negotiation role play question

Exercise  23   SALARY  NEGOTIATIONS

     

NEGOTIATION  7e   LEWICKI  ▪  BARRY  ▪  SAUNDERS  

Confidential  Role  Information  for  Employer  Position  3A       You  are  the  Marketing  Vice  President  of  the  Rapid  Golf  Equipment  Company,  and  have  held  this   position  for  the  past  four  years.    One  of  the  people  working  for  you  is  the  Director  of  Mail  Order   Sales.    This  person  has  been  in  the  position  for  the  past  two  years,  and  over  that  time,  the  Director   has  done  an  excellent  job.    This  is  indicated  by  the  improved  response  in  the  campaigns  of  the   Slingshot,  Fireball  and  Thunderhead  lines  of  golf  balls,  golf  gloves,  golf  bags  and  other  equipment.     The  Director  designed  and  executed  several  new  marketing/sales  campaigns  that  have  done  well.     You  are  quite  pleased  with  the  progress  on  these  lines.       There  has  been  one  problem  area.    One  of  the  objectives  for  this  past  year  was  to  get  more   action  in  the  Phoenix  line  (Rapid's  most  expensive  line  of  golf  equipment).    The  sales  units  on  this   year's  Phoenix  line  have  been  quite  poor—but  then  again,  Phoenix  has  never  been  a  really   successful  line.    The  current  director  has  been  unable  to  change  the  sales  performance  results  of   this  line  in  the  past  few  quarters,  and  you  have  no  indication  that  anything  in  the  program  has   changed.       It  is  currently  salary  review  time,  and  while  the  Director  has  had  excellent  results  in  the   other  lower  priced  lines,  the  failure  to  get  Phoenix  moving  is  the  reason  you  expect  to  give  only  a   nominal  raise  for  this  year.    If  new  achievements  in  the  Phoenix  line  can  be  shown,  then  you  could   see  your  way  clear  to  a  larger  raise.    The  director's  current  salary  is  $75,000  base  pay.    You  feel  that   a  raise  of  $4,000  (just  over  5  percent)  is  a  fair  raise  for  this  year's  efforts  (normal  raises  are  usually   in  the  6  -­‐  8  percent  range).    You  are  not  constrained  in  granting  a  raise  of  more  than  $4,000,  but  you   want  some  justifiable  evidence  why  the  Director  should  get  more.    You  consider  yourself  a  firm  but   fair  negotiator.       Take  a  few  minutes  to  review  these  facts  and  devise  discussion  with  your  Director  about  a   pay  raise.