Exam 2 (Final)

Question 1

Why do people negotiate?

Answer 1

B - Better Deal
R - Resolve Conflict
A - Avoid Future Problems
C - Create Relationships
E - Embrace Change

Question 2

What are the fundamental characteristics to all negotiation situations?

Answer 2

• Two or more parties
• Conflict of needs and desires
• Parties search for agreement
• Parties expect “give-and-take” process

Question 3

What does BATNA mean and what is its purpose?

Answer 3

• Best Alternative to a Negotiated Agreement
• Back up plan if the current negotiation fails

Question 4

What are the four strategies associated with the “Dual Concerns” conflict management strategy?

Answer 4

• Yielding (High concern about other’s outcomes, low concern about own outcomes)
• Inaction (Low concern about other’s and own outcomes)
• Problem Solving (High concern about other’s and own outcomes)
• Contending (Low concern about other’s outcomes, high concern about own outcomes)

Question 5

What are the causes for conflict and what is the initial belief about conflict?

Answer 5

• Differences in values/beliefs, emotional triggers, styles of communication
• It is bad, destructive and should be avoided

Question 6

What is the definition of “compromise” within a negotiating context?

Answer 6

Showing moderate concern in obtaining own outcomes, as well as moderate concern for the other party’s objectives

Question 7

What is an ethical dilemma? What are the two ethical dilemmas associated with mutual adjustment?

Answer 7

• A situation where a person must choose between two or more conflicting moral principles
• Dilemma of Honesty and Dilemma of Trust

Question 8

What is the negotiating objective of distributive bargaining? What are the characteristics of distributive negotiation?

Answer 8

• Claim as much value as possible
• Win-lose mindset, information is limited/hidden, relationships are less important

Question 9

What is the difference between “zero sum” and “mutual gains” situations?

Answer 9

• Zero Sum: Win-Lose
• Mutual Gains: Win-Win

Question 10

What is the definition of ethics?

Answer 10

Broadly applied social standards for what is right or wrong in a particular situation

Question 11

What are the four ethical reasoning approaches. and what are the basic characteristics of each?

Answer 11

• Rights
• Utilitarian
• Liberty
• Ethics of Care

Question 12

What is the difference between an action being legal and an action begin ethical?

Answer 12

• Legal = follows the law
• Ethical = follows what is morally right or good

Question 13

What is the difference between Deception by Omission vs Deception by Commission?

Answer 13

• Omission: failing to disclose information that would benefit the other
• Commission: actually lying about the common-value issue

Question 14

When are negotiators likely to use deception tactics?

Answer 14

If they believe it will give them an advantage

Question 15

What is the purpose, or goal, of using ethically ambiguous negotiating tactics?

Answer 15

To gain an advantage

Question 16

What can a negotiator do when confronted with the other party using deceptive tactics?

Answer 16

• Ask probing questions, “Call” the tactic, Ignore the tactic, Force the other party to lie or back off

Question 17

What is impropriety? What is perceived impropriety? What are the consequences of both?

Answer 17

• Impropriety: When someone actually behaves unethically
• Perceived Impropriety: When others believe or suspect someone is acting unethically
• Hurt trust and credibility

Question 18

What is reciprocity?

Answer 18

Giving something in return for what you receive

Question 19

What is “Distributive Bargaining”? When is the use of distributive bargaining tactics useful?

Answer 19

• A negotiation strategy where one person’s gain is another person’s loss
• There’s only one issue, resources are limited, mutual trust is low

Question 20

What is a negotiating “concession”? What is the purpose? What type of messages can be communicated to the other party through the use of concessions?

Answer 20

• When you give up something or offer a compromise
• Show flexibility, create goodwill, get something in return
• Flexibility, willingness to compromise, building trust

Question 21

When are hardball tactics used? When are they likely to be successful? Hardball tactics are designed to accomplish what?

Answer 21

• Aggressive or manipulative strategies used to gain the upper hand
• A power imbalance, sense of urgency or desperation, wants to win at all costs
• Control the negotiation process, create psychological pressure, undermine the opponent’s position

Question 22

What are four ways (or strategies) that a negotiator can use to respond to hardball tactics?

Answer 22

• Discuss them
• Ignore them
• Respond in kind
• Befriend the other party

Question 23

What is a negotiating “bargaining range”? What is the difference between positive and negative bargaining range?

Answer 23

• The range of possible outcomes or acceptable terms
• Positive = Deal possible, Negative = No deal possible

Question 24

Distributive Bargaining Terminology:
1. What is a target point?
2. What is a resistance point?
3. What is an asking price?
4. What is an initial offer?

Answer 24

1. The ideal outcome or best possible result
2. Worst acceptable outcome
3. The initial price the seller proposes
4. The first proposal made

Question 25

What is the value of having "alternatives" in a negotiation?

Answer 25

Provides options, leverage, and flexibility

Question 26

What are the four important tactical tasks for a distributive bargaining negotiator?

Answer 26

- Starting/asking price - Target point - Resistance point - Alternative outcomes

Question 27

What are the advantages and disadvantages associated with making an extreme opening proposal when negotiating?

Answer 27

- Advantages: anchors negotiation in your favor, provides room for concessions, shows confidence and control - Disadvantages: risks rejection, can damage relationship/trust, perceived as inflexible or aggressive