B712 - Fall 2013 - 1 of 11
MBA B712
Managerial Negotiations
Fall 2013 Course Outline
Human Resources & Management Area
DeGroote School of Business
McMaster University
COURSE OBJECTIVE
As the capstone to McMaster’s MBA program, this course is designed to unify your learning
experience at the School of Business. This course builds on your previous learning, and acts as a
stepping-stone to the real world of business. The purpose of this course is to enhance your
capacity to do the job of a general manager responsible for strategic performance.
INSTRUCTOR AND CONTACT INFORMATION
Dr. Anthony Celani
Instructor
AVENUE email
Office: TBA
Office Hours: after class or
by appointment
Tel: TBA
Class Location: TBA
Course Website: http://avenue.mcmaster.ca
COURSE ELEMENTS
Avenue:
Participation:
Evidence-based:
Experiential:
Yes
Yes
Yes
Yes
Leadership:
Ethics:
Innovation:
Guest speaker(s):
Yes
Yes
Yes
Yes
IT skills:
Numeracy:
Group work:
Final Exam:
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No
Yes
Yes
No
Global view:
Written skills:
Oral skills:
Yes
Yes
Yes
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COURSE DESCRIPTION
Why study negotiations?
We negotiate every day. We negotiate with potential employers, coworkers, roommates,
landlords, parents, bosses, merchants, service providers, spouses, and even our children. What
price we want to pay, how much we want to be paid, who will do the dishes ... all of these are
negotiations. Yet, although people negotiate all the time, most know very little about the strategy
and psychology of effective negotiations. Why do we sometimes get our way while other times
we walk away feeling frustrated by our inability to achieve the agreement we desire?
Negotiation is the art and science of securing agreements between two or more interdependent
parties. It is a craft that must hold cooperation and competition in creative tension. It can be very
difficult to do well. Even the most experienced negotiators often fall prey to common biases and
errors in judgment. Fortunately, there is a massive and still-growing collection of good research
in the field of negotiations. The purpose of this course is to help you understand the theory and
process of effective negotiations that has emerged (and is emerging) from all that careful study.
How we study negotiations
Practice. Reflection. Analysis. Practice again… This course is unapologetically “experiential”
(and therefore fun!) The best way to learn negotiation skills and actually internalize them is to
negotiate in a setting where insight is offered, feedback is plentiful, personal reflection is
encouraged, and careful analysis is required.
The course is built around a series of negotiation exercises and debriefings. Almost all exercises
require preparation in advance. Some exercises require students to prepare outside of class as a
team, either by phone or in person. Students are expected to be fully prepared for exercises prior
to class and to participate in the debriefings.
LEARNING OUTCOMES
Upon completion of this course, students will be able to:





Understand more about the nature of negotiation.
Gain a broad intellectual understanding of the central concepts in negotiation.
Develop a toolkit of useful negotiation skills, strategies, and approaches.
Develop confidence in the negotiation process as an effective means for resolving
conflict in organizations.
Improve your analytical abilities and your capacity to understand and predict the behavior
of individuals, groups, and organizations in competitive situations.
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REQUIRED COURSE MATERIALS AND READINGS
Lewicki, Barry, Saunders and Tasa (2010). Essentials of Negotiation
(1st Canadian edition).
$ TBA
Courseware Package: purchase a copy at the bookstore
$ TBA
Note: Most of the exercises we will be using in the course are protected by copyright and require
fees for their use. The price of the textbook and courseware reflect these costs. As such, each
student must purchase a copy of the courseware.
EVALUATION
Your final grade will be calculated as follows:
Components and Weights
Course Contribution
15%
Real Estate Negotiation (group)
15%
Midterm
35%
Annotated Planning Document /
Negotiation Checklist (group)
35%
Total
100%
NOTE: The use of a McMaster standard calculator is allowed during examinations in this course.
See McMaster calculator policy at the following URL:
http://www.mcmaster.ca/policy/Students-AcademicStudies/examinationindex.html
Grade Conversion
At the end of the course your overall percentage grade will be converted to your letter grade in
accordance with the following conversion scheme.
Grade (Points)
A+ (12)
A (11)
A- (10)
B+ (9)
B (8)
B- (7)
F (0)
* Percentages
90-100
85-89
80-84
75-79
70-74
60-69
00-59
Communication and Feedback
Students that are uncomfortable in directly approaching an instructor regarding a course concern
may send a confidential and anonymous email to the respective Area Chair or Associate Dean:
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B712 - Fall 2013 - 4 of 11
http://mbastudent.degroote.mcmaster.ca/contact/anonymous/
Students who wish to correspond with instructors or TAs directly via email must send messages
that originate from their official McMaster University email account. This protects the
confidentiality and sensitivity of information as well as confirms the identity of the student.
