Integrative Bargaining Case studies


Scenario 1

Christine aged 27 is a receptionist at Blue Copes IT Company in NewYork City. The employees of the company had complained of theirpayment terming it as peanuts when compared to the labor markets.Their complaints were not addressed by the management and had tosecure their job. Due to the fact that receptionist has a computerwith internet access she was able to access various information andresources online. She came to online jobs that she considered payingwell. So she used some of her time at the company to do the onlinetasks and meet company duties at the same time. Her interests in thebusiness were not as much as before she was exposed to the onlinejobs. With time, the management realized the things that she wasdoing on using the computer and fired her.

In this case, the interests of the employees are conflicting withthose of management of the company as the employees felt that theireffort and work does not receive an equal reward from the company.Financial demand of the employees may be on the rise, but theirsalaries do not meet the rising economy. Christine realized that shecan still earn some cash through online jobs while ensuring that herduties as a receptionist at Blue Copes IT Company. Although she canmeet her financial needs, her interests and commitment to the companydecreases. This is against the interest of the management and usingthe facility of the company for personal gains without theauthorization of the management is a violation of employment policy.

Integrative bargaining can be used to settle the interests of themanagement and employees. Farnham, D. (2000) describes integrativebargaining as a non-conflicting negotiation where the company’smanagement and employees can find a solution to a common employeerelation problem. The efforts involved in the negotiation aims atbenefiting both parties. Walton, R. E., Cutcher-Gershenfeld, J. E., &ampMcKersie, R. B. (2000) describe it as an interest-based bargaining,mutual gains bargaining or win-win bargaining. The management needsto create options that would result in mutual gains throughaddressing what drew the receptionist and the likes away fromperforming their duties as expected. During the negotiation process,the company and the employee need to recognize their common problemand distinct interests. This would permit them to identify the causeof the problem in order to address the interests of both parties. Thecompany should not have fired Christine but instead address thepayment issue. Her commitment to the company could have been revived.

Scenario 2

Jeff &amp Sons is one of the largest retail stores in London. Thecompany has more than ten stores and one supermarket within the city.John is one of the newly employed workers of the company having beenworking for 2 years. He was based at the supermarket for 1 year and 3months and then moved to one of the stores in supplies department dueto his outstanding performance. The leadership and management of thesupermarket he was at initial was more stable compared to that of thestore. He was not favored by the management and work climate of thestore and his former spirit of hard work was no more. After two yearsat the store, John was found involved in backdoor business where hesold the products of the company illegally and for his gains. He wassuspended for investigation and sucked later after two months ofinvestigation.

The management and leadership of any business organization is anessential element in defining the behavior of employees and the workclimate. The leaders and managers of any company are concerned withgetting employees and managers below them perform their duties andresponsibilities as expected. Gagné, M. (2014) describe theleadership of the company to be the motivation of the employees. Johnperformed better while he was working at the supermarket because theworkplace environment permitted him to improve his commitment andpursuit for the common good. It was the leadership and management ofthe supermarket that created a favorable environment for improvement.The difference between the supermarket and the store is theleadership. Implementation of the strategic plan begins with theleadership after which the employees’ morale is boosted. John waswilling to work, but the environment could not permit him.

Teamwork facilitates the development of all the employees in thecompany and cooperation is enhanced. Teamwork advocates for commongood and eliminates pride and selfish gains by various individuals inan organization. The outstanding performance of John at thesupermarket was not because he was smart but the support from fellowemployees and leaders. At the store, the management and leaders seemnot to have encouraging teamwork and a common goal. The leadersthemselves may not have been demonstrating teamwork and promoting ofshared goal. The employees are likely to follow suit. As a result,John shifted from collective interests and benefits to personalgoals. For this reason, he was looking on how he could meet his goalsat the company. In order to settle this, the whole leadership of thestore, which is the cause of the problem, needs to be addressed asfiring employees is not the solution (Daft, R. L., &amp Lane, P. G.2008). In order to save the situation, integrative bargaining shouldbe employed in order to address the interest of both parties.

Scenario 3

Safari Tours is based in East Africa. It is among the largest tourismsector in the region, and it operates in Kenya, Tanzania, Uganda,Rwanda, Burundi and Ethiopia. The company has its headquarters inNairobi. The company`s main services include touring of touristattraction sites, lodging and accommodation, education and conferencewhile products include artifacts, tourism publications, and food.Michael and Charles are drivers at the company, and they usually worktogether as the management assigns two drivers per vehicle whentaking their customers out. Michael consumes alcohol while Charles isa reformed smoker.

One day they were touring Maasai Mara National Park and Michael wasto drive when going and then Charles during the return journey.Michael was more informed of the site hence he was responsible foranswering questions from the tourists. He drunk the previous nightand had hangovers. As a result, he could not explain various pointsclearly to the tourists who were not satisfied with the serviceoffered. Their interests also during the tour also dropped untilCharles realized that they were not okay with Michael. He intervenedmaking the tourist relieved. The work done by the two employees werenot up to the expectation as per feedback provided by the tourists.They were summoned human resource manager the following day andwarned of the behavior. They were put under supervision for a periodof one year.

The behavior of Michael was not to the standard. This resulted in himoffering low-quality service to the tourists and could not respondproperly to the questions posed by the tourists. The services offereddid not satisfy them, and this was a threat to company’sperformance. Since Charles was not well informed of Maasai MaraNational Park than Michael hence when he intervened to try solvingthe situation, he still could not satisfy the tourists. When thishappens repeatedly, Safari Tours could lose their current customersand even scare potential customers. The sales of the company wouldconsequently decrease and thus poor performance. Every company aimsat making the profit and thus the action that the company applied toMichael and Charles was appropriate.

The company imposed disciplinary measures on the two employees inorder to do away with ill-behavior identified with them. Whenimposing the disciplinary measures, the employees are reminded of therules to with they must comfort to as employees of the company.Michael indiscipline case under rule violation as it was involvedwith substance abuse that affected his performance while at work. Thediscipline imposed by the company was meant to deter Michael andCharles from the behavior that would damage the company’sperformance and reputation (Kozami, A. 2005). The company managementshould report first to the unions to which the employees belong andobserve the regulations of the employee union. The on yearsupervision ensured that the employees were behaving by the rules ofthe company. Supervision also preaches the company rules to theemployees and instills ethical behaviors such that they can behave asexpected even when not under supervision (Aylen, J. 2012).


Farnham, D., &amp Institute of Personnel and Development.(2000).&nbspEmployee relations in context. London: Instituteof Personnel and Development.

Walton, R. E., Cutcher-Gershenfeld, J. E., &amp McKersie, R. B.(2000).&nbspStrategic negotiations: A theory of change inlabor-management relations. Ithaca, NY London: ILR Press/CornellUniversity Press.

Walton, R. E., &amp McKersie, R. B. (1991).&nbspA behavioraltheory of labor negotiations: An analysis of a social interactionsystem. Ithaca, N.Y: ILR Press.

Kozami, A. (2005).&nbspBusiness policy and strategic management.New-Delhi: McGraw-Hill Published.

Aylen, J. (2012).&nbspStarting &amp running a small business forCanadians all-in-one for dummies. Etobicoke, Ont: J. Wiley.

Davies, A. (2011).&nbspWorkplace law handbook 2012: Employmentlaw and human resources. London: Kogan Page.

Daft, R. L., &amp Lane, P. G. (2008).&nbspThe leadershipexperience. Mason, OH: Thomson/South-Western.

Gagné, M. (2014).&nbspThe Oxford handbook of work engagement,motivation, and self-determination theory.