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Gerald Weiss (2023)
 The case study revolves around Gerald Weiss, a Wall Street professional who
transitioned to a role at MediCode Therapeutics, a biotech company. Gerald's
motivation for career success and financial security is rooted in his childhood
desire to achieve wealth.
 Initially, he had concerns about joining MediCode, particularly regarding
compensation and career progression.
 However, he was offered a competitive compensation package, including a
stock option plan with a guaranteed floor of $12 million, and the promise of
becoming CFO after gaining experience as the president of a subsidiary.
 Conflicts arose when the company's stock price fell, leading to wrenched
relationships and a breakdown of trust between Gerald and the company's
leadership, particularly with Andy, a senior executive.
 Gerald's concerns about the company's financial stability and his own career
progression were not adequately addressed, leading him to consider leaving
the company.
 Negotiations regarding his compensation package and job role were central
to the conflicts, with Gerald feeling betrayed by unmet promises and a lack of
trust in the company's leadership.
 The case also highlights the dynamics of power, trust, and negotiation tactics
within the company, as well as the impact of financial challenges and internal
conflicts on the protagonist's decision-making.
 The story provides insights into the complexities of career transitions,
compensation negotiations, and the importance of trust and integrity in
professional relationships.
 Overall, the case study delves into the challenges and complexities of career
transitions, compensation negotiations, and the impact of trust and integrity
in professional relationships, shedding light on the dynamics of power, trust,
and negotiation tactics within the company.
 Gerald Weiss, a Wall Street veteran, faced a crucial moment when the CEO of
MediCode broke a promise on the favourable terms of his stock option
package, leading him to consider finding a new job.
 Despite his successful career on Wall Street, Gerald's ambition to lead a
company was realized when MediCode offered him the opportunity to
become the CFO.
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 The company provided him with a generous compensation package, including
a $12 million stock option package, with additional protections to safeguard
his earnings in case of a falling stock price.
 However, internal conflicts and a plunging stock price resulted in a breakdown
of trust between Gerald and the company's leadership, culminating in the
company's failure to honour their agreement, leaving Gerald questioning his
future at the company.
 In the beginning, Gerald's career trajectory seemed promising as he
transitioned from Wall Street to MediCode, aiming to become the CFO.
However, despite the appealing compensation package and assurances from
the company's CEO, the breakdown in trust and unmet promises resulted in a
disillusioned Gerald contemplating leaving the company.
 The series of events, including internal conflicts, financial challenges, and
unfulfilled assurances, led to the unraveling of Gerald's confidence in the
company's leadership, prompting him to reconsider his future at MediCode.
 Overall, Gerald's experience at MediCode reflects the complexities and
challenges of navigating corporate dynamics, compensation negotiations, and
maintaining trust and integrity in professional relationships.
 The breakdown in trust and unmet promises ultimately left Gerald
questioning his future at the company and considering alternative career
opportunities, underscoring the significance of transparent communication
and honouring agreements in maintaining a positive and productive work
environment.
 Explain the internal conflicts in the case. Who and Who are in the conflict? Is
it interpersonal or intragroup conflict?
 The case presents several internal conflicts involving Gerald Weiss, Andy,
and Joe within the context of MediCode Therapeutics. The conflicts
primarily revolve around Gerald's career progression, compensation, and
the breakdown of trust within the company's leadership. Gerald's desire
to become CFO and his expectations regarding compensation create
tension with Andy, who holds a different perspective on Gerald's
suitability for the CFO role. Additionally, Joe's role in negotiating Gerald's
position and compensation further contributes to the internal conflicts.
 The conflicts can be categorized as both interpersonal and intragroup.
 Interpersonal conflict is evident in the strained relationship between
Gerald and Andy, as well as the breakdown of trust between Gerald and
Joe.
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 Intragroup conflict arises within the company's leadership team,
particularly between Andy and Joe, as they hold differing views on
Gerald's role and compensation. The conflicts reflect differing
perspectives, goals, and expectations among the individuals involved,
leading to internal tensions and challenges within the organization.
 Overall, the internal conflicts in the case involve interpersonal tensions
between individual actors, as well as intragroup disagreements within the
company's leadership team, highlighting the complex dynamics and
challenges within the organization.
1) Identify the type of conflict (Task Conflict, Process Conflict, Relationship
Conflict, Status Conflict, Functional Conflict, Dysfunctional Conflict) that occurs
in this case study.
2) Which negotiation (distributive, integrative, or the mix of distributive, and
integrative) nature occurs in this case study.
3) List the names of all characters and explain their negotiation
positions/Goals/interests/motivations/BATNA (If any).
4) Explain the reservation point and reservation point for each character.
5) List and Explain the negotiation tactics/strategies (based on the dual concern
model) each character uses.
6) Are there any intangible goals described in this case study?
ANSWERs
1) The conflict in this case study involves a mix of relationship conflict, status
conflict, and dysfunctional conflict.
There are issues related to trust, respect, and power dynamics between the
characters, leading to strained relationships and dysfunctional interactions.
2) The negotiation nature in this case study is a mix of distributive and
integrative. There are elements of both competitive (distributive) negotiation,
such as salary and bonus discussions, as well as collaborative (integrative)
negotiation, such as long-term career opportunities and job roles.
3) The main characters in the case study are Gerald Weiss, Joe (the company's
leader), Andy (senior executive), Bob (Gerald's partner), and the president of the
company.
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 Gerald's negotiation position is to secure a high compensation package and a
promising career path.
 Joe's position is to retain Gerald while managing the company's financial
challenges.
 Andy's position is to assert his authority and control within the company.
 Bob's position is to secure a higher salary and bonus.
4) The negotiation's resistance (walkaway) point for each actor can be detailed
as follows:
 Gerald Weiss: Gerald's resistance point in the negotiation process is reached
when his financial security and career progression are compromised to an
extent that he no longer sees a viable future within the company. This is
evident when he feels that he cannot work for someone who doesn't honour
agreements and when he realizes that he will not be appointed as CFO and
will be paid well below what he could earn on Wall Street. Additionally, the
breakdown of trust and the lack of a clear career path contribute to Gerald's
resistance point. Ultimately, Gerald's walkaway point is reached when the
company fails to provide him with a satisfactory compensation package and a
clear path for career advancement.
 Andy: Andy's resistance point is reached when he feels that Gerald's
demands or expectations are not aligned with the company's needs or his
own vision for the organization. This is evident when Andy decides not to
make Gerald CFO and expresses a lack of concern about how Gerald feels.
Andy's resistance point is also reflected in his decision to prioritize his own
position within the company and to assert his authority over Gerald,
indicating a lack of willingness to accommodate Gerald's demands.
 Joe: Joe's resistance point is reached when he faces challenges in managing
the internal dynamics of the company, particularly in relation to the
discontent among top managers and the need to make difficult decisions
regarding the company's leadership. This is evident when Joe struggles to
find a suitable position for Gerald within the company and faces pressure
from various stakeholders. Joe's resistance point is also reflected in his
attempts to balance the needs of the company with Gerald's demands,
indicating a reluctance to make significant concessions that could impact the
organization's stability.
In summary, the negotiation's resistance (walkaway) point for each actor
is influenced by their individual priorities, concerns, and the broader
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organizational dynamics, ultimately shaping their willingness to continue the
negotiation process and reach a mutually satisfactory agreement.
5) Gerald uses negotiation tactics such as assertiveness, problem-solving, and
compromise to secure his position.
Joe uses tactics such as persuasion, pressure, and authority to retain Gerald.
Andy uses tactics such as assertion, control, and power play to maintain his
position. Bob uses tactics such as leverage and ultimatums to secure a higher
salary.
In the case, various approaches to conflict management from The dual
concern model can be observed, including competitive, accommodating,
avoiding, and collaborative strategies. These approaches are demonstrated
