Week 7 exercise
Procurement and Contract
Keller Graduate School of Management

I would take opportunity of doing this assignment to tell my story about negotiation situation with one of my employee for salary. I was the supervisor in a large bank in Vietnam that is interviewing a prospective employee who comes highly recommended and has excellent qualifications. Tung Pham had a bachelors’ degree in banking from the famous college named Foreign Trade in the country and he was working on his MBA. He was close to earning his degree. In addition he had been working for one of our competitors for several years and has excellent references attesting to his ability.
At that time, our payroll budget had recently been reduced significantly as a result of a declining customer base. In addition, the HR Director had established salary ranges for new hires that are to be adhered to, unless the position is urgent need and candidate having special expertise, the ability to bring in additional clients.
The candidate stated that since he had two years of professional banking experience, he really loved this area of work and he was willing to devote himself as the “best practices” of the bank. He would like to receive at least a 10% increase above his current salary of $40,000.
I had to follow the supervisor’s budget and hired that candidate because of the loss of one of our big accounts but we desperately need to fill this position as it is critical for us to continue servicing our existing client base. My boss stayed within that range of budget of $35,000 including benefits (20% of the total compensation of 35,000).
To convince the candidate, I highlighted the fact that our bank is a very good environment with solid reputation and is known for providing excellent developmental opportunities for employees. Especially, after two years with experience he would have