Emails regarding course issues should NOT be sent to the Administrative Assistant.
Instructors are encouraged to conduct an informal course review with students by Week #4 to
allow time for modifications in curriculum delivery. Instructors should provide evaluation
feedback for at least 10% of the final grade to students prior to Week #8 in the term.
Course Contribution (15%)
Planning and Role Preparation. When a negotiation role is assigned in advance, you are
expected to come to class fully prepared to negotiate. This involves having carefully read your
role information and having prepared a planning document for the negotiation. (See appendix to
this syllabus for a sample planning document format.) The required planning documents are
listed in the week by week outline below. You should email an electronic copy of your planning
document to the instructor prior to the start of class. Planning documents are graded on a
Pass/Fail basis – I will let you know when a planning document receives a failing grade and give
you the option of revising it in hindsight.
Real Estate Negotiation (15%)
Your group will play the role of a real estate negotiation team that represents either the potential
buyer or seller of a parcel of real estate. Preparation is needed prior to the negotiation.
Specifically, your group must research comparable properties in order to justify the list price.
Furthermore, your group must review the issues to be negotiated and prepare a planning
document.
Upon the completion of the negotiation, a report is to be submitted. The report should be 4 - 6
pages in length (12 font, double-spaced, 1 inch margins) and should contain the following. 1)
answers to the questions below, 2) your group’s planning document, 3) information about the
comparable properties used to justify your group’s justification for the list price of the property,
4) a summary of the terms and conditions agreed upon by both parties. The report should have
headings that represent each of the assignment requirements.
Questions:
1) Describe your negotiation strategy prior to the negotiation. Explain why you chose this
strategy.
2) Explain how your negotiation strategy changed over the course of the negotiation. If your
negotiation strategy did not change, describe how your group was able to implement your
negotiation strategy.
3) Describe the greatest gains that you achieved in the negotiation. Explain how you achieved
these gains.
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4) Describe the greatest losses that you suffered in the negotiation. Explain how you allowed
these losses to occur.
5) Describe what you would do differently when preparing for, and negotiating, a similar
transaction in the future.
Please submit an electronic copy of the assignment in Microsoft Word format to the instructor on
the due date by 11:59pm via AVENUE email. Please also note that an assignment that is turned
in late without approval by the instructor will receive a penalty of 10% per day. After three
academic days any assignment not handed in will not be accepted. This is a group report (i.e., 4
to 5 members per group) that will be assessed according the instructor’s scoring guide.
Midterm Examination (35%)
The midterm will test your knowledge of key concepts and strategies, and practical knowledge.
Questions will be drawn directly from the readings and lecture debriefings. The time allocated
for the midterm is 2 hours.
Annotated Planning Document / Negotiation Checklist (35%)
Create a planning document / negotiation checklist that a negotiator can use in preparation for all
aspects of a negotiation. The planning document / negotiation checklist can provide general or
occupation specific information. The assignment should be 8 – 10 pages in length (12 font,
double-spaced, 1 inch margins). References are not required.
Please submit an electronic copy of the assignment in Microsoft Word format to the instructor on
the due date by 11:59pm via AVENUE email. Please also note that an assignment that is turned
in late without approval by the instructor will receive a penalty of 10% per day. After three
academic days any assignment not handed in will not be accepted. This is a group report (i.e., 4
to 5 members per group) that will be assessed according the instructor’s scoring guide.
ATTENDANCE POLICY
Like most negotiation instructors, I have an attendance policy that is strictly enforced. If you
must miss an exercise, it is your responsibility to contact me by email at least 24 hours before
the class session. You may miss one negotiation exercise without penalty if you provide me
with 24 hours notice. Failure to contact me will result in a drop of one letter grade for the
course. Further, failure to participate in more than one exercise (regardless of notice)
will result in a drop of one letter grade for the course. If you miss a class in which a role
assignment is distributed, you must make your own arrangements to get the materials.
This strict policy is necessary because your classmates rely on your attendance for
their educational experience, and because I must arrange logistics and pairings in
advance.
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CLASS HONOUR CODE
Adherence to the following points will help maintain the integrity of the learning experience:
You may use any strategy, short of physical violence, to reach agreement, including
misrepresentation. However, in selecting a negotiation strategy it is important to
remember that a strategy may have ramifications that go beyond the particular
negotiation in which it was used.
You may not make up facts that materially change the power distribution of the exercise
(e.g., your family just bought the company with which you are currently negotiating). If
you are asked a question that calls for information that is not in your confidential
instructions, you may say, “I don’t know.” You may tell the other side what you wish, but
you may not, under any circumstances, show them your confidential role instructions. It is
not appropriate to borrow notes, discuss cases, or share papers with people outside of
class. Class discussion stays in class.
