Negotiations for Managers
(1 – 50 are worth 1.2 points a piece)
1. Which is not a characteristic of a negotiation or bargaining situation?
A)conflict between parties
B)two or more parties involved
C)an established set of rules
D)a voluntary process
E)None of the above is a characteristic of a negotiation.
2. Which of the following is not an intangible factor in a negotiation?
A)the need to look good
B)final agreed price on a contract
C)the desire to book more business
D)fear of setting a precedent
E)All of the above are intangible factors.
3. Interdependent parties’ relationships are characterized by
B)solitary decision making.
E)Interdependent relationships are characterized by all of the above.
4. Satisfaction with a negotiation is determined by
A)the process through which an agreement is reached and the dollar value of concessions made by each party.
B)the actual outcome obtained by the negotiation as compared to the initial bargaining positions of the negotiators.
C)the process through which an agreement is reached and by the actual outcome obtained by the negotiation.
D)the total dollar value of concessions made by each party.
E)Satisfaction with a negotiation is determined by none of the above.
5. Which of the following statements about conflict is true?
A)Conflict is the result of tangible factors.
B)Conflict can occur when two parties are working toward the same goal and generally want the same outcome.
C)Conflict only occurs when both parties want a very different settlement.
D)Conflict has a minimal effect on interdependent relationships.
E)All of the above statements about conflict are true.
6. Which of the following contribute to conflict’s destructive image?
B)misperception and bias
D)minimized differences; magnified similarities
E)All of the above contribute to conflict’s destructive image.
7. In the Dual Concerns Model, the level of concern for the individual’s own outcomes and the level of concern for the other’s outcomes are referred to as the
A)cooperativeness dimension and the competitiveness dimension.
B)the assertiveness dimension and the competitiveness dimension.
C)the competitiveness dimension and the aggressiveness dimension.
D)the cooperativeness dimension and the assertiveness dimension.
E)None of the above.
8. Negotiators pursuing the yielding strategy
A)show little interest or concern in whether they attain their own outcomes, but are quite interested in whether the other party attains his or her outcomes.
B)pursue their own outcome strongly and shows little concern for whether the other party obtains his or her desired outcome.
C)shows little interest or concern in whether they attain their own outcomes, and does not show much concern about whether the other party obtains his or her outcomes.
D)show high concern for attaining their own outcomes and high concern for
whether the other attains his or her outcomes.
E)Negotiators pursuing the yielding strategy demonstrate none of the above behaviors.
9. A situation in which solutions exist so that both parties are trying to find a mutually acceptable solution to a complex conflict is known as which of the following?
E)None of the above.
10. T or F The parties prefer to negotiate and search for agreement rather than to fight openly, have one side dominate and the other capitulate, permanently break off contact, or take their dispute to a higher authority to resolve it
11. T or F When the goals of two or more people are interconnected so that only one can achieve the goal—such as running a race in which there will be only one winner—this is a competitive situation, also known as a non-zero-sum or distributive situation
12. T or f Negotiators do not have to be versatile in their comfort and use of both major strategic approaches to be successful.
13. Distributive bargaining strategies
A)are the most efficient negotiating strategies to use.
B)are used in all interdependent relationships.
C)are useful in maintaining long term relationships.
D)can cause negotiators to ignore what the parties have in common.
E)None of the above describes distributive bargaining strategies.
14. The objective of both parties in distributive bargaining is to obtain as much of which of the following as possible?
E)None of the above.
15. The resistance point is established by the ____________ expected from a particular outcome, which is in turn the product of the ____________ and ____________ of an outcome.
A)cost, value, worth
B)value, worth, cost
C)value, cost and timeliness
D)cost, importance, value
E)None of the above.
16. The more you can convince the other that you value a particular outcome outside the other’s bargaining range, the more pressure you put on the other party to set by one of the following resistance points.
E)None of the above.
17. T or F The resistance point is the point at which a negotiator would like to conclude negotiations.
18. T or F Each party’s resistance point is openly stated at the conclusion of negotiations.
19. T or F The more you can do to convince the other party that his or her costs of delay or aborting negotiations will be costly, the more likely he or she will be to establish a modest resistance point.
20. T or F Studies indicate that negotiators who make low or modest opening offers get higher settlements than do those who make extreme opening offers.