through the actions and decisions of the actors involved in the negotiation.
1) Competitive Approach:
The competitive approach to conflict management involves pursuing one's
own interests at the expense of others.
This approach is evident in the actions of Andy, who prioritizes his own
career aspirations and the company's leadership dynamics over Gerald's
concerns. Andy's decision to assert his authority and prevent Gerald from
becoming CFO reflects a competitive approach, as he prioritizes his own
position within the company.
2) Accommodating Approach:
The accommodating approach involves prioritizing the concerns and
interests of others over one's own. This approach is demonstrated by Gerald,
who initially accommodates the company's compensation terms and career
progression plans, despite his concerns about financial security and career
advancement. Gerald's willingness to compromise and accept a lower
compensation package reflects an accommodating approach to conflict
management.
 (PAGE 4) Gerald's concerns about the company's ability to pay him as
much as he would make on Wall Street and his reluctance to take a pay
cut. It also mentions Andy's assurance that his father would take care of
the compensation. This reflects Gerald's initial accommodation of the
company's terms, despite his financial concerns.
3) Avoiding Approach:
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The avoiding approach involves minimizing or sidestepping conflicts rather
than addressing them directly. This approach is evident in Joe's actions,
particularly when he attempts to navigate the internal dynamics of the
company and the conflicts between Andy and Gerald. Joe's conversation with
Gerald, where he expresses uncertainty about how to handle the situation
and suggests that waiting a few months might resolve the issues. This
indicates a reluctance to directly address the conflicts and suggests an
avoidance of immediate confrontation or resolution.
Joe's reluctance to directly address the underlying tensions and conflicts
within the company reflects an avoiding approach to conflict management.
4) Collaborative Approach:
The collaborative approach involves seeking mutually beneficial solutions
and addressing the concerns of all parties involved.
This approach is demonstrated by Gerald's initial willingness to negotiate
and find a compromise that aligns with the company's needs and his own
aspirations.
Additionally, Gerald's efforts to communicate his concerns and seek a
mutually satisfactory outcome reflect a collaborative approach to conflict
management.
In summary, the case illustrates various approaches to conflict
management from The dual concern model, including competitive,
accommodating, avoiding, and collaborative strategies. These approaches are
demonstrated through the actions and decisions of the actors involved,
reflecting their differing priorities and strategies for addressing the internal
conflicts within the company.
6) The intangible goals described in the case include financial security, career
advancement, trust, and job satisfaction. Gerald Weiss displayed these
intangible goals throughout the case.
I.
II.
Financial Security and Career Advancement: Gerald's desire for financial
security and career advancement is evident on page 1, where he
expresses his motivation to make a lot of money to provide financial
freedom and security for his family. This reflects his long-term goal of
achieving financial stability and success in his career.
Trust: Gerald's need for trust is demonstrated on page 11, where he feels
that he can no longer trust Joe to keep his promises, leading to a
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III.
breakdown in their relationship. This reflects his intangible goal of
establishing and maintaining trust in professional relationships.
Job Satisfaction: Gerald's pursuit of job satisfaction is evident on page 8,
where he expresses his love for the company, enjoyment of his job, and
satisfaction with his compensation package, despite his awareness of
higher sums being collected by his former colleagues on Wall Street. This
reflects his intangible goal of finding fulfillment and satisfaction in his
professional role.
These intangible goals are central to Gerald's motivations and decision-making
throughout the case, shaping his aspirations and influencing his interactions
with the company's leadership.
1) Which possible cognitive biases (Erroneous fixed-pie beliefs, False conflict
(also called illusory conflict), Irrational escalation of commitment,
Overconfidence, Egocentrism, Self-serving biases, Issue framing bias,
Information availability bias, The winner's curse, Endowment effect, or Reactive
devaluation) do you think some of these actors might have had? (You specify the
name (s) the character and explain in detail)
2) How might each cognitive bias affect their behaviours during the negotiation
process? Please explain three cognitive biases briefly and provide an example
for each of the chosen cognitive biases from the case in details.
ANSWER
1) In the case of "Gerald Weiss," several cognitive biases may have
influenced the behaviours of the actors involved.
I. "Irrational escalation of commitment," which refers to the tendency to
continue investing in a course of action despite evidence suggesting it
may be failing.
This bias could be observed in Gerald's behaviour when he
continued to engage in negotiations and maintain his position at
MediCode, despite facing broken promises and a deteriorating
relationship with the company's leadership.
II. "Overconfidence," which involves an individual's excessive belief in their
own abilities or knowledge.
This bias could be seen in Andy's behavior, particularly when he dismissed
Gerald's concerns and overestimated his own ability to manage the
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III.
company's challenges, leading to conflicts and ultimately impacting the
negotiation process.
the "Endowment effect" could have influenced the actors' behaviors. This
bias involves individuals valuing something more highly simply because
they own it.
In the case of Gerald, his attachment to the promised position of CFO and
the compensation package, as well as his reluctance to leave the company
despite the deteriorating situation, could be attributed to the endowment
effect.
2) These cognitive biases can significantly impact the negotiation process and
the behaviours of the actors involved.
The "Irrational escalation of commitment" may lead to a continued
investment of time, resources, and effort in negotiations, even when the
prospects of a favourable outcome are diminishing.
In the case of Gerald, this bias may have led him to persist in negotiations
with MediCode, despite the breakdown of trust and unmet promises, ultimately
affecting his decision-making and prolonging the conflict.
The "Overconfidence" bias can lead to a lack of receptiveness to
alternative viewpoints and a tendency to underestimate risks. In Andy's case,
overconfidence may have led him to reject Gerald's concerns and overestimate
his own ability to manage the company's challenges, impacting the negotiation
process and contributing to conflicts within the company.
The "Endowment effect" can lead to a reluctance to let go of a perceived
possession, even when it may no longer be beneficial. In Gerald's case, this bias
may have influenced his reluctance to leave the company despite the
deteriorating situation, as he was attached to the promised position of CFO and
the compensation package, impacting his decision-making and negotiation
strategies.
These cognitive biases can significantly influence the negotiation
dynamics and outcomes, affecting the behaviours and decisions of the actors
involved.
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Assess the types of complexities (Informational and computational complexity,
Social complexity, Procedural complexity, Logistical complexity, Strategic
complexity) that exist in this multi-party negotiation.
1) Informational and computational complexity arises from the sophisticated
financial arrangements and stock option packages negotiated between Gerald
and MediCode.
2)
3)
4)
5)
 The Black-Scholes valuation model
 the calculation of stock option values, and
 the consideration of market volatility contribute to the computational
complexity of the negotiation.
Social complexity is evident in the interpersonal dynamics and relationships
between the negotiating parties. Gerald's interactions with Joe, Andy, and
other executives involve
 complex social dynamics
 trust issues
 power struggles, impacting the negotiation process.
Procedural complexity is present in the negotiation process, particularly in
the formulation and execution of the compensation package and the terms of
employment. The negotiation involves
 multiple stages, agreements, and adjustments,
 adding to the procedural complexity of the negotiation.
Logistical complexity is apparent in the logistical challenges of implementing
the negotiated terms, such as
 the vesting schedule of stock options
 the calculation of annual compensation values
 the potential adjustments based on the Black-Scholes valuation.
Strategic complexity is inherent in the negotiation process, as each party
seeks to achieve their strategic objectives while navigating the complexities
of the negotiation. The negotiation involves strategic decision-making, longterm planning, and the consideration of various outcomes and implications.
Overall, the multi-party negotiation involving Gerald Weiss and MediCode
Therapeutics is characterized by various complexities, including informational
and computational, social, procedural, logistical, and strategic complexities,
which contribute to the difficulty and challenges of the negotiation process.
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Do you think JOE, in the negotiation with Gerald, performed any unethical
