MGMT1021 Chapter Notes - Chapter 18-20: Best Alternative To A Negotiated Agreement, Working Poor, Social Cost

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Session 18: Inequality In and Around Organizations
- Do you still remember: diagram; weak fault lines = age, gender, race/ethnicity
- How organizations hire, evaluate, pay, promote, and fire employees most directly causes
income inequality
- Low wage work = hard work; physically demanding, long hours, primarily in service jobs
(fastest growing sector), rise of full-time working poor (not laziness)
- Employment concentration (# of people hired by largest firms) has gone down while
inequality has increased
- Negative consequences of low wage work
- Health risks greatly increased, lack of medical care
- Scarcity trap - when in a state of scarcity, you make decisions which, in the short
term, help manage scarcity, but make it worse long-term
- Decreased cognitive functioning when dealing w/ money problems
- Organizational practices causing the problem:
- Low pay, few benefits, involuntary part-time hours, “time skimming” (working
unpaid OT), lack of set schedule, “clopening” (close at night, open in AM)
- Low road not so profitable: turnover comes w/ high costs, unreasonable productivity
demands impact employee morale, customer satisfaction, waste, negative publicity
- Social cost of low wage work
- Taxpayer burden - one WalMart incurs $1M/yr in public benefit costs; people on
Session 19: Influencing Others: Negotiation
- Do you remember: Negative impacts of low wage work on employees? A: less access to
health care, prone to health issues, encouraged to be on welfare, impaired cognitive
functioning, fall victim to scarcity trap, pressure to time skim, scared of termination
- Congruent aspects of negotiation = identical preferences; want to maximize for joint
- Distributive aspects of negotiation = win/lose, single issue; want to compromise for JV
- Integrative aspects of negotiation = different preferences; want to trade off for JV
- BATNA = Best Alternative To Negotiated Agreement - negotiation point, describes
available alternative; higher BATNA = more power
- Principled negotiation: positions not equal to interests
- People: separate people from problem
- Interests: focus on interests, not positions
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