Assignment 1

Do I deserve it?
                               ——Andy’s diary

My dear diary,

Today is 4^th February, 2013. I have worked in Modern Tool Manufacturers for five years. After having worked for two years as Assistant Junior Manager, I was promoted to the current position when the previous unit head left suddenly.

During my tenure, I was once complained that I didn’t approve my subordinate’s request for leave. But the truth is that the employee who asked for leave is always based on a same reason and the time the employee asked for leave was during busy period.

It has now been three years since the promotion. Although I have been receiving raises every year, they have been of nominal nature. I have still not received the one big jump that would put me in the same financial bracket as the older, more experienced unit heads, though their responsibilities are the same as mine. What's more, I haven't had a holiday for a long time.

Yesterday, the company distributed bonus to everyone on the payroll. As they were passing out the envelopes, I realized that there was none for me. After talking with another manager about this mistake, I learned that according to a new policy this year, employees above the supervision position would not be paid bonus.

This change in policy has irritated me and I have finally decided to negotiate for the “big money.” It’s about time I got financially even with the rest of the unit heads who earn 5000 HKD per month more than I do.

I have decided that I would resign if my boss does not raise my pay or not make me satisfied with the remuneration packages. Actually, I consider that my boss wants to retain me.

Through a long negotiation, we reached a win-win situation.

Our conversations as follows:  

Round 1

I gently knock the supervisor’s office door…

BOSS: Come in, please.

ME: Good afternoon, sir. May I talk to you for a while?

BOSS: OK, No problem.

ME: What do you think of my recent performance?

BOSS: According to performance report of your department, you have led your subordinates complete many challenging tasks and greatly contributed to operation of whole company. I also notice that you are highly organized and efficient person.

ME: Oh, Thank you for giving me such appraise. That way, it's pretty flattering. As you know, I have taken over this job since three years ago, I was wondering if I have done my work as well as the person in this position before.

BOSS: So far your performance is still satisfactory. I am looking forward for your future achievement.

ME: Hah. Your encouragement makes me more confident of my future. But as you just mentioned, I have completed my job well in the last three years, should I deserve to be given some rewards.

BOSS: Sure. We may talk it over.

ME: Actually, my wage is lower than average of this position. I suggest raise HKD5000.

BOSS: 5000 HKD? Why you need raise so much?

ME: As you know, I will get married and take family responsibility. It will make my life hard with current wage levels. My parents also becoming older and older, I need extra money to support their living, either.

BOSS: But, It’s not a small amount. I don’t believe that your requirement is reasonable. And to be honesty, our company does not operate very well this year and confront many new challenges.

My tactics

Perspective-taking

Before our negotiation began, I had identified difference in our valuation. Therefore I urgently need to acquire my supervisor’s approval. I worked only 2 years as assistant junior manager. Then I promoted to my current position when the previous unit head left suddenly. So I am young and inexperienced. But my supervisor values experience a lot while I value capability most. It’s not easy for him to agree to improve my treatment. To overcome this difference between us, I applied perspective-taking tactics to negotiate with my supervisor which turns out to be very successful. Perspective-taking, the active consideration of the viewpoint of another person, has been likened to the consider-the-opposite strategy. Perspective allows individuals to consider information that may oppose an already formed expectancy or possibly even the anchoring effect of first offers. Perspective taking is a cognitive capacity to consider the world from another individual’s viewpoint that “allows an individual to anticipate the behavior and reactions of others”. By taking the perspective of other party, negotiators attempt to see the world through the counter party’s eye. In order to guide the manager to see the world from my perspective, I decide to ask him judge my recent performance. It calls my achievements to his mind. Then, I move to the next step by asking him to compare my performance with previous unit head’s. Since I have handled my job as well as the previous one, I’m extremely confident about his answers. After I received his praise, I seize the opportunity to tell him the situation, which is my salary is much lower than the previous manager even though I performed as well as him, I confronted. As I just remind him of my working performance and achievements, he can thoroughly understand my circumstances. Perspective-taking also reduce the confirmation bias, diminish the accessibility of stereotypes, reduce in-group favoritism, and recognize the constraints that direct behavior. Perspective taking can enhances problem solving abilities, including the ability to jointly solve problems at the bargaining table. So the manager agreed to negotiate my treatment without further hesitation. And it means that I eventually persuade my manager to put this problem into bargaining table, which lead him can’t choose to avoid or ignore this situation. And by using perspective-taking tactics, it also won’t exert manager any negative pressure or a strong counter-emotion. He would solve our difficulty with positive altitude which is very favorable to promote the negotiation between us.