behaviours or any ethically questionable tactics? Please explain your rationale
using the four approaches to ethical reasoning (1. End-Result Ethics, 2. Duty
Ethics, 3. Social Contract Ethics, 4. Personal Ethics)
Based on the provided context, Joe's actions in the negotiation with
Gerald raise ethical considerations that can be analysed using the four
approaches to ethical reasoning:
1. End-Result Ethics:
From an end-result ethics perspective, Joe's actions can be seen as ethically
questionable. The consequence of Joe's actions led to a breakdown of trust and
unmet promises with Gerald, impacting Gerald's career and financial security.
The end result of the negotiation process did not align with the initial promises
made to Gerald, raising ethical concerns regarding the impact on Gerald's wellbeing and trust in the company.
2. Duty Ethics:
Duty ethics focuses on the inherent rightness or wrongness of actions,
regardless of their consequences. In this case, Joe's failure to honour the
promises made to Gerald could be seen as a breach of duty. The company had a
duty to uphold the agreements made with Gerald, and failing to do so raises
ethical concerns from a duty ethics perspective.
3. Social Contract Ethics:
This approach considers the moral obligations that exist within a social
framework. The negotiation between Joe and Gerald involved implicit and
explicit agreements, creating a social contract. The company's failure to honour
these agreements could be viewed as a breach of the social contract, impacting
the trust and integrity of the negotiation process.
4. Personal Ethics:
Personal ethics refers to an individual's moral principles and values. From a
personal ethics perspective, Joe's actions could be seen as ethically
questionable. The disregard for promises made to Gerald and the subsequent
breakdown of trust may conflict with personal ethical standards of honesty,
integrity, and fairness.
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In summary, Joe's actions in the negotiation with Gerald raise ethical
concerns, particularly regarding the company's failure to honour commitments
and the impact on Gerald's career and financial security.
Q1) Evaluate JOE’ or ANDY's power throughout the case, considering three of
the five sources of power (1. Informational Power, 2. Personality and Individual
Differences, 3. Power Based on Position and Location in an Organization,4.
Relationship-Based Power, 5. Contextual Power).
Evaluating Joe's power throughout the case involves considering three
sources of power: informational power, power based on position and location in
an organization, and relationship-based power.
1) Joe's informational power stems from his knowledge and expertise in
negotiating individual plans to meet the specific needs of his managers, as
well as his ability to make decisions that impact the organization.
2) His power based on position and location in the organization is evident as the
CEO, giving him authority and control over key decisions, including those
related to Gerald's career progression and compensation.
3) Additionally, Joe's relationship-based power is demonstrated through his
interactions with Gerald, offering him alternative positions and negotiating
compensation terms.
Overall, Joe's power is derived from his expertise, authority as CEO, and
his ability to influence and negotiate with employees.
Q2) In addition, considering ways of negotiating from a position of weakness,
identify and explain three ways Gerald Weiss could use to increase his power
position relative to others. Choose the best suitable three ways from the 8
following ways: 1. All-or-nothing error 2. Make the other party smaller 3. Make
yourself bigger 4. Deals in sequence 5. Improve your BATNA 6. Prepare and
collect lots of good information 7. Be investigative and ask lots of questions to
show a willingness to cooperate 8. Manage the negotiation process (Think about
issues and options)
Gerald Weiss could increase his power position relative to others in the
negotiation through the following ways:
1) Improve his BATNA: Gerald could enhance his Best Alternative to a Negotiated
Agreement (BATNA) by exploring job offers from friends in New York,
increasing his leverage in negotiations with MediCode.
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2) Prepare and collect lots of good information: By gathering comprehensive
information about his value to the company, industry benchmarks, and the
market conditions, Gerald can strengthen his negotiation position and present
compelling arguments for his compensation and career progression.
3) Make yourself bigger: Gerald could enhance his power position by highlighting
his unique skills, contributions, and potential value to the company,
emphasizing his ability to take on strategic roles and contribute to the
company's growth and success.
Given the context provided, Gerald Weiss could employ several strategies
to increase his power position relative to others in the negotiation, considering
his position of weakness. Here are the explanations for the 8 ways Gerald could
use to enhance his negotiation position:
1. Never doing All-or-nothing deals:
Gerald should avoid taking an all-or-nothing approach in negotiations.
Instead, he should seek to find mutually beneficial solutions that allow for
compromise and flexibility, rather than rigid, win-lose outcomes.
2. Make the other party smaller:
Gerald could strategically address power imbalances by leveraging his
network and seeking support from influential stakeholders within the company
or external partners, thereby reducing the relative power of the other party.
3. Make yourself bigger:
Gerald can enhance his power position by emphasizing his unique skills,
contributions, and potential value to the company, highlighting his ability to take
on strategic roles and contribute to the company's growth and success.
4. Deals in sequence:
Gerald could consider negotiating multiple issues in a sequence, allowing
for the resolution of smaller, less contentious matters before addressing more
significant concerns, thereby building momentum and trust in the negotiation
process.
5. Improve your BATNA:
Gerald should focus on improving his Best Alternative to a Negotiated
Agreement (BATNA) by exploring job offers from friends in New York, increasing
his leverage in negotiations with MediCode.
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6. Prepare and collect lots of good information:
Gerald should gather comprehensive information about his value to the
company, industry benchmarks, and the market conditions, strengthening his
negotiation position and presenting compelling arguments for his compensation
and career progression.
7. Be investigative, ask lots of questions to show willingness to cooperate:
Gerald should demonstrate a willingness to cooperate by asking insightful
questions, seeking to understand the perspectives of the other party, and
fostering open communication to build trust and rapport.
8. Manage the negotiation process (Think about issues and options):
Gerald should take an active role in managing the negotiation process,
focusing on identifying key issues, exploring various options, and steering the
negotiation towards mutually satisfactory outcomes.
By employing these strategies, Gerald can enhance his negotiation
position, address power imbalances, and work towards achieving mutually
beneficial outcomes in the negotiation process.
Q3) There are three types of negotiation situations: distributive, integrative and
mixed-motive situations.
(3.1) In the case, which strategy did you think JOE decided to employ?
(3.2) Based on your analysis of the situation, how appropriate was his decision
to employ this strategy? Please support your argument with examples from the
case.
In this case, Joe decided to employ a mixed-motive negotiation strategy.
This is evident in his approach to offering Gerald the position of vice president of
corporate development, attempting to address Gerald's concerns while also
managing the company's internal challenges.
Joe's decision to employ a mixed motive strategy was appropriate given
the complex nature of the negotiation, where multiple interests and concerns
needed to be addressed.
By offering Gerald an alternative position and attempting to balance the
company's needs with Gerald's aspirations, Joe demonstrated a strategic
approach to negotiation. However, the appropriateness of this strategy could be
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questioned, considering the breakdown of trust and unmet promises, indicating
that a more integrative approach might have been more effective in addressing
the underlying concerns and maintaining a positive relationship with Gerald.
Q1) How did JOE show he was using distributive negotiation?
Q1) Joe demonstrated the use of distributive negotiation by focusing on securing
the best possible outcome for the company while addressing Gerald's concerns.
In the negotiation process, Joe aimed to allocate resources, such as
compensation and job roles, in a manner that would benefit the company while
meeting Gerald's needs to a certain extent. For instance, Joe offered Gerald the
position of vice president of corporate development, which could be seen as a
distributive negotiation tactic aimed at finding a compromise that would retain
Gerald within the company while addressing the company's internal challenges.
Additionally, Joe's approach to compensation, particularly in offering a base
salary, bonus potential, and a stock option package, reflects a distributive
negotiation strategy aimed at reaching an agreement that balances the
company's financial constraints with Gerald's expectations.
Q2) Explain the reservation point and resistance point for each actor in detail.
The reservation point and resistance point for each actor can be detailed as
follows:
1. Gerald's Reservation Point: Gerald's reservation point in the negotiation
