Please answer the following at the bottom of the case. Thanks To negotiate whether an employee should be retained or not, the CHRO can design the following line of judgement: Who: Attributes of the person being evaluated, whether they fit in with the core values of the organization or not. What: Skills of the person, i.e., specialized skills that can make a difference to the organization’s revenues should be considered. Where; The geographical region in which they work and whether they are required there or not need to be evaluated. Why: Major cause for retention should be value-addition or potential for continued value addition to the organization. How: Instead of using standard Key Performance Indicators (KPI), customized packages for valuable employees based on their unique contributions to the organization are a good place to start. “KPIs are intrinsically linked to a firm\'s strategic goals and are used to help managers assess whether they\'re on target as they work towards those goals (John, 2017)”. Since Netflix aims only at retaining A employees, managers at all levels should dedicate time to developing more A employees to keep adding value to the company. As we see, the types of power the CHRO has for instance, with the positional power she can direct the company as per her own methods due to her designation. this power is very crucial as there are no HR policies in place, there must be a central figure who functions as the model figure to direct the HR functions of the company which usually work as per the model HR policies. Then the information power is where the employees coming in can expect to learn and look up to her as she has an in-depth understanding of the processes and clear about the path she wishes to take Netflix towards (Patty, 2014). The Reward power adds to coercive power as Sharon has the power to retain a well performing employee as what is been envisaged by the company and with her power to take disciplinary action against anyone who isn\'t performing to the expectations, Sharon can strike the right balance of maintaining the best of talent. Sharon\'s people centric approach with her social power helps her exercise the above powers in the negotiation very smoothly as she can identify and select the best employees through negotiation and the incoming employee doesn\'t feel out of place. Aiding to all these powers is her charismatic power which makes the employees listen to her, follow her advice or fear her for what she is rather than just her designation and hugely helps during negotiations as her exercising of any power doesn\'t come across as being impersonal or arrogant but a necessary action. If an agreement is not reached, the CHRO should look outside for eligible candidates. BATNA stands for Best Alternative to a Negotiated Agreement. “BATNA, Best Alternative to a Negotiated Agreement term was introduced by Roger Fischer and William Ury in 1981. They proposed that, when negotiating a business agreement, we s.

1. Please answer the following at the bottom of the case. Thanks
To negotiate whether an employee should be retained or not, the CHRO can design the following
line of judgement: Who: Attributes of the person being evaluated, whether they fit in with the
core values of the organization or not. What: Skills of the person, i.e., specialized skills that can
make a difference to the organization’s revenues should be considered.
Where; The geographical region in which they work and whether they are required there or not
need to be evaluated. Why: Major cause for retention should be value-addition or potential for
continued value addition to the organization.
How: Instead of using standard Key Performance Indicators (KPI), customized packages for
valuable employees based on their unique contributions to the organization are a good place to
start. “KPIs are intrinsically linked to a firm's strategic goals and are used to help managers
assess whether they're on target as they work towards those goals (John, 2017)”. Since Netflix
aims only at retaining A employees, managers at all levels should dedicate time to developing
more A employees to keep adding value to the company.
As we see, the types of power the CHRO has for instance, with the positional power she can
direct the company as per her own methods due to her designation. this power is very crucial as
there are no HR policies in place, there must be a central figure who functions as the model
figure to direct the HR functions of the company which usually work as per the model HR
policies. Then the information power is where the employees coming in can expect to learn and
look up to her as she has an in-depth understanding of the processes and clear about the path she
wishes to take Netflix towards (Patty, 2014).
The Reward power adds to coercive power as Sharon has the power to retain a well performing
employee as what is been envisaged by the company and with her power to take disciplinary
action against anyone who isn't performing to the expectations, Sharon can strike the right
balance of maintaining the best of talent. Sharon's people centric approach with her social power
helps her exercise the above powers in the negotiation very smoothly as she can identify and
select the best employees through negotiation and the incoming employee doesn't feel out of
place.
