The Issues: What are the key issues that I want an agreement on? Rank the issues in order of importance for you

1. Joe is interested in business development and I need to make sure that he accepts his position in the terabit router.

2. Standard relocation amount is $5,000 and I have to make Joe accept it without increasing the amount.

3. Ensure that I am not offering an annual bonus more than $10,000 to Joe as it is already generous.

4. Although I am permitted to increase options of stock up to 30 percent, I want Joe to accept the offer without raising this amount.

Issue-By-Issue Planning.  For each of my issues, what is my (a) opening point, (b) target point, and (c) resistance point? (1 mark)

   ISSUE                   OPENING POINT               TARGET POINT       RESISTANCE POINT

1.             My opening point in the first issue is to present all the benefits of joining terabit router. The target point is to make Joe accept the offer and the resistance point would be to improve the offers.

Standard relocation amount is 5,000 dollars and I would offer it as the opening point. My target point is to not raise this amount to more than 6,000 dollars. My resistance point is to increase it more than this amount. 

3.      My opening point is to offer the base amount as the annual bonus and my target point is to not increase this amount more than $13,000. The resistance point is to increase it more than this amount. 

4.      Offering the base amount is my opening point and target point is to not let this amount get over 25 percent. My resistance point is to increase the percentage more than 28 percent.

My Interests.  What I really care about.  My wants, needs, concerns, hopes and fears.  Note: this is not the same as “issues”. (1 mark)

1. Joe is just graduating and it is in my interest that he accepts the offer because it quite a generous one and not many organizations will be willing to offer such benefits.

2. It is my fear that if I end up offering more than what the organization is offering other graduates, what if Joe doesn’t meet my expectations? And what would other employees think of it?

3. My hope is that I am making the correct decision by increasing my offers just to persuade Joe as he is a reliable and competent person for the role in RR.

4. My need is that my decision proves to be effective and provides outcomes which outclass the negotiations which I make. It is also my need that the leader views my decision as right.

Their interests. * What I think the other party really cares about.  Their wants, needs, concerns, etc.  (1 mark)

1. Obviously, the need of Joe is to get a better offer than what I am offering which can favour his conditions.

2. He wants to get more bonus than what I am offering and I also think that he wants more percentage of stock options.

3. His concern is that he gets more salary than what we are offering to any other fresh graduate. For instance, he needs more than $80,000.

4. He wishes to be employed in the development company which I cannot afford since I need to hire him.

* Identify which of their interests are similar (S), different but not conflicting (D), and conflicting (C) by noting this above. (.5 marks)

Similar interest is to accept the job albeit with a lot of increments in offers. Joe’s interest is to get more salary and it is different but it doesn’t conflict a lot with mine. He wishes to increase the annual bonus significantly which certainly collides with my target.

Options.  List possible agreements or bits of an agreement that we might reach to satisfy both parties. Note: This should not just be a list of your target points.  (1 mark)

1. Although my aim is to make Joe accept the job as it is without making any changes but I think that if I increase the offers then he will accept.

2. Although I don’t want to increase the relocation value more than 6,000 dollars but at most, I will raise it up to 7,500 dollars which will satisfy both of us.

3. I don’t want to increase the bonus of more than $13,000 but at most, I will increase it to $15,000 as it is an amount which we have yet to offer to any fresh graduate.

4. I will increase the stock options to almost 27 percent and it will come as a negotiation point between us.

5. If Joe doesn’t accept the offer then I will crease the base salary to $90,000.

Objective/ Independent Standards (Legitimacy): External standards or precedents that might convince one or both of us that a proposed agreement is fair when our interests conflict.  Indicate the most appropriate or relevant standard with an asterisk (*). (1 mark)

1.  *Competitive analysis is actually a standard which can help in identifying the packages being offered by competitors. It will tell whether our salary package is appropriate or not.

2. Comparison of Joe’s performance with our employees can also indicate that as an employee, he is better suited to the requirements of the organization.

3. It can be determined if the company doesn’t choose Joe then can it find a better employee? The answer to this question would also help in coming to a conclusion.

My BATNA (walk-away alternative).  What can I do if I walk away without an agreement?  What is my best alternative (indicate with an *)? (1 mark)

1. *Increase all the component which fall under the salary and employee benefits package by only a little and not reaching the value which can prove to be unfair to others.

2. Increase the salary more in comparison with all other components and make sure that it is not reaching a value which can threaten the satisfaction of other employees.

 Their BATNA.  What do I think their BATNA is? (1 mark)

1.  Joe’s BATNA is to accept my offer with lease increments in all the components of the salary package.

2.  Be satisfied with the offer that satisfies not only me but also him. For instance, relocation value to $7,500, salary to $90,000, and bonus to $15,000.

People Problems.  What “people problems” (e.g. biases, attitudes, emotions) are likely to arise in the negotiation that I should be prepared for, and how might I deal with these problems? Note: be specific; focus on the issues in the current negotiation scenario. (.5 marks)

I don’t believe that there will be any bias that might occur during our negotiation. However, I should make sure that I am acting neutral and expressing empathy when it is really necessary. Joe is a neutral person and he doesn’t let emotions cloud his personality and his attitude will also be professional. I just have to ensure that I am neutral myself and effective in persuading him.

There are two strategies which I will utilize during the process of negotiation. The first strategy is to be empathetic and the second one is to not back away from a give-take offer. Most of the managers are not enough empathetic with their employees and this serves to demotivate the worker. I will evade doing this and since Joe is a competent person, I will ensure that I am providing the best value which can satisfy both of us and retain him.