Employee Relations - Assignment Example

To start a small business, I required several office equipments such as computers, photocopier and several other costly facilities that could presentdifficulties in terms of finances since they were all needed at the same time. They were core to the performance of the business and therefore it was necessary to acquire them before starting. However, accumulating the initial capital outlay was a major hindrance to start the business, but given access to credit facilities, it would be possible for the business to thrive and repay them within a year after inception. The credit facilities would be significant in the establishment of the business. I identified UK Leasline as the most appropriate organization that could help the small business to accomplish its goal. The company offers capital to businesses in the UK at affordable terms, and I needed to purchase the office equipment at hire purchase to pay through installments as the business expanded. However, it was difficult to acquire the credit facilities since my business was a start up and therefore there was no collateral. I had to negotiate with the credit appraisal team for to prove that my business had the potential of growing to a substantial size to repay the borrowed capital. I knew that after launching the business, there were high chances for it to grow gain the capacity to negotiate better for loans. However, to get to that point, I had to use negotiation techniques so that I could not loose the opportunity. Since I had no tangible property but ideas, there was no need to negotiate with the credit appraisers. The appropriate person was the credit manager, who on the other hand was not directly concerned with issues regarding credit appraisals. But I had to proof my case to him and negotiate a deal because when I contacted the junior officers, they asserted their principles of collateral as well as offering credit to continuing businesses. With such principles, I could not excel in business. I considered myself successful even before I engaged in the negotiation process since I had the conviction that my idea was prudent and that anyone else who would give it a critical thought would find it an inventive decision. I remembered what a teacher who was my mentor once commented that I was a critical thinker. I had developed a close relationship with him because of the way I approached issues with sophistication. These memories gave me confidence and motivation to go ahead with my aspiration. On the other hand, I had witnessed start up businesses becoming successful, especially the ones that dealt with the same field as my intended undertaking. This meant that the business could attain sustainable profitability while on the other hand continuing to repay the equipments acquired on credit. I intended to show the senior credit officer my business plan and explain my vision to him so that he too could visualize my idea. I always though of how I would be happy after accomplishing my mission. However, I knew that there were drawbacks that could become a hindrance to my efforts of acquiring the loan. In the first place, I had no track record of previous loans that I had successfully repaid. This lowered my chances of proofing my credibility. Nevertheless, my age was an indicator of insufficient experience in handling large sums of money or managing a business on my own. I remembered how one of my friends took over the management of his father's business after he was taken ill, which led to its collapse. The business had been established through a loan for the purchase of equipment. To make the matter worse, the head of the credit appraisal team in UK Leasline worked in the company that issued the loan as a credit appraiser at the time. Only three years had passed from the time the business collapsed, which led to the demotion and eventual termination of all the credit appraisers that were involved in the appraisal of my friend's father to qualify for a loan. The dilemma in this situation was the fact that the head of the team who was to appraise my qualification had suffered a failure in the past and I felt that he did not wish to repeat the same mistake. On the other hand, overlooking him and presenting my case directly to the senior officer would raise suspicion, which is a situation that I never wanted to be in. The alternative to my decision therefore was to approach the head of the credit appraisal team and explain my intention before approaching his boss. I felt that at least he would feel recognized and would not foil my efforts when I presented my case. I had to move ahead and therefore explained my situation, and even highlighted my worries to him regarding my doubts of being recommended for a loan. To my surprise, he admitted that he could not recommend me because of the same issues that I had feared. He told me that my idea was prudent, but I could not meet the standards that had been set for qualification. He explained to me that my major hindrance was the fact that I had no business that was in operation, which could be used as the basis of assessment. I also had to have an operational bank account that reflected several transactions which indicated that I was in business. The situation worsened when I explained my intention of having a one-on-one meeting with the credit manager. He openly told me that that would be a show down that meant he was incapable of performing his duties. I knew that if I did not convince him that the motive was not to degrade him by making efforts to meet his boss, he would frustrate my efforts and I could never accomplish my goal. The issue was not the boss, but the head of the credit appraisal team. I had the conviction that with his support, it would be easy to convince the boss that I was different from the others who had presented the organization with a similar case. I only needed the credit appraisers' team leader to highlight