You are a supervisor over high performing sales personnel who have been instrumental in bringing multiplied millions of revenue to the Corporation in which you are employed. The sales personnel have a base salary plus full benefits. They also have a certain percentage of commission awarded based on the level of successful sales. The economy is strong and sales are at an all-time high. Recently, the sales personnel sent a representative to your office demanding an increase in commissions. In fact, they want no less than 3% increase in commissions per sale.
The board of governors of the Corporation refused to grant the increase, as compensation given to the sales personnel is already extremely high as compared to the rest of the industry. The sales personnel are threatening to work for a competing company that does not have the same level of annual sales volume, but the competing entity is offering higher commissions. There is not a no compete agreement between personnel and the company.
The board of governors has asked you to negotiate the current dilemma as millions of dollars of potential revenue are at stake. Using the five steps in the negotiation process, provide a possible negotiation strategy that will benefit both your company and the high-performing sales personnel. Will your negotiation strategy be distributed or integrative? Fully explain. Also, how might your approach positively affect the negotiation outcome?
Resolving the situation in the organization will be achieved by engaging an integrative negotiation approach. In this context, the strategy will facilitate achievement of a greater outcome for the board and the sales personnel than what either of them could achieve on their own. The integrative approach is effective because the parties involved have an existing relationship and their cooperation is imperative for the organizations and the workforce (Choi, 2010)(Pruitt & Lewis, 1975). The situation presents many issues to be addressed, making the negotiation to be complex. Notably, there is the issue of motivation and contractual relationship between the company and the sales personnel. In this light, the negotiation process will identify the sources of conflict in the preparation and planning stage to eliminate any thoughts of the workforce leaving the organization, while at the same time ensuring appropriate consideration from the board. Subsequently, the ground rules should not be partial, but should facilitate the participation of both parties conveniently.
Solving the dilemma will require determining the priorities and justifying the complaints made by the participants. Fundamentally, it is essential to share information and ensure honesty about the priorities. The importance of bargaining and problem solving is to facilitate the negotiation process, where agreements are made about the parties (Thompson, Wang, & Gunia, 2010). Resultantly, the solutions that offer the most gain for both parties should be considered and implemented. During closure and implementation, the negotiation situation should consider the situation for the other party, given that one party might be required to compromise with the other in the future. Using this approach will contribute to a positive outcome by ensuring that the needs of all parties are acknowledged and follows a systematic way that ensures all issues are covered while maintaining the key interests of the negotiation.
Conflict Management, 21(3), 309–333.
Thompson, L. L., Wang, J., & Gunia, B. C. (2010). Negotiation. Annual Review of Psychology,