Module 10

Question 1

Legitimate Power

Answer 1

This comes from the belief that a person has the formal right to make demands and to expect others to be compliant and obedient.

Question 2

Reward Power

Answer 2

This results from one person’s ability to compensate another for compliance.

Question 3

Expert Power

Answer 3

This is based on a person’s high levels of skill and knowledge.

Question 4

Referent Power

Answer 4

This is the result of a person’s perceived attractiveness, worthiness and right to others’ respect.

Question 5

Coercive Power

Answer 5

This comes from the belief that a person can punish others for noncompliance.

Question 6

Power Based Approach

Answer 6

those in which a party that believes it has more power uses its power to coerce or compel the other party to concede

Question 7

Interest-based approach

Answer 7

the intent is to reach a mutually acceptable outcome, something that is mutually beneficial to both parties.

Question 8

Power and rights are used to

Answer 8

Distribute

Question 9

Interests are used to

Answer 9

integrate

Question 10

Rights-based approach

Answer 10

focuses on the legal rights of the parties and attempts to achieve a resolution that meets the relevant legal criteria of the dispute in a manner that is consistent with what would be achieved in a court setting.

Question 11

Positive Leverage

Answer 11

What can you do for them

Question 12

Negative Leverage

Answer 12

What can I do to get you?

Question 12

Negative Leverage

Answer 12

What can I do to get you?

Question 13

Normative

Answer 13

What is the counterparties normal operating procedure

Question 14

Four criteria for evaluating the process and outcomes obtained by using the interests vs. rights vs. power approach

Answer 14

1. Transaction Costs
2. Likelihood of reoccurrence
3. satisfaction with the outcomes
4. Effect on relationship

Question 15

Cialdini’s principle of influence

Answer 15

1. Reciprocity: be the first to give
2. Scarcity: The rule of the rare
3. Authority: Showing knowing
4. Commitment: The starting point
5. liking: Making friends to influence
6. Consensus (social proof): people proof, people power

Question 16

How to develop an honest reputation

Answer 16

• Be consistent at the bargaining table
• Clearly communicate issues
• ask for feedback
• “If you were me how would you deal with this”

Question 17

Four types of trust

Answer 17

Relation-based trust
Knowlege- based trust
Identity-based trust
institutional-based trust
calculus-based trust

Question 18

Why people are unethical

Answer 18

-greed
-profit
-competition

Question 19

How to deal with unethical tactics

Answer 19

• Ask questions of the other negotiator about his or her proposals in order to determine if the negotiator’s answers are consistent.
• Use “fairness” and “accountability” as authoritative standards in the negotiation.

Question 20

How to repair trust

Answer 20

-Set up face-to-face meetings
-focus on the relationship and not on who is “right” or “wrong”;
- apologize if necessary;
- let the other person vent or discuss why they are upset/frustrated;
- don’t get defensive as the person is venting; - - -ask for clarifying information

Question 21

The best predictor of future trustworthy behavior is probably ________________ trust.

Answer 21

relation based

Question 22

irrational escalation of commitment

Answer 22

irrational decision making that is based upon rational decisions made earlier

Question 23

Anchoring

Answer 23

a cognitive bias that causes us to rely too heavily on the first piece of information we are given about a topic.

Question 24

Loss aversion

Answer 24

assumes that people are more sensitive to losses then they are to gains of the same size

Question 25

Consistent preference structure

Answer 25

in a choice problem, you have the same preference for different options and are not affected by framing effects.

Question 26

preference reversal

Answer 26

occurs in a choice problem framed as a choice between a sure gain or a 50/50 chance of no further gain. However when framed as a sure 50/50 loss people select the 50/50 loss.

Question 27

Cognitive bias

Answer 27

- Overconfidence - Self serving bias - Hard mentally - loss aversion - framing - anchoring -Confirmation

Question 28

endowment effect

Answer 28

an emotional bias that causes individuals to value an owned object higher, often irrationally, than its market value.

Question 29

M-TIme

Answer 29

United States

Question 30

United states score high on hofstedes dimension of

Answer 30

individualism

Question 31

Most useful predictor in cultural differences

Answer 31

individualism-collectivism

Question 32

U.S scores low on

Answer 32

Long-term orientation

Question 33

Cultures that value Salacuse's cultural dimensions of ______________ and _____________ tend to see negotiations as a zero-sum distributive situation

Answer 33

assertiveness; competition

Question 34

Ethnocentrism

Answer 34

is the belief that your culture, your religion, or your views are the "right" ones and that those who do not share your perspective are somehow "deviant."

Question 35

Traditional male and female skills and stereotypes would associate men with _____________________ and women with ________________________.

Answer 35

Distributive bargaining; integrative negotiation

Question 36

N.I.C.E approach

Answer 36

N: Neutralize your emotions I: identify why they have emotions C: control the encounter, shift locations, empathize E: exchange solutions, and involve them in problem-solving

Question 37

Effective apologies

Answer 37

- include recognition of the emotional impact of the action on the person -expression of regret, and a commitment not to repeat the negative action

Question 38

When to use a mediator

Answer 38

-when the parties want to continue and preserve their relationship -going to court would adversely impact morale and productivity; confidentiality is important -there is a need for creative solutions and realistic assessments;

Question 39

ADR with no control over the outcomes

Answer 39

Mediators

Question 40

___________________ is more similar to a court trial than is __________________.

Answer 40

Arbitration; mediation

Question 41

Ury's breakthrough strategy

Answer 41

- Go to the balcony - Step to the other side: role reversal - Reframe - Build them a golden gate bridge: try not to push them into agreeing but find a way to make them say yes. What if questions, how would you solve this? - Use power to educate

Question 42

Name two benefits and two potential problems associated with using an agent in negotiations.

Answer 42

The benefits: - his or her expertise - detachment - tactical flexibility or status. The problems: - expense - additional communication links - the agent's interests may differ from those of the principal - an agent may have different ethical standards

Question 43

ADR with low control over the process but high control over the outcome

Answer 43

Arbitrators, Judges