Material used in this class, including but not limited to handouts, exercises, cases, discussion
questions, charts, and graphs, are copyrighted and may not be used for purposes other than the
education experience of this class without the written consent of the instructor.
Do not read ahead in the textbook or courseware!
ACADEMIC DISHONESTY
It is the student’s responsibility to understand what constitutes academic dishonesty. Please refer
to the University Senate Academic Integrity Policy at the following URL:
http://www.mcmaster.ca/policy/Students-AcademicStudies/AcademicIntegrity.pdf
This policy describes the responsibilities, procedures, and guidelines for students and faculty
should a case of academic dishonesty arise. Academic dishonesty is defined as to knowingly act
or fail to act in a way that results or could result in unearned academic credit or advantage.
Please refer to the policy for a list of examples. The policy also provides faculty with procedures
to follow in cases of academic dishonesty as well as general guidelines for penalties. For further
information related to the policy, please refer to the Office of Academic Integrity at:
http://www.mcmaster.ca/academicintegrity
MISSED ACADEMIC WORK
Missed Mid-Term Examinations / Tests / Class Participation
Where students miss a regularly scheduled mid-term or class participation for legitimate reasons
as determined by the MBA Academic Services Office, the weight for that test/participation will
be distributed across other evaluative components of the course at the discretion of the
instructor. Documentation explaining such an absence must be provided to the MBA Academic
Services Office within five (5) working days upon returning to school.
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To document absences for health related reasons, please provide the Petition for Relief for MBA
Missed Term Work and the McMaster University Student Health Certificate which can be found
on
the
DeGroote
website
at
http://mbastudent.degroote.mcmaster.ca/forms-andapplications/. Please do not use the online McMaster Student Absence Form as this is for
Undergraduate students only. University policy states that a student may submit a maximum of
three (3) medical certificates per year after which the student must meet with the Director of the
program.
To document absences for reasons other than health related, please provide the Petition for Relief
for MBA Missed Term Work and documentation supporting the reason for the absence.
Students unable to write a mid-term at the posted exam time due to the following reasons:
religious; work-related (for part-time students only); representing university at an academic or
varsity athletic event; conflicts between two overlapping scheduled mid-term exams; or other
extenuating circumstances, have the option of applying for special exam arrangements. Such
requests must be made to the MBA Academic Services Office at least ten (10) working days
before the scheduled exam along with acceptable documentation. Instructors cannot themselves
allow students to unofficially write make-up exams/tests. Adjudication of the request must be
handled by the MBA Academic Services Office.
If a mid-term exam is missed without a valid reason, students will receive a grade of zero (0) for
that component.
Missed Final Examinations
A student who misses a final examination without good reason will receive a mark of 0 on the
examination.
All applications for deferred and special examination arrangements must be made to the MBA
Academic Services Office. Failure to meet the stated deadlines may result in the denial of these
arrangements. Deferred examination privileges, if granted, must be satisfied during the
examination period at the end of the following term. There will be one common sitting for all
deferred exams.
Failure to write an approved deferred examination at the pre-scheduled time will result in a
failure for that examination, except in the case of exceptional circumstances where
documentation has been provided and approved. Upon approval, no credit will be given for the
course, and the notation N.C. (no credit) will be placed on the student’s transcript. Students
receiving no credit for a required course must repeat the course. Optional or elective courses for
which no credit is given may be repeated or replaced with another course of equal credit value.
Requests for a second deferral or rescheduling of a deferred examination will not be considered.
Any student who is unable to write a final examination because of illness is required to submit
the Application for Deferred MBA Final Examination and a statement from a doctor certifying
illness on the date of the examination. The Application for Deferred MBA Final Examination
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B712 - Fall 2013 - 8 of 11
and the McMaster University Student Health Certificate can be found on the DeGroote website
at http://mbastudent.degroote.mcmaster.ca/forms-and-applications/ Please do not use the online
McMaster Student Absence Form as this is for Undergraduate students only. Students who write
examinations while ill will not be given special consideration after the fact.
In such cases, the request for a deferred examination privilege must be made in writing to the
MBA Academic Services Office within five business days of the missed examination.
Special examination arrangements may be made for students unable to write at the posted exam
time due to compelling reasons (for example religious, or for part-time students only, workrelated reasons):


Students who have religious obligations which make it impossible to write examinations
at the times posted are required to produce a letter from their religious leader stating that
they are unable to be present owing to a religious obligation.
Part-time students who have business commitments which make it impossible to write
examinations at the times posted are required to produce a letter on company letterhead
from the student’s immediate supervisor stating that they are unable to be present owing
to a specific job commitment.
In such cases, applications must be made in writing to the MBA Academic Services Office at
least ten business days before the scheduled examination date and acceptable documentation
must be supplied.
