NEGOTIATION AND BARGAINING SKILLS

INDIVIDUAL ASSIGNMENT

RAUNAQ DASH (GROUP -4)

BBA SEC C
20172037

7 STEPS FOR EFFECTIVE NEGOTIATION (MIKE)

1. PREPARATION - If I was Mike, the goal for me is to make Vicky stay put in the organization.
Although, she might not exceed expectations in terms of client relationships (meeting them
more often) and her commitment towards the organization but she still is a valuable member to
the firm. What is important here is that while negotiating I don’t hurt her feelings, demean her
efforts (instead acknowledge them) whilst making her realize why she is left behind by John in
the 3 parameters which decide the company’s employee bonus.

2. RELATIONSHIP BUILDING – In this phase, I as Mike will look for things initially which we can
agree upon and on basis of that, I’ll look to tackle our differences. I can build her trust and the
relationship overall by acknowledging that her work in terms of Client Feedback and Team
Retention is commendable (which has made her one of the best RMs out of the 6) and has been
beneficial for the firm. But I’ll also address our differences firmly, in terms of commitment to
the organization, and devoting more time in establishing clientele relationship. In this manner,
our relationship will be built on honesty, respect and with a motive to reach to a mutual
agreement.

3. INFORMATION GATHERING – Via, the relationship that I have built with Vicky in the previous
case, I’ll look to extract her needs that she wants out of the negotiation/meeting. Her needs will
obviously be pertaining to getting the same bonuses as John and preferring spending time with
family over attending corporate events, which could enhance clientele relationship over
weekends. Also, during this stage the outcome of not reaching an agreement is also established,
i.e Vicky might leave the firm, if she doesn’t get her needs (bonus) satisfied.

4. INFORMATION USING – From the information generated in the previous stage, I’ll further look
to devise such an offer which will not only satisfy Vicky in terms of Bonuses and allowing her to
spend quality family time but also build her loyalty and commitment towards the organization
(in corporate events, gatherings, etc) and moreover bring an attitude change. Also, the offer
must be complying to adversities like the budget being tight and the market being down
(information which was gathered before this meeting). Such an offer is mentioned in the below
stages, properly.

5. BIDDING - The Initial proposal will be to increase the current bonus of Vicky, providing that she
gives two weekends out of the 4 in a month devoting to corporate events which will boost in
 establishing strong clientele relationship. This way, her commitment also increases which is then
rightfully rewarded by the bonus. Although the bonuses will be agreed it will be applicable from
the next annual year as all the allocated budget has been used already. Also, if the renegotiated
bonuses are applicable now, it would set a bad example for others who might then further fight
for their respective cases. If she doesn’t agree to this (which I assume will happen) the BATNA
will be to offer her the role of Deputy MD starting from next month in addition to the previously
mentioned perks, considering her excellent internal team building and retention. Since, she has
shown to be a tremendous team leader who aspires and motivates her members, she would
handle all the RMs closely and would enjoy most of the powers that the soon to be RM would,
have. Working under and alongside of the soon to be MD – John, would also bring the required
attitude change (that a MD must have) that is presently lacking in Vicky.

6. CLOSING THE DEAL – The mutually decided agreement would be closed by stating the figures for
the respective bonus and the starting dates, duties and responsibilities, etc of the Deputy MD (if
she doesn’t agree in the first place). All legal documents are signed.

7. IMPLEMENTING THE AGREEMENT – The Agreement will be implemented by disclosing the

clients, events, etc Vicky must attend as a Deputy MD (if) or even RM that too also on which
weekends of the month. This way, she will get the immediate feel that, the agreement is in full
action and must take up responsibility for what she has agreed upon.

7 STEPS FOR EFFECTIVE NEGOTIATION (VICKY)

1. PREPARATION – If I was Vicky, my primary goal is to get the best deal out of the negotiation for
myself, which suits and rewards my efforts that have been put into the organization. Although, I
am a RM in the firm, I feel I have been treated unfairly and have not been acknowledged for my
efforts. What is important for me here, is to be in an environment which treats me fairly –
whether that is by increasing my bonus or in any other compensated method. Also, while
negotiating it is important that I don’t bring up or am upfront the soon-to-be vacant MD
position, as I don’t want to break my own principles and let down my colleague who swore me
to secrecy. Also, I can’t conduct negotiations based on a rumor as it will harm my credibility
which will in turn harm my outcomes which I want out of the negotiation.

2. RELATIONSHIP BUILDING – In this phase, I as Vicky, will search for similarities in ourselves and
on the foundation of which I’ll be able to address our differences. I can initially, push the
negotiation in a positive direction by making Mike aware of the fact that my team retention and
client feedback are second to none and will back this by figures, which he will hopefully agree,
upon. Further, I will also disclose information regarding two troubled accounts of John, which I
saved from running into our competitor’s firm which will help establish credibility in my sayings.
What we might not agree on are client relationships. He will be leaning towards the fact, that
not attending client meetings more often (more than once a week), is hampering my and the
firm’s client relationship whereas I lean towards the fact that not attending corporate events
and client meetings have not reduced my client ratings. This straightforward, truthful frank
relationship will be beneficial in the further negotiation stages.
3. INFORMATION GATHERING – This straightforward relationship established in the previous stage
will enable me to have the ability to identify Mike’s needs and possible settlements in
compliance with those needs. His needs will obviously be pertaining to nullify the bonus
requests by stating the 2 factors (which decide bonus payments) in which John has excelled
more than me i.e, ‘relationship’ and ‘new business leads’. Also, it is to be learned during this
stage, that Mike prefers employees who are devoted in attending corporate meeting, events,
client meeting, etc, something which I don’t take much interest in. Further, during this stage it
will also be learned that if the negotiation fails, I might have to work with the same bonuses or
at worst case scenario leave my job and look elsewhere (as I have opportunities elsewhere, as
well).

4. INFORMATION USING – With, the help of information generated from the above stage, I’ll form
such a proposal which satisfies the following criteria – My bonus/compensation requirements,
need to spend quality family time and Mike’s need of attending more corporate events and
client meetings which in turn shows my commitment towards the firm. Also, if I disclose
information which states I have opportunities elsewhere, it might entice Mike to accept my
proposal out of anxiety. It would be a perfect desperation, strategy.

5. BIDDING – The original proposition will be to increase the current bonus structure of mine, and
in return I’ll commit in meeting clients twice a week and to bring 20% more bigger business
leads than before. If the initial proposal falls through, my BATNA will be twofold – either
increase my base salary starting immediately or allow me to ‘work from home’ during 3 days of
the week (preferably weekdays) and allot client meetings during rest of the days (preferably
weekends). This way, I can spend quality time with my family and be committed to clientele
meetings on weekends, especially when my Husband is there to take care of my children.
(although he is a doctor and his time schedule vary, he can still rightfully take leaves on
weekends). If the deal goes through, it’ll depict that the firm values my efforts and is treating me
fairly, if not then I’ll use the last strategy as mentioned above, which is the desperation strategy.

6. CLOSING THE DEAL – The deal is to be closed according to the agreement chosen out of the
alternatives, i.e either by stating the bonus figures or salary figures or by deciding the days in
which ‘work from home’ and clientele meetings will be initiated. All legal documents are signed.

7. IMPLEMENTING THE AGREEMENT – The agreement will be implemented when details regarding
clientele meetings which are to be scheduled are asked for and the tasks which are to be
covered during the ‘work from home’ phase of the week. This will give Mike the feeling that the
agreement is now in action.