University of Brighton
MBA Programme
Creating Effective Organisations
Barry Lee Scherer
Negotiation Workshop
Carlos A. Gómez
1 February 2002
List of Contents
1
Review Of The Process ................................................................ 1
1.1
Planning And Preparation ...................................................... 1
1.2
Stages In The Recorded Negotiation ....................................... 1
1.3
Strategies ............................................................................ 2
1.4
Mistakes .............................................................................. 2
1.5
Factors Of Influence ............................................................. 2
2 Evaluation Of Outcomes .............................................................. 2
2.1
Outcomes ............................................................................ 2
2.2
Productivity ......................................................................... 3
2.3
Satisfaction .......................................................................... 3
2.4
Individual Growth ................................................................. 4
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1 REVIEW OF THE PROCESS
1.1 PLANNING AND PREPARATION
The fact of receiving the workshop assignment was unexpected. Then
it was necessary to rearrange activities to free-up time for the new task.
This situation hindered the preparation of the workshop and the other
commitments already in progress. While the team was preparing the case
it came out the extension of the task. But dedicating more time to the
preparation solved that.
Now, there was one factor that helped. We had been working
previously for another assignment. Then there was a dynamic relationship
among the team members.
Every issue was checked and planned following instructions and then
some decisions were made. In the case of the other group, in accordance
to the experience got from the session, they prepared the issues as well.
1.2 STAGES IN THE RECORDED NEGOTIATION
Theoretically the session should be divided in three main parts:
introduction of the parties, development and closing. However the last two
parts could be mixed each other. This is, having as many pairs of
development and closing parts as points under negotiation.
In reference to the first part Manager members were introduced by
one of them. But the Union team did not fulfil this part. In fact, the
negotiation began as soon Managers finished the introductions.
The first point touched was the salary scheme. Both parties presented
their own revision of the Union proposal.
At this point it is significant to mention the need to bring the agenda
with the topics and the order to follow on.
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1.3 STRATEGIES
The strategy of both sides was to keep a dialogue environment. The
different interchanges of information and points of view were displayed.
From the dialogue managers showed their priority was increasing incomes.
It was noticeable because in front of any requirement the answer was
guided to increase sales. Unfortunately I was not aware enough to bridge
forward union claim. The manager proposal was reasonable although load
more responsibility of selling to the people in poorest locations. There was
opportunity to arrive a definitive win-win agreement, but we did not give
one step forward to say yes. In relation to creative options I think both
teams presented their options.
1.4 MISTAKES
The more standing out mistake was the time took to discuss about the
salary. This point could be solved in short time if both parties had mixed
the options. Maybe we were more focus on the figures than the
agreement. And this was a big error.
2 EVALUATION OF OUTCOMES
2.1 OUTCOMES
We presented one alternative that was driven to marginal incomes.
With this the company profit were not affected, but marginal incomes. We
agreed with the increasing of selling but not in the whole table presented.
We presented a second solution that is exposed below.
2
Grade
1
2
3
4
5
6
7
8
Annual turnover
(1,000)
Salary
Level
0
80
100
120
140
160
180
200
5,400
5,770
6,140
6,510
6,880
7,250
7,620
8,000
80
100
120
140
160
180
200
+
Current
Salary +
650
6,050
6,420
6,790
7,160
7,530
7,900
8,270
8,650
Incr. %
12%
11%
11%
10%
9%
9%
9%
8%
New Average package
Salary (1)
Unsocial Hrs.
Profit bonus (2)
Machine commission (3)
New Tech.
Catering income
Total
7,150
1,000
1,157
2,000
1,000
2,850
15,157
1) There is a decreasing in the salary bargain of 50%, therefore the
range of salary increased goes from 8 to 12%, instead of from 16 to 24%.
This represents £625 per year.
2) An increase of the profit bonus in 1%.
3) An increase of the machine commission in 10%.
Despite the intention to produce agreements in all the points we were
not able to materialize it. But the more impacting point was salary. The
managers propose a table of increasing proportional to sales. We accepted
10% but at the same time we ask for marketing support to boost the
sales.
2.2 PRODUCTIVITY
We could introduce our position to the team of managers about
receiving more money. As we accept the concept of salary increase in
accordance to sales the recommendation about marketing support was
3
acknowledged. The easier points were related to holidays although there
was not time to finish the point.
2.3 SATISFACTION
I was satisfied with my role. Nevertheless I was not happy at all
because I lost opportunities to negotiate more efficiently. Everyone of my
team felt confident and good with the roles. We chose what to do
previously. During the session I was concerned about results in order to
agree smoothly.
2.4 INDIVIDUAL GROWTH
Between my learning is the importance of preparing the session to
have the necessary material or documentary support. The other learning is
the importance of bringing one agenda to keep the control of the flow of
the session.
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3 APPENDIX
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