Read case 12.4 Goldrush Electronics and answer the following 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?

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 in the following section. 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 the overall performance of the firm. Four new product development projects have been authorized. They are code named Alpha, Beta, Theta, and Zeta. The preliminary personnel assignments are listed in the following table. 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. Personnel may be traded for one or more other personnel. You will have the opportunity to adjust your team by negotiating with other project managers. page 467 Alpha Project Software Engineer Hardware Engineer Design Engineer Jil Cameron Mitch John Chandra Marsha Beta Project Software Engineer Hardware Engineer Design Engineer Jake Casey Mike Jennifer Craig Maria Theta Project Software Engineer Hardware Engineer Design Engineer Jack Chuck Monika Johan Cheryl Mark Zeta Project Software Engineer Hardware Engineer Design Engineer Jeff Carlos Max Juwoo Chad Maile STEP 3 Meet and negotiate with the other project managers