MGNT102

Case Study

Pay negotiations

Kay, the finance manager at a large company faces a dilemma. Robert, who is one of the Accounts
Directors and a union member, has requested an 8 percent raise for his work unit. His request is
based on recent finance reports showing that his department has substantially contributed to a 15
percent profit increase for the organisation. He feels that his team should be compensated for the
hard work and long hours they have put in over the last few years to achieve this outcome.

Kay knows the value of Robert’s team and readily acknowledges their achievements. However, she
knows that the company has plans to expand and diversify. This new project will use up the majority
of the profit increase for at least the next five years. She is willing to sit down with Robert and talk
about how his team can get involved in the new project. There could be new job opportunities,
some overseas assignments, and possible promotions to various leadership positions within the new
project. Kay has flagged this with Robert; however, he is adamant that his team needs to be
compensated with a monetary increase. He went as far as threatening to get the union involved if
his request is unsuccessful.

You are required to:

1. Identify one of the conflict-handling styles (Accommodating/avoiding/competing/

competing) used in this scenario. How did you determine that?

2. Choose one of the characters and determine which bargaining approach (distributive or
integrative) is used. How did you determine that?

3. What aspect of interpersonal communication is contributing to the poor working

environment? How is this demonstrated in the case?

4. Using Hall's context model (high and low context culture), describe one of the characters’
behaviour. How did you determine that?

Remember to define/describe the relevant concepts in sufficient depths and detail and to
make a clear link between your concepts and the case scenario. This is to ensure that
someone without business communication knowledge understands your brief report.