process was to secure a compensation package and career path that aligned
with his expectations and financial security. His resistance point was likely the
point at which the offered compensation and job role no longer met his
minimum requirements, leading him to consider leaving the company.
2. Joe's Reservation Point: Joe's reservation point was to retain Gerald within
the company while managing the company's financial challenges. His
resistance point may have been the limit at which he could offer concessions
to Gerald without compromising the company's financial stability or internal
dynamics.
3. Andy's Reservation Point: Andy's reservation point may have been to
maintain control over the company's leadership and decision-making,
particularly in relation to Gerald's role and compensation. His resistance
point could have been the point at which he felt that Gerald's demands
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would significantly impact the company's operations or his own position
within the company.
These reservation and resistance points reflect the thresholds at which each
actor was willing to negotiate and make concessions, providing insights into
their positions and priorities in the negotiation process.
Given what you know about the different ways that conflict might be
categorised, what types of conflicts are evident or likely to emerge in this case
study? Given what you observe here, do you anticipate that negotiation is the
only means to resolve them? If not, what are the alternatives, and which
approach would you suggest is likely to lead to the best outcomes?
Based on the provided context, it is evident that the case study involves
complex conflicts and negotiations. The conflicts that are likely to emerge in this
case study include interpersonal conflicts, financial conflicts, and power
struggles.
Gerald's desire for financial security and career progression, as well as his
strained relationship with the company's leadership, indicates the presence of
interpersonal and financial conflicts.
Additionally, the power dynamics and disagreements within the company,
particularly between Gerald and Andy, suggest the presence of power struggles
and organizational conflicts.
Negotiation is not the only means to resolve these conflicts. Alternative
approaches such as mediation, arbitration, or organizational restructuring could
also be considered. Mediation could help address interpersonal conflicts, while
arbitration might be suitable for resolving financial disputes. Organizational
restructuring, such as leadership changes or redefining roles, could address
power struggles and organizational conflicts. An integrative negotiation
approach, focusing on collaborative problem-solving and mutual gains, is likely
to lead to the best outcomes. This approach would involve addressing the
underlying interests and concerns of all parties, fostering open communication,
and seeking mutually satisfactory solutions.
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Thinking about the situation from the perspective of each party involved,
identify what each party wants or is demanding from the other. In thinking
about these demands, what would you say were the underlying interests, needs
or concerns of each party? What does your assessment of underlying interests
suggest as an appropriate approach to negotiating and outcome that might be
mutually satisfactory to all parties?
From the perspective of each party involved, Gerald wants financial
security, career progression, and a trustworthy work environment. Andy and the
company's leadership seek stability, effective leadership, and financial
sustainability. The underlying interests and concerns of each party include
financial security, career advancement, trust, and organizational stability. An
appropriate approach to negotiating a mutually satisfactory outcome would
involve addressing these underlying interests through open communication,
problem-solving, and seeking win-win solutions.
Imagine you are in the role of GERALD. If you were to take an investigative
approach to planning for this negotiation, describe what you think you know
about the situation, and what you do not know, but need to know to develop
your strategy for negotiating effectively. With this assessment in mind, what
possible ways can you improve your understanding of the situation and to
negotiate effectively?
If I were in the role of Gerald, taking an investigative approach to planning
for this negotiation would involve understanding the company's financial
situation, the perspectives of other executives, and the potential for career
advancement. I would need to know more about the company's strategic
direction, financial stability, and the dynamics within the leadership team. To
improve my understanding, I would seek to gather more information about the
company's financial performance, industry trends, and the perspectives of key
stakeholders through open dialogue and information gathering.
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Negotiation theory highlights a number of dilemmas that a negotiator must
address in the process of planning and executing a negotiation strategy. What
types of dilemmas (dilemmas of honesty or dilemmas of trust) does GERALD
face in this situation? And what advice would you provide him to resolve those
dilemmas? Please support your answer drawing on research and evidence form
the case study.
Gerald faces dilemmas of trust and honesty in this situation. The
breakdown of trust with the company's leadership and the need to navigate
conflicting interests present dilemmas for him.
To resolve these dilemmas, Gerald should prioritize open and honest
communication, seek to rebuild trust through transparency, and focus on finding
mutually beneficial solutions. Building trust through consistent and transparent
communication, and demonstrating honesty in negotiations, can help address
these dilemmas and lead to more effective negotiation outcomes.
In summary, the case study involves complex conflicts and negotiations,
requiring an integrative negotiation approach to address underlying interests
and concerns, foster open communication, and seek mutually satisfactory
solutions. An investigative approach to planning for negotiation, focusing on
understanding the company's dynamics and financial situation, and addressing
dilemmas of trust and honesty through transparent communication, can
contribute to more effective negotiation strategies and outcomes.
1) Explore how JOE or GERALD could inject more creativity into this
negotiation, offering specific examples.
In order to inject more creativity into the negotiation, Joe and Gerald
could explore alternative compensation structures that align with Gerald's
financial security and career progression needs while addressing the company's
financial constraints. For example, they could consider a performance-based
compensation model that ties Gerald's incentives to the company's success,
fostering a shared interest in achieving strategic goals. Additionally, they could
explore non-monetary benefits such as career development opportunities,
mentorship programs, or leadership training, providing Gerald with additional
value beyond financial compensation. Introducing flexible work arrangements,
such as remote work options or sabbaticals, could also enhance the negotiation
by addressing Gerald's desire for a balanced lifestyle. By thinking creatively
about the negotiation process, Joe and Gerald can explore innovative solutions
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that go beyond traditional compensation packages, fostering a more
collaborative and mutually beneficial negotiation outcome.
Explain the role of emotions in JOE’s negotiations with GERALD.
Emotions play a significant role in Joe's negotiations with Gerald,
influencing the dynamics and outcomes of the negotiation process.
Joe's expressions of frustration, concern, and empathy during the
negotiation reflect the emotional complexity of the situation. His attempts to
convey the challenges he faces and the efforts he is making to address Gerald's
concerns demonstrate the emotional investment in the negotiation.
Similarly, Gerald's emotional responses, such as feeling betrayed and
uncertain about his future, impact the negotiation dynamics. Understanding and
managing these emotions is crucial for fostering effective communication,
building trust, and reaching mutually satisfactory outcomes. By acknowledging
and addressing the emotional aspects of the negotiation, Joe and Gerald can
create a more empathetic and collaborative negotiation environment, leading to
more constructive and mutually beneficial outcomes.
Ethical reasoning encompasses various approaches that guide individuals in
making moral judgments and decisions.
1) End Result Ethics (Consequentialism):
End-result ethics, also known as consequentialism, focuses on the
outcome or consequences of an action to determine its moral value. According
to this approach, an action is considered morally right if it produces favourable
results or consequences, regardless of the means used to achieve them.
Example: Utilitarianism, a form of consequentialism, suggests that the morally
right action is the one that maximizes overall happiness or well-being for the
greatest number of people. For instance, if a doctor has to choose between
saving one patient with a rare blood type or five patients with more common
blood types, utilitarianism would advocate for saving the five patients because it
maximizes the overall benefit.
2) Duty Ethics (Deontology):
Duty ethics, also known as deontology, emphasizes the inherent rightness
or wrongness of actions based on principles or duties rather than the outcomes.
19
According to this approach, individuals have certain moral obligations or duties
that they must follow, regardless of the consequences.
Example:
1. Telling the Truth:

