Meaning
Horizontal bargaining occurs between individuals of equal status or authority to resolve resource conflicts and align goals. Peer negotiation replaces top-down directives with a process of mutual concession and agreement. It is the primary way that modern organizations manage the complexity of matrix structures.
This interaction requires a high degree of social intelligence and patience.
Influence Cost
Achieving an outcome without the use of formal power takes much more time than issuing a command. Peer negotiation costs the person hours of discussion to find a middle ground that satisfies both parties. This load is a tax on the efficiency of the individual but an investment in the stability of the group.
It measures the ability of a person to navigate internal politics.
Agreement Baseline
Settlements reached through this process are often more durable than those imposed by a superior. Because peer negotiation involves the active participation of all parties, the resulting commitment is usually higher. It creates a social baseline of trust that facilitates future cooperation.
This mechanism is essential for the smooth running of a complex system.
Stalemate Risk
Failure to reach an agreement can lead to a total halt in progress for every department involved in the task. Peer negotiation stops being productive when the interests are irreconcilable.
