In the case of the new employee, evolving expectations are the focus of discussion, and bargaining offers a convenient process for making explicit a wide range of otherwise implicit (but perhaps misunderstood) aspects of the psychological contract. In performance goal setting, the focus is on providing a constructive atmosphere for problemsolving. Recognizing the informal power of subordinates and putting them on a more equal footing with superiors improves the probability that such an atmosphere will develop. In employee problem counseling, the focus is on getting the individual involved in his/her own performance improvement. Bargaining is a vehicle for facilitating the involvement. For the subordinate, the implications of using bargaining approaches in these ways are decidely positive. The individual is afforded a clearer picture of his/her rights and responsibilities upon entering the organization, is given a role in determining his/her own employment outcomes, and is given more responsibility for improving inadequate performance. For managers, the perception that bargaining undermines authority and depletes a manager's power to control the organizational unit are to be expected; however, if management effectiveness is measured by improved employee performance, then the bargaining approach is to be embraced as an appropriate management style. Thirty references are listed.