Ayu Pritandya Pertiwi Final Exam - MM5009

BLEMBA 62 Decision Making & Negotiation

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Part 1: Negotiation Case Analysis

From March 2020, when the coronavirus outbreak has
affected local and international sectors as a whole, tourism
and lodging business are some of various sectors that have
high impact due to the pandemic. The case which I brought
is related to an issue that occurs in my family business,
about a guesthouse which located in a strategic area in
Malang. Why I said it is strategic? Because it is located on
city center, near universities, and food districts.
Furthermore, if guests only want to stay only for transit they
will reach Batu in 30 minutes, Mount Bromo in 2 hours, and
10 minutes to highway to Surabaya.

The local government restrictions implemented during this

time encourages people to do social distancing which make
some public services are shutting down. The pandemic
affected guesthouse revenue, from 20 person occupancies
per-day into zero, for about 5 months. We only have 2
employees (front office and room service) that both of them
have the same skills, so if one of them unable to come, we
will do work shift. Basically they work 6 hours for 5 days
per-week, and they can choose which day that they should
take in charge. However, since the guesthouse experiencing a decline in turnover, there are some
strategic steps that I need to take to survive in this industry: should I cut-off fixed expenses by
laying-off employees? No income means that there should be no expenses, but that is impossible,
because there are some routine expenses that have to be paid monthly, such as utilities, Wi-Fi,
employee salaries. As we all know a lot of people are struggling during pandemic, and at the same
time students who live near our guesthouse also looking for jobs during pandemic. There are 3
students who volunteered him/herself to apply for a job in our guesthouse, because their parents are
fired from their current jobs, so they have to manage themselves to pay for their tuition fee. I tried to
implement what I’ve learned in class to make a comparison which is more profitable for our
guesthouse during pandemic, but not cut each person’s throat.

Remarks A B C D E
Work Schedule 6 hours per 5 days Only work when there are guests
Overtime 50.000 per-day -
Stay In house At their rent-house
Monthly Facilities 1 carton of noodles, 2kg of eggs -
Monthly Salary 2.900.000 2.900.000 75.000/visit 75.000/visit 75.000/visit
Sex M F M M F
Pros Experienced Affordable, fresh ideas
Cons Expensive Non-experienced

Bargaining Zone (ZOPA) based on salary expenses and occupancy rates:

75.000 6.750.000 minimum only 1 student, 1visit per-month,

maximum 3 students with full occupancy (30 days)

minimum 1 employee, maximum 2 employees

2.900.000 5.800.000

By increasing variable cost with students’ internship, it directly impacts to the monthly fixed cost, but
we cannot easily decide ONLY by that. Unilateral termination may cause a long-term impact for
employee A & B, because it is only removing my issues into them. I invite management to discuss
the following considerations, based on what we need: (1) reducing expenses or we can think vice
versa by enlarging income; and (2) providing life expectancy to more people. After couple times
of meetings, we decided to set some challenges for them, which are:
a. Promotion. Media social have an instant booster for us to get more customers. We hope all
students and employees are eager to have creative and innovative ideas to promote what
we serve and do at the guesthouse.
b. Diversification. We want to bring this lodging business to the next level, being adaptive
during pandemic is important to survive and have long-term business. By diverse our
business, it can be infused to our new business model and culture.

Employees who are able to meet at least 80% of our expectations, then he or she deserves to be
employed there. Of course, this achievement has a value of 50%, the remaining 50% is a proficiency
assessment from interviews for students, and performance assessments for employees who are
currently hired.

Remarks A B C D E
Assessment 75% 85% 80% 90% 85%
Sex M F M M F
Promoting Mouth to Hygiene, Collaborate Hygiene, Google ads &
mouth & daily with local transport tiktok about
brochure updates influencers to/from how we
through IG station/ survive
airport, use during
all hype pandemic
social media
Diversification Catering Catering, Outdoor Tour, B&B, kost for
Tour bar/ coffee virtual trip, yearly
Guide, shop in catering, payment,
Translator garden kost, weekly trip
transportation
Accumulation X V V V V

After recapitulation based on fair competencies assessments and new ideas from each employee
and students, there are final decision that we are all agree:
1. No additional facilities of eggs & noodles
2. There would be shifting period between students C, D, and E based on guest occupancies.
More guests will need more students, by comparison ratio 1 employee to 5 guests.
3. Employee B would be a coordinator of all schedule work shift & report all jobs that she and
the students do daily to management. She has to maintain who will attend to work and who
doesn’t and how to share all the work done equally.
4. Employee A dismissing from work because he could not meet expectations, therefore we
provide “pesangon” and bus tickets to return to Gresik.
5. Guesthouse would run diversification programs start from August until at least December
2020, and the progress will be evaluated monthly.
Part 2: Personal Reflection

Based on my experience after learning MM5009 class, not only insight on how I put myself in strategic
position in negotiations, but also how I should be reacting and decide mutual solutions for each
parties that involve in negotiation issues. There are 5 key points that can be implemented in my daily
life due to negotiation situation:

 Focusing on continuous improvement. Innovative ideas come from anyone and anywhere as long
as we have abilities to analyze which are the best. Ideally, before and after had a project,
company need to do KAIZEN by brainstorming within colleague to see the whole framework.
Discuss and negotiate between employee and employer might bring hot and fresh ideas to make
an adaptable improvement due to market needs nowadays. At the end of the day, this has the
ultimate goal, that the company / business would sustain.
 Learn and live with different angles and perceptions that everyone has their own consideration
on making their own decisions. We can’t push anyone agree with what we have in mind. In many
cases people choose their own decision based on their background, knowledge, maybe even
previous experiences, it makes negotiation become interesting and important in dealing with
people. We can learn how to manage our own ideas compared with others, and choose the best
solution/ idea for everybody.
 Having scenario thinking in each issues. Its neither prediction or forecasting, but more to think
about how it might happen. The more we are trained in dealing with various kinds of problems,
the more intuitive we would be taking in conducting better policies. We will not be bothered if the
plan fails, because there are negotiations with several parties regarding alternative ways to sort
it out, this will make it easier for us / the company to get several alternative solutions for each
issues.
 It is not about me; it is about us! When talking about decision making and negotiation, we involve
the interests and goals of many people, not just our own personal interests. So we need to
accommodate majority interests that would be a common goals of the group. This class help me
realizing how to handle and maintain myself in a group, for fulfillment of common goals.
 Avoiding disorientation. Managing people is not as easy as managing stuffs. Decision will
become effective if people willing to share their knowledge with others, and elevate it into
innovation and creating value. Human nature as a social being are ideally always need others to
develop both personally and socially together, because to make a great decision and avoiding
default, two heads is always better than one.