21. The bargaining range is defined by
A)the opening stance and the initial concession.
B)the initial round of concessions.
C)the bargaining mix and the opening stance.
D)the opening offer and the counteroffer.
E)The bargaining range is defined by all of the above.
22. Good distributive bargainers will
A)begin negotiations with the other party with an opening offer close to their own resistance point.
B)ensure that there is enough room in the bargaining range to make some concessions.
C)accept an offer that is presented as a fait accompli.
D)immediately identify the other party’s target point.
E)All of the above are actions that good distributive bargainers will take.
23. What statement about concessions is false?
A)Concessions are central to negotiations.
B)Concessions is another word for adjustments in position.
C)Concession making exposes the concession maker to some risk.
D)Reciprocating concessions is a haphazard process.
E)All of the above statements are true.
24. Negotiators who make threats
A)are perceived as more powerful than negotiators who do not use threats.
B)receive higher outcomes than negotiators who do not use threats.
C)are perceived as more cooperative in distributive negotiations.
D)should use detailed, complex statements of demands, conditions and consequences.
E)All of the above describe negotiators who make threats.
25. Hardball tactics are designed to
A)be used primarily against powerful negotiators.
B)clarify the user’s adherence to a distributive bargaining approach.
C)pressure targeted parties to do things they would not otherwise do.
D)eliminate risk for the person using the tactic.
E)Hardball tactics are designed to accomplish all of the above.
26. The negotiator’s basic strategy is to
A)get information about the opposition and its positions.
B)reach the final settlement as close to the other’s resistance point as possible.
C)convince members of the other party to change their minds about their ability to achieve their own goals.
D)promote his or her own objectives as desirable, necessary, and inevitable.
E)All of the above.
27. T or F Integrative agreements have been shown to be facilitated when parties exchanged information about their positions on particular issues, but not necessarily about their priorities on those issues.
28. T or F An integrative negotiation problem should be defined as a solution process rather than as a specific goal to be attained.
29. T or F In generating alternative solutions to the problem, groups should also adopt procedures for defining the problem, defining the interests, and generating options, however, to prevent the group process from degenerating into a win-lose competition or a debating event.
30. T or F “Expanding the pie” as a method of generating alternative solutions is a complex process, as it requires much more detailed information about the other party than do other methods.
31. Which of the following processes is central to achieving almost all integrative agreements?
A)moderating the free flow of information to ensure that each party’s position is accurately stated
B)exchanging information about each party’s position on key issues
C)emphasizing the commonalties between the parties
D)searching for solutions that maximize the substantive outcome for both parties
E)All of the above processes are central to achieving integrative agreements.
32. In which major step of the integrative negotiation process of identifying and defining the problem would you likely find that if the problem is complex and multifaceted the parties may not even be able to agree on a statement of the problem?
A)define the problem in a way that is mutually acceptable to both sides.
B)state the problem with an eye toward practicality and comprehensiveness.
C)state the problem as a goal and identify the obstacles to attaining this goal.
D)depersonalizing the problem.
E)separate the problem definition from the search for solutions.
33. Which of the following statements about interests is true?
A)There is only one type of interest in a dispute.
B)Parties are always in agreement about the type of interests at stake.
C)Interests are often based in more deeply rooted human needs or values.
D)Interests do not change during the course of an integrative negotiation.
E)All of the above statements about interests are true.
34. Successful logrolling requires
A)that the parties establish more than one issue in conflict and then agree to trade off among these issues so one party achieves a highly preferred outcome on the first issue and the other person achieves a highly preferred outcome on the second issue.
B)no additional information about the other party than his/her interests,
and assumes that simply enlarging the resources will solve the problem.
C)that one party is allowed to obtain his/her objectives and he/she then “pays off” the other party for accommodating his/her interests.
D)a fundamental reformulation of the problem such that the parties are disclosing sufficient information to discover their interests and needs and then inventing options that will satisfy both parties’ needs.
E)Successful logrolling requires all of the above.
35. When confronted with complex problems, or a large number of alternative options, which of the following steps is necessary?
A)broaden the range of solution options
B)evaluate solutions on the basis of quality, standards, and acceptability
C)decide on criteria while evaluating options
D)maintain a focus on the influence of tangibles in selecting options
E)All of the above steps should be used when confronted with complex problems.