Aiding to all these powers is her charismatic power which makes the employees listen to her,
follow her advice or fear her for what she is rather than just her designation and hugely helps
during negotiations as her exercising of any power doesn't come across as being impersonal or
arrogant but a necessary action.
If an agreement is not reached, the CHRO should look outside for eligible candidates. BATNA
stands for Best Alternative to a Negotiated Agreement. “BATNA, Best Alternative to a
Negotiated Agreement term was introduced by Roger Fischer and William Ury in 1981. They

2. proposed that, when negotiating a business agreement, we should work out, in the meantime, an
alternative solution to the one currently discussed or agreed with the second party to the contract.
This approach should secure us against signing an extremely adverse agreement or when the
negotiation is unable to reach an acceptable goal by realizing an alternative approach (Seweryn,
2007)”. For this case the employees may choose to move to another organization where their
specific skills will be valued more than at Netflix. ZOPA Zone of Possible Agreement for the
CHRO is a probably an increase in perks or incentives that a valuable employee demands to stay
back.
Netflix still seems to be working in a startup mode where the organizational culture is quite
dynamic. Here every individual is expected to take ownership of his/her task and work
independently for the best of the company and contribute constantly. This of course is how every
company wishes of their employees but Netflix when it says it wants only the best of talent they
are expecting them to start functioning and contributing from day one with not much emphasis
on training or orientation which are usually part of the HR policies.
They even seem to be very indifferent of the employees leaving their company. When they say
they don't want to put additional efforts in working with the remaining 3% and giving a chance
for them to adjust to the new company and culture and that they would simply remove the people
who they feel are not a right fit after hiring, shows their apathy towards humans as employees
but just considering them as mere machines to do a task.
From what I have gathered so far about this case and the materials involved I have found behind
all the organization's policy decisions lies with Sharon who happens to be the Chief Human
Resources Officer. her decision is very important and the company wants to recruit only talented
individuals in each department and expect A grade performance from each department they don’t
believe that much in HR policies but they prefer to retain employees by negotiation (The Woman
Behind the Netflix Culture, 2015).
The Company Chief Human Resources Officer Sharon is very talented and good at identifying
top performers and talented employees. She does her best to retain talented employees by
engaging in a severance negotiation. As discussed in the case, if an employee wants to leave the
company, they retain that employee by negotiation. for example, Alice is an asset for the
company as she has great knowledge of Excel, Sharon can reward Alice to stay back with Netflix
to take advantage of her knowledge. Through negotiation, the company can retain good
employees for organizational growth instead of investing in new recruitment and their training.
An overview of the case being discussed is as follow; The Company Chief Human Resources
Officer Sharon is very talented and good at identifying top performers and talented employees.
She does her best to retain talented employees by engaging in a severance negotiation. As
discussed in the case, if an employee wants to leave the company, they retain that employee by

3. negotiation. for example, Alice is an asset for the company as she has great knowledge of Excel.
According to business dictionary.com, effective negotiation can be defined as bargaining process
between two or more parties seeking to discover common ground and reach an agreement to
settle a matter of mutual concern or resolve conflict (Negotiation, n.d).
Fisher and Ury point out that, “That a good agreement is one which is wise and efficient, and
which improves the parties’ relationship.” The appropriate phrasing can be obtained through four
principles of negotiation. There are: Separating people from the problem, focusing on interests
rather than options, generating a variety of options before setting on an agreement and Insisting
that the agreement be based on objective criteria (Cutts, n.d).
The two case specific negotiating positions that will determine the decision to be made by Alice
Jones are:
For the case of Alice Jones problem, she might consider ZOPA integrative negotiations. As
noted in the description, she is going a 52-week compensation package plus other benefits for the
work she is doing. Her problem is relocating her family to where she has gotten the job, but she
still has contrasts in the way she is to obtain a better decision. ZOPA integrative negotiations will
help her to consider relocating her family to a new geographical location and take care of it using
the benefits that she gets within the period of the 52-week assignment.
