During negotiation, your employee exceeded his authority by giving the customer more discount without referring to you? What will you do?

A

Accept it but warn him that he should never do it again. It's a wrong move by the employee but the deal was done and we cant push the agreement back. Our main concern is to protect company's best interests more than anything else. Happy customers always come back, good partnership could be build in the future. 

Without complete information about the job, a person can lose an oppertunity. So inform your employee each and every information regarding job and the limitations of the position at which he/she is going to work so that he/she can generate ideas within his/her limitations. In this case last option is best.

A

at first i must evaluate the situation to know if the discount he give is applicable or not .

if its applicable i will proceed with the customer in the selling process with . give warning to my employe of his limits and must by clarified to him to not do this mistake again.

if it is not applicable . i must push the pause button . and use my B A T N A  . i must get alternative to make this deal succeed as in stead of discount i can give him extra warranty or decrease cost of labor or increase bonus any alternative to make him satisfy and not to lose him and also to get win win situation    

D. Accept it and show your respect for his taking initiatives to win the deal.

If you are eligible, compare the same with competitors ‘s proposal. If competitors wins- Match profit margin & Approve because it’s a beneficial deal .

If you are not, Again compare the same & send it to marketing team for customize plan/cost approval.

But try at least because he is working for you only…

identifyRefi identify gaps in the system and review the policy.

It depend on the nature of the business, item, market condition, competition, amount of the deal and volume. It is depending on so many factors such nature of the product, severity or intensity of competition, market condition etc..if the amount and volume is very high then it is appreciable because it will increase the profit even loosing by giving more discount to customer and even it would be beneficial when considering to utilize idle capacity of plant or to reach the budget but if the product is with less substitute then it will not be appreciable because it will reduce the profit level or target.

generallyIf the employee made a mistakeWe use sandwichesIt is 3 stagesFirst, we tell him that he has been motivated by enthusiasm, diligence and perseveranceSecondly: At the same time we start blaming him, as a mistake and not from his authorityThis work may cause a big problem and be held accountable for not repeating this problemThis is a violation of the company's system and policyThird: I thank him for listening and he learned of this problem and that he is generally a good employee

The P&L is to be reviewed whether the project can go forward or not. Eventually doing business losing money does not make sense. This is without doubt that the warning has to be given in any way but how badly is margin dented is the factor decisions have to be made whether acceptability is there or not. 

At all costs, the first factor is to analyse and see customer facing is retained. There is no compromise on discipline.