Integrative Decide Worksheet: Negotiation
You Decide Worksheet
Name: IFE AKANMU
Course Section: Negotiation Skills
Date: 02/12/2014
Questions:
1. What is the appropriate negotiation strategy that would be most advantageous for Sharon and Jim in this scenario, distributive or integrative bargaining? What are the factors that should be considered in making this determination?
Integrative bargaining (also called "interest-based bargaining," "win-win bargaining") is a negotiation strategy in which parties collaborate to find a "win-win" solution to their dispute. This strategy focuses on developing mutually beneficial agreements based on the interests of the disputants. Interests include the needs, desires, concerns, and fears important to each side. They are the underlying …show more content…
reasons why people become involved in a conflict. "Integrative refers to the potential for the parties ' interests to be [combined] in ways that create joint value or enlarge the pie." Potential for integration only exists when there are multiple issues involved in the negotiation. This is because the parties must be able to make trade-offs across issues in order for both sides to be satisfied with the outcome.
Distributive negotiation is like zero-sum or win-lose negotiations (where one party 's gain is the other party 's loss). It occurs when a fixed amount of assets or resources are to be divided (such as between a management and a union) in situations where there is no understanding between the negotiating parties on the major issues.
It is better to adopt integrative strategy in this case a Jim will become a part of this organization and should not feel that he did not get what he deserved, It is important for both of them to be satisfied from this deal. Felling of being underpaid may make him not accept the offer and if he accepts he may not give his hundred percent.
2. What factors do you feel will contribute to the Accounting Supervisor and her Manager in determining the salary that Jim should be offered as a new hire? What are some other considerations that could be made to entice Jim to accept the job assuming that his salary demands could not be met? What are Jim’s and the Accounting Supervisor’s interests?
Jim has a bachelor’s degree in accounting from an Ivy League college and he is working on his MBA by attending an online program for the last 18 months.
He is close to earning his degree. In addition to this, he has been working for one of our competitors for several years and has excellent references attesting to his ability. Thus, Jim’s Ivy League college, excellent references and his experience of working for competition are some of the brownie points Jim has on his side. He could be offered a better profile and given more responsibilities which a junior accountant can only dream of.
Jim knows that the firm has a solid reputation and is known for providing excellent developmental opportunities for its junior accounts. Since he has two years of professional accounting experience, this is an excellent opportunity that will help in building a strong foundation for his career as it will give him the exposure to the “best practices” of this firm.
The Accounting Supervisor is interviewing candidates for one of the accounting positions that recently became vacant. They desperately need to fill this position as it is critical for them to continue servicing their existing client base. Jim is an excellent candidate for this job. However, his salary expectations may exceed the level that the firm in its current position can …show more content…
pay.
3. What are HR’s interests in this scenario, and what would be the potential negotiation strategy between the Accounting Manager and HR assuming that there is a decision that the published salary range for attracting Jim will have to be exceeded in order to hire him?
The HR Director had published salary ranges for new hires that are to be adhered to, unless there are extenuating circumstances such as the candidate having special expertise, the ability to bring in additional clients, or excellent credentials including having the CPA certification. As Jim has worked at their competitor firm and can help in bringing additional clients and has excellent references attesting to his ability, thus this can be used as a strong negotiating point with the HR director. Jim is too good an asset to lose for the firm especially given the current scenario when they are in dire need of a new junior account in order to serve their existing client base (they have already lost a major account and cannot afford to lose more)
4. Propose a negotiating outcome for each of the possible negotiations that could occur in this scenario and defend your responses. Negotiations between:
Supervisor and Job Applicant
Supervisor would want to get Jim as the new junior accountant.
However, he cannot pay him as much as Jim is expecting and so he has to offer non-monetary benefits to Jim that may entice him to take the job. On the other hand, Jim wants to have at least a 10% increase in his current salary of $60,000 which is pretty reasonable. Now a possible outcome of this negotiation can be Supervisor offering $ 55,000 and 20% of total compensation as benefits and some very interesting projects for Jim to work on. Jim may accept this offer as the job profile sounds convincing and at this stage of his career, gaining hands-on is also very important. This is an example of integrative negotiation where both parties strike an understanding of each others’ needs and try to reach a
solution.
Supervisor and Accounting Manager
Supervisor has to convince accounting manager to negotiate with HR to pay this candidate more than their given range as he has some exceptional capabilities. This is also integrative negotiation. Both Supervisor and Accounting manager has same objective of recruiting a talented professional for the post of junior accountant. The firm has recently lost an important account and cannot risk upsetting its existing accounts. Therefore, skilled personnel like Jim are required. Accounting Manager knows that a person like Jim who is earning $60,000 will not agree to work for lesser amount and so chances of Supervisor convincing Accounting Manger to negotiate with HR to increase the payroll for this candidate is high.
Accounting Manager and Human Resources
This is an interesting negotiation as both want the betterment of the company but are also responsible to their own departments. HR knows that this candidate can prove to be an excellent asset to the company but has budget constraints. Nevertheless, if Accounting Manager pushes a lot, then HR can be convinced as there was a clause that the existing salaries can be negotiated if the candidate shows exceptional capabilities. This is an example of combination of distributive and integrative negotiation. Distributive negotiation because Accounting Manager and HR belong to two different departments and so wants the share of pie to be bigger for their department. Integrative negotiation because the ultimate objective is the company’s growth and progress.
CITATIONS
How To win any negotiation without Raising your voice, losing your cool or coming to Blows
Mayer, Robert. Franklin Lakes, NJ : Career Press. 2006. eBook. , Database: eBook Collection (EBSCOhost)
Siccessfully Negotiating in Asia
Low, Patrick Kim Cheng. New York : Springer. 2010. eBook. , Database: eBook Collection (EBSCOhost)
Name: IFE AKANMU
Course Section: Negotiation Skills
Date: 02/12/2014
Questions:
1. What is the appropriate negotiation strategy that would be most advantageous for Sharon and Jim in this scenario, distributive or integrative bargaining? What are the factors that should be considered in making this determination?
