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22/08/2022
Collective bargaining usually involves one of two strategic approaches. The first approach is the distributive approach which is typically used when the situation lends to dividing up resources. This approach is used when there is a fixed amount of resources and whatever one party gains, the other party loses (Thakur, 2011). This type of approach is typically used in every day situations such as when a customer makes a major purchase, like a car. In the business world a good example of a time to use this approach would be allocating new equipment across an organization. While each department will vie for as much of the new equipment as possible, the equipment will be divided based on the negotiation.
The second strategic approach to collective bargaining is called the integrative approach. The integrative approach is more about cooperation. This approach is utilized when there is a possibility to produce a greater outcome when the parties work together vs. on their own (Thakur, 2011). In everyday life this approach is often used to negotiate within families or with business partners. For example, an organization may need another company’s resources and will bargain to which an agreement is decided on such issues as cost and time allotted.
When considering which approach might be best for a given collective bargaining situation, both parties should review information, timing and power position, the specifics to be negotiated, the people or parties involved, and the general context of the negotiations (Carrell, M., & Heavrin, 2013). It is important for negotiators to keep in mind that the strategy for each negotiation may be different.
Within the negotiation realm, there are a host of issues with ethical vs. unethical bargaining tactics. Professional and competitive negotiators often use tactics that are viewed by others as unethical or that violate the perceived rules of negotiation. Please note that while there are clear violations or unethical practices that may be used in negotiations, there is also a “gray” area in that the perception of unethical behavior does not always dictate that the negotiator has behaved inappropriately. The table below offers some insight to ethical vs. unethical bargaining tactics.
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