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Negotiation: Severance Options

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Keep in mind the following critical elements:
•Sharon Slade's and Alice Jones' ZOPA and BATNA positions developed in Milestone One and the individual Module Four discussion.
•Areas where Netflix has flexibility: These areas may include: modifying the performance improvement plan, shifting Alice to another position, outplacement benefits, employee health benefits, and so on. Other concessions, such as payment for accrued vacation time, may or may not be negotiable because the company has a formal severance policy.
•Legal vulnerability: You should also consider the degree of legal vulnerability the company has in this situation. For example, what is the probability that Alice Jones could sue for age discrimination?

In Module One you developed the ZOPA (zone of possible agreement) and BATNA (best alternative for a negotiated agreement) for Sharon Slade, Netflix's chief human resources officer, for use in the upcoming negotiations.

Now, put yourself in the shoes of Alice Jones, the executive facing possible severance in our case study.

Develop a ZOPA and BATNA position for Alice, based on your review of her biography and the background information in the case study (located in the Final Project Guidelines and Rubric document in the Assignment Guidelines and Rubrics section of the course). As you develop your response, consider the following:
•If Alice were fired, what would be unacceptable options for her in a severance agreement?
•What options could Alice offer that could move severance negotiations toward her goal of keeping her position at Netflix?

Then, determine Alice Jones' best alternative to a negotiated agreement (BATNA), i.e., her "Plan B." It is important to do this before entering into negotiations to ensure that she does not agree to unfavorable conditions. Questions that can help formulate Alice Jones' BATNA include:
•What do you believe are the interests of the other party, i.e., Sharon Slade and Netflix?
•What actions and alternatives are you prepared to consider if you (Alice Jones) cannot reach a negotiated agreement within your Zone of Possible Agreement?
•What creative alternatives can be considered based on the interests of the other party (Sharon Slade & Netflix)?
•What trade-offs on the standard ZOPA exist that could result in a creative, successful agreement?

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Solution Summary

The response provides you a structured explanation of three potential concession from both sides of a negotiation . It also gives you the relevant references.

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In compliance with BrainMass rules this is not a hand in ready assignment but is only guidance.

Sharon Slade's zone of possible agreement (ZOPA) is that Alice's performance improves to the high standards required for the fast growing Netflix, termination of Alice with moderate severance package, or simple termination of Alice. The best alternative for a negotiated agreement (BATNA) from Sharon's Slade's side is that she successfully fires Alice because of poor performance and Netflix does not have to pay any severance package (1).
From the side of Alice Jones, her zone of possible agreement (ZOPA) is that she retains her job under the performance improvement program, she is fired ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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