Crimson Industries Inc.fixes the amount for its annual budget.There is conflict amongst the different departments about the allocation of money.The company is not in a position to add to the existing budget.Hence,it decides that each department would get a percentage of the allocated amount.Which of the following types of negotiation behaviour is observed in this example?
A)Integrative negotiation
B)Distributive bargaining
C)Influential tactics
D)Interactional justice

Question

Quizplus · Accepted Answer

In this scenario, the company has fixed the amount for its annual budget and is not in a position to add more to it. Each department is vying for a bigger share of the budget, thus resulting in conflict. The company decides to allocate a percentage of the existing budget to each department, indicating a distributive bargaining approach. The focus here is on dividing the limited resources in a way that accommodates the various departmental needs.