Adam Baxter Company/Local 190: 1978 Negotiation,  Baxter Management Confidential Information

Kathleen L. McGinn; Victoria  Medvec

Exercise | April 1996 (Revised May 2008)

Adam Baxter Company/Local 190: 1978 Negotiation, Baxter Management Confidential Information

by Kathleen L. McGinn and Victoria Medvec

Abstract

Includes a series of three negotiation exercises portraying management/labor relations at ABC over a period of seven years. ABC, initially a family-owned business, had prided itself on its cooperative relationship with its union, Local 190. With the skyrocketing inflation of the 1970s, management considered drastic changes. Management and labor would undergo a series of negotiations over wages, benefits, and work conditions at ABC's main plant in Deloitte, Iowa.

Keywords: Inflation and Deflation; Compensation and Benefits; Wages; Working Conditions; Management; Negotiation Process; Labor and Management Relations;

Format: Print

8 pages

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Citation:

McGinn, Kathleen L., and Victoria Medvec. "Adam Baxter Company/Local 190: 1978 Negotiation, Baxter Management Confidential Information." Harvard Business School Exercise 396-318, April 1996. (Revised May 2008.)

Teaching Plan serves as a supplement to the case for “Chief: Role for Carolyn Childers” (920-019), “Chief: Role for Lindsay Kaplan” (920-020), and “Scaling at Chief” (920-021).

Article | Quarterly Journal of Economics | May 2020

Negotiating a Better Future: How Interpersonal Skills Facilitate Inter-Generational Investment

Nava Ashraf, Natalie Bau, Corinne Low and Kathleen McGinn

Using a randomized control trial, we examine whether offering adolescent girls nonmaterial resources—specifically, negotiation skills—can improve educational outcomes in a low-income country. In so doing, we provide the first evidence on the effects of an intervention that increased noncognitive, interpersonal skills during adolescence. Long-run administrative data shows that negotiation training significantly improved educational outcomes over the next three years. The training had greater effects than two alternative treatments (offering girls a safe physical space with female mentors and offering girls information about the returns to education), suggesting that negotiation skills themselves drive the effect. Further evidence from a lab-in-the-field experiment, which simulates parents’ educational investment decisions, and a midline survey suggests that negotiation skills improved girls’ outcomes by moving households’ human capital investments closer to the efficient frontier. This is consistent with an incomplete contracting model, where negotiation allows daughters to strategically cooperate with parents.

Keywords: Negotiation; Competency and Skills; Training; Age; Gender; Education; Investment; Outcome or Result; Developing Countries and Economies;

Citation:

Ashraf, Nava, Natalie Bau, Corinne Low, and Kathleen McGinn. "Negotiating a Better Future: How Interpersonal Skills Facilitate Inter-Generational Investment." Quarterly Journal of Economics 135, no. 2 (May 2020): 1095–1151. View Details

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Adam Baxter Company/Local 190: 1978 Negotiation, Baxter Management Confidential Information

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