“Robyn & Luis”
An Exercise in Managing Emotions in Contentious Negotiations
with Third Party Intervention
Introduction:
You are placed in the position of the CEO of a publicly traded communication equipment manufacturer that has had low, stagnant profits for the past five years. Hired just six months ago, the CEO has been given 18 months by the firm's board chairman to turn the company around and increase its profitability. The CEO has been working energetically with the company's vice presidents to develop a plan of action to fix the problem. In order to control costs, the CEO has agreed with Vice-President for Finance Robyn Kendal to impose a 5% limit on budget increases in all departments in next year's budget. Kendal is to work with seven vice presidents to implement the budget cap. The CEO knows, however, that cutting costs alone will not achieve a sustained improvement in profitability. Company productivity must also be increased. Luis Molina, the company's Vice President for Human Resource Development, has proposed a new human resource development model that emphasizes employee training and evaluation as a way to improve productivity. Molina's plan is based on the human resources system in the company's Canadian subsidiary, the organization's most profitable unit. The CEO encourages Molina to develop a new human resources model based on the Canada system for the entire company
Two weeks later, on the day after the CEO returns from a two-week trip, Robyn Kendal and Luis Molina appear at the door of the CEO's office and ask for a meeting. They enter the office and sit opposite the CEO's desk, looking directly at the viewer. Remind the CEO of the directive to limit budget increases, Kendal reports that whereas all the other vice presidents have agreed to limit budget increases for their units to 5%, Molina has refused and is insisting on an 8% increase. Molina replies that he needs the additional 3% (i.e. $200,000) in order to implement the new human resources plan that he and the CEO had agreed upon. Kendal insists, as the CEO had previously agreed, on the need to reduce costs in order to improve company profitability, while Molina argues strongly from the necessity of increasing productivity as the basic means of raising company profits on a sustained basis. The film ends as both face the CEO (i.e. the viewer) and say "well…?"
Instructions:
1. Before you watch this video read the following in the textbook:
Managing Emotions and Contentious Negotiations, Chapter 6
Third Party Intervention, Appendix 2.
2. View the video on Blackboard.
3. Review the Teaching Points and Key Terms below.
4. Write a report that describes how you would handle this situation. You may start your report by saying, “This is how I would handle the situation.” Your report should be between 500 and 750 words in length. Your report must demonstrate that you understand the key learning objectives listed below. You must co
ectly use at least 10 of the key terms listed below. Highlight (e.g., italic font, color) these terms in your report when you use them. Upload your description to Blackboard no later than June 22.
Learning Objectives:
Ability to understand and analyze the nature and causes of interpersonal conflict in the workplace
Ability to understand the various roles that a third party may play in the settlement of a conflict
Ability to understanding and use strategies for mediation and other forms of third-party intervention in a conflict
Ability to understand and apply key terms related to managing emotions and contentious negotiations.
Key Terms:
defensive behavior Antipathy toward actions that harm one’s own side to the other party’s benefit
facilitation A mediation style characterized by a mediator who serves as a channel of communication among disputing parties
mediation A procedure whereby a third party assists disputants in achieving a voluntary settlement
offensive behavior Any attempted actions that benefit one’s own negotiation position relative to the disputing party
outcome control The ability of the third party to impose a final, binding settlement on negotiating parties
process control The ability of a third-party mediato
a
itrator to control the discussion, questions, and process of communication between negotiating parties
lowback effect Refers to the action-reaction cycle that results in genuine anger and diminishes trust in both the negotiator and counterparty
conflict adaptivity The capacity to respond to different conflict situations in accordance with the demands of the situation
contest A power-based approach in which parties take action to determine who will prevail
emotional intelligence Ability of people (and negotiators) to understand emotions in themselves and others and to use emotional knowledge to effect positive outcomes
emotions Relatively fleeting states that are usually fairly intense and often a result of a particular experience
genuine emotion Authentic, behavioral manifestations of felt emotions
incidental emotions Emotions lacking a clear target in the situation
integral emotion Related to the situation
interests-based approach Focusing on the other party’s underlying needs, desires, and concerns in negotiation and attempting to reconcile differing interests among parties in a way that addresses the parties’ most pressing needs and concerns
moods Chronic and diffuse emotional states that are not usually directed at a person
power-based approach Attempting to resolve disputes by analyzing status, rank, and other types of power; and attempting to coerce the other party to settle on terms that are more satisfactory to the wielder of powe
self-regulation The ability to effectively manage one’s own emotions at the bargaining table
social dilemmas A dilemma when negotiators are faced with a choice to cooperate or compete with the counterparty
strategic emotions Contrived emotions, carefully designed orchestration to take the counterparty off guard
strategic flinch A ve
al or physical display of shock, disgust of disbelief made to a statement. Negotiators who flinch claim more value than negotiators who don’t flinch
threats A power-based approach in which one or both parties make a threat
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