In integrative interests on a certain scenario, let’s say when searching for a job, the recruiting
manager can decide to use the negotiation integrative if the two parties qualify for a job. In such
a scenario the recruiting manager is supposed to create inscribe other qualifications in the job. In
so doing, the parties can now find themselves having to qualify in the two different job
descriptions.
The objective criteria to be used in measuring distributive elements of the negotiation can be
based on the performance or on the best qualified candidate in the competition. Therefore, the
best performer or the most qualified candidate will pick in the case in of distributive negotiations
(Marzec, n.d).
Communication in negotiation focuses on such issues like substantive, offers and counteroffers,
procedural issues, the interpersonal negotiation relationship and intangible issues. Overt
communication in ZOPA negotiation takes place when: the parties involved lack the skills to
make the change, individuals involved in the negotiation are ready changing, and parties
involved in the negotiation are conscious. That is, there actions demonstrate their resistance
For example, when hearing a proposal from the executive that would be risky from a human
resource perspective, overt communication can make someone elicit behaviors in the response
like, one not knowing how to adjust to new skills needed for the employees, the employees will
be to change with the varying demands in the proposal and the employees will be busy doing
their new assignments as assigned directly by the executive.

4. Tacit knowledge is important in different situations including: In innovation, this is an elusive
skill. I must experiment my employees if they have skill which is crucial in the advancement of a
firm, and train employees through copying the good leadership skills from the best leaders
Other examples where tacit communication can occur include incidences like imparting skills of
skills, skills in sales, instilling body language of communication to employees, triggering
intuition knowledge among employees, creating a sense of humor in employees, and finally train
employees on how to use emotional intelligence. It is important to use tacit communication in the
above situations because it will not be sufficient to administer through any other type of
communication.
Using tacit and overt communication is very important to an organization because they both
increase employees work output. For example, tacit communication is good in the advancement
of firms because of the innovation skills instilled tacitly in the employees. On the other hand,
overt communication provides one on one platform for a boss to know how he can improve an
employee’s output. However, tacit communication is the best method to employ because it
greatly improves overall expansion of the firm with the use of tacit knowledge.
Sharon is the head of corporate sustainability. In her meetings, she argues that the use overt and
tacit communication leads to a highly motivated, organized, enthusiastic and self-motivated
individual. She also adds that, excellent interpersonal skills and the ability to direct, manage,
motivate and influence people at all levels, both internally and externally with a comprehensive
knowledge of social etiquette and protocol.
Sharon has carefully observed the blind spots in the use of tacit and overt knowledge in her
negotiations. She has even explained it critically to her audience on how other work benefits like
allowances should be spend innovatively to avoid wastage of resources. Alice Jones has also
behaved the same way when she finally decides to relocate her family to cut extra expenses of
travelling to meet her family on weekly bases.
Sharon focuses on avoiding blind spot occurrences in life by insisting that people should strive to
know their needs and know how to balance them through provision of alternatives. For example,
if two people are looking for a job and then they find that available vacancies are very
competitive, then they should be going for training to increase their chances of earning the job.
Therefore, in the event they will be called for an interview they will have an upper chance of
getting it.
The contrast principle, also known as contrast effect can be defined as the situation when one
experience two situations or things in succession; one’s perception about the second situation or
thing is influenced by the first situation or thing (Cole, 2012). This principle of contrast holds
special value in negotiation. If during negotiation, if one party offers several options to the other
party to resolve conflict. Amongst these several options the second party perceives that one

5. option is better than other option and agrees to accept it.
To create a win-win situation, this contrast principle can contribute in a powerful way. While
presenting multiple offers, by increasing the number of odds that one wants out of the
negotiation and giving the best option that will create a win-win situation for both parties. Both
the parties will select the option that is in best interest for them.
