For 15 years, you (Dana) have been the accounting manager for Smith Manufacturing Company which your cousin Terry owns. Several years ago, before the economy collapsed, you were making $100,000 per year. At that time, Terry came to you to request that your salary be reduced to $85,000 in light of the terrible economy, lower sales, and significantly reduced profits.

As an accounting manager, you understood the problems and readily agreed to this reduction. However, in the last six months, the economy in your industry has improved significantly, and the company's profits and sales have returned to their normal levels.

You thought Terry would have already returned your salary to its previous level, if not to a higher level, due to your loyalty to the company during the hard times. However, that is not the case. Terry is well aware that your spouse has become disabled and unable to work and that your oldest child recently started college at an Ivy League school at considerable expense. You are very upset with Terry's actions.

You think you are entitled to a current salary of about $115,000. At a minimum, you want your salary returned to $100,000 and ideally to $115,000. Today you have an appointment with Terry to discuss all this.

INSTRUCTED TO USE INTEGRATIVE NEGOTIATION:

1. During the negotiation how did you determine Terry's needs, interests, objectives, and expectations? What were they? What questions did you ask to elicit such information?

2. Define BATNA. What is your Batna in this case? How did you arrive at your Batna?

3. Define "interest" in the context of negotiation. List and rank your interests by importance. How did you try to achieve your interests in the negotiation? What interests did you achieve?

4. Define reservation point. What was your reservation point? How did you arrive at your reservation point?

5. How did the continuing relationship problem between the parties affect the negotiation?

6. What goals did you try to achieve? How? Were you successful?