to him that according to his evaluation, my idea was worth but I could not meet the criteria because my business was a start up that could be risky for the organization. I understood that his decision was significant for my hopes of acquiring the credit facilities that I needed. However, he too was careful not to jeopardize the jobs of others in his team by making the wrong decision. At one time, the team leader commented that he had not met a persistent borrower like me. He presented me with a case that left me baffled for a while. The reason why he was chosen by the management to head the team was his discretion in determining the borrowers who were eligible for credit. He informed me that he had turned down more than 50 borrowers, who presented even better start up business plans, and to make the matter worse, he told me that his boss knew regarding the issue. I also learnt that he had received an award for the most successful appraiser in the organization. For him, I was just another borrower, but for the fact that I was too persistent. I had to think over this information before returning to him, this time prepared with an answer for any probable question. I had to get the loan or else my inventiveness would go to waste. The second meeting bore fruits and he scrutinized by business plan for a longer period, asking me a few questions as he read. I felt that there was a possibility for me to see the credit manager. I found this to be the best time to negotiate for a deal since the appraisers' team leader had become more accommodating. I could not wait for another day. I entered in to a discussion that led me in to negotiation. I presented my case and also listened to his as we discussed. The discussion would some time be casual but he would often become focused and ask very challenging questions. However, I had the certainty that I would succeed in this endeavor. Eventually, the team leader agreed to explain my case to the credit manager who would give authority for the final decision to be made. He told me to wait for his summon for me to come to come back to the company to collect the feedback. After two weeks, he summoned me and to my surprise, he gave me some forms to fill and then took me to the credit manager, where we held discussions regarding the business. My application had been accepted. My negotiation style was based on the competitive approach whereby I had the conviction that I would win. In other words, I was negotiating for a win-win situation. This made me visualize many possibilities of winning and becoming a successful business man. As Katz observes, when negotiating a deal with the thoughts of a positive outcome for the two parties involved, there is the likelihood of success for both (36). I generated a conception that after I was given the loan, I would in the first place ensure that my business does not fail so that I do not let down the leader of the appraisal team. This made him view me in a different perspective from how he viewed the other applicants. More over, I was persistent with the same idea, which made my point clear all along. There was no need for my listener to seek clarification in the conversation. I knew that this would generate confidence in him regarding my inventive decision. I opted for the alternative since the credit officer was difficult to reach without the consent of leader of the credit appraisers. I therefore had to negotiate with him to allow me to seek audience with the credit manager. I attempted to use my strong interpersonal skills to win the attention of the credit appraisers' team leader. I introduced myself with confidence to him and was never agitated by his initial reception of disapproval. I also remained calm when he was agitated about my persistence. On the other hand, I was not emotional regarding chances of my decision being rejected. I always allowed the leader to take his time to explain his case, which made me to understand better the underlying issues that determined my success. Listening skills were also a major factor that facilitated my success. I could tell when the leader was not enthusiastic about my argument from his tone. More over, I used to prepare adequately for the discussions and therefore I was capable of avoiding mistakes that could ruin the positive perception that I had generated in the team leader. Patience was also a major tool that helped me to accomplish my goal. I waited when I was supposed to do so. Presentation skills also gave me an upper hand in the negotiation. I presented my business plan with great aptitude and understanding of all its aspects, which made it possible for me to unfold the plan with ease. Seth argues that deception hampers the possibility of a successful outcome in negotiation (51). I ensured that I maintained transparency in all the information that I presented. I have in the past heard of people who borrowed loans with the name of other people's property as collateral. When asked to produce documents to support their ownership, they fail in the whole appraisal efforts and can never be considered for a loan even if they acquire property in future. It is easy to be tempted to offer false information especially due to the fact that the business plan and personal presentation are the most significant aspects in the appraisal process. I did not lie in the process in spite of the problems that I was undergoing in proofing my case. I attribute my success in the situation to these skills and I will always try to perfect them so that I can accomplish more support in my future endeavors. I succeeded and was capable of repaying the loan. I believe that I would succeed in seeking assistance from the organization any time when I need in future. References Seth, J. A Study of'Ethical'Principles, Kessinger Publishing, 2007 Katz, L. Principles of Negotiating International Business: Success Strategies for Global Negotiators, BookSurge Publishing, 2008. Read More