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HRM Group9

The document presents a case analysis of a negotiation scenario between Monroe Davies, a candidate for Director of Business Operations, and Jim Hummer, CEO of Whole Health Management. It explores key issues such as compensation package crafting, budget constraints, and negotiation dynamics, while analyzing both the candidate's and employer's perspectives on compensation, benefits, and alignment with organizational goals. The document concludes with a detailed breakdown of the proposed compensation package and its components.

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18 views9 pages

HRM Group9

The document presents a case analysis of a negotiation scenario between Monroe Davies, a candidate for Director of Business Operations, and Jim Hummer, CEO of Whole Health Management. It explores key issues such as compensation package crafting, budget constraints, and negotiation dynamics, while analyzing both the candidate's and employer's perspectives on compensation, benefits, and alignment with organizational goals. The document concludes with a detailed breakdown of the proposed compensation package and its components.

Uploaded by

blr.vishesh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Case Analysis

NAME YOUR
PRICE
Presented By : Group 9
24P068_ADITI MEHTA
24P078_DEEPANSHI
24P097_KESHAV GUPTA
24P099_KHUSHI GOEL
24P104_MANNAT
24P0124_VISHESH GULLA
2
OVERVIEW
Negotiation scenario between Monroe Davies, a candidate
for the position of Director of Business Operations, and Jim
Hummer, the CEO of Whole Health Management.
The case delves into the intricacies of employment
negotiations, focusing on compensation, benefits, and the
alignment of individual and organizational goals
3
CASE DETAILS
MONROE DAVIS JIM HUMMER
Second Year Harvard Business School CEO of Whole Health Management
Student Managing the task of balancing the
Looking out on getting recruited at Whole company’s budget constraints and long-
Health Management term talent needs with the necessity to
offer a competitive package to attract
top-tier candidates.
Proactive in recruitment approach
4
KEY ISSUES
First Problem
Monroe is encouraged to craft his
compensation package, a rare opportunity
but one fraught with challenges, including
Second Problem
market benchmarking and self-
WHM is a growing company with budget
assessment.
limitations, requiring creative solutions to
meet Monroe’s expectations while
ensuring financial sustainability.

Third Problem
Negotiation Dynamics: Psychological and
strategic considerations of negotiation,
including anchoring, value creation, and
mutual respect.
5
ANALYSIS
Candidate’s Perspective

As a top candidate, Monroe expects a package reflecting his market value, balancing salary, equity, and
1
benefits.

Evaluating not only immediate monetary rewards but also the potential to grow with WHM, considering
2
its vision and scalability.

Moving to a new city (Cleveland or elsewhere) involves personal and financial adjustments, which
3
Monroe expects WHM to address.

4 Monroe needs to propose a package that is competitive but not so high as to discourage WHM.

While equity aligns with long-term goals, Monroe might perceive a cash-light offer as risky if WHM’s
5
growth does not materialize as expected.
6
ANALYSIS
Employer’s Perspective

WHM is a growing company that needs high-performing individuals like Monroe to sustain its expansion
1
and operational excellence.

WHM operates on a tight budget, and Jim must offer a package that attracts Monroe without straining
2
the company’s resources.

To avoid turnover, Jim aims to structure a package that aligns Monroe’s interests with WHM’s
3
growth trajectory, particularly through equity and performance-based incentives.

WHM cannot compete with cash-heavy compensation packages from larger organizations, making it
4
reliant on non-cash incentives like stock options.

5 Offering Monroe a high salary risks creating internal inequity and raising expectations for future hires.
MONROE DA VIES MONROE DA VIES

COMPENSATION PACKAGE COMPENSATION PACKAGE

Director, Business Operations Insurance

Compensation $1,15,000 per year, paid semi-monthly Health Insurance Based on premiums - see attached

Dental Insurance Based on premiums - see attached


Status Full Time
Vision Based on premiums - see attached
Options to Purchase 10,000 shares at
Stock Option 2.7$ per share according to vesting Life Insurance Paid Term Life ($50,000)
schedule
Long-Term Disability
Paid (605 of base pay)
Upto $30,000 based on agreed upon Insurance
Bonus
goals Social Security Paid
$18500 to relocate to Cleveland: Workers' Compensation Paid
Relocation Allowance additional allowance to be determined
for any future relocations State & Federal
Paid
Unemployment
Fringe Benefits :
Professional Liability Paid
Paid Time Off:
Section 125 Cafeteria Plan Administration Fee Paid
Vacation 120 Hrs/Yr
Company will match up to 50% on the first
401(k) Pension & Profit Sharing Plan
Holidays 80 Hrs/Yr 6% gross pay after one year of participation

Sick Leave 48 Hrs/Yr Continuing Education Stipend $2000 As approved

Personal Time 16 Hrs/Yr Dues & Licenses $1000 As approved

EAP (Employee Assistance Program) 5 Sessions/Yr


8
NEGOTIATION OUTCOME

Why $115,000 ? Why $10,000 ? Why $30,000 ?

Why $18,500 ? Why $2,000 ? Why $1,000 ?


GROUP 9

THANK YOU

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