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.