Joe Tech will be graduating college with an MBA and would like to join Robust Routers (RR). He believes the company is the right fit for his skills. He spent a summer working at the company and grew to respect his supervisor Leigh Bultema a Product Manager and believes she will be an advocate for him to get the position at RR. In this negotiation between prospective employee Joe Tech and Robust Routers (RR) I will play the role of the Human Resource (HR) Director. As the HR Director my goal will be to hire Mr. Tech as an Associate Product Manager at a competitive salary without spending much of the company’s revenue for enticement to bring him onboard. There were several areas to be discussed such as yearly salary, relocation package, …show more content…
Tech informed me early on in our discussion that he had a competing offer and if I could come close to matching he would choose RR. This showed me he was committed to our company. The negotiations continued before I was able to get a salary amount from Joe. This tactic Joe used in our discussion was for me to figure out if I could meet the salary. Once I knew I was in the ballpark I had power to further negotiate the signing bonus amount. With Joe providing this information it showed he was trying to use a collaborative strategy meaning he had a long term focus, trust and openness (Lewicki et al (2011). Going into the negotiation I was sure Joe would counter offer. My opening stance at the outset of this distributive bargaining would be moderate meaning I would make concessions and comprises during the negotiations to hire Mr. Tech (Lewicki et al …show more content…
The salary of $90K was agreed upon but a reduction in the signing bonus to $10K, and I forgo the stock options allowing to stay at 10K and no relocation compensation. My response would not be any different if employment needed to be secured because this was a fair offer for both Mr. Tech and RR. In this negotiation, we both wanted the same thing and through this mutual understanding, an agreement could be made. As part of my job I have to be able to quickly react to the unexpected situations during a hiring negotiation. It is important to focus on the hire’s body language, facial expressions, and voice intonations for a successful negotiation. In closing, the fundamental process of distributive bargaining is to reach a settlement within a positive bargaining range (Lewicki et al (2011) and I was successful. In this negotiation, both parties were received well and the negotiation was a successful concession for both. As the HR Director I was as able to verbally discuss my passion statements for Mr. Tech to see I was committed with ensuring his success with
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Show More...during the negotiation. Because they did not explicitly articulate their objectives to each other, the union and management did not reach a settlement that was mutually beneficial. I believe both teams prioritized “winning” over fulfilling their initial objectives. Therefore, I better understood how both teams suffered under pressure during the negotiation because they realized they could no longer rely on a zero-sum strategy. Moreover, I realized how important team cohesiveness is to the bargaining process. Both the union and management lacked basic cohesiveness among their team members and consequently exacerbated the contentious and emotional environment that they created during the negotiation. Nevertheless, under these circumstances I believe the union and management ultimately reached an adequate proposal that satisfied both sides of the bargaining table.
Lewicki, R. J., Saunders, D. M., & Barry, B. (2005). Negotiation, Fifth Ed. New York, NY: McGraw-Hill Irwin.
Planning for this negotiation was more difficult than the first negotiation in class. The first negotiation had a point system; therefore I knew what the maximum, minimum and average amount points were. Not only does the Texoil negotiation not have a point system, but there were two people on my side (sellers) and only one on the other side (buyer).
Fisher, Roger, William Ury, and Bruce Patton. Getting to yes: negotiating agreement without giving in. 2nd ed. New York, N.Y.: Penguin Books, 1991. Print.
Many situations present the important synchronization of internal versus external negotiations. Many individuals have studied how each side in the negotiation is able to manage the internal opposition to agreements being negotiated. This can also be known as “on the table”, or what exactly is on the line in a heated argument. Each individual involve in an argument has a particular position to be managed, and often times own personal interests are widely expressed. This paper will expand upon the case of Fischer collecting needed funds from Smith with proposals and ideas for a manageable negotiation.
The dynamic of a win-lose bargaining situation can cause negotiations to be exceedingly tense and volatile because only one side will gain at the end of these type of negotiations. This makes the concept of distributive bargaining controversial. Michael Wheeler, the author of the article, Three cheers for teaching distributive bargaining, discusses how many professors at an academy of management conference disapproved of distributive bargaining negotiation tactics. Wheeler explains, a huge majority of the attendees disapproved of exposing their impressionable pupils to the reality that in some negotiations, more for one party means less for the other” (Wheeler, 2012).