Example: Your friend asks you if you broke their favorite toy. Even
though you might be scared of getting in trouble, you choose to tell
the truth because it's the right thing to do. In duty ethics, being
honest and truthful is important, even when it's difficult.
2. Respecting Rules:

Example: Your teacher asks everyone to raise their hand before
speaking in class. Even if you're excited to share your answer, you
wait for your turn and follow the rule because it shows respect for
your teacher and classmates. Following rules and respecting
authority figures are duties in duty ethics.
3. Keeping Promises:

Example: You promise your friend that you will help them with their
homework after school. Even if you receive a tempting invitation to
play outside, you keep your promise because you understand the
importance of being reliable and trustworthy. Keeping promises is a
duty that helps build strong relationships.
4. Respecting Property:

Example: You notice a lost wallet on the playground. Instead of
keeping it for yourself, you take it to a teacher or the school office
because you understand that stealing or keeping something that
doesn't belong to you is wrong. Respecting the property of others
is a duty in duty ethics.
5. Being Kind and Helpful:

Example: Your classmate is struggling to carry their heavy backpack.
Even though you're in a hurry, you stop and offer to help them
carry it to their classroom because you believe in being kind and
helpful to others. Helping those in need is seen as a duty in duty
ethics.
20
6. Respecting Others' Rights:

Example: You see someone being treated unfairly or bullied at
school. Even though you might feel scared, you speak up and
report the situation to a teacher or trusted adult because you
believe in standing up for what is right and respecting the rights of
others. Protecting the rights and well-being of others is a duty in
duty ethics.
3) Social Contract Ethics:
Social contract ethics is based on the idea that moral rules and principles
are derived from an implicit agreement among members of a society. According
to this approach, individuals agree to abide by certain rules and norms in
exchange for the benefits of living in a society.
Example: John Rawls' theory of justice as fairness illustrates social contract
ethics. Rawls argues that individuals in a hypothetical "original position" would
agree to principles of justice that ensure fairness and equal opportunity for
everyone in society. For instance, individuals agree not to steal from others
because they expect others to respect their property rights in return.
1. Playing Fairly in Games:

Example: When playing a game with friends, everyone agrees to
follow the same set of rules. Even if you're winning, you don't cheat
or change the rules because it wouldn't be fair to others. Following
the agreed-upon rules ensures that everyone has an equal chance
to enjoy the game.
1. Adhering to Company Policies and Procedures:
Example: Employees agree to abide by the company's policies and
procedures, such as those related to attendance, punctuality, dress code,
and safety regulations. By following these guidelines, employees
contribute to a harmonious work environment and uphold the social
contract established within the organization.
2. Respecting Co-workers' Time and Space:
Example: Employees respect each other's time and personal space by
avoiding unnecessary interruptions, refraining from loud or disruptive
behavior in shared spaces, and adhering to designated break times.
21
3.
4.
5.
6.
7.
4)
Respecting boundaries fosters a positive work culture and maintains
mutual respect among colleagues.
Maintaining Confidentiality:
Example: Employees understand the importance of maintaining
confidentiality regarding sensitive company information, client data, and
proprietary knowledge. By upholding confidentiality agreements,
employees honor the trust placed in them by the organization and
demonstrate integrity in their professional conduct.
Contributing to Team Goals and Objectives:
Example: Employees commit to contributing their skills, expertise, and
efforts toward achieving team goals and objectives. By collaborating
effectively with colleagues, sharing knowledge, and supporting each
other's endeavors, employees uphold their end of the social contract and
promote collective success within the organization.
Resolving Conflicts Constructively:
Example: In situations of conflict or disagreement, employees engage in
constructive dialogue, active listening, and respectful communication to
resolve issues amicably. By seeking mutually beneficial solutions and
avoiding hostility or confrontation, employees uphold the social contract
and contribute to a positive work environment.
Complying with Legal and Ethical Standards:
Example: Employees adhere to legal requirements, industry regulations,
and ethical standards relevant to their roles and responsibilities. This
includes refraining from engaging in unethical conduct, such as
discrimination, harassment, fraud, or conflicts of interest. By upholding
legal and ethical standards, employees contribute to the organization's
integrity and reputation.
Promoting Diversity and Inclusion:
Example: Employees actively support diversity and inclusion initiatives
within the workplace by respecting diverse perspectives, fostering
inclusivity, and challenging biases or discriminatory practices. By
embracing diversity and creating an inclusive work environment,
employees uphold the social contract and contribute to a culture of
equity and respect.
Personalistic Ethics (Virtue Ethics):
Personalistic ethics, also known as virtue ethics, focuses on the character
of the individual and emphasizes the development of virtuous traits and habits.
22
According to this approach, ethical decisions are guided by the cultivation of
virtues such as honesty, courage, compassion, and integrity.
1. Honesty:

Example: Imagine your friend forgot their lunch at school. Even
though you're hungry and tempted to eat it, you choose to return
the lunch to your friend because it's the right thing to do. Being
honest helps you build trust and respect with others.
2. Kindness:

Example: You notice a new student sitting alone during lunchtime.
Instead of ignoring them, you go over, introduce yourself, and invite
them to join your group. Showing kindness helps create a
welcoming and inclusive environment where everyone feels valued.
3. Courage:

Example: You witness someone being bullied at school. Even
though you feel scared, you speak up and tell a teacher or trusted
adult about what's happening. Showing courage means standing up
for what is right, even when it's difficult or scary.
4. Respect:

Example: During a classroom discussion, you listen attentively to
your classmates' ideas, even if you disagree with them. You wait for
your turn to speak and treat others with respect, even when you
have different opinions. Respecting others' viewpoints helps foster
open communication and understanding.
5. Responsibility:

Example: You have a pet dog, and it's your responsibility to feed and
walk them every day. Even when you're busy or tired, you make
sure to take care of your pet because you understand the
importance of fulfilling your duties. Taking responsibility helps build
trust and reliability.
1. Following Company Policies and Procedures:

Example: Employees adhere to company policies and procedures,
such as those related to data security, confidentiality, and
23
workplace conduct, even if they believe bending the rules might
yield better results. Following established policies ensures
consistency, fairness, and compliance with legal and ethical
standards.
2. Honoring Contracts and Agreements:

