New Recruit and Outside offer Cases Report

New Recruit and Outside Offer Cases Report

In this exercises, we had experience about integrative negotiation by making role playing. Ahmetcan was employee and Yeşim was candidate in the first case and she was employer in the second case. We agreed upon all issues in the both cases and continued our relationship as employee and employer.

According to steps of Categorization Method, firstly both parties needed to identified all issues; secondly each issue should be classified as a compatible, exchange and distributive; thirdly parties should have agreed on all compatible issues and exchanged issues of approximately equal value and finally, parties should use distributive bargaining on all unresolved issues.

What our process in the first case look like is that firstly we exchange information and identify eight issues that are bonus, job assignment, vacation time, starting date, moving expense coverage, insurance coverage, salary and location to be negotiated. Both recruiter and candidate explain their interests and concerns on the issues.  For recruiter, salary and vacation time have most significant points in the point sheet. For candidate, salary and bonus have most significant points in the point sheet.  Therefore for both party, it is important to get high point for this issues. These are substantive interests for both parties, but at the same time because if the both parties agreed upon, their relationship will continue for all time they work together, negotiation process is one of the interest for both parties.  

As a second step, we could not exactly classify them as a compatible, exchange and distributive as a second step because we did not see each other point sheets.

As a third step, we should have determined the compatible issues and agreed upon them at first. But we weren’t able to identify them, after that Recruiter (Ahmetcan) started with the most valuable issues which are salary and vacation time. Their marginal benefits are 1500 and 1000 points respectively. When it comes to talk about location and job assignment only then we figured out that our benefits were exactly the same and they were compatible issues. After agreed upon vacation time, we started to negotiate about salary. Ahmetcan made an offer by combining salary, moving expense coverage and bonus in order to obtain a better consequence on salary.  After we agreed upon these three issues, we agreed upon insurance coverage and starting date issues. Finally, we agreed upon location and job assignment issues and then we finished negotiation process.

What our process in the second case look like is that firstly we exchange information and identify six issues which are location, vacation time, promotion, performance bonus, salary raise and retirement plan. Both recruiter and candidate explain their interests and concerns on the issues.  For the employee most important issues are location and vacation and for the employer most important issues are location and salary. Secondly we agreed upon location as Paris and we tried to agree upon vacation time but we did not success that in his turn. Then we skipped vacation time in order to negotiate later and we agreed upon 100% performance bonus, 8% salary raise, promotion in six months and 15% in stock options.  After that we negotiated vacation time again and agreed upon 4 weeks for it.

When it comes to New Recruiter case; two compatible issues were job assignment and location because both sides wanted the same outcome. The exchange issues were bonus, vacation, moving expenses an insurance plan. For example, bonus was significantly more valuable for candidate than the recruiter and similarly vacation was more valuable for recruiter than the candidate. Finally, distributive issues were starting date and salary. Their values were inversely proportional for negotiators.

For the Outside Offer case, the compatible issues were salary and retirement plan because retirement plan was not problematic issue for both parties and also although salary was important for employer, for employee it was not priority. The exchange issues were performance bonus and promotions. Even though they were top two priorities for employee, promotion was top two and performance bonus was top three priorities for employer. Distributive issues were location and vacation.

Compatible, exchange and distributive issues were different in these two cases. In the first case, these issues were much more distinct however in the second case it is more difficult to separate them clearly.

As we are roleplaying for a job interview, those people will be employee and employer and work for the same benefits so integrative approach must be essential for this kind of negotiation. It should be a win-win situation that satisfies both parties. Therefore, we tried to create options for mutual gain and find the middle way most of the times. Listening and asking questions were what we did in order to empathize with each other.

In the both cases, several tactics were used in order to obtain better results. The employer (Ahmetcan) used packaging tactics to get more points from the salary which is most important issue for him in the first case. He combined salary, moving expense and bonus and offer Yeşim as a package. As a results, candidate (Yeşim) had to except low bonus rate which is one of the most important issue for her.

Both parties used open ended tactic to understand their interests about the issues. As a result of this tactics both parties understand that their interest about job assignment and location is actually same in the first case. Therefore, both parties could get highest point from these issues.