Introduction
There are two main negotiation strategies that organizations can use in their negotiation processes, for example when hiring employees. These include distributive bargaining and integrative bargaining. From the scenario, the most appropriate negotiation strategy for Jim to use in the negotiation process for the new job is integrative bargaining. This is because integrative bargaining results in the attainment of a satisfactory outcome. According to Singh (2010, p. 317), integrative bargaining is aimed at developing a win-win situation.
In this situation, Jim has an interest in being employed in the firm for several reasons. For example, the firm will present a learning opportunity on the best practices about accounting. In his job application, Jim expects the firm to increase his salary to $ 60, 000 to enable him to complete his MBA and CPA programs. This indicates that Jim’s negotiation is skewed towards the attainment of his career objectives.
On the other hand, Sharon who is conducting the negotiations on behalf of the firm should adopt distributive negotiation. Despite the expertise, experience, and credentials Jim, the firm is facing a resource constraint about finances. The firm has fixed the salary to employees at $50,000 which is inclusive of the benefits. For the negotiations to be successful, the two parties should establish a point of concurrence to create value for each other.
Factors to consider in determining the salary for new hires
There are several factors that the accounting supervisor and her manager will consider in determining the salary to be offered to Jim as a new hire. Some of the factors relate to Jim’s experiences, knowledge, skills, and abilities in his accounting profession. Additionally, they will also consider the firm’s financial stability. Currently, the firm is experiencing a budget constraint as a result of a reduction in its client base.
If the firm is not able to meet Jim’s salary demands, the firm should formulate strategies to entice Jim. One of the strategies that the firm should consider is the incorporation of a work-life balance strategy to enable Jim to complete his MBA and CPA programs. Additionally, the firm can also consider developing a training program that will contribute towards Jim attaining his career objectives as an accountant. Jim intends to be a professional accountant while the supervisor’s interested in developing a high competitive advantage by developing a strong human capital that will contribute towards the firm increasing its client base.
HR interests
The human resource director’s interest in this scenario is for the Accounting Supervisor to be successful in hiring and retaining the firm’s accountants. This will contribute towards the development of the firm’s human resource base hence improving its effectiveness and efficiency in serving its clients. Additionally, HR desires that the supervisor will be successful in hiring Jim without stretching its financial constraints further. If the firm has to hire Jim to attain a competitive advantage in human capital, the HR Director and the accounting manager should adopt an integrative negotiation strategy. This arises from the fact that the negotiation will contribute towards the two parties benefiting.
Negotiation outcomes
There are three main possible outcomes of this scenario.
Supervisor and Job Applicant
A win-lose outcome is likely between the supervisor and the job applicant. This outcome will result from the remuneration constraints for each party. The supervisors are required to stick to the firm’s budget for hiring. On the other hand, the job applicant is demanding higher pay and is not likely to give in.
Supervisor and Accounting Manager
A win-win outcome is likely between the supervisor and the accounting manager. This is because the two parties are constrained by two critical factors which include the need to fill the vacant position and the need to operate within the financial limits.
Accounting Manager and Human Resources
A win-win outcome is likely between these parties. This arises from the fact that they have to fill the position despite the constraints.
Reference
Singh, K. (2010). Organisational behaviour; text and cases. Chandigarh: Pearson.