Offering information and priorities

After the manager promised to give me some bonus, I started the conversation by directly offering my priority. Negotiation would not go anywhere if negotiators did not communicate their interests to the other party.  I share my priority with my supervisor, so that he can better understand my intention. Only he knows my needs and preference, can he be aware of whether to satisfy my request. I use this tactics to building information trust and express my sincerity. When the manager seems confused about my request for raising 5000HKD, I also provide him many private affairs such as my marriage and parents to declare my reasons. If I don’t provide information, neither will the other party. So after I explain my difficulty and condition, my manager also frankly tell me the current situation of our company. On the contrary, numbers of people many argue that negotiators should never provide information to counterparty. Because the more rival knows about you, the more your weakness exposed. Try to assume that if I never told him what and why do I need, I may never get chance to be acquired information about our company. We will inhabit our negotiation by mistrust. Directly offering my priority potentially promotes our negotiation.

Round 2

ME: You mean my request is unrealistic. OK, I understood. Would you mind to tell me what bonus can you offer me?

BOSS: Eh, We can provide you 2000 HKD plus many other forms of benefits, like training.

ME: Training?

BOSS: Yeah, I know you are a hard employee, performance is perfect as well. But, maybe you should think about the way of management you use.

ME: What’s the problem about my management style?

BOSS: Last month, I received a letter of complaint. You know, Peter complained that as a manager, you don’t care about your subordinates and just focus on production.

ME: Are there any specific examples?

BOSS: You directly rejected leave requested for Peter with no asked the reason. Peter felt unfair and depressed.

ME: I can explain this whole thing. Peter always used personal business as an excuse asked for leave. According to my survey, he had nothing important to do that day. So I rejected the request and warned him to pay attention to his work.

BOSS: But there are some issues between you and subordinates cannot be denied.

ME: Yeah, the way of my management leaves much to be desired. But, I don’t think training is the perfect way to help me. Maybe the most useful way is put into practice. And I don’t think it has a direct link with salary raise.

BOSS: Ok, take it easy, there is room for negotiation.

My tactics

Ask questions about interests and priorities

In the negotiation, I initiatively ask my boss what bonus he can offer and the reason why should I need to take part in training. I think that negotiators who ask the counterparty about their preferences are much more likely to reach integrative agreements than negotiators who do not ask the other party about his or her priorities. There are much of work suggests that questions, rather than just statements, are necessary to create clear understanding of other people's interests and goals, which has been shown to be linked to integrative gains. Experimental evidence indicated that the more positive regard negotiators felt for each other, the more they would inquire into the other's needs and interests. The evidence also suggested that more inquiry produced more accurate understanding of the other side's interests, which led to greater integrative gains. In my opinion, there are two reasons to explain why this negotiation skill can to increasing the likelihood of win-win agreements. Firstly, such questions help negotiators discover where the value is. Second, diagnostic questions do not tempt the other party to lie or to misrepresent himself or herself. It is easy to see how asking a person about his or her BATNA or reservation price might induce that person to exaggerate or lie, but it is not immediately clear why or how a negotiator would lie about his or her underlying needs. Thus, diagnostic questions are effective because they do not put negotiators on the defensive.

When boss refused my request about salary raise, instead of angrily inquire why, I directly asked what benefits he can offer. Through asking question, I have just realized that employer think there are some problems about my management skill. Employer wanted to offer me some training lessons to improve my management skills. For a moment, I thought this is just an excuse to avoid giving me a pay rise. But, I still asked him reasons. In fact, employer received a letter that complains my management skills. Then, I explained the specific situation and let employer know the truth. In the end, we reached an agreement that training cannot solve the root of the problem and wastes money, time and manpower.

