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MFC: CFO, ALL DIVISIONS (PAT A. ANDERSON) You are the CFO of the Modern Finance Company {MIFC}, which is a brokerage rm with three divisions
MFC: CFO, ALL DIVISIONS (PAT A. ANDERSON) You are the CFO of the Modern Finance Company {MIFC}, which is a brokerage rm with three divisions {'Western, Central, and Southeastern). In addition to overall corporate nancial strategy, the Financial Managers of each division report directly to you. It is now the time when the divisions do their performance reviews for their Analysts, and people get raises. You approve all compensation packages. so this is a busy time for you. You were the youngest person to be CFC) at MFC, no doubt because of your hard work, scal frugality and responsibility. You take pride in the fact that you run a tight ship. You don't mind paying for value, but you need to get value. You credit your success to your thrift and your ability to spot and cultivate real value. The CEO and the other Board of Director members consistently reinforce this fact. This has kept your company in the black even though the labor markets have been turbulent. The issue of paying for value {or not} recently came to a head when you heard through the grapevine that the Financial Manager in the Central Division, Margaret Portuganta, wants to poach an employee from the Western Division. If this is true, you need to put a stop to it pronto. When people within the organization can poach from each other, it creates a competitive labor market that brings *no* value to the company. If employees they can pit division managers against each other, it just drives up the price of your employees. You know that you need to meet with the Western Division manager, Alex Evanston, later today to approve whatever raises hefshe has negotiated with the analysts. You hope that Evanston has found a way to deal with this Margaret situation, because there is no way you are letting any employee move divisions under these conditions. You may need to have a talk with Margaret as well depending on this negotiation. She is always whining about how \"lesser\" managers have more people. You may need to \"motivate\" her to nd better ways to gure out how to work when she is short staffed. ISSUES: What are the obvious issues in this negotiation? Potential issues? Rank these issues in how important they are to you, from most important to least important. What are your goals here? ALTERNATIVES: 1) What is your BATNA'? How strong is it? 2} What do you think is the other party's BATNA? How strong is it
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