You may consider three different types of employees.

Review the following scenario: As the newly appointed head of a new department at a healthcare institution, you have the responsibility of creating a new healthcare management team. You must negotiate with the heads of HR and Finance in order to create the best team of healthcare professionals for your department. You need to hire 75-150 employees. You may consider three different types of employees: Type of Employee Cost Productivity % Time to Hire Turnover A $40,000 30% 30 days 40% B $60,000 60% 90 days 20% C $80,000 90% 180 days 10% The heads of the Human Resources and Finance Departments have given you the following limitations for hiring personnel for your team: Total annual healthcare employee cost must not exceed $6 million. Total average healthcare employee productivity must be a minimum of 55%. Average time to hire for new employees must not exceed 75 days. Total average healthcare employee turnover must not exceed 25%. The head of HR is known for her direct, no-nonsense approach to hiring and managing employees. She can be difficult to talk to, especially when performance is on the line. She expects the best of everyone and dislikes “slackers.” However, she will listen to reason if presented with a compelling argument and data to back it up. The head of Finance is easygoing, but no pushover. His goal is keep to the institution in the black. At the same time, however, he is not averse to spending the money to move the institution toward the future. However, he is not a “people person”. The bottom line is his domain and he needs to be convinced that expenditures make sense and that they are fiscally sound. In recent meetings, both the heads of HR and Finance have expressed reservations about expanding the institution with the formation of your department. Review the following tips for successful negotiation: Be strategic, think ahead – not just your current move but two to three negotiation moves ahead. Say no with a smile… Keep the negotiation door open. Maintain competitive leverage; have several negotiable alternatives. Know in advance what you consider a good deal; think clearly about what you aspire to achieve from negotiations. Keep your bottom line in view, that is, what must you achieve at a minimum from negotiations, or there will be no deal. Put yourself in the shoes of what your negotiation counterpart is trying to achieve; look for common ground. Provide a negotiated solution that makes both parties better off – work toward the so called “win-win” solution. Negotiate multiple issues together; do not negotiate issue by issue. Do not negotiate simply to negotiate; what is it that the negotiating parties really “have to have”? Never negotiate against yourself and never disclose your bottom line. Never accept the first offer, and never make the first offer if you can help it. Listen more, talk less. Do not rush negotiations and never make a quick deal just to get it done. Tell the truth; do not lie during negotiations or you will destroy your credibility for the future. Write a two-page paper in which you: Use the information from the scenario to determine the ideal number and type of employees that you can hire to build the most effective team for your department. Write a rationale to the heads of HR and Finance to explain how you arrived at your decision. Specifically, note any deviations from the limitations that you were given and defend your decisions. Note the specific negotiation strategies that you will use in dealing with both the head of HR and the head of finance.

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