Z3396446

Negotiation Plan- Leigh Bultema

13/02/2013

Plan approach and rationale: According to Lewicki, Barry and Saunders, (2010), Effective strategy and planning are the most critical precursors for achieving negotiation objectives. My approach towards this negotiation is to start with integrative negotiation to create value for both parties and in the later stage use my distributive negotiation skills to claim value and decide how to divide the joint gains. Own interest identified: - I am impressed with Joes performance during his internship in RR last summer and would prefer to bring him in my team over other candidates I have interviewed during recruitment visits to campuses. Following are my interests in order of priority: Assignment- Joe to work for terabit router team in RR. Title- Title is important for the company as many tangibles like salary, bonus and stock option are dependent on it. As per company guidelines, Joe fulfils the eligibility of assistant product manager and I want him to join the team with the same title. Salary- Joes salary shall be as per his title and must be commensurate with his experience. Joining date- There are important activities lined up during summer for terabit router group, I strongly feel that Joe must join by 1st of June. Signing bonus/relocation- Joe has been offered signing bonus and relocation charges as per RRs standard amount for MBA hires from school. I am reluctant to negotiate on signing bonus as it will set wrong precedent for the company and may damage its reputation among new hires who will think that they are not treated generously. Stock option- I can increase the offered stock option by up to 30 per cent but I cannot negotiate on vesting period of shares. Assembling of above issues in a comprehensive list will help me define the bargaining mix. Priority of above issues has been decided by ranking them based on what is important to me and for the company. Interest of Joe- Joe has already expressed his interest in working in business development of RR. Joe has also casually mentioned his intention to take a small break after his graduation which may delay his joining date with the company. Keeping myself in Joes shoes, I anticipate that Joe may have strong desire to work for RR as the company is the market

Z3396446

Negotiation Plan- Leigh Bultema

13/02/2013

leader in its field with very strong reputation. He may have strong desire to use his established relationship with senior management in RR for his career growth. Intangibles- RR is very reputed in its space. Hence it is imperative that job negotiation with Joe must with handled keeping in mind other new hires from colleges. Any extra favour to Joe may attract critic for RR HR policies for not treating other hires fairly. From Joe perspective, he also would not like to spoil his relationship with me and other senior management of RR. Structural issues and consequences identified- The proposed negotiation with Joe involves several structural issues. This is a negotiation between me, representing employer and Joe as a prospective employee. The negotiation is not repetitive but involves reputation for RR as an employer and Joe as an employee with established relationship with RR. There is also linkage effect in the negotiation. The agreed terms and conditions with Joe may set the precedent to the new hires. I worked with Joe during his internship at RR and share a good relationship with him. I hope that negotiation will take place in open environment with total honesty and full disclosure despite having different need and opinions. Strategy specified and justified- Considering Joe as a prospective employee, I want to adopt collaborative negotiation strategy with him. I understand that there are lots of issues involved in negotiation and together in collaborative environment we can jointly agree on issues and make the negotiation a win-win for both parties. But I am also cautious that my collaborative approach is not used by Joe for his own benefits. 2. Detailed Planning To recruit other candidate, I have interviewed during campus visits is my BATNA. Following table illustrates the opening offer, resistance point and target for all the substantiative issues of the negotiation. These values are reached as per guidelines given by the HR and set limits on various substantial issues involved in negotiation

Z3396446

Negotiation Plan- Leigh Bultema

13/02/2013

Issues Salary/position

Resistance point 90000/

Target

Opening offer Associate

Associate 88000/ Associate 88000/

Product Manager or Product Manager 80000/ Manager Annual Bonus 10% guarantee only Nil for first year pro rata basis Signing Bonus Relocation Initial stock option 15000 10000 15000 5000 Product

Product Manager

Nil

15000 5000 1000 stock

Initial 1000 + 30% of Initial 1000 stock Initial 1000 stock with with
st

minimum with minimum 500

minimum 500 after 1 year every

500 after 1st year after 1st year every subject to

year every year subject year

subject to satisfying to performance Start Date 15th June 1st June

satisfying satisfying performance 1st June

performance

Goals Specified and aligned- My goal is convince Joe to join RR terabit router team on targets set as in above table Key tactics identified and aligned with goals and strategy- The tactics that I will try to enact to pursue collaborative strategies are: Logrolling- Some of the issues that I have identified may be in direct conflict with Joe but may have different priorities for us. I will try to trade off among these issues so that Joe gets his preferred outcome and I get mine. According to a research done by (Naquin, 2002), negotiators reach better agreements as the number of issues being negotiated increases. Since there are number of issues involved in negotiation so we can also reach on better agreements. Superordination- I may be successful in substituting his interest of joining business development team with joining high profile terabit router project.

Z3396446

Negotiation Plan- Leigh Bultema

13/02/2013

In order to understand the issues of Joe and his underlying interest I will ask few questions to him: 1) Why do you want to join business development team? - I want to understand the underlying interest of joining business development team by Joe. Understanding his interest will help me to generate options that may fulfil his need. 2) What is more important for you- Assignment, position or salary? - Understanding Joe priorities on these three key issues will help me to negotiate over underlying interests rather on positions. 3) Do you have any alternative offer? In order to understand his BATNA. Following questions I anticipate that Joe may ask to me 1) Why cant you offer my position in Business development team? You worked in terabit router team and we liked your work hence I like you to join this team. Terabit router project is important for company and will be very good for your career growth. 2) Why I am not getting any committed bonus on my offer letter? In RR, bonus is based on performance hence it is not on your offer letter. You will be entitled to get bonus based on your performance reviewed by your seniors. Concession Plan According to Lewicki, Barry and Saunders, p51, (2010), Concessions are central to negotiation. Without them, in fact, negotiations would not exist.People enter negotiations expecting concessions. I will make small gradual concessions in areas which may not be so important to me. I may start with increase in his stock options and expect return concession from him. I may use the tactic Bogey, and deceive him that stock option is an important part of his package and have never been offered of such high value to anyone before. I will also start making concession close to my target point keeping large room in my bargaining range to make more concessions.