Summary
Our negotiation exercise was divided into two parts: 1983 wage negotiation, and 1985 negotiation. In 1983 wage negotiation, my team had to negotiate the base wage rate with Local 190, which is a labor union, for the cheaper base wage rate as Adam Baxter Company’s management. Local 190 wanted $10.69 of the base wage rate, and our reservation point was $10.25. During the negotiation, Adam Baxter Company and Local 190 gradually reached the price point with acceptable condition that both parties agreed. At the end of long negotiation, we reached a quite satisfiable alternative for both parties: $10/hour for the first year, and returning to $10.69 after a year, only if company’s net earnings increase or remain equal to 1983’s net earnings …show more content…
And we had experienced the tight reservation point improved our negotiation power in 1983. Therefore, again, we prepared the tight reservation point: full control over hiring and firing, and $10.25 of the base wage rate without the incentive program. In 1985 negotiation, Local 190 made the first offer. I forgot the exact contents of their offer, however, I still remember that their offer was extremely unreasonable and unacceptable. Therefore, we had stayed silent for almost 3 minutes to show how Local 190’s demands are unreasonable, and gain some additional information from them. However, this was the beginning of a tragedy. They seemed that they are emotionally upset and maintained “no concession” attitude. The negotiation broke down at that point, and we decided to implement our BATNA: closing down the plant, restructure and reopen the plant with non-union workers. Our decision was not ethical and not happy, however, we thought that Local 190 is also far away from ethical behavior. Because unionized workers keep asking unreasonable demands, while they do not work harder according to management confidential information. Moreover, Adam Baxter Company has experienced the significant financial loss by keeping relationship with them, because non-union workers are up to $5/hour cheaper than unionized workers. Thus, we thought our BATNA is the unavoidable, …show more content…
Some strategies that we have learned from the course material worked well. For example, our several strategies, which is mainly from the class lecture and the “Distributive Bargaining” article, including lowballing, flinching, using silence, good cop-bad cop, and taking time, really helped us to induce our counterpart to release their information, convince them, and reach the favorable outcome.
For my future negotiation, I may need to care counterpart’s emotion while maintaining my composure. The biggest failure that leads us to a rupture of our 1985 negotiation was emotional conflicts. I may need to conduct emotional care by building affiliation and emotional connection to prevent an emotional crisis like the result of our 1985 negotiation. Additionally, I may also adopt new approaches for the new situation and be cautious about overdependence on the past experience and overusing a particular strategy in my future negotiation.
Finally, I learned that negotiation is kind of fun to do by experiencing it, although some of our negotiation went wrong. Especially, our “good cop-bad cop” acting was hilarious. This negotiating exercise was a nice opportunity to get insight into the
Our negotiation exercise was divided into two parts: 1983 wage negotiation, and 1985 negotiation. In 1983 wage negotiation, my team had to negotiate the base wage rate with Local 190, which is a labor union, for the cheaper base wage rate as Adam Baxter Company’s management. Local 190 wanted $10.69 of the base wage rate, and our reservation point was $10.25. During the negotiation, Adam Baxter Company and Local 190 gradually reached the price point with acceptable condition that both parties agreed. At the end of long negotiation, we reached a quite satisfiable alternative for both parties: $10/hour for the first year, and returning to $10.69 after a year, only if company’s net earnings increase or remain equal to 1983’s net earnings …show more content…
And we had experienced the tight reservation point improved our negotiation power in 1983. Therefore, again, we prepared the tight reservation point: full control over hiring and firing, and $10.25 of the base wage rate without the incentive program. In 1985 negotiation, Local 190 made the first offer. I forgot the exact contents of their offer, however, I still remember that their offer was extremely unreasonable and unacceptable. Therefore, we had stayed silent for almost 3 minutes to show how Local 190’s demands are unreasonable, and gain some additional information from them. However, this was the beginning of a tragedy. They seemed that they are emotionally upset and maintained “no concession” attitude. The negotiation broke down at that point, and we decided to implement our BATNA: closing down the plant, restructure and reopen the plant with non-union workers. Our decision was not ethical and not happy, however, we thought that Local 190 is also far away from ethical behavior. Because unionized workers keep asking unreasonable demands, while they do not work harder according to management confidential information. Moreover, Adam Baxter Company has experienced the significant financial loss by keeping relationship with them, because non-union workers are up to $5/hour cheaper than unionized workers. Thus, we thought our BATNA is the unavoidable, …show more content…
Some strategies that we have learned from the course material worked well. For example, our several strategies, which is mainly from the class lecture and the “Distributive Bargaining” article, including lowballing, flinching, using silence, good cop-bad cop, and taking time, really helped us to induce our counterpart to release their information, convince them, and reach the favorable outcome.
For my future negotiation, I may need to care counterpart’s emotion while maintaining my composure. The biggest failure that leads us to a rupture of our 1985 negotiation was emotional conflicts. I may need to conduct emotional care by building affiliation and emotional connection to prevent an emotional crisis like the result of our 1985 negotiation. Additionally, I may also adopt new approaches for the new situation and be cautious about overdependence on the past experience and overusing a particular strategy in my future negotiation.
Finally, I learned that negotiation is kind of fun to do by experiencing it, although some of our negotiation went wrong. Especially, our “good cop-bad cop” acting was hilarious. This negotiating exercise was a nice opportunity to get insight into the