Monday, January 11, 2010

Non Negotiable Offer: Not always binding

A relative ability of parties in a situation to exert influence over each other is termed as bargaining power. But when one party has better alternatives (upper hand) as compared to another or does not want to compromise, inequality occurs. One of the ways this happens is by Non Negotiable Offers. This inequality is generally perceived as weighted towards the Employer’s point of view. Employers dictate contracts and the employee do not have a say. This may be due to the fact that employer has option of replacing the employee with someone from outside or inside the organization. But there are situations where employees also make non negotiable offers. For obvious reasons they think they have upper hand in the situation. I can relate this situation to a hostile hijack attack. Hijackers send out a non negotiable offer and their demands have to be fulfilled. With reference to the post, Darrell Hair had the upper hand (hijacker). The situation of having a non negotiable offer depends on how critical I am to the organization. If I am a critical resource and have expertise which is unique to me, I might be in position to put forward a non negotiable offer.

If any time non negotiable offers were to be given by any employee in future and if the employee is not critical to organization, then I would not accept the offer. But if the employee can bring about strategic advantage to the organization, retaining him/her would be beneficial in long run for me and the demand is not outlandish, accepting the offer will be a good option.

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