Negotiation Final Project

Varilie Garner

DHA804 Negotiations and Conflict Management

Virginia University of Lynchburg

Dr. Hammond

August 8, 2023

Compensation Package Proposal and Justification

Job Offer Table

Compensation Item

Proposed Amount

Compensation

$105,000

Bonus

$30,000

Relocation Allowance

$10,000

Stock Options

10,000 shares at $2.70 per share

Continuing Education Stipend

$5,000

According to Glass Door (2023), The estimated total pay for a Director of Business Operations is $193,928 per year in the United States area, with an average salary of $132,368 per year. Bonuses are often tied to performance, and this figure provides a strong incentive for high performance while remaining within industry norms. The reallocation figure is based on typical relocation allowances, which often cover moving costs, temporary housing, and other expenses associated with relocation (Ocampo, 2021). The stock options consideration is based on the value of the companys stock and comparable allocation benefits given for this position. The continuing education stipend also reflects the price of education courses in the US and represents sufficient funds to pursue one course per year to continue education for this position.

Letter of Acceptance

Dear Jim Hummer,

I hope this letter finds you well. I am writing to formally accept the offer for the position of Director, Business Operations at Whole Health Management. I am thrilled to join and contribute to your esteemed organization's continued success. From our initial interactions, I have been impressed by the innovative spirit, dedication, and camaraderie that permeates Whole Health Management. The opportunity to work alongside such a dynamic team and contribute to meaningful projects aligns perfectly with my professional aspirations.

I am eager to bring my skills, knowledge, and passion to this role and am confident I can significantly contribute to the team and the company. I am particularly excited about managing client relationships and contracts, growing existing client contracts, and developing new client businesses. I am also looking forward to starting this new chapter in my career at Whole Health Management. I am ready to face the challenges that come my way and am committed to learning and growing within this role.

Thank you for extending this offer to me. I cannot adequately describe my excitement about joining the team. However, I am sure my enthusiasm to begin contributing to the company's success will be more than apparent soon enough.

Best regards,

[Your Name]

Executive Memo

Dear Dr. Hammond,

I am writing this memo to provide a rationale and evidence for my actions in completing the job offer table for the Director, Business Operations position at Whole Health Management.

The compensation package I proposed was carefully crafted, keeping in mind the guidelines provided by Jim Hummer in his email to Monroe Davies (McGinn & Tempest, 2008, p. 3). The salary was set at $105,000, which is competitive at Harvard Business School (HBS) and within Whole Health's salary ranges. The average salary for 75 percent of HBS graduates working in the health sector is within the range of $100,000 to $125,000 (McGinn & Tempest, 2008, p. 10). Thus, the salary of $105,000 is within the acceptable range for HBS graduates. At the same time, Mr. Hummer had mentioned in his letter that the salary to be paid was inversely...

…outcomes. By setting a high bar for the compensation package, I aimed to create a starting point for a fruitful negotiation process. This approach is rooted in the understanding that the initial offer often serves as an anchor in negotiations, influencing subsequent discussions and shaping the final agreement (Program on Negotiation at Harvard Law School, 2023).

Being ready to make mistakes is another crucial aspect of effective negotiation (Pruitt, 2013). It is through mistakes that we learn and adapt our strategies. In the context of this negotiation, being open to making mistakes meant being willing to adjust the proposed compensation package based on feedback and counter-offers. This approach helps one to cultivate a learning mindset, which is essential for growth and improvement in negotiation skills (Program on Negotiation at Harvard Law School, 2023).

A proactive approach is about driving the negotiation process rather than being led. In this case, it involved proposing a compensation package rather than waiting for an offer. A proactive approach allows one to shape the negotiation process and outcomes, increasing the chances of reaching a satisfactory agreement. That is another reason for my proposal.

These strategies are essential for achieving a "yes" in negotiations (Fisher et al., 2011). They encourage a collaborative approach where both parties work together to find a mutually beneficial solution. By setting high goals, being ready to make mistakes, and taking a proactive approach, negotiators can navigate the negotiation process more effectively, increasing the likelihood of reaching an agreement that meets their needs and interests.

Thank you for…