lowly worker given there is sufficient basis. Because of this fear of litigation and the prospect of losing more money in the long run, most companies are now shifting towards justice and fairness in conflict resolutions. As a matter of fact, â€Å"Eighty-three percent of corporate executives report the fear of a lawsuit affects their decisions†(Hubert, 1998) and tend to do what is equitable. References Hubert, Denise V.M. (1998). The First Step in Alternative Dispute Resolution: Fact-Finding. Retrieved January 27, 2008, from http://www.management-advantage.com/newsletr/jul98.htm Kochan, Tom (2005). Negotiations and Conflict Management Basic Concepts: Theory and Practice. Retrieved January 27, 2008, from http://ocw.mit.edu/NR/rdonlyres/Sloan-School-of-Management/15-668Fall-2005/F06D4B27-6A22-4FDD-9449-B2664318C7C4/0/lecture_12.pdf McCarthy, William (1991). The Role of Power and Principle in Getting to Yes. Retrieved January 27, 2008, from http://www.colorado.edu/conflict/peace/problem/mcca7535.htm
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