MARY GRACE A.

EMPRESE
Alternative Dispute Resolution Atty. Francis Xavier Sia
MSEUF Law School
2nd Semester, AY 2015-2015

Facts:

Georgina Wilson is a real estate agent with wide experience in the field of Real Estate
since she has been in the field for almost twenty years. She is a Sales Manager and has been
working in Ayala Land Corporation with a commission rate of 4.50%, and additional benefits of
gasoline allowance amounting to five thousand pesos (P5,000) and incentive rate of 0.01% for
every sale she closed. Georgina is a good asset in the company because she always reached her
quota every month sale. She is one of the best real estate agents of the company.

SMDC Corporation, the competitor of Ayala Land Corporation was in hiring of new
agents and heard that Georgina Wilson is one of the best real estate agents of the latter and
wanted to pirate her. SMDC Corporation through its Human Resource Head, contacted
Georgina and set a meeting to her to talk about their offer regarding the terms of benefits they
could give if Georgina will work for them.

Having no clue to the present company of Georgina, she met with the Human Resource
Head of SMDC Corporation and the latter laid down their offer of terms of benefits giving her;
* 5.75% commission rate
* gasoline allowance amounting to seven thousand pesos (P7,000.00)
* incentives rate of 0.02% for every sale she closed
* International trip when she reached her annual quota

With a condition that she will be assigned in Cebu City as they started their new project
there. Georgina was overwhelmed with the offer of the other company, but she did not
immediately grab the offer and instead told the Human Resource Head that she will call them
and think of their offer as she would have to talk to her husband regarding the location of work
because her kids were too young and it might affect their family as she will be assign in Cebu
City.

Subsequently, Georgina talked to their Marketing Head asking if the company could
offer her a better term of benefits or else she will resign from the company, without telling
them that she has other offer from the competitor of their company, SMDC Corporation. Being
a good asset to the company, they dont want Georgina to resign so they negotiate her their
best term of benefits they could offer;
*5.25% commission rate
*Gasoline allowance amounting to six thousand pesos (P6,000.00)
*Incentives rate of 0.02% for every sale she closed
*Domestic Trip and appliance showcase when she reached her annual quota

Interests

What are the interests of each parties and what common interests do they share?

SMDC Corporation interests to hire Georgina Wilson rise when they heard that she is
one of the best agents of their competitor and could give much higher sale if they could hire
her.

Georgina Wilson interests are to have a much higher commission rate with additional
benefits.
 The common interest of the parties is the benefit they could give with each other when
they accept the offer.

Factual and Financial Research

What research can you do before the negotiation?

Before SMDC Corporation negotiates with Georgina, they learn from their research that
her commission rate was 4.50% with additional benefits so they offered her much higher
commission rate and with much better additional benefits.

Options

What creative options can you come up with?

1. Georgina can accept the offer of SMDC Corporation with much higher commission
rate and additional benefits but to be transferred in Cebu City
2. Georgina can accept the offer of Ayala Land Corporation increasing her present
commission rate and providing not that as good additional benefits like SMDC
Corporation but giving her additional benefits better than before.

Rapport, Reactions and Responses

Constructive points to help build rapport:

Georgina is one of the best agents in the field of Real Estate

If OP says: (Ayala Land Corporation) we can only give you 5.25% commission rate.
I can say: (Georgina Wilson) I will accept that but with additional benefits

If OP says: (SMDC Corporation) we can give you 5.75% commission rate with additional
benefits.
I can say: (Georgina Wilson) I will accept only if I will be assign in my choice of location.

Empathy and Ethics

I think if you could accept my condition that I will be assigning in location of my choice,
I can still be the best agent you think I am, as in negotiation, of sale what matters most is the
convincing power of the agent, that I know I possess.

Ethical Dilemmas
Georgina Wilson what to choose between the offer of Ayala Land Corporation and SMDC
Corporation.
Ayala Land Corporation they might lose one of the best agents.
SMDC Corporation they might have one of the best agent but they cannot assign her to the
location of their choice.

Setting and Scheduling

When SMDC Corporation learned about Georgina Wilson as one of the best agents in
the field of Real Estate, they immediately contacted her and set a meeting with her.

Alternatives to Agreement

Georgina Wilson
She can accept the offer of Ayala Land Corporation and not to be far away from her family
(BATNA)
She can accept the offer of SMDC Corporation but to be assign in Cebu City (WATNA)

SMDC CORPORATION
Grant Georgina the location of her choice and will help them to increase their sales (BATNA)
Hire another real estate agent. (WATNA)

SMDC Corporation

Who
1. Husband of Georgina Wilson
2. Kids of Georgina Wilson

Independent Criteria

The offer of SMDC Corporation is way better than Ayala Land Corporation, but one of
the problems is the location that needs to be address because Georgina Wilson will be assign in
Cebu City. The additional benefits are much higher considered the economy of the Philippines
and the competition of Real Estate.

Topics, Targets and Tradeoffs

TOPICS TARGETS TRADEOFFS BET. TRADEOFFS WITHIN

TOPICS TOPICS
Commission rate 5.75% - 5.25% 1 Bonus
Car Loan
Gasoline Allowance P7,000 P5,000 4 Free service for
tripping
Incentive Rate 0.03% - 0.01% 3 Tactical incentive
which is seasonal
Vacation Trip International - Domestic 2 Depends on your
schedule