CHAPTER 7 Power, Politics, and Confict Managemen 217 of ad eight years experience in health care human resources and wanted to move up into an administrative position. hack to school part time for three more years and get a master\'s of business administration (MBA). As James was t the completion of his MBA, his boss, Jayne, knew that he was looking for a new position with a new salary, Beioe to talk, neither of them knew exactly what the new salary should be. lames was making what James could make on the open market-3 percent more, 5 pencent more. 10 percent $63,000 currently and more? She wants also needs to keep her budget under control James decided to use this uncertainty to his advantage. so to p be far but she decided to make a strong opening offer. ayne. I really appreciate you meeting with me he I\'m really proud of you finishing your MBA. Congratulations!\" k you. I of course do not want there to be any tension between us, so in anticipation f do quite a bit of research on what a fair salary increase would be. Is it okay if I present you with this informationi for our meeting. I\'ve tried to Jone Sure Okay, so the first thing I did was look at the average starting salaries for everyone graduating from my MBA program the table Thisi is based on 330 graduates over the last three years and the number was $91,000. Of course not all of those are ba care. so the next thing I did was look at those in health care with 10-15 years experience and an degee It\'s not easy to get this information, but from three people in this company and three others I know, the salaries canged from $75.000 to $97.000 with an ave rage of $88,000. Firally, looked at the last person in my position to get adanced degree, and she received a 20 perc ent raise, which for me would be $12.600 and take me to $75.600. So in nenging $75.600, $88,000, and $91,000. came up with about $85,000. I was hoping we could start the discussion tions e ts ew that ht. simply round there de the nee \"That\'s really impressive research and I respect that. We probably can\'t go that high but let me see what I can do\" he impetus is now on Jayne to negotiate James off his number, which is $85,000. This creates a much different negotiation em to al becan layne opened with a 5 percent raise, which would have anchored the negotiation around $66.000. The impact is that sible 185,000, along with the justification, changes the way Jayne is thinking about the negotiation. She might realize that they d to go to $80,000 to keep James now, whereas perthaps before the negotiation, she might have had $75,000 in her mind as e high number duestions whce do you think this negotiation will end up? 1. What would you have done if you were James? Whe deling with conflict, do you think about how to begin? wht ar other ypes am of opening \"offers\" that have nothing to do with money but that sill set the tone for the negotiation? use various types of openings to your advantage? REFERENCES Taylor, D. W. (1954). Functional fixedness as related to elapsed time and to set Journal of Experimental 1) Broken lives and organizational power. Ithaca, NY: Conell Univesity Press e. Long J A. McMurphy. S. 6 Shea J, 206) Dstust of the health care system and 47(2), 122-126. health in the United States.
1) This negotiation will probably end up with Jayne offering James around $80 K salary which James will gladly accept as that is a significant increase from his present salary.
2) If I were James, I would have also done similar research as done by James and then presented the facts to Jayne. Also I would have presented the facts regarding the commercial advantage of having a continuity from both ends and the value add provided by James and then made a case for a salary of around $ 85 K. If the offer was made around $80 K, I would have accepted.
3) In dealing with a conflict, it is important to clearly state the positions of both the sides and then present facts and precedence of actions taken during such conflicts. This always helps in convincing the other party about the research done and it is then prudent to present a solution which seems amicable and also let the other party have “small wins” in the solution.
4) The various type of opening offers which may not have anything about money may be the designation or role that people have assumed post their MBA. Since we are not referring to money but rather a position or a role having greater responsibility (which really also refers to increased salaries), this could be a good bargain to achieve a jump in the career.
5) It is always important to start your opening with presenting the facts, research on the positions and the precedence and showcase them and establish a high anchor in the minds of the other party. With a successful opening, the anchor established would be quite high and this would mean that the final offer is also higher than that initially planned by the other party.
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