Example: Employees fulfill their contractual obligations,
agreements, and commitments with clients, customers, and
business partners, even if unforeseen circumstances arise or
fulfilling those commitments becomes challenging. Honoring
contracts demonstrates integrity, reliability, and trustworthiness in
business dealings.
3. Respecting Individual Rights and Dignity:

Example: Employees uphold the rights and dignity of their
colleagues, clients, and stakeholders by refraining from engaging in
discriminatory behavior, harassment, or exploitation, irrespective of
personal biases or preferences. Respecting individual rights fosters
a culture of inclusivity, fairness, and mutual respect within the
workplace.
4. Maintaining Confidentiality and Privacy:

Example: Employees handle confidential information and sensitive
data with utmost discretion and care, adhering to confidentiality
agreements and privacy policies, even if disclosing such
information could potentially benefit the organization or
themselves personally. Maintaining confidentiality preserves trust,
confidentiality, and professionalism in business relationships.
5. Providing Truthful and Accurate Information:

Example: Employees communicate truthfully and transparently
with colleagues, clients, and stakeholders, providing accurate
information
and
avoiding
deceptive
practices
or
misrepresentations, even if conveying unfavorable news or
outcomes. Providing truthful information fosters trust, credibility,
and accountability in professional relationships.
6. Respecting Professional Boundaries and Responsibilities:
24

Example: Employees refrain from abusing their authority, power, or
influence for personal gain or advantage, respecting professional
boundaries and ethical standards in their interactions and decisionmaking processes. Respecting professional boundaries upholds
fairness, impartiality, and ethical conduct in the workplace.
7. Intervening in Ethical Dilemmas and Misconduct:

