Deborah KolbTwo-party negotiation between a company's chief financial officer and the head of the human resources department regarding the budget for the department's reorganization
Chiptech, a large company that markets a variety of electronic products for business and personal use, is in the midst of its annual budget process. Terry Austin, Chiptech’s head of Human Resources, has approached CFO Chris Brown about a budget increase that is far above the limit set in a memo by Brown. Austin claims that the increase is necessary to implement the HR reorganization plan that was recently approved by the president of the company. This is their meeting.
NOTE: This simulation is based on Multimode by Lawrence Susskind.
- The degree to which issues other than the percentage increase or cut should come into play is a useful focus for a discussion of good outcomes.
- Both of the parties want the best for Chiptech, but they have different perspectives on how to do this. Austin wants to improve the HR element, and Brown wants to improve the financial element. This can lead to interesting discussion. Can each party understand where the other is coming from? Does this help them come to a solution, or just keep things civil?
- CFO Chris Brown has the final say on Austin’s budget proposal. How does this color the negotiation?
Teacher’s Package Includes:
- One copy of each set of confidential instructions
- No teaching note currently available. For a similar role-play with a teaching note please see Multimode
- Time required:
- 1-2 hours
- Number of participants:
- Teams involved:
- Agent present:
- Neutral third party present:
- Teaching notes available:
- Non-English version available:
PON Teaching Negotiation Resource Center
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To order multiple copies of a role simulation for use in a course or workshop, simply enter the total number of participants in the box next to “Quantity.” There is no need to calculate how many of each role is required.
If you are ordering hard copies, the Teaching Negotiation Resource Center will calculate the appropriate numbers of each role to provide, based on the total number of participants. For example, if you wish to order a 2-party role simulation for use with a class of 30 students, you would enter “30” in the box next to “Quantity.” You then would receive 15 copies of one role and 15 copies of the other role, for use with your 30 participants. As another example, if you ordered 30 participant copies of a 6-party role simulation, you would receive 5 copies of each role.
In the event that the number of participant copies you order is not evenly divisible by the number of roles in the simulation, you will receive extra copies of one or more roles. Participants receiving the extra roles may partner with other participants playing the same role, thus negotiating as a team. So, for instance, if you ordered 31 copies of a 2-party role simulation, you would receive 15 copies of the first role and 16 copies of the second role. One of the participants playing the second role would partner with another participant playing that same role, and the two would negotiate as a team.