Integrative bargaining (also called "interest-based bargaining," "win-win bargaining") is a negotiation strategy in which parties collaborate to find a "win-win" solution to their dispute. This strategy focuses on developing mutually beneficial agreements based on the interests of the disputants. Interests include the needs, desires, concerns, and fears important to each side. They are the underlying …show more content…
reasons why people become involved in a conflict. "Integrative refers to the potential for the parties ' interests to be [combined] in ways that create joint value or enlarge the pie." Potential for integration only exists when there are multiple issues involved in the negotiation. This is because the parties must be able to make trade-offs across issues in order for both sides to be satisfied with the outcome.
Distributive negotiation is like zero-sum or win-lose negotiations (where one party 's gain is the other party 's loss). It occurs when a fixed amount of assets or resources are to be divided (such as between a management and a union) in situations where there is no understanding between the negotiating parties on the major issues.
It is better to adopt integrative strategy in this case a Jim will become a part of this organization and should not feel that he did not get what he deserved, It is important for both of them to be satisfied from this deal. Felling of being underpaid may make him not accept the offer and if he accepts he may not give his hundred percent.
2. What factors do you feel will contribute to the Accounting Supervisor and her Manager in determining the salary that Jim should be offered as a new hire? What are some other considerations that could be made to entice Jim to accept the job assuming that his salary demands could not be met? What are Jim’s and the Accounting Supervisor’s interests?
Jim has a bachelor’s degree in accounting from an Ivy League college and he is working on his MBA by attending an online program for the last 18 months.
He is close to earning his degree. In addition to this, he has been working for one of our competitors for several years and has excellent references attesting to his ability. Thus, Jim’s Ivy League college, excellent references and his experience of working for competition are some of the brownie points Jim has on his side. He could be offered a better profile and given more responsibilities which a junior accountant can only dream of.
Jim knows that the firm has a solid reputation and is known for providing excellent developmental opportunities for its junior accounts. Since he has two years of professional accounting experience, this is an excellent opportunity that will help in building a strong foundation for his career as it will give him the exposure to the “best practices” of this firm.
The Accounting Supervisor is interviewing candidates for one of the accounting positions that recently became vacant. They desperately need to fill this position as it is critical for them to continue servicing their existing client base. Jim is an excellent candidate for this job. However, his salary expectations may exceed the level that the firm in its current position can …show more content…
pay.
3. What are HR’s interests in this scenario, and what would be the potential negotiation strategy between the Accounting Manager and HR assuming that there is a decision that the published salary range for attracting Jim will have to be exceeded in order to hire him?
The HR Director had published salary ranges for new hires that are to be adhered to, unless there are extenuating circumstances such as the candidate having special expertise, the ability to bring in additional clients, or excellent credentials including having the CPA certification. As Jim has worked at their competitor firm and can help in bringing additional clients and has excellent references attesting to his ability, thus this can be used as a strong negotiating point with the HR director. Jim is too good an asset to lose for the firm especially given the current scenario when they are in dire need of a new junior account in order to serve their existing client base (they have already lost a major account and cannot afford to lose more)
4. Propose a negotiating outcome for each of the possible negotiations that could occur in this scenario and defend your responses. Negotiations between:
Supervisor and Job Applicant
Supervisor would want to get Jim as the new junior accountant.
However, he cannot pay him as much as Jim is expecting and so he has to offer non-monetary benefits to Jim that may entice him to take the job. On the other hand, Jim wants to have at least a 10% increase in his current salary of $60,000 which is pretty reasonable. Now a possible outcome of this negotiation can be Supervisor offering $ 55,000 and 20% of total compensation as benefits and some very interesting projects for Jim to work on. Jim may accept this offer as the job profile sounds convincing and at this stage of his career, gaining hands-on is also very important. This is an example of integrative negotiation where both parties strike an understanding of each others’ needs and try to reach a
solution.
Supervisor and Accounting Manager
Supervisor has to convince accounting manager to negotiate with HR to pay this candidate more than their given range as he has some exceptional capabilities. This is also integrative negotiation. Both Supervisor and Accounting manager has same objective of recruiting a talented professional for the post of junior accountant. The firm has recently lost an important account and cannot risk upsetting its existing accounts. Therefore, skilled personnel like Jim are required. Accounting Manager knows that a person like Jim who is earning $60,000 will not agree to work for lesser amount and so chances of Supervisor convincing Accounting Manger to negotiate with HR to increase the payroll for this candidate is high.
Accounting Manager and Human Resources
This is an interesting negotiation as both want the betterment of the company but are also responsible to their own departments. HR knows that this candidate can prove to be an excellent asset to the company but has budget constraints. Nevertheless, if Accounting Manager pushes a lot, then HR can be convinced as there was a clause that the existing salaries can be negotiated if the candidate shows exceptional capabilities. This is an example of combination of distributive and integrative negotiation. Distributive negotiation because Accounting Manager and HR belong to two different departments and so wants the share of pie to be bigger for their department. Integrative negotiation because the ultimate objective is the company’s growth and progress.
CITATIONS
How To win any negotiation without Raising your voice, losing your cool or coming to Blows
Mayer, Robert. Franklin Lakes, NJ : Career Press. 2006. eBook. , Database: eBook Collection (EBSCOhost)
Siccessfully Negotiating in Asia
Low, Patrick Kim Cheng. New York : Springer. 2010. eBook. , Database: eBook Collection (EBSCOhost)