Example: Employees intervene and report instances of unethical
behavior, misconduct, or violations of company policies and ethical
standards, even if doing so might entail personal risks or
repercussions. Intervening in ethical dilemmas demonstrates moral
courage, accountability, and commitment to upholding ethical
principles and organizational values.
In summary, these four approaches to ethical reasoning provide different
perspectives on how individuals can assess and make moral judgments. While
end result ethics considers the consequences of actions, duty ethics emphasizes
moral obligations, social contract ethics focuses on societal agreements, and
personalistic ethics emphasizes the cultivation of virtuous character traits. Each
approach offers valuable insights into the complexities of ethical decisionmaking.
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Explain clearly how the internal conflicts and power struggles within the company
developed. Which actors are involved in the conflicts?
1. Gerald's Expectations:
Gerald initially joined the company with the expectation of
becoming the CFO and receiving a favourable stock option package.
However, as the situation evolved, he faced disappointment and a sense
of betrayal when his transition to CFO was denied, and the terms of his
stock option package were reneged upon.
2. Discontent Among Top Managers:
Andy's leadership style and decision-making led to
discontent/ความไม่พอใจ among several top managers, who viewed him
as capricious/ impetuous ตามอาเภอใจ, temperamental/irritable/irascible
เจ้าอารมณ์ , and uncooperative. This discontent culminated in a secret
meeting where eight managers signed a statement demanding Andy's
replacement, leading to a power struggle within the company's
leadership.
3. Breakdown of Trust:
The relationship between Gerald and Andy deteriorated, leading to
a breakdown of trust. Andy's decision to deny Gerald the CFO position
and the subsequent confrontation between them contributed to the
internal conflicts and power struggles.
4. Board's Decision:
The board's involvement in the conflicts was pivotal, as they
gathered information from top executives and ultimately asked for Andy's
resignation. Gerald's testimony about Andy's behaviour played a crucial
role in the board's decision to remove him, further highlighting the
internal power struggles and conflicts within the company's leadership.
Overall, the internal conflicts and power struggles within the company
involved a complex interplay of individual aspirations, leadership dynamics, and
organizational decision-making, leading to tensions and challenges among the
key actors. These conflicts had a significant impact on the company's leadership
and the professional relationships among the individuals involved.
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Why did the relationship between Gerald and Andy deteriorate?
The relationship between Gerald and Andy deteriorated due to a series of
disagreements and altercations that caused irreparable damage. Andy no longer
trusted Gerald and expressed doubts about his business sense, particularly in
relation to the CFO position.
At a board meeting, Andy openly stated that he did not believe Gerald
was suitable for the CFO role and decided that he would fill both the president
and CFO positions himself. This decision, along with the breakdown of trust and
the lack of alignment in their professional aspirations, led to a significant
deterioration in their relationship.
Additionally, Gerald's disappointment and sense of betrayal after being
denied the CFO position, despite his initial expectations and commitments made
by the company, further strained the relationship. These factors contributed to
the irreparable damage and the breakdown of trust between Gerald and Andy,
ultimately leading to the deterioration of their professional relationship.
Did any actors in the case use the marginally ethical negotiating tactics [1)
competitive bargaining, 2) emotional manipulation, 3) misrepresentation, 4)
misrepresentation to opponent’s networks, 5) inappropriate information
gathering, and 6) bluffing]. If any, explain who and how they use them.
1) Misrepresentation
where Joe, the company's president, made a verbal agreement with Gerald
regarding his compensation package, but later reneged on the terms.
Joe initially promised Gerald a significant stock option package with a
guaranteed floor of $12 million, but later proposed to pay him in increments
over ten years, which significantly devalued the compensation package. This
misrepresentation of the original agreement can be considered a marginally
ethical negotiating tactic.
2) Emotional Manipulation
Joe attempted to persuade Gerald to accept the revised compensation
terms by emphasizing the difficulty of the situation and expressing his efforts
to find a solution. This emotional appeal could be seen as a tactic to
influence Gerald's decision-making process.
3) Misrepresentation to Opponent's Networks.
Joe, in his attempt to justify the revised compensation terms, mentioned
that Gerald's colleagues would resent him for receiving a higher
compensation package. This statement could be seen as an attempt to
27
manipulate Gerald's decision by misrepresenting the potential reactions of
his colleagues.
Gerald could utilize the following 10 best practices in negotiations to increase his
power in the negotiation process:
1. Be prepared:
Gerald should thoroughly prepare for negotiations by understanding his
own goals and priorities, as well as the interests and positions of the
other party. This includes understanding the financial implications and
long-term career prospects associated with the negotiation.
2. Diagnose the fundamental structure of the negotiation:
By identifying whether the negotiation is integrative or distributive,
Gerald can tailor his approach to maximize value creation and claim a fair
share of the value.
3. Identify and work the BATNA:
Gerald should assess his Best Alternative to a Negotiated Agreement
(BATNA) and leverage it to strengthen his position in the negotiation.
4. Be willing to walk away:
Demonstrating a willingness to walk away from the negotiation can
enhance Gerald's leverage and signal to the other party that he has
alternatives.
5. Master the key paradoxes of negotiation:
Gerald should be adept at managing the paradoxes of negotiation, such
as being assertive yet empathetic, and competitive yet collaborative.
6. Remember the intangibles:
Gerald should consider the intangible aspects of the negotiation, such as
building rapport and trust, which can influence the outcome.
7. Actively manage coalitions:
Gerald can build alliances and coalitions within the organization to
support his position and strengthen his negotiating power.
8. Savor and protect your reputation:
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Maintaining a positive reputation and ethical conduct in negotiations can
enhance Gerald's credibility and influence.
9. Remember that rationality and fairness are relative:
Understanding that perceptions of rationality and fairness can vary,
Gerald should tailor his approach to align with the other party's
perspective.
10.Continue to learn from your experience:
Gerald should reflect on his negotiation experiences and continuously
learn and adapt his approach to improve his negotiation skills and
outcomes.
By applying these best practices, Gerald can enhance his negotiation
power, navigate complex negotiations, and achieve favorable outcomes aligned
with his career and financial goals.
key paradoxes of negotiation
1) claiming value versus creating value
2) sticking by your principles vs being resilient enough to go with the flow
3) sticking with your strategy vs opportunistically pursuing new options
4) being too honest and open versus being too closed and opaque
5) being too trusting versus being too distrusting
Gerald could apply his understanding of negotiation paradoxes to navigate
his challenging situation at MediCode Therapeutics.
1) he can address the paradox of claiming value versus creating value by
focusing on creating value in his negotiations with the company. Instead of
solely focusing on claiming the value of his compensation package, he can
seek to create value by proposing innovative solutions that benefit both
parties, such as performance-based incentives or alternative forms of
compensation.
2) Gerald can navigate the paradox of sticking by his principles versus being
resilient enough to go with the flow by maintaining his core principles of
integrity and fairness while also being open to flexible negotiation strategies.
This approach would allow him to uphold his values while adapting to the
evolving dynamics of the negotiation process.
3) he can address the paradox of sticking with his strategy versus
opportunistically pursuing new options by balancing a strategic approach
29
with the ability to seize new opportunities that may arise during the
negotiation. This could involve being open to alternative job roles or
compensation structures that align with his long-term career goals.
4) Gerald can navigate the paradox of being too honest and open versus being
too closed and opaque by maintaining transparency in his communication
while also strategically disclosing information to serve his negotiation
objectives.
5) he can address the paradox of being too trusting versus being too distrusting
by maintaining a balanced approach to trust in his negotiations. This involves
being cautious and verifying commitments while also fostering a constructive
and collaborative negotiation environment.
By applying these understandings of negotiation paradoxes, Gerald can
navigate the complexities of his negotiation with MediCode Therapeutics,
effectively balancing his principles, strategic approach, and communication to
achieve a favorable outcome aligned with his career aspirations and financial
goals.
On page 10, Joe used the integrative negotiation tactic of "Bridging Solutions"
when he offered Gerald the position of Vice President of Corporate Development.
This tactic involves finding a solution that addresses the interests of both parties
and creates value for both sides. By proposing a new role for Gerald within the
company, Joe attempted to bridge the gap between Gerald's desire for a
significant position and the company's need to find a suitable role for him. This
tactic aims to create a win-win outcome by addressing the concerns and
interests of both parties in the negotiation.
1. Competing: This strategy was demonstrated by Andy, who appeared to
prioritize his own interests and assert his authority in the decision-making
process. He expressed a lack of trust in Gerald and ultimately made the
decision to take over the CFO position himself, indicating a competitive
approach to the negotiation.
2. Collaborating: Gerald displayed a collaborative approach by expressing his
willingness to negotiate and compromise, especially when he discussed his
previous experience of being willing to negotiate a lower bonus. He also
demonstrated a collaborative attitude when he offered to compromise for
the good of the company, indicating a focus on finding mutually beneficial
solutions.
30
3. Compromising: Both Gerald and Joe engaged in compromising strategies
during their negotiations. Gerald expressed his willingness to compromise
on his compensation and job role, while Joe attempted to find a middle
ground by offering Gerald the position of vice president of corporate
development, acknowledging the need for compromise in the situation.
This page contains the dialogue between Gerald and Joe, where Gerald
expresses his willingness to negotiate and compromise, especially if Joe told
the board and the other executives that he was doing this voluntarily for the
good of the company.
1. The Collaborating strategy in negotiation involves a cooperative approach
where both parties work together to find a mutually beneficial solution. It
focuses on addressing the concerns and interests of all parties involved,
seeking to create value and build trust through open communication and
joint problem-solving. This strategy aims to maximize the outcomes for all
parties by integrating their perspectives and interests into the final
agreement.
2. The Compromising strategy in negotiation involves seeking a middle
ground or making concessions to reach a mutually acceptable solution. It
entails both parties giving up some of their demands to meet in the
middle, often resulting in a solution that partially satisfies the interests of
each party. This strategy emphasizes finding a balanced solution through
mutual concessions, even if it means not fully achieving each party's
original objectives.
In summary, while the Collaborating strategy focuses on creating value
and building trust through joint problem-solving, the Compromising strategy
involves finding a middle ground through mutual concessions to reach an
