Your name is C.H. Wang, Director at Barrister & Counselor and you want to hire Piro Torres.

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Question:

Your name is C.H. Wang, Director at Barrister & Counselor and you want to hire Piro Torres. The firm needs someone on board by September, and you feel you have scouted through this winter's cohort of new MBA's.

You very much wish you could have found everything you need in one person. Torres is a little young, with languages that are good but not perfect. You are quite concerned about needing someone who understands problems of security of business records and international business communications. You wonder if Torres actually understands these problems or whether you'll also need to find a network security consultant. You keep asking yourself if you should look for someone older.... perhaps an overseas Chinese, who has done business in the PRC? But such people are not necessarily likely to be state-of-the-art in information technology. No one is perfect, you reason; let's get Torres if the salary negotiation goes well.

You review the question of finances. You pushed Barrister & Counselor into this new venture. You have only limited start-up funds and there will be a number of jobs to fill. You don't want to set too high a bench mark for the senior administrative jobyou cannot pay more than you pay the junior law partners of B&C.

Circumstances in China mean that B&C staff in Beijing must have their housing and transportation fully provided. The firm will rent whole floors of a major hotel, for both offices and expatriate living quarters. And they will hire cars with drivers. The law firm has already rented space in a storage warehouse franchise (there actually is such a warehouse near this school of management) for all the personal effects of partners and other US employees who will go to Beijing.

You will also have to pay for three or four round trips a year to the US, for your new manager to stay in close touch with US colleagues. You need to buy all the new computer equipment which will be installed in the hotel. You have located a reliable local Internet Access company to provide unlimited email and document transmission around the world via a local phone call. (All in all, starting up this new venture is very expensive.)

You have investigated salaries paid to recent graduates of this school of management. Your guess is that Piro Torres would be offered $90K+ if accepting a job in this country. You believe the average US professional spends about 50% of salary for housing, car and home entertaining. For the manager of the B&C China division, all of these expenses will be borne by Barrister & Counselor; in fact, the expense account for entertaining will be quite generous. (There is a specific $10, 000 expense account for any new clothes that might be needed by the candidate.) Moreover, Torres will have elaborate computer and communications capability in the offices directly adjacent to living quarters. You estimate moving expenses (round trip, eventually) could reach $20,000; the firm will simply pick up all moving expenses. You feel these points should all be very attractive to Torres. In addition, you believe some salary and all benefits may be tax-exempt.

You are aware of the start-up cash-in-hand, year-end bonuses, stock options and partnership possibilities for a person like Torres, and you speculate about how to manage this point.

As you pull all these points together, you conclude as follows. What you would like to pay Torres would be about $30,000 for this coming year. You would also be willing to pay a bonus up to a limit set by the amount of each year's salary. For the first year your hope would be to pay $30,000 plus a signing bonus of $10,000, plus a Welcome on Board bonus of $10,000, payable the first day of work in China. If necessary you will, in addition, promise a year-end bonus of up to $30,000 at the end of the first year. For the following calendar year, you expect to pay $40,000 a year, if all goes well, plus whatever year-end bonus you negotiate, (up to another $40,000). In addition, of course, B&C will be providing housing, transportation, moving expenses, storage of household effects, business entertainment expense account, clothing expense account, use of computer system and communications equipment, as detailed above.

However, you are not at all sure what it will take to get Torres to relocate. What is the limit of what you would be willing to pay to get Piro Torres? Your absolute outside limit is set by the compensation offered to the junior law partners who will work for Barrister and Counselor in the PRC. They earn $70,000 a year (plus the standard housing, etc. listed above) plus a percentage of profits from the China division. (This percent of profits is instead of a specific bonus.) But remember: you would much rather pay less than this.

SIB555 - INTERNATIONAL RELATIONSHIP MANAGEMENT - FIRST NEGOTIATION

QUICK PREP WORKSHEET - 10 marks

Student Name: Cristian Diaz

Role Play: _____________________________________________________________

Assigned Role: _________________________________________________________

INSTRUCTIONS: this worksheet on your own after you have reviewed your confidential role play information.this worksheet BEFORE you conduct the actual negotiation with your partner. You may use point form. You will hand in the worksheet, along with your joint Debrief sheet, after you have done the negotiation.

Your preparation for the Role Play will be more in-depth than this worksheet.Please keep your preparation notes handy so that you can refer to them while you are negotiating.

Reference: Lewicki et al., Essentials of Negotiation, Third Edition (2017, McGraw Hill); Getting Ready to NegotiateThe Getting To Yes Workbook, by Roger Fisher and Danny Ertel (1995, Penguin), page 11 (in part): Prof. Gerry Lindley

The Issues:What are the key issues that I want agreement on? Rank the issues in order of importance for you. (1 mark)

1. ______________________________________________________________________

2. ______________________________________________________________________

3. ______________________________________________________________________

4. ______________________________________________________________________

Issue-By-Issue Planning. For each of my issues, what is my (a) opening point, (b) target point, and (c) resistance point? (1 mark)

ISSUE OPENING POINT TARGET POINT RESISTANCE POINT

My Interests.What I really care about. What are my wants, needs, concerns, hopes, and fears? Note: this is not the same as "issues"; you do not have to provide one example of each of the above if it does not apply. (1 mark)

1. ______________________________________________________________________

2. ______________________________________________________________________

3. ______________________________________________________________________

4. ______________________________________________________________________

Their interests. * What I think the other party really cares about. Their wants, needs, concerns, etc. (1 mark)

1. ______________________________________________________________________

2. ______________________________________________________________________

3. ______________________________________________________________________

4. ______________________________________________________________________

* Identify which of their interests are similar (S), different but not conflicting (D), and conflicting (C) by noting this above. (.5 marks)

Options. List possible agreements or bits of an agreement that we might reach to satisfy both parties. Note: This should not just be a list of your target points. (1 mark)

1. ______________________________________________________________________

2. ______________________________________________________________________

3. ______________________________________________________________________

4. ______________________________________________________________________

5. ______________________________________________________________________

Objective/ Independent Standards (Legitimacy): External standards or precedents that might convince one or both of us that a proposed agreement is fair when our interests conflict. Indicate the most appropriate or relevant standard with an asterisk (*). (1 mark)

1._____________________________________________________________________

2. ______________________________________________________________________

3. ______________________________________________________________________

My BATNA (walk-away alternative). What can I do if I walk away without an agreement? What is my best alternative (indicate with an *)? (1 mark)

1. ______________________________________________________________________

2. _____________________________________________________________________

Their BATNA.What do I think their BATNA is? (1 mark)

1._____________________________________________________________________

2._____________________________________________________________________

People Problems. What "people problems" (e.g. biases, attitudes, emotions) are likely to arise in the negotiation that I should be prepared for, and how might I deal with these problems? Note: be specific; focus on the issues in the current negotiation scenario, and answer both parts of the question. (.5 marks)

________________________________________________________________________ ________________________________________________________________________

________________________________________________________________________________________________________________________________________________

Overall strategy. What is the main strategy that I will use for the negotiation? Why? If there is more than one, which strategy will I use for which issues? (1 mark)

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