Regarding a potential negotiating tactics, they are a few tactics that Sharon will have to avoid
during the process “The written word which doesn’t leave room for negotiation, outrageous
behavior, and the bait and switch tactic should be avoided (Dolan, 2017)” will help her stay on
track and be better prepared. I would recommend Sharon Slade to use in the negotiation meeting
with Alice Jones are as follows:
Setting the stage for agreement: Before entering a state of negotiation, Sharon should prepare a
stage in a manner that the agreement that is in best interest of Alice as well as NETFLIX is
reached. For instance, by giving her warning that if Alice will not improve her performance, she
will be fired. This will create a perception for Alice that it is better to take up another offer rather
than being fired.
Authority: Second potential negotiation tactic that Sharon can use in this case is Authority. As
Sharon is company’s Chief Human Resources Officer, she can be authoritative while negotiating
with Alice. i.e. Being a bit bossy and telling Alice about the effects and side effects of all the
options and telling her with authority that which option will be best for her, Sharon can
manipulate the thinking of Alice, and make her choose the option that will reach an integrative
(win-win) outcome.
Both the gambits “Gambits are moves to gain an advantage for negotiators (Kaupins, 2010)”
suggested above holds different values. The importance that the mentioned tactics holds are as
follows: Setting the stage is important before entering negotiation is important as it creates a
likelihood of other party selecting the option that we want them to pick from multiple offers
made to them, and Being authoritative creates a sense of perception in other party during
negotiation that we are at the ruling position. And hence it is in the best interest of other party to
agree to our terms and conditions.
Each gambit could increase the likelihood of a successful negotiation session because both the
options create the environment where Alice is motivated to choose the option amongst the
multiple offers made to her that is in best interest of the company and for her. This rather
generates a win-win situation for both the parties. During negotiation, every party in conflict is
striving to win and gain the agreement that is in best of their interest. Therefore, to create a win-
win situation, is the best way to settle conflict and reach an agreement. All the parties must be
satisfied, this is the prime importance of negotiation.
Example:The hansei process occurs constantly and consistently. At Toyota, for example, even if

6. a project is successful, there is still a hansei-kai (reflection meeting) to review what went wrong.
According to Jeffrey Liker, author of The Toyota Way, if a manager or engineer claims that there
were not any problems with the project, he or she will be reminded that there is always room for
improvement. In other words, they have not objectively and critically evaluated the project to
find opportunities for improvement, or they did not stretch to meet (or exceed) their expected
capacity.
Please answer the following using the example and case above. Thanks
Question: Reflecting on the above case, using the Hansei process and example presented as a
guide, Identify two things you would do differently if you were involved in a similar situation at
Netflix in the future. Explain your rationale for the items you have identified and what your
different approach would be.
Solution
Question: Reflecting on the above case, using the Hansei process and example presented as a
guide, Identify two things you would do differently if you were involved in a similar situation at
Netflix in the future. Explain your rationale for the items you have identified and what your
different approach would be.
Hansei Process or the process of self-reflection where we need to understand that nothing is
perfect and we always have room for improvement.
The two things I would do differently with negotiating with Alice Jones in the NETFLIX
context:
1. I would first to assign all authority and decision making as centralized in Sharon. Though
Sharon is competent and has all right strategies her skill set should be used for strategic Human
resource growth of the organization. I would have a second line oh HR managers reporting to
Sharon who could update on soft matters which impact the decision of Alice. She is too powerful
to allow people to easily communicate with her. She should be involved only in critical cases.
2. Secondly, I would reflect on the existing setup and pave a road for the relocation of good
manpower, which would include family relocation allowances. This would be part of
compensation. The need for manpower and their shortage will determine the negotiating or the
offer I give to Alice Jones.
My rationale is based on the three stages of negotiation namely exchanging information,
bargaining and negotiation. Here information collection by Junior HR manager is critical in the
process to final negotiation and recruitment which cannot be centralized with Sharon alone.