The Negotiation Problem

A substantial electronics firm faces considerable difficulties in one of their subassemblies. The root core of the problem revolved around certain types of fittings and pins that were becoming bent and distorted by the operation of the machinery. Units which were being produced were damaged and had to be rejected because of imperfections. These rejected components were put aside and then re-worked later on in the month.This duplication of effort resulted in increased costs as workers had to work overtime to meet their quotas. These extra costs for the extra work performed had not been considered in the manufacturing budget. The manager of this subassembly line did not want be charged with these overhead expenses because he felt it was not their responsibility. Likewise, the manager who was the overseer of the final assembly department also refused to accept the increased costs to his budget.

Customer I 1. You went to buy tea set. You bought a tea set containing 6 cups from neighborhood shop where you used to buy goods for last 5 years. 2. Shop owner is known for maintaining high quality. When you purchased the tea set you just opened the box but did not check each piece. You found a crack on one tea cup and you noticed this only next day when you about to use the cups. 3. Evening you went to the shop and asked the shopkeeper to exchange the set. He is actually a nice guy but that day somehow he was not in good mood and told you that he will not exchange as it was your duty to check before buying the set. 4. Now you are at the counter negotiating with the shop owner for the exchangeInstructions:You should blame the shopkeeper for keeping broken piecesYou could even accuse him of cheating If he is not ready to exchange you threat him that you would inform all your friends that he is cheating. Threat him that you are going to file a case

Customer II 1. You went to buy tea set. You bought a tea set containing 6 cups from neighborhood shop where you used to buy goods for last 5 years. 2. Shop owner is known for maintaining high quality. When you purchased the tea set you just opened the box but did not check each piece. You found a crack on one tea cup and you noticed this only next day when you about to use the cups. 3. Evening you went to the shop and asked the shopkeeper to exchange the set. He is actually a nice guy but that day somehow he was not in good mood and told you that he will not exchange as it was your duty to check before buying the set. 4. Now you are at the counter negotiating with the shop owner for the exchangeInstructions:You should admit that you have not checked and it is you mistakeYou should explain to him that you have good relation with him and you intended to continue it. If he is not ready to exchange with new set you explain him why it necessary to exchange.

Shop owner 1. You have a provision shop and you are known for maintaining high quality. A customer purchased the tea set and he comes back the next day and complain you that he found a crack on one tea cup and he says he noticed this only next day when he about to use the cups. 2. Today he asked you to exchange the set. You are a nice guy but that day somehow you were not in good mood and told the customer that you will not exchange as it was his duty to check before buying the set. 3. Now you the customer is at the counter negotiating for the exchange.Instructions:If the customer blames you then you should blame the customer for not checkingIf he accuses you of cheating, you could also accuse him of cheating If he threats then you also give a threat. If the customer is reasonable, you also act reasonably.If the customer makes proper negotiation then you may agree for exchange.

Negotiation Evaluation Criteria 1. Interests1. Separate people from problems1. Identifying Common interest & Conflicting Interest 1. Options1. Generate options1. Alternatives1. Best Alternative To A Negotiate Agreement (BATNA)1. Legitimacy 1. What objective criteria will you use to persuade the other party1. Relationship1. Separate problems from relationship1. Be firm on problem solving but soft on people. 1. Communication1. Ready to listen and talk effectively1. Commitment1. Win-win and reasonable