Management Skills

Negotiation Exercise

Role Play Group A $-$Manager at Zig Zag

You are the Managing Director of Zig Zag. Stevie has worked in Bristol for $5$ years as a Deputy Manager of a department. $H\frac{e}{s}he$ is married and has $2$ children and lives in Bristol. Zig Zag is setting up a new office in Birmingham. You think that Stevie would be the right person to be the Manager of the new department in Birmingham. You could recruit for a department Manager externally but he or she wouldn't have the same experience and contacts. Also your nephew is due a promotion and if Stevie moves to Birmingham, your nephew could become Deputy Manager in Bristol. Your sister would really like it$.$ You are therefore keen to reach a deal.

Last week youspoke to Stevieabout moving to Birmingham and him$/$her becoming the Manager of a department. You asked him$/$herto speak to his$/$her family about it and agreed to meet next week to discuss it$.$You believe that this would be an excellent career promotion for them. You haven't decided exactly what pay and benefits you will be offer him$/$her but you want to encourage him$/$her to take the job. However, any pay rise or benefits can't be out of line with other employees in the company.

Steviecurrently earns $40,000,$ plus pension.

You are meeting with Stevienext week to discuss the promotion and terms and conditions. You need to negotiate: Job title $-$What their job title will be$?$ You are thinking Department Manager. The next stage is Director but he$/$she is not ready for that yet.

Pay $-$You would like to offer an increase of $5000.$ This would mean that he$/$she would be earning the same as other Department Managers within the Company. You could offer $hi\frac{m}{?}$ her slightly more, another $2000$ however, you would prefer not to$.$ In the future if the new department is successful you may be able to review his$/$her pay. You would be willing to agree to review it in $12$ months.

Bonus $-$ Some managers in the company get a bonus of up to $10\%$ of the company's profits in addition to their salary. However, these tend to be long serving Managers or Managers who have been refused a pay rise and given a discretionary bonus instead. You don't plan on offering $hi\frac{m}{?}$ her a bonus. However, if you had to you might be willing to give him$/$her a bonus based on their new department's profitability. You could offer him$/$her up to $10\%$ of the profits that the department generates. This might encourage him$/$her to work really hard and make it a success.

Pension $-$All employees except very senior directors receive $3\%$ pension contributions. You therefore don't feel that you can offer more than this.

Share purchase scheme $-$ As a Manager he$/$she would be entitled to participate in the company's share purchase scheme.

Holidays $-H\frac{e}{?}$ she currently gets $20$ days a year plus bank holiday. As he$/$she has been with the company for $5$ years he$/$she is about to get another days holiday anyway. You don't want to give him$/$her anymore. However, to help with the moving process this year you will give him$/$her an extra week's holiday when they move house.

Company car $-$ At present Steviedoesn't have a company car. Depending on what pay rise he$/$she is given, as they are going to have to drive at least once a week between Bristol and Birmingham you would be willing to provide him$/$her with a company car and business petrol. If however, you have to offer him$/$her a higher pay rise than you plan to he$/$she can't also have a company car. You only plan to offer him$/$her a middle of the range company car but there isn't a company policy so this is something that you can be flexible on$.$ Start date$-$You would like him$/$her to start in a month when the new office opens. The first few months are likely to be quiet so you could delay it for a couple of months but no