Brubaker B. and Asher M., (2007). A Power Play for Juwan Howard. Lewicki-Barry-Saunders: Negotiation: Readings, Exercises, and Cases, Fifth Edition. The McGraw-Hill Companies, 2007
Negotiations styles are scholastically recognized as being broken down into two general categories and those are distributive bargaining styles and integrative negotiation styles. Distributive bargaining styles of negotiation are understood to be a competitive type of negotiation. “Distributive bargaining, also known as positional bargaining, negotiating zero-sum, competitive negotiation, or win-lose negotiation, is a type or style of negotiation in which the parties compete for the distribution of a fixed amount of value” (Business Blog Reviews, 2011). This type of negotiation skill or style approach might be best represented in professional areas such as the stock market where there is a fixed goal in mind or even in a garage sale negotiation where the owner would have a specific value of which he/she would not go below. In contrast, an integrative negotiation approach/style is that of cooperative bargaining, or win-win types ...
Deciding which pay form to use when compensating employees is extremely important to a company. Many things are taken into consideration: labor costs, the correlation between performance and pay, customer service, and the ability to attract and retain employees which is extremely important to FastCat’s need for innovation. We believe a single pay structure coincides with our single based plan for the organization. We want to keep things simple and understandable to all areas of the organization. This strategy will allow employees to understand how their performance and the performance of others relate to the success of the company through specific measures. It is also important that the strategies align with the objectives of FastCat. We beli...
In preparing of the negotiation, the job offer was dissected and each element was assigned a level of importance. The issues which were critical in importance were not relocating to Silicon Valley but remaining in Nashville and the annual salary. To a lesser degree of importance was the signing bonus and stock options. In addition, of least importance was the relocation bonus. With the issues prioritized, I was confident I would not lose perspective during negotiations and agree to less than an ideal contract.
...s in stone. Rather, I will work towards a beneficial compensation package, if not a pay increase, then perhaps a higher title with concessions. The outcome of this negotiation should leave both sides satisfied. I will also research the department’s policy on compensation as well as reviewing my job description. Both of these are attainable in the Human Resources department. Furthermore, I will check websites that have listing of salaries and job descriptions to make sure my compensation is commensurate with my work. The scholarly article I will use to help plan out my tactics in my negotiation is “Dealcrafting: The Substance of Three-Dimensional Negotiations by David A. Lax, and James K. Sebenius”. This article explains that our understanding of negotiations are one dimensional. However, this new approach for a three dimensional negotiation can work in my favor.
In the negotiation for the Federated Science Fund I represented the Stockman Company. The meeting started with a caucus between Turbo and I which set the tone for the negotiation. In the five-minute caucus, we understood that we get the highest payoff by working together and decided to only form a deal with United if it benefited us. This was the main turning point in the negotiation as we returned to United with only high-ball offers: we opened with $220,000 each for Stockman and Turbo, and went only as low as $200,000 each, with $80,000 for United. United presented counter offers throughout, but all of them were below our $200,000 reservation point. Even though United continuously demanded a more inclusive deal, we saw no real benefit and made a deal by splitting $440,000 evenly.
Viking Investments negotiation was based on Pat Olafson (Viking) and Sandy Wood (Wood Crafters) trying to reach an agreement on the loan owed by Sandy ($200,000), the rent ($10,000) and the over-run ($250,000) for the job done. There were four members involved: Chelsea'an (Pat’s Lawyer), Kesha (Pat Olafson), Destiny (Sandy’s Lawyer) and myself (Sandy).
In a distributive bargaining approach, each negotiator’s objective is in direct conflict with the other. Looking at our situation, each party is concerned about the final price and has a limited number of resources. In starting a new business, Matt’s cash flow is low and there is limit on what he will spend for the service. On the other hand, Chris wants to ensure a high fee but also guarantee he will not lose money after buying gas for his lawnmower. The goal in distributive bargaining is not to find a mutually accepted outcome, but rather that one side gains preferential treatment. In other words, the final result is a win-lose scenario. In distributive bargaining, each party must decide before the negotiation where certain breakpoints lie. For Chris, maybe he can not afford more than $20 for the service, but is willing to pay $15. Conversely, Matt cannot accept less than $12, but would prefer $18. The spread between the resistance points, $12-$20, defines the bargaining range and where a settlement is likely to occur. If the resistance points did not overlap, a negotiation would no...
Collective bargaining may happen in several kinds of fields, ranging politics to sports. It allows appropriate settlement of disputes and issues that benefit both parties involved, producing a result that is not one-sided. Collective bargaining is “the negotiation of wages and other conditions of employment by an organized body of employees” (Beal, Wickersham, & Kienast 5). Four issues that are probable components of a collective bargaining agreement are: