Social Change and Psychology Case StudyGardolam Enterprises, LLC.docx

Social Change and Psychology Case Study
Gardolam Enterprises, LLC: A Case Study in Underrepresented
Workers in the IT Field
Company Background
Gardolam Enterprises, LLC (GE, LLC) is a privately held
company located in the state of California. GE, LLC provides IT
maintenance services and software products. It has over 350
employees, including administrative personnel, office staff, and
in-house third-party vendors. GE, LLC’s mission is to “be the
best in the industry to innovate and disseminate IT software
products and services that revolutionize the way other
businesses do business. We will do this by serving all of our
clients with respect and consideration of their demographic
makeup that reflects our own demographics, making us a
globally desirable company.”
The Challenge
Arnie Devin is GE, LLC’s CEO, and he will soon retire. Mr.
Devin released an internal statement addressing concerns from
the company’s Human Resources Department (HRD). Several
external candidates observed that they possess the knowledge,
skills, abilities, and credentials needed to perform the
respective jobs for which they applied, but they were displaced
by less qualified candidates.
In addition, the HRD received at least two formal complaints
from the State of California Department of Labor and Statistics.
Both formal complaints alleged that GE, LLC has exhibited (1)
“…blatant discrimination in its hiring practices” and (2) “…has
a disproportionate number of male to female IT employees in
administrative and service positions, which favors males.”
The current workforce has expressed a strong level of
disagreement with the complaints of discrimination and
underrepresentation. This signals potential resistance to
changing the company’s organizational culture. Mr. Devin vows
to hire a successor to investigate, address, and remedy these

issues
Chapter 1
THE NATURE OF NEGOTIATION
© 2016 by McGraw-Hill Education. This is proprietary material
solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied,
scanned, duplicated, forwarded, distributed, or posted on a
website, in whole or part.
1-1
Introduction
Negotiation is something
that everyone does,
almost daily
1-2
Negotiations
Negotiations occur for several reasons:
To agree on how to share or divide a limited resource
To create something new that neither party could attain on his
or her own
To resolve a problem or dispute between the parties

1-3
Approach to the Subject
Most people think bargaining and negotiation mean the same
thing; however, we will be distinctive about the way we use
these two words:
Bargaining: describes the competitive, win–lose situation
Negotiation: refers to win–win situations such as those that
occur when parties try to find a mutually acceptable solution to
a complex conflict
1-4
Three Important Themes
The definition of negotiation and the basic characteristics of
negotiation situations
Interdependence, the relationship between people and groups
that most often leads them to negotiate
Understanding the dynamics of conflict and conflict
management processes which serve as a backdrop for different
ways that people approach and manage negotiations
1-5

Characteristics of a
Negotiation Situation
There are two or more parties
There is a conflict of needs and desires between two or more
parties
Parties negotiate because they think they can get a better deal
than by simply accepting what the other side offers them
Parties expect a “give-and-take” process
1-6
Characteristics of a
Negotiation Situation
Parties search for agreement rather than:
Fight openly
Capitulate
Break off contact permanently
Take their dispute to a third party
Successful negotiation involves:
Management of tangibles (e.g., the price or the terms of
agreement)
Resolution of intangibles (the underlying psychological
motivations) such as winning, losing, saving face
1-7

Interdependence
In negotiation, parties need each other to achieve their preferred
outcomes or objectives.
This mutual dependency is called interdependence
Interdependent goals are an important aspect of negotiation
Win–lose: I win, you lose
Win–win: Opportunities for both parties to gain
1-8
Interdependence
Interdependent parties are characterized by interlocking goals
Having interdependent goals does not mean that everyone wants
or needs exactly the same thing
A mix of convergent and conflicting goals characterizes many
interdependent relationships
1-9
Types of Interdependence
Affect Outcomes
Interdependence and the structure of the situation shape
processes and outcomes
Zero-sum or distributive – one winner
Non-zero-sum or integrative – mutual gains situation

1-10
Alternatives Shape Interdependence
Evaluating interdependence depends heavily on the alternatives
to working together
The desirability to work together is better for outcomes
Best available alternative: BATNA (acronym for Best
Alternative to a Negotiated Agreement)
1-11
Mutual Adjustment
Continues throughout the negotiation as both parties act to
influence the other
One of the key causes of the changes that occur during a
negotiation
The effective negotiator needs to understand how people will
adjust and readjust and how the negotiations might twist and
turn, based on one’s own moves and the other’s responses

1-12
Mutual Adjustment and Concession Making
When one party agrees to make a change in his/her position, a
concession has been made
Concessions restrict the range of options
When a concession is made, the bargaining range is further
constrained
1-13
Two Dilemmas in
Mutual Adjustment
Dilemma of honesty
Concern about how much of the truth to tell the other party
Dilemma of trust
Concern about how much should negotiators believe what the
other party tells them
1-14
Value Claiming and Value Creation
Opportunities to “win” or share resources

Claiming value: result of zero-sum or distributive situations
where the object is to gain largest piece of resource
Creating value: result of non-zero-sum or integrative situation
where the object is to have both parties do well
1-15
Most actual negotiations are a combination of claiming and
creating value processes
Negotiators must be able to recognize situations that require
more of one approach than the other
Negotiators must be versatile in their comfort and use of both
major strategic approaches
Negotiator perceptions of situations tend to be biased toward
seeing problems as more distributive/competitive than they
really are
1-16
Value differences that exist between negotiators include:
Differences in interests
Differences in judgments about the future
Differences in risk tolerance
Differences in time preferences

1-17
Conflict
Conflict may be defined as a:
“sharp disagreement or opposition” and includes “the
perceived divergence of interest, or a belief that the parties’
current aspirations cannot be achieved simultaneously”
1-18
Levels of Conflict
Intrapersonal or intrapsychic conflict
Conflict that occurs within an individual
We want an ice cream cone badly, but we know that ice cream is
very fattening
Interpersonal conflict
Conflict is between individuals
Conflict between bosses and subordinates, spouses, siblings,
roommates, neighbors, etc.
1-19

Levels of Conflict
Intragroup Conflict
Conflict is within a group
Among team and committee members, within families, classes
etc.
Intergroup Conflict
Conflict can occur between organizations, ethnic groups,
warring nations, feuding families, or within splintered,
fragmented communities
These negotiations are the most complex
1-20
Dysfunctions of Conflict
Competitive, win–lose goals
Misperception and bias
Emotionality
Decreased communication
Blurred issues
Rigid commitments
Magnified differences, minimized similarities
Escalation of conflict
1-21

Functions of Conflict
Makes organizational members more aware and able to cope
with problems through discussion.
Promises organizational change and adaptation.
Strengthens relationships and heightens morale.
Promotes awareness of self and others.
Enhances personal development.
Encourages psychological development—it helps people become
more accurate and realistic in their self-appraisals.
Can be stimulating and fun.
1-22
FIGURE 1.3 The Dual Concerns Model
1-23
Styles of Conflict Management
1. Contending (also called competing or dominating)
Actors pursue own outcomes strongly, show little concern for
other party obtaining their desired outcomes
2. Yielding (also called accommodating or obliging)
Actors show little interest in whether they attain own outcomes,
but are quite interested in whether the other party attains their

outcomes
3. Inaction (also called avoiding)
Actors show little interest in whether they attain own outcomes,
and little concern about whether the other party obtains their
outcomes
1-24
Styles of Conflict Management
4. Problem solving (also called collaborating or integrating)
Actors show high concern in obtaining own outcomes, as well
as high concern for the other party obtaining their outcomes
5. Compromising
Actors show moderate concern in obtaining own outcomes, as
well as moderate concern for the other party obtaining their
outcomes
1-25
image2.jpg
image1.tiff
MGT 41935193
Discussion Board One

Before reading the article, concern that in negotiations, many
people focus only on the price of the product or service, or the
amount of money in a salary. Seldom to they consider other
aspects. For example, I knew a man (John) that was offered a
job for $120K a year. Based on market and job surveys, the
$120K a year was right on market value. He was very excited
about the job but knew by accepting this job, he would pay an
additional $3,500-$4,500 more a year in family benefits than he
did at his presence employer.
He countered the employer’s offer with $135,000 a year. The
additional $15K a year would be enough to take care of the
family benefits for about four year. By then, he thought his
salary would have continued to increase with inflation, cost of
living, merit raises, etc. that he could keep the same standard of
living.
After going back and forth with the employer, the employer said
the best the company could do was $125K. John was very down
and the counteroffer from his employer and told the company he
would have to pass on the job. The company was just as upset
because they wanted John’s services because he would be a
great asset to the team.
In a last-ditch effect, the company ask John why he was
adamant about the $135K a year. In response, John quietly said
because your benefits are much higher than my previous
employer’s benefits and the additional amount would put me
where we want to be.
Enthusiastically, the employer said, you are kidding me…this
additional amount is for the benefits? John replied, yes. The
employer said, no problem, we will take care of the additional
amount for your family benefits if you come to work for the
$125K a year? John was excited and accepted the deal!!!
In essence, John came out about $10K a year better than if he
had received the $135K a year when consider the overall picture
of additional taxes, etc.
The point is the price is just one part of the picture. Yes, it is an
important part, but always consider why you are wanting what

you are wanting and are there other ways to get there.
To avoid the multitude of advertisements, I copied and pasted
the following article from a website. If you want to see the
original website, here it is:
https://www.brickunderground.com/blog/2015/07/how_to_negot
iate_that_rent_increase_come_lease_renewal_time
8 ways to negotiate your rent when renewing your lease. (Emily
Myers, August 2022).
Landlords are trying to increase rents for current tenants to
match what they can get on the market now that demand for
apartments is booming.
If your lease is up for renewal, your landlord has likely notified
you that your rent is going up—
by as much as 30 to 60 percent in some cases. The New
York City rental market is very competitive, and landlords are
trying to increase rents for current tenants to match what they
could get on the market from new renters.
You may not be experienced at negotiating but the main tactics
to negotiate your rent at lease renewal are not hard to deploy:
Keep it polite and point out that you've been a good tenant and
paid your rent on time. These are among the important
considerations to help you get the best
deal on your lease renewal.
It’s important to understand that it’s a different market now
compared to a year or so ago when you signed your lease. At
that point there were many vacancies and renters had the upper
hand. If your original lease included a concession, you are
unlikely to get a similar deal again. This is especially the case
in a corporate-managed, amenity-rich rental building where
renewal offers are often non-negotiable.
The trick is

not to respond emotionally to a big rent increase and
weigh whether staying is cheaper than moving out. Keep in
mind that renewing your lease means you’ll avoid the costly
hassle of moving to a new apartment, paying movers, a security
deposit, and a broker fee.
Scotty Elyanow, a broker at
Compass, points out “there are very few no-fee rentals
these days.” It also makes sense to renew if you know you’ll be
in NYC for another year or so and you truly love your place.
If you can’t afford to renew the lease and commit to the full
term, but you keep paying some form of the rent—the old rent
or a more modest increase—and the landlord accepts your
payments, you become a
month-to-month tenant. This can give you some
flexibility but there are also risks. You no longer have the
protection of a lease and if a landlord wants you out,
particularly if you’re not paying the rent they asked for, you
face eviction.
Here’s what to know if you are negotiating your lease renewal.
1. Understand how market-rate units work
Market-rate tenants are subject to the forces of supply and
demand. That means when it's time to renew your lease,
landlords are free to raise rents as much as they want—they are
only constrained by what renters are willing to pay.
This is in contrast to rent-stabilized apartments, where
landlords are only allowed to raise the rent by increments
approved by the
Rent Guidelines Board. For example, rent increases for
a one-year lease starting on or after October 1st 2021 and before
September 30th 2022 are frozen for the first six months but can
increase by 1.5 percent for the remaining six months. Two-year
leases can be increased by 2.5 percent.

With a market-rate apartment, if there are lots of people looking
for a place to rent, as there are now, landlords are more inclined
to raise the rent. In slower times they may be more inclined to
offer renewals with small or no rent increases, or even offer an
incentive to renew. That was what happened when the pandemic
was at its worst in New York City.
Generally, landlords try to retain good tenants. “Some landlords
do not want to deal with a lost month of vacancy plus deal with
any painting, cleaning and repairs which can become costly,”
Elyanow says.
Owners may consider a reasonable offer from a good tenant, but
they also know they may be able to rent an apartment out at a
higher price to an incoming tenant
2. Point out your track record
Landlords generally want to keep a tenant in an apartment,
because finding new renters can be costly, especially if
renovations or updates are needed before the place can be put
back on the market. If you've been a good tenant who always
pays your rent on time, make the case to your landlord who may
be less inclined to raise your rent to the point that it pushes you
out.
Elyanow suggests writing a nice letter to your managing agent
or landlord and explaining how great a tenant you are, and how
you pay your rent on time. You might even appeal to their
"better angels," he says, explaining how difficult the pandemic
has been for everyone and how you love your apartment and
building and wish to stay for a long time.
3. Stay calm, and ask politely
Be respectful in approaching your lease renewal and negotiating
against an increase or for a reduction. And don’t wait until the
last minute.
Tenant attorney (and Brick Underground sponsor) Sam
Himmelstein, a partner at

Himmelstein McConnell Gribben & Joseph, advises
tenants to say, “I’d like to renew at the same rent,” and see how
the landlord responds.
Some landlords may not want to negotiate but many will,
Elyanow says. “Keep trying to negotiate with the landlord and
know when it is your deadline to respond to any final renewal,”
he says.
4. Do your research
If you’re presented with a rent increase, it pays to check what
similar-sized apartments are renting for in the neighborhood on
real estate listing and brokerage sites. If you are arguing against
paying more, it’s better to make a case for yourself by
presenting some numbers.
Catharine Grad, a tenant attorney at
Himmelstein McConnell Gribben & Joseph, says telling
your landlord that you’ve lost your job isn’t your best strategy.
Think about how you can make the best case for yourself.
“Tenants need to figure out what they have to give,” she says.
That might simply be that you can continue to pay at the same
rate.
During the pandemic a Brooklyn renter made a case for
lowering his rent at renewal time by
creating a spreadsheet that showed how rents for similar
apartments had dropped 8 to 10 percent. He asked for a 12
percent discount, and received a counteroffer of 10 percent. He
stayed.
"I accepted because I thought it was reasonable, and it amounts
to five or six weeks free based on my previous rent," the renter
says.
While current market conditions would make this type of
negotiation extremely unlikely now, through doing the research
you may find the increase you’re being offered is in line with
similar apartments in your neighborhood. In this way, an

