Make a script for the role play

The Situation

John and Lucas work for a reputed company in Toronto. John supervises a research laboratory. Lucas is the manager of research and development. John and Lucas are alumni of the same college and have worked in this company for more than 6 years. Lucas has been Johns boss for 2 years. One of Johns team members has greatly impressed him. This team member is Susan who was hired 11 months ago. She is 24 years old and holds a Masters degree in Mechanical Engineering. Her entry level salary was $60,000 per year. John told her that in accordance with the companys policy, she would receive an initial performance evaluation at 6 months and a comprehensive review after 1 year. Based on her performance record, Susan was told she could expect a salary adjustment at the time of 1 year evaluation.

Johns evaluation about Susan after 6 months was very positive. She was putting in her cooperative spirit, the fact that others in the lab enjoyed working with her, and that she was making an immediate positive impact on the project assigned to her. Now that her first anniversary is coming up, John has again reviewed Susans performance. John thinks Susan might be the best new person R&D has ever hired. After only a year, John had ranked her as the number 3 performer in a department of 11.

Salaries in the department vary greatly. John for instance has a base salary of $80,000 per year plus eligibility of a bonus that might add upto $10,000 a year. The salary range of 11 department members is $ 40,000 a year to $1,20,000 a year. The 2 people whom John had rated above Susan earn base salaries of $ 75,000 and $80,000. They are both 30 years old and have been working for 3-4 years. The median salary in Johns department is $70,000.

Johns Role

You want to give Susan a big raise. Although she is young, she has proven to be an excellent addition to the department. You dont want to lose her. More importantly, she knows in general what other people in the department are earning, and she thinks she is underpaid. The company typically gives 1 year raises of 5%, although 10% is not unusual. You would like to get Susan as large an increase as Lucas will approve.

Lucass Role

All your supervisors typically try to squeeze you for as much money as they can for their people. You understand this because you did the same thing when you were a supervisor, but your boss wants to keep a lid on these costs. He wants you to keep raises for recent hires generally in the 5-8% range. Infact he has sent a memo to all the Managers and supervisors saying this. He also said that Managers will be evaluated on their ability to maintain budgetary control. However, your boss is also concerned with equity and paying people what they are worth. You feel assured that he will support any salary recommendation you make, as long as it can be justified. Your goal, consistent with cost reduction, is to keep salary increases as low as possible.

The Negotiation Role Play

John has a meeting scheduled with Lucas to discuss Susans performance review and salary adjustment. Take a couple of minutes to think through the facts in this exercise and to prepare a negotiation strategy (imagining one of you as Lucas, and one as John). Take 15 minutes to conduct your negotiation. Come up with the negotiation/ conflict management strategies you think might be the most effective.