Power as a bargaining tool...

The ability to bargain can be linked with the different kinds of powers that either the employee or the employer can exercise over the other. I am discussing a few of them below:-

· Expert power: When one perceives the other to possess some kind of expertise.

· Reward power: When one has the ability to control or grant rewards to the other.

· Legitimate power: When one has the lawful authority to influence the other.

· Coercive power: Power which one exercises over the other by the virtue of possessing the ability to punish.

· Referent power: Influence that one has over the other which is obtained from being well liked.

As has already been stated by Varun, the law of demand and supply governs the ability to bargain. However there are other aspects which can influence the ability to bargain.

One can pressurise the other by using tactics such as threats or forming coalitions in order to persuade. Also one can make promises to the other in order to make him comply. The negotiator can use rational persuasion and factual data to prove his point. Psychological tactics like improving the other persons mood by generating a favourable image or making an emotional appeal can also be used.

In this case Darell Hair has used Legitimate power as a bargaining tool. Even though the decision was a unique decision which had never been executed in over 1000 tests; there were different takes on the initial decision of granting England 5 runs for ball tampering. Nasser Hussain, Wasim Akram, Steve Waugh and many others severely criticised the decision. However, all 3 boards (PCB,ECB and ICC) later confirmed that the decision was in line with the laws of cricket.

Priyanka has explained how to deal with non negotiable offers and I believe that if the clauses of my contract permit me to, the opportunities available to me are better, my importance to the company is very high or my motivation of staying in the company is very low then I will be in a position to make such non negotiable offers.

Non-Negotiable Offer

Dear Participants,

So far, we have attempted to decode the themes "Contracted or Connected?" and "At Will, So Will" through Short Stories, Role Plays and Visual Episodes. These two themes helped to us to get inputs in the conceptual and knowledge part especially on the process of both "intent of offer" as well as "offer".

While discussing the story of IIT, Mumbai, some participants, like Saurabh Pandey (Section B), raised the issue related to "bargaining power" in the individual - organizational relationship context using the terms like "who is at the receiving end?".

Do you think the individual is always at the receiving end and the "bargaining power" is always shifted in favour of employer? If that is the case, go through the following one time "Non-Negotiable Offer" given by Darrel Hair, one of the high profile umpires, to his employer "International Cricket Council" following the ball tampering controversy in the fourth test between Pakistan and England in August 2006.

Based on the email, what are your observations on "bargaining power" in the context of individual - organizational relationship? Would you be able to make similar non-negotiable offer to your employer in any point of time in your career? Also, if you were to receive a similar one time non-negotiable offer from your employee, how would you handle this issue?
Your contribution on this interesting episode with reference to the above issues, but not limited to, is welcome!

With Regards,

Ganesh



From: Darrell Hair
Sent: Tuesday 22nd August 2006
To: Doug Cowie
Subject: The way forward

Doug, just to firm up what we discussed earlier this evening. I appreciate the ICC may be put in an untenable position with regards to future appointments and having taken considerable time and advice, I make this one-off, non-negotiable offer.

I am prepared to retire/stand down/relinquish my position on the elite panel to take effect from 31st August 2006 on the following terms:

1 - A one-off payment to compensate the loss of future earnings and retainer payment over the next four years which I believe would have been the best years I have to offer ICC and world umpiring. This payment is to be the sum of [US dollars] 500,000 - details of which must be kept confidential by both parties. This sum to be paid directly into my account by 31st August 2006.

2 - ICC may announce the retirement in any way they wish, but I would prefer a simple 'lifestyle choice' as this was the very reason I moved from Australia to settle in the UK three years ago.

3 - No public comment to be made by me as to possible reasons for the decision.

4 - This offer in no way precludes me taking legal action and/or instigating libel suits against various sections of the electronic and print media for comments made either previously or in the future.

5 - This in no way precludes me taking civil action (and exercising my rights as a resident of the UK in any court of law and by any other avenue open to me) against any organisation or persons currently part of ICC and in particular, members of the Pakistan cricket team and the Pakistan Cricket Board.

I reiterate this is a once only offer and if I fail to obtain your agreement I shall continue to be available under the terms of my current contract till March 31 2008 to fulfil umpiring appointments as and when ICC sees fit in any country at any time in any series or matches involving any affiliated teams.

I would also insist that my ongoing contracted employment continue in its current form until such time as an ICC performance assessment deems me to be no longer able to perform the duties to the high class expected of an international umpire.

Would you please let me know at your earliest convenience of your acceptance or otherwise of this offer.

Sincerely,

Darrell Hair.