An effective Solution In the case given the situation is ic lose-lose situation from the point of view of the employers. Unless they are able to increase the salary of Johnson to match up to what their competitors are offering her they will lose a valuable employee who has shown herself to be productive and loyal in the past. More worryingly, it would mean her expertise and developmental work on the microchip would disappear from the organization as well. But increasing the salary means going against the specified regulations set by their Board of directors.
Until the microchip is proven to be commercially profitable they do not have the access to the recourses to increase her salary and Johnson will be happy to take her skills to where they are valued. In such a situation empathetic listening and changing the direction of the negotiations will be greatly in the benefit of the firm. One crucial piece of resolving this situation is to decipher the reason why a loyal and hardworking employee who is so close to finishing a breakthrough project would decide to leave at this time.
Monetary payment, while an important factor, is never the sole reason for the motivation and job satisfaction of an employee; if she was dedicated enough to work on the project for the same salary, ideally she could have finished it within the same payment. Job involvement, empowerment, self commitment to goals and projects and perceived organization support for the employees are all factors which combine to create a workplace which enhances employee productivity and keeps them from switching jobs (Robbins & Judge, ch3).
In their discussions the CEO and the top managers should focus on the problems and any perceived injustice Johnson faced in the company which could have led to her decision to accept the offer from the competitors. In emphatically listening and discussing the situation with Johnson the CEO should also attempt to honestly explain to her the conditions about salary freeze until the project is successful; this would help her be more receptive towards other possible rewards for her work. Because, though ultimately a suitable reward has to be assigned for Johnson’s work in order to placate her, it does not necessarily have to be in monetary form.
Some possible reasons for Johnson’s dissatisfaction may be excessive monitoring and control of her project, overburden from work, failure to achieve work-life balance or simply a lack of recognition from the organization. These could have culminated in her seeking a position where at least the money would be up to her perception of ‘fair pay’. As a solution the organization can offer her flexible working time, increased benefits such as vacation time, complete control of the project or even stock options or a percentage of the profits from the microchip as a promise of monetary compensation when the project is finally finished. In the negotiations it would be a good tactic to remind Johnson of all the hard work she has already put in the project and what a waste of her skills it would be if the project was never completed or mishandled by inexperienced employees.
There must be something that had triggered her decision to attempt to change her job, the CEO and managers have to convince her that those triggers will be removed and it will be worthwhile for her to stay.
Works Cited Radtke Chris. Salary Increase Negotiations: The Employers Point of View. Yahoo Contributor Network. Nov 21, 2008. Web. 23 June 2012. Robbins & Judge. Organizational Behavior. Pearson Education, Prentice Hall. 13th Ed, 2011.