increase might be easier to stomach.
5. Get intel from your neighbors
Gramercy renter Jennifer C. found out that her neighbors in a
similar-sized apartment were offered an incentive for starting
renewal negotiations early.
"We were not offered that same deal, so I leveraged it," she
says. The end result? She negotiated her rent increase down
nearly 50 percent.
This can also occasionally work for rent-stabilized apartments.
One agent we spoke to says he once saw a similar apartment in
his building going for hundreds of dollars less than his rent-
stabilized place. He told the landlord he would apply for the
other apartment in order to save money.
"It went back and forth, and eventually they conceded and gave
me the same [lower] rate," he says.
6. Small landlords might be more willing to negotiate
Some landlords and management companies, especially those in
larger buildings or complexes, use software that sets rental rates
according to real-time market conditions, seasonal trends,
competitor prices, and lots of other metrics.
But analytics programs can be expensive for landlords of
smaller buildings. Mom-and-pop landlords are also hurt more by
a vacancy than a larger rental building so for smaller landlords,
decisions may rely more on a gut check. This is especially so if
you are renting an apartment in a house: Are you a respectful,
quiet tenant who pays the rent on time? If so, they may be more
willing to give you a break when your lease is up.
7. Make the case for an upgrade
In a slow market, if your rent is going up, you might be able to
ask the landlord to make a significant replacement or repair.
One agent worked with a landlord who didn't raise the rent one
year but wanted to increase it by $150 per month the next. He
negotiated it down to $100 and got a bathroom renovation out of
it.
"We were willing to pay more to have something a little nicer,"
he says.

If you have been asking for repairs to your apartment, it doesn’t
hurt to mention that when it’s time to renew the lease.
Bringing up a laundry list of necessary improvements could
make for a tense lease-renewal conversation but it’s not a bad
time to remind management about any on-going issues, like for
example, the elevator renovation that took 12 weeks instead of
the scheduled four.
8. If the rent is rising, ask for a two-year lease
Asking for a longer lease can lock in the rate and means you
avoid going through negotiations again 12 months later. This
might be something to consider if you like your apartment and
are committed to staying in your neighborhood. Not all
landlords will be open to giving you a two-year lease, but
there’s no harm in asking.
image2.jpeg
image1.jpeg
· Larry is buying a condo from Megan.
·
Four prices that are the focus:
· Megan’s asking price –
(Target)Initial price $145,000
· The Price Larry wants to pay –
Target price $135,000 (Optimal goal) Negotiator’s
Aspirations
· The price above which Larry would not buy the condo. His
bottom line –
resistance point/reservation price $150,000. The price
Megan won’t sell is $130,000
· Bargaining Zone – Between the
Resistance Points or Reservation Points

$130,000 ----------------$135,000----------------$145,000----------
------$150,000
Megan Larry Megan
Larry
RP Target Target RP
RESERVATION PRICE
The student will respond to the question from the professor in a
250 words minimum post. The student will use at least one
outside source when responding to the discussion question from
the professor. The student must show their in-text citations and
references at the bottom of their post. The student will also
respond to at least two of their colleagues on both of these
discussion boards. Quality of work, coverage of the subject,
proper punctuation, and APA is also the focus on this grading
assignment.
Consider the write up (in blue) prior to the article, and then
read the article. Also consider that in negotiations, being
creative can prove to be very beneficial to both party's in
reaching their goals. Based on the article, the author poses
some good ideas on how to negotiate a deal. what other options
would you consider in negotiating rent? Remember, you both
have a goal that needs to be met. Thinking creatively, but
reasonably.
https://www.youtube.com/watch?v=FWjwRAuVuQs (Video
on Nature of Negotiation)
Social Change and Psychology Journal Case Study
Overview
The following case study supports your work on this journal
activity:

Reading:
Case Study - Gardolam Enterprises, LLC: (See separate
document titled “Case Study Overview”)
Prompt
For this journal activity, you will first reflect on your
leadership style. Then, imagining that you are the successor to
“Mr. Devin,” you will reflect on your leadership style and
values in relation to the issues presented in the case study.
Respond to each of the following rubric criteria in 3 to 5
sentences:
· Describe three
values that reflect your leadership style and explain
why. Values may include:
· Personal values: consciousness of self, congruence,
commitment
· Group values: collaboration, common purpose, controversy
with civility
· Societal values: citizenship
· Cultural competence
· Emotional intelligence
· Positive change orientation
· Describe how you would apply the values of your
leadership style to resolve the issues presented in this
case study.
· Describe the impact of psychology on
decision making and leadership in this workplace
scenario.
All sources and ideas requiring attribution must be cited
according to APA style.

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