Social Science

Exercise  23   SALARY  NEGOTIATIONS

 

NEGOTIATION  7e   LEWICKI  ▪  BARRY  ▪  SAUNDERS

Confidential  Role  Information  for  Employee  Position  3B

You  are  the  Director  of  Mail  Order  Sales  for  the  Rapid  Golf  Equipment  Company,  and  have   held  that  job  for  two  years.    On  the  whole,  you  believe  that  you  have  done  a  satisfactory  job.  When   you  took  the  job  of  Director,  you  had  several  talks  with  your  boss  (the  Marketing  Vice  President).   The  two  of  you  were  able  to  work  out  an  informal  set  of  job  objectives  for  the  coming  year,  and   have  been  able  to  produce  a  good  record  against  each  of  these  criteria  -­‐  with  one  exception.    The   exception  is  a  major  one,  and  it  looms  as  the  biggest  stumbling  block  to  your  raise.

The  projects  that  you  have  been  working  on  have  been  Slingshot,  Fireball,  and   Thunderhead—all  different  lines  of  golf  balls,  gloves,  golf  bags  and  other  equipment.    These   projects  have  been  excellent  successes  and  have  exceeded  their  projected  growth  targets.  However,   one  of  your  other  objectives  was  to  develop  a  new  approach  for  selling  Rapid’s  Phoenix  line  (the   company’s  most  expensive  line  of  golf  equipment).    Phoenix  has  never  been  done  successfully  in  the   past,  so  you  pretty  much  had  to  start  over  from  scratch.    You  have  worked  hard  on  ways  to  improve   sales  in  the  Phoenix  line:  you  experimented  with  different  mailing  lists,  tried  discount  coupons,  free   shipping,  promotional  contests  that  featured  trips  to  Rapid’s  manufacturing  plants,  golf  package   weekends,  and  still  the  results  were  relatively  insignificant.  In  the  past  months  you  have  been   working  very  hard  on  Phoenix.    One  particular  new  appeal,  using  demonstrations  at  the  nation’s  top   golf  courses,  has  produced  better  results  than  most.    It’s  too  early  to  come  to  a  definite  conclusion   about  the  real  impact  on  Phoenix  sales;  further  testing  will  be  required,  but  the  signs  are  good   enough  to  be  optimistic.       You  know  your  boss  is  a  hard  negotiator  at  raise  time.    You  also  know  that  failure  to  achieve   a  breakthrough  on  Phoenix  will  make  it  easy  for  your  boss  to  deny  you  anything  but  the  most   nominal  raise.    But  you  have  not  told  your  boss  of  the  recent  results  with  the  new  list;  you  plan  to   use  the  result  of  the  new  promotion  to  counter  any  argument  raised  about  your  lack  of   performance  in  the  Phoenix  line.       You  plan  on  asking  for  a  $10,000  raise  (normally,  your  raises  have  been  5  -­‐  8  percent).  Your   current  compensation  has  a  base  salary  of  $75,000       Take  a  few  minutes  to  review  these  facts  and  then  devise  a  strategy  to  approach  your  boss   for  this  raise.

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