BARGAINING POWER OF ORGANIZATION

Urgency For Filling Vacancies:

If an organization has urgency for filling its vacancies due to any unavoidable reason, its bargaining power tends to be weaker. In the alternative scenario, its bargaining power tends to be stronger. Urgency for filling vacancies depends on business plan of the organization, its human resource planning, and acting on proactive basis. If an organization is on high growth path, it is more in urgency to fill vacancies as compared to organizations who are not on such high growth path. Organization that undertakes human resource planning to make forecast of likely vacancies is in no hurry to fill its vacancies desperately. Similarly, an organization which undertakes recruitment process on proactive basis, that is, starting recruitment process too early to get suitable candidates does not feel urgency to fill vacancies at any cost.

Number of Candidates Available:

If number of candidates available at interview far exceeds the number of vacancies, an organisation’s bargaining power is high as it has alternative candidates and a candidate asking for unreasonable salary package can be replaced easily by other candidates. In the alternative case, the bargaining power will be low.

Image in Job Market:

Every organization enters job market with a given image. This image depends on human resource management practices (like training and development provided to employees, fairness/unfairness in giving promotion or lucrative short-term assignments, degree of salary raise on yearly basis, etc.) and its work culture (employee empowerment, nature of supervision and leadership, nature of work, etc.). If all these are favorable, the organization’s  bargaining power tends to be high. In the alternative case, the bargaining power tends to be low.

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