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Accounting firm sample essay

A supervisor in a large accounting firm is scheduled to interview a job candidate who comes highly recommended and has excellent qualifications. Jim has an accounting degree (bachelors) from a prestigious Ivy League school and has been working on his MBA by attending an online program for the last 18 months and is close to earning his degree. In addition he has been working for one of your competitors for several years and has excellent references attesting to his ability.

Your payroll budget has recently been reduced significantly as a result of a declining client base and your manager has the final authority in establishing salaries for the new hires but generally is responsive to what his supervisor’s propose to a job candidate. In addition, the HR Director has published salary ranges for new hires that are to be adhered to, unless there are extenuating circumstances such as the candidate having special expertise, the ability to bring in additional clients, or excellent credentials including having the CPA certification. Your Role/Assignment:

Your role is to determine whether distributive or integrative negotiations will be preferred in this scenario between the job applicant and the supervisor, and respond to the questions regarding the other parties who have an interest in hiring the job applicant. Use the Worksheet to answer the questions related to this scenario. Each question is worth 20 points. Once you are finished, submit your assignment to the Dropbox.

Questions:

1.What is the appropriate negotiation strategy that would be most advantageous for Sharon and Jim in this scenario, distributive or integrative bargaining? What are the factors that should be considered in making this determination? Answer:

I believe the best negotiation strategy would be for Sharon and Jim to consider using Integrative bargaining. Because Jim does bring many positives to the bargaining table. If they seriously intend to land this talented new hire, they better offer him something better than they are proposing. I believe I would use Integrative bargaining in this situation if I was supervisor or manager.

2.What factors do you feel will contribute to the Accounting Supervisor and her Manager in determining the salary that Jim should be offered as a new hire? What are some other considerations that could be made to entice Jim to accept the job assuming that his salary demands could not be met? What are Jim’s and the Accounting Supervisor’s interests? Answer:

The company is working with a reduced budget because they lost one of their major clients recently. This caused them to rethink and refocus the way ahead, and how they would continue to do business in the future; in order to survive as a company. Plus the Accounting Supervisor (Sharon) has been given specific instructions as to the “wiggle room” she has to play with; which is very little, when it comes to salary negotiations. I believe Helen (Accounting Manager) is thinking solely about the company and not really considering the applicant’s desires or views.

3.What are HR’s interests in this scenario, and what would be the potential negotiation strategy between the Accounting Manager and HR assuming that there is a decision that the published salary range for attracting Jim will have to be exceeded in order to hire him? Answer:

The HR Director’s interest here is clearly the concern of the Accounting Supervisor and the Manager being able to successfully negotiate an acceptable salary that will not “break the bank” as (Richard) the HR Director puts it. He wants them to ensure they negotiate within the pre-determined salary ranges. The salary cap for the position is set at $50,000. But, the problem here is the fact that Jim is already earning $60,000 with a competitor. What Sharon and Helen must decide is whether they feel hiring Jim is worth going to management to ask for an exception to try negotiation salary beyond the cap. I personally do not believe $50K will land Jim. Helen wants to “save-face” with the HR Director, because she is afraid by going to him for more money will make her look weak as a manager.

4.Propose a negotiating outcome for each of the possible negotiations that could occur in this scenario and defend your responses. Negotiations between:

Supervisor and Job Applicant I would use Integrative bargaining and try to negotiate Jim down (somewhat) on his salary expectations. The approach I would employ is the fact that he would be working for such a great company, a leader in the industry. I would emphasize the room to grow. I would also put incentives and or bonuses out there for him to strive for. I would get him to look at his potential for growth and salary increases in the future. Maybe, I would tie them to his performance.

Supervisor and Accounting Manager If I was the supervisor, I would go strong after my Accountant Manager to approach the HR Director about an exception to policy for the position’s salary cap. If I felt strong enough about this potential new hire’s ability; then I think it would be worth the effort and time. They should look at this as the long term potential that Jim has to help this company become stronger and make more money be gaining more clients. Helen (The manager) must put personal beliefs or assumptions aside and seek advice or make suggestions based on her best professional opinion of the benefits to hire Jim.

Accounting Manager and Human Resources Simply stated, Helen has to be willing to approach Richard about seriously exceeding the salary limits in order to sign Jim on to their team. The potential impact to have this “rising star” with the skill set and abilities he has already demonstrated is probably worth an second consideration. I think they should call a meeting to discuss this. I also believe the strategy they should use is, when Jim is interviewed, the interview should include all four: Sharon, Helen, and Richard. The three of them all sit down with Jim at the same time, and explain the company’s position and attempt to negotiate a reasonable salary range.

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