ILROB471_5_integrativebargaining021608_leno

ILROB471_5_integrativebargaining021608_leno - ILROB 471...

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ILROB 471 Organizations and Negotiation Professor Michele Williams
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© 2008 Michele Williams. All Rights Reserved . Agenda Turn in Post-Negotiation Paper (upload a copy onto Blackboard!) In the News Integrative Bargaining (reviewed) Exercise Video Case and Debrief Wrap-up
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© 2008 Michele Williams. All Rights Reserved . Delta Pilots’ Blocking Tactics in the News An impasse among pilot negotiators over determining seniority puts a $20 billion deal to combine Delta Air Lines Inc. and Northwest Airlines Corp. in ''serious jeopardy'' as the companies' boards prepared to meet Wednesday 2/20/08. The people said the pilots unions have agreed on a comprehensive joint contract, but they are unable to agree to how seniority for the 12,000 pilots would work under a combined carrier. A small group of Northwest seniority list pilot negotiators want thousands of young Delta pilots to go to the bottom of the combined seniority list as part of agreeing to a deal on seniority. This is a major hang-up.
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© 2008 Michele Williams. All Rights Reserved . Microsoft’s Aggressive Tactics in the News While Microsoft could just raise its bid, one source says the company doesn't see a benefit in bidding against itself until Yahoo shows its willingness to come to the bargaining table. Microsoft’s next move, to threaten a proxy fight, is expected to cost about $20 million to $30 million. It is the software giant’s alternative to raising its $44.6 billion bid and is seen as a less expensive way to put pressure on Yahoo’s board.
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© 2008 Michele Williams. All Rights Reserved . Computron Your results
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© 2008 Michele Williams. All Rights Reserved . Computron Candidates BATNA 100-140K Average Expected value ( 95% chance of Feb. 1 st ) $138,707 Average w/bonus for Feb. 1 st finish $138,189 64 % received bonuses Average w/o bonus for April 1 st finish $136,221
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© 2008 Michele Williams. All Rights Reserved . Computron Recruiters BATNA 120-140K Average Expected value ( 10% chance of Feb. 1 st ) ($117,073) Average w/bonus for Feb. 1 st finish ($60,606) 15% received windfall for guaranteeing an early finish Average w/o bonus for April 1 st finish ($137,457)
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© 2008 Michele Williams. All Rights Reserved . How did your Preparation Help?
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© 2008 Michele Williams. All Rights Reserved . Computron Preparation BATNA Candidates: Find another job for 100-140k Recruiters: Hire another employee for 120-140k Specific salary, moving and bonus figures are constraining in a multiparty negotiation Think about multiple packages of equal value Reservation Point The emotional value of your BATNA If better or worse than your BATNA, you must justify this.
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