It is the beginning of a new year. The employer usually grants bonuses at this time of year as well as making termination decisions. A middle manager in marketing - named Scott - is targeted for firing. Scott has
not met a number of job performance milestones. He is a 56 year old, divorced, white male with a partially vested pension. He suspects he is targeted for forced retirement and could possibly report some alleged misadventures of his employer, an engineering firm, to the Securities and Exchange Commission and the state agency responsible for controlling water pollution. He is not considered likely to do so, given his personality. Although his job performance has been poor, his employer's standard practice was to grant some bonus each year regardless of performance. How can the employer terminate the employee without triggering a lawsuit? How should the employer handle this year's bonus for Scott?
The interests of the employer are to:
1. avoid a lawsuit, protect the good name of the company
2. terminate a non-productive worker
3. maintain a stable productive work environment
The interests of the employee Scott are to:
1. protect his reputation
2. strive for financial security
3. work in an appropriate position
+===+Your side
+===+Your side but not present
+===+Other side
+===+Parties on other side but not present
+===+Negotiator on other side
At this point in time, Scott, the employee is the only negotiator on the other side. But the employer suspects that this employee may have consulted his attorney. Ultimately, the employee's lawyer may be the negotiator for the employee.
Scott is an ineffective cooperative amiable. As an ineffective cooperative, Scott tends to ask for too little, give concessions to achieve friendship, and generally not be able to develop creative solutions on his own.
Amiables are people oriented, attached to his neighborhood, family, and even his car. They usually look at situations in terms of how the people involved are going to be affected. Amiables tend to make up their mind slowly, review lots of details, and feel more comfortable as advisors rather than decision-makers.
+===+Background to negotiation
+===+Briefing book research
+===+Other research materials
+===+Needed research materials
+===+Involved parties' interests and proposals
Interests of the employer:
------------------------------------------
a. Fire the particular manager, Scott
b. Maintain employee morale
c. Avoid a lawsuit
Proposals:
a. Terminate after holidays
b. Explain reasons to employee
Terms:
a. Lump sum
b. No adverse recommendation
BATNA:
a. Offer arbitration
_____________________
Interests of the employee:
------------------------------------------
a. Retain job, if possible
b. Secure a substantial serverance
c. Sue as a last resort
Proposals:
a. Status quo (keep job)
b. Threaten age discrimination
c. Claim retaliatory firing
Terms:
a. Lump sum plus 100% pension
b. Job placement service
c. Good job recommendation
BATNA:
a. Sue
+===+Terms and Standards
Frank (employer)
----------------------------
$ Terms:
Ideal: Employee agrees to leave with minimal severance
Good: Employee agrees to leave with minimal severance and a partial pension
Acceptable: Employee agrees to leave with full pension
Standards:
a. Point to employment policies
b. Point to employee handbook
c. Point to prospects for a new job
Accreditation:
a. Lawsuit will not help get a job
b. Show financial cost of lawsuit
c. Provide examples of others who have left company and got new jobs
______________
Scott (employee)
----------------------------
$ Terms:
Ideal: Employee keeps job
Good: Employee agrees to leave with six months severance and full pension
Acceptable: Employee agrees to eave with lump sum plus 100% pension
Standards:
a. Point to age discimination laws
b. Point to developing common law on limits to termination-at-will
c. Point to adverse public relations
Accreditation:
a. Success of other similar lawsuits
b. Partial bonus paid at year end implicitly acknowledges good job performance
+===+Acceptable Outcomes
+===+Select strategies
1. Cooperative approach seems difficult under the intense personal hositility that the termination process engenders.
2. Competitive approach would likely result in a lawsuit.
3. Principled negotiation approach would emphasize some objective basis on which to settle the dispute that demonstrates to the employee the arrangement is fair and equitable.
+===+Tone of negotiation
+===+What might modify the intended tone
+===+Establishing a relationship
+===+Who is on your team
+===+Who is on other team
+===+Proposed groundrules
1. Agree that the discussion is to try to reach a "settlement," so that the discussions cannot be used in a court proceeding.
2. Face-to-face discussions, where possible, with a time limit set for a reaching agreement so that there is no incentive for endless negotiating to delay a resolution.
3. If Scott's boss is unable to handle the discussion, then a skillful personnel manager should be used.
4. If no agreement is possible within the company, then use of an outside mediator should be considered.
+===+Will you open the negotiation
Both sides have a vested interest in the relationship even though the employment arrangement is being ended. The company does not want the embarassment of a lawsuit and the adverse effects it may have on existing employees, and Scott needs a new job where he is better appreciated, for his hydology engineering skills. During the process Scott will want to know his severence arrangement is fair and equitable. Be prepared to give examples of how similar arrangements worked out well in the past.
Discussions with Scott should be started by his immediate superior, outlining why the company wants to terminate him. Emphasizing he is an employee-at-will and pesonnel policies state that clearly. If the bonus comes up, it should be stated that it was standard practice and did not suggest good performance. Then a packaged arrangement should be offered to him with a few days to comment on it.
+===+How make first offer
+===+How and when to communicate your interests
+===+How and when to communicate your BATNA
+===+Willingness to make new proposals
+===+How will you accredit your proposal
+===+Select tactics
The tactics likely to be used here include but are not limited to:
1. Trade-off:
Although the employer does not feel comfortable in providing Scott with an outstanding recommendation, he may decide to let Scott use his old office for 6 months in order to find a new job. That will at least give Scott the appearance of searching for a job while still appearing to be employed.
2. Timing and disclosure:
During the 6 month period Scott will have some minimal duties writing training materials for his replacement. No mention of Scott's layoff will be made unless he contests it. Final termination will be in the summer.
3. Packaging: Job placement services along with a lump sum payment will be part of the overall severance package.
+===+Possible disagreement with client over tactics
+===+Tactics for impasse
+===+Other side's possible proposals
+===+Other side's concerns
+===+Your concerns
+===+Tie-down tactics
Reaching an enforceable arrangement will involved the following documents:
1. Letter agreement outlining terms of severance arrangement including use of his office
............................to be signed by Scott
and the personnel manager
2. Mutual waiver of litigation claims
.............................to be signed by Scott
and the general counsel for
the company
3. Lump sum payment
.............................to be authorized by the
controller
+===+Insuring compliance
Compliance can be monitored in a number of ways, but in this case it probably makes some sense to do the following:
1. Delegate to a senior manager the responsibility of meeting bi-weekly with Scott during the 6 month period;
2. Keep notes of these meetings, including Frank's progress in locating another job; and,
3. Give thought to providing a better job recommendation to Scott, if he does a good job training his successor. That would help provide an incentive during this termination period to do well.
