Introduction
Whipsawing is a term used to describe a situation in which an individual or organization is caught between two conflicting forces. This can occur in a variety of situations, such as negotiations, labor disputes, and financial transactions. In particular, whipsawing can be a useful tool for employers to use to manage labor disputes. This article will discuss the concept of whipsawing, its advantages and disadvantages, and its implications for employers.
Definition
Whipsawing is a form of negotiation and bargaining in which one party attempts to use two or more groups that are in conflict against one another in order to gain the upper hand in the negotiation process. It may involve a variety of tactics, such as playing one side off of the other, using delays, or offering concessions. Whipsawing can also be used as a form of leverage, as the negotiator can threaten to take their business elsewhere if one side does not agree to their demands.
Advantages
One of the biggest advantages of whipsawing is that it can be used to gain a better deal than would otherwise be possible. By playing two sides against each other, the negotiator can often extract concessions and better terms than if they had only one party to negotiate with. Additionally, whipsawing can be used to create a sense of urgency in negotiations, as one side may be more willing to come to an agreement quickly in order to avoid being “out-negotiated” by the other.
Disadvantages
One of the main disadvantages of whipsawing is that it can be risky and difficult to manage. If the negotiator is not careful, they may end up alienating one or both sides, or even end up with a worse deal than they would have gotten if they had only negotiated with one party. Additionally, whipsawing can lead to a lack of trust between the parties, as they may feel that they are being manipulated or taken advantage of.
Implications for Employers
Whipsawing can be a useful tool for employers to use when managing labor disputes. By playing different groups against each other, employers can often gain concessions that would not have been possible through direct negotiations. However, employers should be aware of the risks associated with whipsawing, as it can lead to a lack of trust and ultimately a worse deal than would have been possible through direct negotiation.
Conclusion
Whipsawing is a useful tool for negotiators to use when attempting to gain concessions from two parties in conflict. It can be a powerful tool for employers to use when managing labor disputes, as it can often result in better terms than would be possible through direct negotiation. However, it is important to be aware of the risks associated with whipsawing, as it can lead to a lack of trust and ultimately a worse deal than would have been possible through direct negotiation.
References
Dang, T. (2018). Whipsawing in Negotiation. Negotiation Insight. Retrieved from https://negotiationinsight.com/whipsawing-in-negotiation/
Kazanjian, A. (2018). What is Whipsawing? Definition & Negotiation Tactics. The Balance Small Business. Retrieved from https://www.thebalancesmb.com/what-is-whipsawing-definition-negotiation-tactics-397819
Schertzer, J. (2018). What Is Whipsawing in Negotiation?. Harvard Business Review. Retrieved from https://hbr.org/2018/11/what-is-whipsawing-in-negotiation