Role of Bargaining Power in Human Resource

Role of Bargaining Power in Human Resource

Definition of Bargaining Power

Bargaining power refers to leverage available to a party in a negotiation that helps achieve the desired results. In an employment setting, both the employer and employee are known to have different levels of bargaining power.

For instance an employee would have bargaining power of extracting higher salary from the employer because he possesses a distinct skill set as well as experience. On the other hand, the employer can also have bargaining power because he is the authority that will give the employee his salary (Kim & Fragale, 2005).

Negative effect of Employees Bargaining Power on Performance

Employees have been known to violate HR policies by leaving early and enforcing the use of unexcused leaves. The Human Resource system has been lacking the use of efficient mechanisms in tracking down employees that make use of incorrect leaves. They have failed in implementing a system of Employee Retention. The main reason for employees leaving so early is because they have not kept an eye on the rising turnover in Organizations.

The processes in Human Resources should be so transparent that the employees should not be able to manipulate them. When Human Resource does not keep a track of the causes leading to early resignations from employees, it would not be able to retain employees.

The Human Resource policies should be of a stringent nature and there should be no compromise on discipline. If employees are not sincere towards their organizations they make use of unnecessary sick leaves and feign illness. There should be an efficient system of tracking which exposes people resorting to unnecessary sick leaves and manipulation of HR policies. The main reason for employees to resort to this activity is because they are not satisfied with their work (Hogbin, 2006).

Managers are of the view that the organization is being run successfully because of them and this type of complacency results in their performance decline. When one becomes complacent and believes that he/she is the top most authority, there is lack of interest in their job responsibilities. Instead of being productive employees, they become liabilities for the Organization.

Employees working under direct supervision of Managers with higher bargaining power are bound to suffer in a number of ways. Managers enjoying higher bargaining power would resort to burdening their sub ordinates with excessive workload. Other employees ...