Scenario

Joe and Kim Khan have worked out their differences-sort of (see Case in Chapter 9). While Kim no longer takes pot shots at Joe for his lack of experience, Kim and Joe have clearly different perspectives on how to perform their jobs, serve customers, and treat employees. Jim Talent continues to encourage Joe to work with Kim to address their relationship issues. This will be particularly important because Joe and Kim will need to present a united front in an upcoming negotiation they'll be having with representatives from Do or Dye Tools (see Case in Chapter 12). Among the recent issues that have created concerns are the following:

1. Store policy regarding returns. The standard store policy is a 30-day "no questions asked" policy. After 30 days, store policy is generally to give store credit. Kim routinely promises customers who purchase tools full money-back guarantees, regardless of how much time has passed. Customers then refer to Kim's representations when they come to the customer service desk that Joe manages, making claims for money back for tools returned beyond 30 days. Kim thinks that Joe and his team do not understand the need to work around company policy at times in the interest of "putting the customer first." Joe and Kim must come to agreement on what "putting the customer first" and honoring store policy mean, and whether these two concepts are compatible or mutually exclusive.

2. Philosophical disagreement over "handshake" deals. Kim tends to make informal handshake deals with vendors. Kim did this with Do or Dye Tool's former representative, Axel Rod, regarding the sale of its Super-Deluxe 15-90 Power-Matic Reversible Drill/Screwdriver set and accompanying package sets of drill bits and screwdriver heads (see Case in Chapter 12). This deal has angered Vic Vendor, Do or Dye's current representative, and could result in Do or Dye severing its business relationship with More Power. Although Kim may have rational reasons for doing this, Joe believes that such actions reflect poor business practice. Before meeting with Do or Dye, Joe and Kim must agree on how they will represent More Power and the level of formality or informality that is appropriate when negotiating.

3. Treatment of employees. Kim's actions create a "spillover" effect on Joe's customer service desk team because they must manage the customer service issues that Kim's actions generate. When Kim's actions appear to run contrary to store service policy, some of Joe's employees have attempted to address any misunderstandings with Kim directly. Kim's response has been gruff, dismissive, and defensive. Kim makes clear that these actions will continue in the interest of serving customers without apology for the impacts on Joe's team. Kim clearly has little tolerance for what appear to be arbitrary procedures that interfere with good customer service. Joe's employees complain about Kim's gruff manner and express concerns about being caught between a rock and a hard place: They will either get in trouble for running afoul of store policy by honoring Kim's representations to customers or incur the wrath of Khan and customers by holding customers to store policy despite Kim's representations to the contrary. Joe and Kim must come to agreement about how to work with Joe's employees, how to avoid situations that put employees in this bind, and how to serve customers in a consistent manner.

PROCEDURE

Choose either Scenario 1 or Scenario 2 to role-play. Break the class into three teams. One team will assume the role of Joe. One team will assume the role of Jim (Scenario 1) or Kim (Scenario 2) respectively. The third team will serve as observers. Joe's team and Jim's/Kim's team should each select a member who will role-play a negotiation in front of the class.

Before the role-play, have each team spend twenty minutes analyzing the problem. Each team should go through roughly the same analysis to prepare for the negotiation, considering the seven elements of a successful negotiation from both Joe's perspective and Jim's or Kim's perspective. Each team should then decide on the negotiation strategy it should take and coach the selected representative accordingly. The team of observers should consider the problem from both parties' perspectives. The teams may use the tools in this chapter to analyze the situation and prepare for the negotiation.

After twenty minutes, have the selected representatives engage in an integrative negotiation in front of the class. The negotiation should last no more than ten minutes. The selected representatives must take their roles seriously, given what they know about Joe and Jim or Kim from the profiles and scenario described. Neither party should arbitrarily agree to anything unless he or she believes that it genuinely serves his or her interests.

Case Questions

1. After the role-play, have the selected representatives for Joe and Jim (Scenario 1) or Kim (Scenario 2) first discuss how engaging in the integrative negotiation made them feel. Did they feel successful? What challenges did they face?

2. The members from each of the two teams representing Joe and Jim/Kim should discuss how the outcome of the negotiation compared to what they hoped to achieve during preparation discussions. Was the result positive, or was it disappointing? What worked well? What did not work well?

3. The members of the observing team should discuss the overall effectiveness of the parties' attempt at integrative negotiation. Were the parties effective in applying the seven elements? Despite the outcome and whether or not agreement was reached, did the parties engage in integrative negotiation strategies, or did negotiations become distributive and adversarial? What caused them to be one way or the other? Did they work toward achieving mutual gains?

CASE: ENGAGING IN SUPPORTIVE CONFRONTATION

Joe has noticed some distance growing between himself and Kim Kahn, assistant manager for Tools and Hardware. Joe must interact with Kim on a frequent basis, since Joe's team performs many functions that service Kim's tool and hardware areas. Joe appreciates that Kim is an expert in the tool and hardware business. Yet, when Joe attempts to talk with Kim and learn more about the business, he feels that Kim is dismissive and even a little irritated. At times, Joe feels as though Kim is deliberately trying to make him feel stupid.

