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Li Is an Unsupervised Outside Salesperson for a Small Electronics

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Essay

Li is an unsupervised outside salesperson for a small electronics firm. Instead of working on commission, Li is a salaried employee. What issue may this compensation arrangement lead to? Give a possible solution.


Definitions:

Integrative Negotiation

A negotiation strategy where parties collaborate to find a "win-win" solution to their dispute.

Distributive Assumptions

Beliefs or assumptions regarding the distribution of outcomes or resources in conflict or negotiation, typically focusing on a zero-sum perspective.

Mixed-Motive Nature

A characteristic of negotiations where parties have both shared and conflicting interests, requiring cooperation and competition.

Pre-Settlement Settlement

An agreement reached by the parties involved in a dispute before a formal settlement is finalized, often used to expedite resolution.

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