Management Fundamentals 5th Edition by Robert Lussier

Exercise 17

Preparing for Skill Builder 1
Before beginning this Skill Builder, you should read and be sure you understand the text discussion of the negotiation process.
Objective
To develop your understanding of power and to build negotiation skills.
Skills
The primary skills developed through this exercise are:
1. Management skill - interpersonal (negotiation)
2. AACSB competencies - communication abilities and analytic skills
3. Management function - leading (through influencing others)
Experience
You will be the buyer or seller of a used car.
Procedure 1 (1-2 minutes)
Pair off and sit facing your partner so that you cannot read each other's confidential sheet. Pairs should be as far apart as possible so they cannot overhear other pairs' conversations. If there is an odd number of students in the class, one student will be an observer or work with the instructor. Decide who will be the buyer and who will be the seller of the used car.
Procedure 2 (1-2 minutes)
The instructor will give a confidential sheet to each buyer and seller. (These do not appear in this book.)
Procedure 3 (5-6 minutes)
Buyers and sellers read their confidential sheets and jot down some plans (what your basic approach will be, what you will say) for the negotiation.
Procedure 4 (3-7 minutes)
Negotiate the sale of the car. You do not have to buy or sell the car. After you make the sale or agree not to sell, read your partner's confidential sheet and discuss the experience.
Integration (5-7 minutes)
Answer the following questions:
1. What type of plan was appropriate for this situation?
a. general single-use project plan
b. detailed standing-policy plan
2. Which type of power was most relevant in helping you to negotiate the car deal?
a. coercive
b. connection
c. reward
d. legitimate
e. referent
f. information
g. expert
3. Did you experience any stress as a result of this exercise (faster heart rate, perspiration, anxiety, tension, or pressure)?
a. yes
b. no
4. Did you set a lower limit, target, and opening price?
a. yes
b. no
5. Did you imply that you had other options and/or develop trade-offs?
a. yes
b. no
6. Did you anticipate questions and objections, and prepare answers?
a. yes
b. no
7. Did you develop rapport and focus on obstacles rather than the person?
a. yes
b. no
8. Did you let the other party make the first offer?
a. yes
b. no
9. Did you listen and ask questions to focus on meeting the other party's needs?
a. yes
b. no
10. Were you quick to settle for less than your target price and/or ask for something in return for giving concessions?
a. yes
b. no
11. Did you reach a sales agreement?
a. yes
b. no
12. If you did reach a sales agreement, which price did you receive?
Conclusion
Your instructor may lead a class discussion or give the answers to the "Integration" questions and make concluding remarks.
Apply It
What did I learn from this experience? How will I use this knowledge in the future?
____________________________________________________________________
_____________________________________________________________________