Negotiation

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Negotiation and Relationship Management |

TMA 01 |

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Tan Pein Chuan |

8/27/2013 |

Student ID : J1371336

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Question 1a:

Options have been generated and evaluated from both parties differing perspective to derive an outcome which meets personal interests to different degrees. A joint search from each principled standard has been established to achieve an outcome that is objectively and subjectively impartial for both parties.

I have identified the options beyond each expectation to ensure fair entitlements based on external standard of legitimacies without compromising the standard of others. The three options identified out are:

1) To compensate 50 thousands inclusive of unpaid salary and entire share under Max and provide other benefits such as vouchers from your (Louisa) café. The wage structure is drawn against the market value of an operational director of similar industry at 4,000 dollars per month. Staggered payments in form of monthly repayment to allow faltering business revenue to pick up after monsoon.

2) Continual employment of Max as an operational director remunerated with a basic salary of 4,000 per month and other commission incentives structured in accordance to his performance and contribution to the business. In acceptance of the conditions preluding to this offer, Max has to give up his entire share in the business to offeror, Louisa.

3) Ancillary in form of sponsor for university courses for Max in his related course of work after termination of his service to your business and provide reasonable sum of 16 thousand dollars for his service during the first 4 months.

The outcome of this negotiation is achieved with consideration of each interests and options based on the criterions and its legitimacy. Outcomes have been designed and concluded with interests of each party alternatives. They are reached from the Best Alternative to a Negotiated Agreement (BATNA), Worst Alternative to a Negotiated...