Goldrush Electronics Negotiation Exercise

OBJECTIVE

The purpose of this case is to provide you with an opportunity to practice negotiations.

PROCEDURE

STEP 1

The class is divided into four groups, each comprising the project management group for one of four projects at Goldrush Electronics.

STEP 2

Read the Goldrush Electronics “Background Information” section given below. Then read the instructions for the project you represent. Soon you will meet with the management of the other projects to exchange personnel. Plan how you want to conduct those meetings.

BACKGROUND INFORMATION

Goldrush Electronics (GE) produces a range of electronic products. GE has a strong commitment to project management. GE operates as a projectized organization with each project organized as a fully dedicated team. The compensation system is based on a 40 + 30 + 30 formula. Forty percent is based on your base salary, 30 percent on your project performance, and 30 percent on overall performance of the firm.

Four new product development projects have been authorized. They are code named: Alpha, Beta, Theta, and Zeta. The preliminary assignment of personnel is listed below. You are assigned to represent the management of one of these projects.

The policy at GE is that once preliminary assignments are made, project managers are free to exchange personnel as long as both parties agree to the transaction. You will have the opportunity to adjust your team by negotiating with other project managers.

Personnel may be traded for one or more other personnel.

STEP 3

Meet and negotiate with the other project managers.

STEP 4

Individual project scores are totaled and posted.

STEP 5

DISCUSSION QUESTIONS

1. What was your initial strategy before starting the actual negotiations? How did you view the other groups?

2. Did your initial strategy change once negotiations began? If so, how and why?

3. What could top management at GE have done to make it easier to reach agreement with the other groups?