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• How effective were you at creating value and at claiming value? Why?

In this role-play, I was a senior manager at a computer company (Computron Pharmaceuticals). My main task was to negotiate with a job candidate, who applied for the MEDWARE program manager position in my company.

The outcome of my negotiation indicated a satisfaction for both parties in expanding the pie as well as slicing the pie. I got a deal of paying the candidate $140,000 in total, of salary, signing bonus and moving expenses in two years. More importantly, I had the project to be done by Feb 1st, which meant I got a competitive advantage of $80,000 for firm thanks to the early completion of MEDWARE. For the candidate, my offer of salary, signing bonus and moving expenses met his needs and priorities. Furthermore, it is worth noted that after the negotiation, the candidate and I thought that we have created and strengthened a good relationship because we had just made a good deal which was beneficial for both. Besides, we graduated from the same university and we would be co-workers in the future.

To be specific, in order to approach a good outcome in this role-play, I engaged in two main skills of an effective negotiation: (1) Expand the pie (creating value with the candidate), and (2) Slice the pie (claiming value by getting the most that I can).

Firstly, to maximise my slice of the pie, I had carefully understood my BATNA, which was to hire another candidate with a payment ranging from $120,000 to $140,000 total. Besides, I tried to research the BATNA of the candidate, but that was just based on my prediction. The information on that was not ample. Another point was to set high aspirations in the negotiation. One of the most important points to me was...

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...ermore, it is important to not mention the relevant benefits before getting an agreement on salary. If the salary that the company provides does not meet the candidate’s interest, then a consideration of other beneficial factors (vacation, bonus, promotion, etc) will be useful.

When having an offer, the candidate is better not to accept it immediately. The candidate should express the interest and consideration of that offer. Finally, it is vital to keep a good relationship between the two parties during and after the negotiation. If the candidate approaches the negotiation aggressively, he or she may get immediate benefits, but there are potential problems in the long term.

To sum up, the negotiator needs to understand his or her style and apply some useful tactics to get a good deal, try to avoid making unreasonable demands in a job offer and salary negotiation.