Negotiation Process in the Company - Coursework Example

? Scenario Company X is a multinational based in the UK. The company works in the consumer products industry throughout the world from the US all the way to the Middle East with its head office in London of the United Kingdom. The company has the objectives of starting a new branch to further its business in the South America. Because of the culture and the lifestyle of the inhabitants of the South American population, it would need a branch manager who comes from that region hence it has advertised for the position through the international television, radios, magazines and all the relevant media to reach all the residents of the South America. This is in line with the company’s recruitment policy to help them get the most qualified at affordable remuneration (Luecke 2003). This is therefore done to ensure that the selected individual to fill the position of the manager is the best across the region. They received several applications for the position of the managing director; the group underwent a rigorous recruitment process and finally was left with an individual to negotiate with their starting salary on the job. The remaining individual was from Mexico. In the negotiation process different negotiation skills were outlined that resulted into a successful with a few instances of messing up. Its Human resource manager represented the company on the salary negotiation table while the other side was the individual whose starting salary was to be negotiated (Jacks 2011). Person Position Character A Human resource Manager He is a highly Sociable, Extrovert and democratic B Newly recruited employee Also quite extroverted, friendly, polite, and highly conscious For new employees of any given firm it is normally safe to negotiate for higher starting salaries before accepting the job offer because after this the new employee will be subjected to the normal salary increase payment plans of the company, which depends on extraordinary performance (Young 1975). The new recruit therefore needed to negotiate for a higher pay than what they used to earn in their former position hence the need for the negotiation skills. The HR manager of company X also needs to be a good negotiator to make sure that they provide the company with manageable expenses and it is willing to negotiate the starting salary of the employee as a whole. The employee is though considering the option of first negotiating the basic pay because given their character they are likely to be confused if they combined the negotiations together with those for the other benefits. This would be to the disadvantage of the employee if the pre-determined salary were already advertised (Zartman 1978). A “Hello Mr. F, this is X company as we talked over the phone, I gaze you are here to talk about the remuneration package of the job offer that we just shortlisted you for the other day. According to the company policy, we would be glad to offer you a salary package of $60,000 yearly plus the benefits, which would vary depending on several variables. Would you be ok with that?” B :I am interested in the job yes but I would not mind if you offered me a salary package of $68,000 per year plus the packages as we would negotiate if it is at the best interests of the company,” A “$68,000 is not even the average industry rate leave alone what we normally start offering our employees. However, because of your skills and presumed competence, we would not mind offering you a $65,000 package yearly and the benefits as it would be negotiated. How about that?” B "Thank you for your offer and I am certainly interested in the position and Company. Can I get back to you later this afternoon or first thing in the morning" A “You are most welcome and highly appreciate the time that you took to present yourself for interviews. Please make a point of communicating tomorrow given that we need to fill the position immediately. Anyway, your positive response will be highly appreciated. Nice time.” B “As you please, I also appreciate the cordial interview process. Thank you and I will be pleased to work with you.” Such a contract negotiation skill is quite useful, as the manager who would view you as a person of independent thinking who needs time to evaluate the situation will appreciate the time allowance requested for by the interviewee. In addition, the allowance would allow the new recruit the time to evaluate the job offer, the negotiated starting package and most importantly, it would allow an individual plan their starting salary negotiation if they find out they would be discontented with the amount already offered. The interviewee should never at all cost try negotiating the employment contract starting salary and the benefits at the same time. This is because of the risk of missing either if they risk doing so. The factors that would propel them to start the negotiations afresh are if they have another job offer, if they are currently working elsewhere, the job market conditions and how confident they are be coupled with many other factors, which would be dictated by the situation (Zartman 1978). The employer in their efforts to win the employee at a cost affordable to the company would promise the individual B that their salary would be reviewed after some timeline let us say six months. This is not normally the case because the rise in salary after the starting is agreed upon will always depend on the performance of the individual above the expectation, which is the normal pay rise procedure by the company (Taylor 2000). 2. Theories of negotiation Negotiation is a process where two or more parties exchange views, which may be goods or services depending on the subject of negotiation (Young 1975). If it is a contract, the subject for exchange will be the service to be offered or the gods against the monetary pay subjected to it. In our case and employment contract is negotiated between an employer who is the Hr manager of company X and a newly recruited regional manager who is individual B. They have to agree on the salary package to be offered to the newly recruited employee so that they can be in the position of commencing his duties to the company and their argument is summarized in the transcript chart above with several analyses of the same (Marsh 1984). The negotiation above would have taken the distributive bargaining approach if the manager won at the proposal of a $60,000 package without an objection from the individual B in which case it would be a win-lose situation in favor of the company. It has though taken the integrative approach where one or more issues have to be settled for the company to reach an amount they would be willing to reward the negotiator for them to commence work. If such an agreement is reached, it would be a win-win situation since the individual B would be contented with the salary package they are offered together with the benefits and the company will benefit from the services to be offered by the employee at affordable salary by the company (Filzmoser 2010). The integrative bargain will have a variety of benefits, as they are a sure way of guaranteed expansion through the win-win mechanism hence an expression of interest to both the parties of the negotiation. Alongside this information, sharing is high and the duration of the relationship created is long term. This is as opposed to the distributive bargaining, which is selfish and wants everything for an individual through supporting the win-lose scenario while focusing on positions with low information sharing capacity. The relationship created is only for the short term (Robbins & Judge 2013). 3. Application of the theories All the faces of negotiation are applied in the whole process of the negotiation through the steps (Zartman 1978). Right from the planning and the preparations where individual B went for the negotiations and requested for more time while the employer was already prepared with a proposed salary package. The parties defined their ground and guiding rules of negotiation, which were the exchange of skills and a salary package, clarification, and justification was given room hence not coerced as the parties agreed. The major phase became the bargaining and the problem solving face where the integrative bargaining procedure was developed and used to arrive at a win-win situation. The implementation and closure was actually reached when the company arrived at a decision of being able to pay individual B a salary (Robbins & Judge 2013). 4. Conclusion and Recommendation The in-depth analysis of this contract negotiation process I conclude that the process of negotiation adopted of integrative bargaining is the best form of bargaining depending in the characters that are exhibited by the negotiators (Krannich & Krannich 1998). This negotiation did not need any third party in form of mediator, arbitrator or even a consultant to help them reach an agreement (Boyce 1996). The company therefore does not need to embrace any new strategy for implementation of negotiation but simply needs to polish on the differences like language and culture taking note that the corporation is a multinational corporation. References Boyce, T, 1996, Successful contract negotiation, Thorogood Pub: London. Filzmoser, M, 2010, Simulation of automated negotiation, Springer: Wien. Jacks, A, 2011, Negotiation. Legend Press: Champions Gate. Krannich, RL, & Krannich, CR, 1998, Get a raise in 7 days 10 salary savvy steps to success, Impact Publications: Manassas Park, Va. Luecke, R, 2003, Negotiation, Harvard Business School Press: Boston, Mass. Marsh, PD, 1984, Contract negotiation handbook (2nd ed.), Gower: Aldershot, Hants, England. Robbins, SP, & Judge, TA, 2013, Organizational Behaviour, 15th Ed. Pearson Education Ltd: Harlow. Taylor, SJ, 2000, Negotiation ([Rev.]. ed.), Center on Human Policy, Syracuse University: Syracuse, NY. Young, OR, 1975, Bargaining: formal theories of negotiation, University of Illinois Press: Urbana. Zartman, IW, 1978, The Negotiation process: theories and applications, Sage Publications: Beverly Hills, Calif. Read More