If a student is representing the University at an academic or athletic event and is available at an
overlapping scheduled time of the test/examination, the student may write the test/examination at
an approved location with an approved invigilator, as determined by the MBA Academic
Services Office.
In such cases, the request for a deferred examination privilege must be made in writing to the
MBA Academic Services Office within ten business days of the end of the examination period.
Note: A fee of $50 will be charged for a deferred exam written on campus and a fee of $100 for
deferred exams written elsewhere. In cases where the student’s standing is in doubt, the Graduate
Admissions and Study Committee may require that the student with one or more deferred
examination privileges refrain from re-registering until the examination(s) have been cleared.
STUDENT ACCESSIBILITY SERVICES
Student Accessibility Services (SAS) offers various support services for students with
disabilities. Students are required to inform SAS of accommodation needs for course work at the
outset of term. Students must forward a copy of such SAS accommodation to the instructor
normally, within the first three (3) weeks of classes by setting up an appointment with the
instructor. If a student with a disability chooses NOT to take advantage of an SAS
accommodation and chooses to sit for a regular exam, a petition for relief may not be filed after
the examination is complete. The SAS website is:
http://sas.mcmaster.ca
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POTENTIAL MODIFICATIONS TO THE COURSE
The instructor and university reserve the right to modify elements of the course during the term.
The university may change the dates and deadlines for any or all courses in extreme
circumstances. If either type of modification becomes necessary, reasonable notice and
communication with the students will be given with explanation and the opportunity to comment
on changes. It is the responsibility of the student to check their McMaster email and course
websites weekly during the term and to note any changes.
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B712 - Fall 2013 - 10 of 11
COURSE SCHEDULE
Date/Topic
In Class
Week 1 - Sept 10 / 13
Introduction
Week 2 - Sept 17 / 20
Distributive
Negotiations
Week 3 - Sept 24 / 27
Integrative
Negotiations
Week 4 - Oct 1 / 4
Communication
Week 5 - Oct 8 / 11
Ethics
Week 6 - Oct 15 / 18
Power and Persuasion
Week 7 - Oct 22 / 25
Week 8
Oct 29 / Nov 1
Week 9 – Nov 5 / 9
Union / Management
Negotiations
Week 10 – Nov 12 / 15
Week 11 – Nov 19 / 22
Third Party Assistance
Week 12 – Nov 26 / 29
International
Negotiations
After Class –
To Do
Due Today
Overview & Introduction
Bargaining Games
Prepare for and negotiate
Biopharm-Seltek
After Class –
To Read
Essentials – Ch. 1
Prepare for
The New Hire
Planning document for
Biopharm-Seltek
Negotiate
The New Hire
Prepare for
Texoil
Essentials – Ch. 2, 4
& “The Negotiator’s
Dilemma”
Essentials – Ch. 3
Negotiate
Texoil
Negotiate
Bullard Houses
Prepare for and negotiate
Concert Tickets
Prepare for
Bullard Houses
Essentials – Ch. 5, 6 &
Ch. 10,11 from “Raiffa”
Essentials – Ch. 9
Planning document for
Texoil
Planning document for
Bullard Houses
Planning document for
Concert Tickets
Negotiate
Real Estate Negotiation
Assignment
Prepare for and negotiate
Townsville
“24 Days in Brooks”
MIDTERM (35%)
Chapters 2,3,5,6,7,9
Prepare for and negotiate
1. Quick Stop Strip Mall
2. 1150 Stockton Drive
Negotiate
International Lodging
Merger
Prepare for
Essentials – Ch. 7
Real Estate Negotiation
Assignment
Complete
Real Estate Negotiation
Assignment
MID-TERM RECESS – NO CLASSES
Prepare for
Midterm
Excerpts from “Getting
Past No”
Prepare for
International Lodging
Merger
Complete Annotated
Planning Document /
Negotiation Checklist
Assignment
Essentials –
Ch. 8 & Goldberg’s
“Successful Mediators”
Essentials – Ch. 11
Week 13 - Dec 3 / 6
Wrap Up
Planning document for
The New Hire
Real Estate Negotiation
Assignment (15%) via
AVENUE email by
11:59pm
Planning document for
International Lodging
Merger
Annotated Planning
Document / Negotiation
Checklist Assignment
(35%) via AVENUE email
by 11:59pm
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Sample Planning Document
Negotiation: _________________________
Role: __________________________
What issues are most important to you? (list in order of importance)
1.
2.
3.
4.
5.
What is your BATNA? Reservation Price? Target?
What are your sources of power?
What issues are most important to your counterpart? (list in order of importance)
1.
2.
3.
4.
5.
What is your counterpart’s BATNA? Reservation Price? Target?
What are your counterpart’s sources of power?
What is your opening move / first strategy?
Other important information / considerations
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