t difficult to meet the employees' financial demands. Employees, on the other hand, may be concerned about the erosion of wages or pensions through economic conditions in the economy at large. Either of these situations can put the respective parties in a bargaining position which may lead to an impasse.
Structural characteristics come from such factors as the formal relationship that exists between the two parties. If the relationship is one of acrimony and adversity, an impasse is more likely than if the parties see their relationship as mutually beneficial.
Organizational characteristics of the parties can lead to impasse because of inadequate negotiator authority to bargain. This results when an individual is involved in the bargaining process who does not have the requisite authority to make decisions affecting the agreement under discussion. If the negotiator must leave the room to confer with others, or must receive authorization from higher up in the organization, an impasse may develop because the other negotiators are of the opinion that they are not dealing with the decision maker.
Organizational factors also can include internal conflicts within one or both of the parties. For example, a negotiating committee for a company may be split as to the various benefits or wage incentives it is willing to concede. If the negotiating committee is unable to present a united front, the other party may take a more aggressive stance since the internal tension will be considered a weakness in the negotiating team.
Interpersonal problems can also arise between the parties, with interpersonal conflicts between one or more members of one team and members of another. These interpersonal conflicts may result in an impasse not because of formal problems that are left unresolved, but because of personal conflicts that are best left outside the negotiating process. Some negotiators will remove themselves from the negotiating ...