ORGA 314 (CC02) Managing Negotiations Salary Field Research Report

This report analyzes a salary negotiation scenario between a worker seeking a salary increase and a manager focused on reducing expenditures. The negotiation involves strategic moves, emotional factors, and power dynamics. The worker aimed for a salary hike, while the manager sought to avoid it, influenced by their respective interests and power positions. The manager's decisions were examined for rationality, and the role of emotions in the negotiation process was assessed. The report also explores the use of persuasion, concessions, and accountability, along with an evaluation of the negotiation's closure and suggestions for improvement. The manager successfully leveraged performance evaluations, while the worker could have presented stronger evidence of their contributions. Recommendations include offering non-cash benefits and better preparation for the employee. This analysis provides a comprehensive view of the negotiation process, highlighting key strategies and outcomes.

Negotiations

Table of Contents
Introduction................................................................................................................................3
Negotiations...............................................................................................................................3
Conclusion..................................................................................................................................6
Bibliography...............................................................................................................................8

Introduction
Explain what the parties were negotiating for. What were their interests?
On the basis of the case, it has been found that the worker was negotiating for a salary hike
and on the other hand, the manager is trying to negotiate with the worker to avoid the salary
increase. This is so because the salary of the manager is based on the reduction of the
organization’s expenditure. And hence, for his interest, the manager is trying to negotiate
with the worker to avoid this salary increment.
Indicate both the power position and the rights of the two parties
The worker is in the power position as employees after some time can demand salary hike
from the managers. Usually, salary hike is demanded during annual review or during the time
of promotions and it is their right to get hike on a yearly basis, unless they are negatively
performing within the organization (Snider, 2018). The power position of manager is that he
can deny for the salary increment as he has the right to do so. But, he needs valid reasons for
denying salary increment. The worker can use his position in the negotiation by reflecting the
work done by him towards the organization and the manager can use his position to negotiate
with the worker on the grounds, his contribution has not brought any strategic rise in the
company’s productivity or performance.
Negotiations
• Was the managers decision rational, or not so rational, and why?
As the manager denied the salary increment to the worker it can be seen as an irrational
decision. This is so because the worker has all the rights to demand salary hike after a certain
period of time and if he is being denied of this right, then the manager should have provided
some other non cash benefits to the worker to make this decision look more rational.

• Were there emotions that came through in the negotiations? What were they
and how did these impact the negotiations? How were they handled?
Salary negotiation is an art and hence, it is important to use the right emotions at the right
time. Argument and fight can never help in salary negotiation and hence, one needs to be
smart (Sethi, 2013). The frustrated emotion of worker acted against him and the negotiation
went against him. The manager handled the situation by convincing the employee to show
some remarkable change in his performance and then he can get salary hike.
• Did the manager stay with no? Why or why not?
Yes, the manager stayed with no and did not approve the worker’s salary hike. This is so
because the manager was able to negotiate properly and counted all the negative remarks of
the worker and on the basis of this, he was able to deny his salary increment. But, the
manager told the worker to bring considerate change in his performance and then he may get
salary hike.
• Where did the party’s power come from?
The manager was able to win this negotiation because he came with all the proofs that
reflected that the worker has not shown any improvement in his performance. The
performance evaluation sheets and worker’s negligible contribution towards the organization
were presented as proof by the manager. And hence, on the basis of facts the manager was in
a powerful position in this negotiation.
• Was persuasion used? If so, how and what were the outcomes?
Yes, persuasion was used in this negotiation by the manager. The manager convinced to deny
this salary increment by convincing the worker to perform well in future and reflect this in his
performance by increasing the productivity of the organization. The main outcome of this

persuasion is that the worker will work towards increasing his performance and this will
increase the organization’s productivity and as a result the financial performance of the
company will improve. This way the manager can bring a balance between the increased
expenditure by accepting salary hike in future with the increased income in the company.
This way the organization, worker as well as the manager everyone will benefit.
• What moves and turns happened in the negotiations and why?
Strategic moves and turns are required to take advantage in negotiations. In this case,
appreciative moves as well as participative turns were taken. In the appreciative move, the
negotiator makes the other person believe the rejection of idea is for a good strategic reason
from their point of view. Participative turns offer the position of partner to the other person
(Kolb, 2018). As in this case, the manager made him believe that how his good performance
will increase income in the company and then, he can get salary hike easily and made him
believe that he is an important part and parcel of the company.
 Was there accountability created? If so how and why?
Yes, accountability was created in this negotiation as the manager outlined the process of this
negotiation by convincing the worker that increase in the productivity of the organization
because of an improvement in his performance may result in his salary increment. Hence, it
can be said that competition was increased by the manager by promising the worker, the
rewards in return of his performance (Harvard Law School, 2013).
• What concessions were made and why?
In this negotiation, the manager did not agreed for the salary increment but, convinced the
worker to perform well and increase the financial performance of the company thereafter the

manager will increase the salary of the worker. Hence, on the grounds of these concessions
the manager was able to win in this negotiation.
• Did either party show signs of a master negotiator? If so, what were the signs
and when in the negotiations did you spot them?
Manager showed the signs of master negotiator by using the performance evaluation
feedback of the worker and the record of his contribution towards the organization. This
proved as the evidence against the worker’s demand for salary increment. This was used by
the manger at the time of his negotiation statements in the negotiation.
• How was the negotiations closed? What suggestions would you make for
improving the close?
The negotiations were closed by the agreement of both the parties on the offer of the
manager. In order to improve the closure of the negotiation, the worker should have taken
few initiatives in convincing the manager to give him some percentage of hikes in salary by
proving that his contribution was not null towards the organization.
Conclusion
In case of manager, it can be recommended that the manager should not have totally ignored
the demand of salary increment of the worker. If he was concerned about the expenditure,
then he could have offered non cash benefits to the worker so that he would feel motivated
and work towards the decision of the manager. Non cash benefits like granting leaves,
benefits such as social security and medical care, etc. could have been offered (PayScale,
2009). On the part of employee, it can be recommended that he should have prepared himself
properly with all his rights and information towards salary increment. He should have

provided some evidences that show his contribution towards the organization. Also, the
worker could have asked for non cash benefits against the rejection of his increment.

Bibliography
Harvard Law School. (2013). Accountability and Negotiation: An Overview. Retrieved from
www.pon.harvard.edu:
https://www.pon.harvard.edu/daily/business-negotiations/accountability-and-
negotiation-an-overview/
Kolb, D. M. (2018). Strategic Moves and Turns. Retrieved from apps.americanbar.org:
http://apps.americanbar.org/abastore/products/books/abstracts/4740062chap46_abs.pd
f
PayScale. (2009). NON-MONETARY COMPENSATION. Retrieved from www.payscale.com:
https://www.payscale.com/compensation-today/2009/08/non-monetary-compensation
Sethi, J. (2013). Three Salary Negotiation Techniques That Work. Retrieved from
humanresourcesblog.in: https://humanresourcesblog.in/2013/01/24/three-salary-
negotiation-techniques-that-work/
Snider, S. (2018). Salary Negotiation: How to Negotiate Salary and Succeed. Retrieved from
money.usnews.com:
https://money.usnews.com/money/careers/salaries-and-benefits/articles/how-to-
negotiate-your-salary-and-succeed