36. In nonspecific compensation
A)resources are added in such a way that both sides can achieve their objectives.
B)one party achieves his/her objectives and the other’s costs are minimized if he/she agrees to go along.
C)the parties are able to invent new options that meet each sides’ needs.
D)one person is allowed to obtain his/her objectives and “pay off” the other person for accommodating his interests.
E)All of the above are related to nonspecific compensation.
37. Which guideline should be used in evaluating options and reaching a consensus?
A)keep the range of solution options as wide as possible
B)evaluate the solutions on the basis of speed and expediency
C)keep detailed records throughout the discussion and evaluation process
D)be alert to the influence of intangibles in selecting options
E)None of the above should be used in the evaluation process.
38. Which of the following is not necessary for integrative negotiation to succeed?
A)Each party should be as interested in the objectives and problems of the other as each is in his/her own—each must assume responsibility for the other’s needs and outcomes as well as for his/her own.
B)The parties must be committed to a goal that benefits both of them rather than to pursuing only their own ends.
C)The parties must be willing to adopt interpersonal styles that are more congenial than combative, more open and trusting than evasive and defensive, more flexible (but firm) than stubborn (but yielding).
D)Needs have to be made explicit, similarities have to be identified, and differences have to be recognized and accepted.
E)All of the above are essential for integrative negotiation to succeed.
39. Which of the following factors does not contribute to the development of trust between negotiators?
A)We are more likely to trust someone we perceive as similar to us or as holding a positive attitude toward us.
B)We often mistrust people who are dependent upon us because we are in a position to help or hurt them.
C)We are more likely to trust people who initiate cooperative, trusting behavior.
D)We are more likely to trust negotiators who make concessions.
E)All of the above contribute to the development of trust between negotiators.
40. What are the most critical precursors for achieving negotiation objectives?
A)Effective strategizing, planning and preparation
B)goal setting and target planning
C)defining frames and setting goals
D)framing and strategizing
E)none of the above
41. Which of the following is not a reason that negotiations fail?
A)Allowing insufficient time for planning
B)Failing to set clear objectives
C)Understanding the strengths and weaknesses of their and the other party’s positions
D)Depending on being quick and clever during negotiations
42. A strong interest in achieving only the relationship outcomes suggests one, if any, of the following strategies. Which one?
E)none of the above
43. Getting to know the other party and understanding similarities and differences represents what key step in the negotiation process:
E)None of the above
44. What is the dominant force for success in negotiation?
A)a distributive vs. integrative strategy
B)the planning that takes place prior to the dialogue
C)the discussions that precede planning sessions
D)the tactics selected in support of strategic goals
E)all of the above
45. Does any of the following represent the point at which we realistically expect to achieve a settlement?
A)specific target point
E)none of the above
46. If the other party has a strong and viable alternative, he/she will
A)be dependent on achieving a satisfactory agreement
B)appear aggressive and hostile in negotiations
C)set and push for high objectives
D)have unlimited negotiating authority
E)all of the above
47. Under which of the following questions of protocol would you find a bargaining relationship discussion about procedural issues that should occur before the major substantive ones have been raised?
A)What agenda should we follow?
B)Where should we negotiate?
C)What is the time period of the negotiation?
D)What might be done if negotiation fails?
E)How will we keep track of what is agreed to?
48. T or F If what we want exceeds what the other party is capable of or willing to give, we must either change our goals or end the negotiation.
49. T or F If both substance and relationship outcomes are important, the negotiator should pursue a competitive strategy.
50. T or F Alternatives are very important in both distributive and integrative processes because they define whether the current outcome is better than any other possibility.
(51 – 54 are worth 10 points a piece)
51. Name the four levels of conflict that are commonly identified. Explain
how conflict is a potential consequence of interdependent relationships.
52. What characteristics of original offer, opening stance and opening concession would signal a position of firmness? Of flexibility? What are the advantages of adopting a flexible position?
53. What tactics can be used to communicate firm flexibility to an opponent? In addition, what guidelines should be used in evaluating options and reaching a consensus?
54. Research by Greenhalgh suggests there are seven key steps to an ideal negotiation
process. Which of the Greenhalgh seven steps of negotiation do Asian negotiators spend a great deal of time on? Why is this so important?