Joe is also concerned with the way Kim interacts with employees. Kim is clearly not a people person. This would not bother Joe so much, except that Kim is often very gruff with Joe's staff as well, causing them to feel confused and hurt. Joe is not certain if Kim intends to be so gruff or if that is simply Kim's nature.

Finally, Joe has become irritated with some less-than-subtle comments Kim has made during management meetings. Kim likes to talk in sarcastic terms about the way "supervisors these days" like to "coddle" their employees and "do all that touchy-feely stuff." Kim says, "It's too much education and not enough hard work. That's what the problem is." Although Joe is not the only manager who has or is pursuing a college education, Joe has the distinct impression that Kim is referring to him.

Joe decides to talk to Jim Talent about his concerns. Jim is not very sympathetic. Jim challenges Joe to solve the problem on his own by talking with Kim directly. "And do it quickly," Jim says. "I've got a big project that I want the two of you to work on together."

CASE: OVERCOMING BARRIERS

OBJECTIVE

To understand how barriers to integrative negotiation can occur and to practice responding to such barriers.

PROBLEM

Vic Vendor, new sales representative for Do or Dye Tools, is uncomfortable with the way More Power has been selling its tools. For months, he has been saying to Kim Khan, assistant manager for tools, that the former Do or Dye representative, Axel Rod, let More Power "get away with murder" regarding pricing, return of defective products, placement of tools on its shelves, and various "deals" More Power has offered its customers concerning the sale of Do or Dye tools.

Do or Dye's biggest seller is the Super-Deluxe 15-90 Power-Matic Reversible Drill/Screwdriver set. This product is Do or Dye's premiere item and generally beats out all competitors in terms of quality. Do or Dye has advertised this product as "the only product you'll ever need for all your drill and screwdriver requirements."

The 15-90 retails for $159.95. There are also 27 different drill bits and 21 screwdriver heads available for the 15-90. The total package of drill bits and screwdriver heads sells for $59.95. If a consumer wants only drill bits, the complete package of 27 bits sells for $39.95. Similarly, the complete package of 21 screwdriver heads (straight and Phillips) sells for $29.95. Do or Dye also sells combination packs of bits and heads based on size, including "small to medium projects," "large projects," and "heavy duty projects." Each of these packs consists of nine drill bits and seven screwdriver heads and is priced at $34.95. Do or Dye does not sell bits and heads separately.

More Power is generally pleased with how the 15-90 sells. But its price is often out of range for many customers. More Power likes to give customers options. Therefore, it places the 15-90 low on the shelf and places other less-expensive, lower-quality sets higher up on the shelves. Its rationale is that the truly dedicated "weekend warrior" or professional will look for the 15-90. Meanwhile, there are plenty of other good drills and electric screwdrivers to select from, in a broad range of quality and prices. Using similar logic, More Power places Do or Dye's bit/head combination packs on lower shelves near the 15-90. But it also has numerous other bits and heads to select from, many of which are sold separately rather than in combination packs.

Vic Vendor learned early on that his predecessor, Axel Rod, allowed this practice. Apparently, Kim Khan made the argument that as a locally operated store serving a single community, More Power should not have to worry about shelf placement and the marketing of Do or Dye's products in the way Do or Dye expects larger retail chains to market them. Kim further argued that More Power customers are turned off by the limited options concerning Do or Dye's combination packs. To get around this, Kim often persuaded customers to purchase the 15-90 at Do or Dye's recommended price by encouraging them to buy off-brand bits and heads. Axel Rod looked the other way. But not Vic Vendor.

Vic Vendor is furious. He upset with the low placement of these products on the shelves. Moreover, the sale of the 15-90 and the combination packs are part of a broader marketing strategy. While the 15-90 is a quality tool, the bits and heads are even more valuable. They are made of a special patented alloy. Do or Dye sells them in combination packs, rather than singly, to increase the demand for them in the market. Do or Dye does not want its bits and heads to be confused with any other brand on the market or to have consumers view them as "ordinary." Selling them in combination packs is a means of protecting their unique qualities and value in the market. Vic Vendor believes that allowing even one exception in which customers are encouraged to buy off-brand bits and heads to be used with the 15-90 will have an adverse impact on the overall profitability of the 15-90 and the combination packs.

Vic finally tells Kim to either honor Do or Dye's expectations for the sale of the 15-90 and combination packs or it would discontinue its relationship with More Power. More Power is generally pleased with all of Do or Dye's tools, not just the 15-90. Although it sells other brands, the loss of Do or Dye's business would significantly impact More Power's bottom line. On the other hand, More Power has been frustrated with Do or Dye's practice concerning the 15-90 and has always been concerned about its less than generous limited warranties, its return policy for defective tools, and service to customers after the sale. In all these areas, More Power has received complaints from customers that suggest that all Do or Dye cares about is "making a buck."

Realizing this is an important issue, Kim informs Jim Talent about Vic's ultimatum. Talent directs Kim and Joe to negotiate with Vic. Kim arranges a meeting with Vic. At the meeting, Vic brings a fellow sales representative, Sue Ply, with him.

Attachment:- Assignment.rar