In the long run both parties often end up losing. It does little good, for instance, to get a wonderful contract for your new dairy barn if the contractor is not able to complete the project and goes out of business. Competition tends to focus too much on a particular episode rather than on long term viability. Also, the focus is more on the present goal than on the relationship. Although this manager may have obtained worker compliance from his winning tactics, I doubt he got much in terms of employee commitment.
Losers often hold grudges and find ways of getting even.
Compromise is an alternative to either competing or yielding. An example of the former is paying 20 cents per vine pruned when management wanted to pay 18 cents and crew workers asked for a quarter. An instance of the latter may involve alternating who gets first crack at using the computer at the barn. Greater trust and maturity is often required by this second type of compromise. On the plus side, compromise takes a measure of goodwill and little creativity.