acceptable solution. Both strategies aim to achieve mutually beneficial
outcomes, but they differ in their approach to reaching that outcome.
1) Explain When and How Gerald was using the Compromising strategy.
Gerald used the Compromising strategy when he expressed his willingness to
negotiate a lower bonus with his previous employer, despite having a
contractual agreement for a higher amount. He demonstrated a willingness to
make concessions and find a middle ground by accepting a significantly lower
bonus of $1.5 million, recognizing that this compromise could lead to future
benefits. This approach reflects Gerald's ability to prioritize long-term gains over
31
short-term financial considerations, showcasing his use of the Compromising
strategy.
2) Explain When and How JOE was using the Compromising strategy.
Joe used the Compromising strategy when he offered Gerald the position of vice
president of corporate development after the CFO position was no longer
available. By proposing an alternative role and acknowledging Gerald's concerns
about his job and compensation, Joe demonstrated a willingness to find a
middle ground and make concessions to address Gerald's needs. This approach
reflects Joe's attempt to reach a mutually acceptable solution and
accommodate Gerald's interests, showcasing his use of the Compromising
strategy.
3) Explain When and How Gerald was using the Collaborating strategy.
Gerald used the Collaborating strategy when he expressed his willingness to
negotiate and compromise with Joe, especially when he offered to compromise
for the good of the company. By seeking a collaborative approach and
demonstrating a willingness to work together to find a mutually beneficial
solution, Gerald showcased his focus on addressing both his own concerns and
the interests of the company. This approach reflects his ability to engage in joint
problem-solving and create value for both parties, showcasing his use of the
Collaborating strategy.
4) Explain When and How JOE was using the Collaborating strategy.
Joe used the Collaborating strategy when he attempted to find a solution to
keep Gerald in the company by offering him the position of vice president of
corporate development. Despite facing challenges with the president's
opposition to the idea, Joe demonstrated a collaborative approach by seeking to
address Gerald's concerns and find a role that would benefit both Gerald and the
company. This approach reflects Joe's focus on creating value and working
together to find a mutually beneficial solution, showcasing his use of the
Collaborating strategy.
32
Despite his successful career on Wall Street, Gerald accepted the job offer at
MediCode despite a lower salary. This statement showed which Strategies of
The dual concerns model (avoidance, competition, accommodation, and
collaboration)
The decision of Gerald to accept the job offer at MediCode despite a
lower salary reflects the strategy of accommodation in the dual concerns model.
Accommodation involves a high level of cooperation and a low level of
assertiveness. In this scenario, Gerald prioritized the cooperative aspect of the
negotiation by accepting the job offer, demonstrating a willingness to
accommodate the needs and interests of MediCode, even if it meant accepting a
lower salary. This strategy often involves prioritizing the relationship and
harmony between the parties over assertively pursuing one's own interests.
Gerald's decision to accept the job offer at MediCode despite the lower salary
aligns with the accommodation strategy within the dual concerns model.
Gerald's decision to accept the job offer at MediCode despite a lower
salary reflects an accommodating approach in The dual concerns model. This
approach involves prioritizing the concerns and interests of others over one's
own. In this case, Gerald's willingness to negotiate a much lower bonus and
accept a competitive package with enormous upside potential demonstrates his
accommodation of the company's compensation terms. Despite his awareness
of the comparatively higher sums being collected by his former colleagues on
Wall Street, Gerald's decision to compromise and accept a lower salary reflects
his accommodating approach to conflict management. This aligns with the
collaborative approach in The dual concerns model, as Gerald sought a mutually
beneficial solution and was willing to make sacrifices in the short run for
potential long-term gains.
In the case of Gerald Weiss, several strategies from the dual concerns model can
be identified. These strategies include avoidance, competition, accommodation,
and collaboration.
1. Avoidance:
This strategy involves ignoring or withdrawing from the conflict. Gerald
demonstrated avoidance when he considered leaving the company after his
trust in the CEO, Joe Hart, was shattered. He also contemplated accepting job
offers from friends in New York, indicating a desire to avoid the conflict and seek
alternative opportunities.
33
2. Competition:
This strategy involves pursuing one's own concerns at the expense of
others. Andy, the CEO's son, displayed a competitive approach when he decided
to take over as president and CFO, effectively sidelining Gerald from the CFO
position. Additionally, the disgruntled managers who organized a secret meeting
to force Andy out also exhibited a competitive strategy to address their
concerns.
3. Accommodation:
This strategy involves prioritizing the concerns of the other party over
one's own. Gerald demonstrated accommodation when he agreed to negotiate
a lower bonus, despite the original agreement, in order to maintain goodwill
with the company. He also considered compromising on his position in the
company for the greater good, showing a willingness to accommodate the
needs of the organization.
4. Collaboration:
This strategy involves working together to find a mutually beneficial
solution. Joe Hart attempted a collaborative approach when he sought to create
a new role for Gerald as the vice president of corporate development, aiming to
keep Gerald within the company despite the challenges. However, the
president's resistance to this proposal indicates a lack of collaboration within the
company's leadership.
These strategies reflect the complex dynamics of conflict and negotiation
within the case of Gerald Weiss, showcasing how different parties employed
various approaches to address their concerns and navigate the challenging
circumstances.
34
Gerald showed his willingness to accept the lower bonus (less than $12 million)
to Joe. Gerald expressed his understanding of the company's financial situation
and the need to cut back on compensation, indicating his willingness to accept
the circumstances and the lower bonus. He demonstrated flexibility and a
cooperative attitude by acknowledging the challenges faced by the company
and expressing his understanding of the need for adjustments in compensation.
This willingness to accept the lower bonus reflects Gerald's pragmatic approach
and his commitment to supporting the company during challenging times.
In the case, various types of conflicts can be identified, including relationship
conflict, intrapersonal conflict, and interpersonal conflict.
1. Relationship Conflict:
The relationship conflict is evident in the deteriorating relationship between
Gerald and Andy. This conflict is characterized by a breakdown of trust,
disagreements, and a lack of alignment in their professional aspirations. Gerald's
disappointment after being denied the CFO position and the breakdown of trust
between him and Andy led to a significant deterioration in their relationship.
2. Intrapersonal Conflict:
Intrapersonal conflict is observed in Gerald's internal struggle and confusion
regarding his future at the company. Gerald's internal conflict is evident when
he feels unsure about his trust in Joe and the company's promises, leading to a
sense of disillusionment and a lack of vision for his role within the organization.
3. Interpersonal Conflict:
Interpersonal conflict is demonstrated in the interactions between Gerald
and Joe, particularly when Gerald expresses his concerns and frustrations about
the company's decisions and the impact on his role. The conflict arises from the
differences in expectations and the breakdown of trust between Gerald and Joe,
leading to strained professional relationships and communication challenges.
Overall, the case illustrates the presence of relationship conflict,
intrapersonal conflict, and interpersonal conflict, involving key actors such as
Gerald, Andy, and Joe. These conflicts have significant implications for the
dynamics within the company and the professional relationships among the
individuals involved.
35
Gerald, Joe, and Andy exhibit distinct characteristics that can be related to
negotiation and conflict theories:
Gerald:
 Gerald is portrayed as a skilled negotiator who values financial security and
career advancement.
 His willingness to compromise on compensation and job roles demonstrates
his adaptability and strategic approach to negotiation.
 Additionally, his commitment to the company, despite strained relations with
Andy, reflects his ability to balance personal aspirations with organizational
loyalty.
 Gerald's assertiveness and willingness to negotiate lower bonuses and accept
a competitive package align with the integrative negotiation approach,
seeking mutually beneficial solutions while maintaining long-term relationships.
Joe:
 Joe is depicted as a decisive and pragmatic leader who values the company's
stability and growth.
 His attempts to find a middle ground and offer Gerald the position of vice
president of corporate development reflect his strategic approach to conflict
resolution.
 Joe's focus on maintaining the company's financial discipline and addressing
internal challenges demonstrates his concern for organizational effectiveness.
 His decision-making and efforts to navigate the conflicts within the company
align with the collaborative conflict management approach, seeking solutions
that address the interests of all parties involved.
Andy:
 Andy is portrayed as a determined and ambitious leader with a strong focus on
succession planning and organizational control.
 His reluctance to trust Gerald and his decision to fill both the president and
CFO positions reflect his assertive and competitive approach to leadership.
 Andy's emphasis on grooming successors and maintaining control over key
positions aligns with the competitive negotiation approach, prioritizing
individual goals and maintaining authority within the organization.
In summary, the personalities of Gerald, Joe, and Andy reflect different
negotiation and conflict management styles. Gerald's integrative negotiation
36
approach emphasizes collaboration and long-term relationships, while Joe's
collaborative conflict management approach focuses on addressing
organizational challenges and maintaining stability. In contrast, Andy's
competitive negotiation approach prioritizes individual goals and control within
the organization. These distinct characteristics contribute to the dynamics of
negotiation and conflict resolution within the company, shaping the interactions
and outcomes among the key actors.
Why did Gerald accept the job at the Medicode instead of Wall Street?
Gerald's decision to accept the job at MediCode instead of pursuing
opportunities on Wall Street can be attributed to several factors:
1. Career Advancement:
Despite his successful career on Wall Street, Gerald saw the opportunity
at MediCode as a chance to fulfill his long-standing goal of managing a
company. He recognized the potential for personal and professional growth in a
leadership role at MediCode, which aligned with his aspirations for a broader
range of experiences beyond his previous roles in finance and trading.
2. Strategic Negotiation:
Gerald's willingness to accept a lower bonus and negotiate a competitive
compensation package at MediCode reflects his strategic approach to
negotiation. He recognized the potential for long-term gains and career
progression, as evidenced by his willingness to compromise on immediate
financial rewards for the promise of future opportunities and growth within the
company.
3. Company Potential:
MediCode's reputation as an exciting and prestigious company with a
promising future, evidenced by its consistent stock price growth and successful
subsidiaries, likely influenced Gerald's decision. The company's innovative RNA
therapeutic development and sophisticated financial strategy, as well as its
strong relationship with the Hart family, may have contributed to Gerald's
confidence in the company's potential for success and growth.
In summary, Gerald's decision to accept the job at MediCode instead of
pursuing opportunities on Wall Street was driven by his strategic negotiation
approach, the potential for career advancement and personal growth, and his
confidence in the company's future prospects and opportunities for leadership.