In the negotiation, employer and I had differences in expectations. Employer thought that the most urgency is to give me opportunities to training, which can achieve the purpose of motivation. But, in my view, the best way to motivate me is salary raise. In order to get win-win result, I directly ask employer’s expectation and use specific case to verify that the way of training cannot realize his expectation. So, we enter into the next stage of negotiation.

Round 3

ME: I was always in awe of the position that I held given my age before and also accepted your small raise every year. But now I sincerely request for 5000HKD to raise my salary, even with the consideration of the new policy.

BOSS: Adjusting your salary is ok, but it is still not the timing. We still need a period of time to explore whether you deserve to get a raise.

ME: I know, I know… but you cannot always decline me just with an oral promise. I heared that there is an urgent program which has no suitable person to accomplish it. I can handle this task, but the corporate must give me a 5000HKD pay raise at the same time. Or I might request for only 3000HKD raise, but with a long time holiday.

BOSS: Fine, given your hard-working and personnel shortage, I agree to give you a 5000HKD raise. But you have to promise that you must finish the program timely and perfectly since it is important for our company.

ME：No problem. I will accept the program.

BOSS: Deal. I am looking forward to your performance.

My tactics

Make Multiple Equivalent Simultaneous Offers

Most negotiations begin as single-issue negotiations. By definition, single-issue negotiations are not win-win because whatever one party gains, the other party loses. However, it is usually possible to identify more than one issue. Multiple Equivalent Simultaneous Offers is a technique used in negotiations. The principle behind MESO is, simply to put, make multiple offers which are mutually equal in your mind. By doing this, one can better understand one's partner in a negotiation—his or her interests, expectations and so on.

There are various advantages to using a MESO in a negotiation. Not only does it help the negotiator gather information about the other side's relative priorities, but it also proves as an anchoring device. It also helps you to be aggressive while showing signs of cooperation and flexibility. Presenting more than one offer at a time increases the other side’s satisfaction as well as the odds that an agreement will be implemented. Research shows that negotiators who use MESOs achieve better outcomes than those who make a single packaged offer, without sacrificing relationships or losing credibility.

Multiple offers increase the discovery of integrative solutions. When issues are packaged together in a single proposal, rather than considered as separate entities, it is easier to arrange trades or concession. I provided two choices for my boss: one is to help the company finish the urgent program, and I get a 5000HKD raise at the same time; another choice is that I just get a 3000HKD, but I need a long vacation now. I devise two offers that are equal values to myself, which makes me easier  to get what I want before making a concession.

Consider the situation of my boss and me who hold our own opinions about the salary raise. I expected the fair treatment compared with other unit heads; my boss expected the control of human cost. I wanted my boss to raise salary for me; the boss wanted to accomplish the tough program early. A contingent contract was constructed: The boss agreed to raise salary for me on condition that I complete the program. Through capitalizing on integrative agreements, my boss and I reach a consensus on a final agreement (win-win outcome).

In this conversation, I apply four tactics to facilitate our negotiation. In the end, boss and I reach an integrative agreement. I get what I want, and I promise my boss to complete the urgent program at the same time.

Reference:

[1]Trötschel, R., Hüffmeier, J., Loschelder, D. D., Schwartz, K., & Gollwitzer, P. M. (2011). Perspective taking as a means to overcome motivational barriers in negotiations: When putting oneself into the opponent's shoes helps to walk toward agreements. Journal of Personality and Social Psychology, 101(4), 771-790.

[2]Galinsky, A. D., & Mussweiler, T. (2001). First offers as anchors: The role of perspective-taking and negotiator focus. Journal of Personality and Social Psychology, 81(4), 657-669.

[3]Fairfield, K. D., & Allred, K. G. (2007). Skillful inquiry as a means to success in mixed-motive negotiation. Journal of Applied Social Psychology, 37(8), 1837-1855.

[4]Leigh L. Thompson (2009) The Mind and Heart of the Negotiation.

[5]"Putting More on the Table: How Making Multiple Offers Can Increase the Final Value of the Deal". Harvard Business Review.