Negotiation

Question 1

Define distributive negotiation

Answer 1

Win-lose negotiation in which a fixed amount of assets is divided between parties

Question 2

Define compatible issues

Answer 2

Issues that benefit both parties equally

Question 3

Define integrative negotiation

Answer 3

Win-win negotiation that assumes that mutual problem solving can enlarge the assets to be divided between parties

Question 4

What are the five negotiation strategies?

Answer 4

1. Avoiding
2. Accommodating
3. Competing
4. Compromise
5. Collaborating

Question 5

Define the avoiding negotiation strategy

Answer 5

A conflict management style characterized by low assertiveness of one’s own interests and low cooperation with the other party

Question 6

Define the accommodating negotiation strategy

Answer 6

A conflict management style in which one cooperates with the other party while not asserting one’s own interests

Question 7

Define the competing negotiation strategy

Answer 7

A conflict management style that maximizes assertiveness and minimizes cooperation

Question 8

Define the compromise negotiation strategy

Answer 8

A conflict management style that combines intermediate levels of assertiveness and cooperation

Question 9

Define the collaborating negotiation strategy

Answer 9

A conflict management style that maximizes both assertiveness and cooperation

Question 10

Does avoiding change the situation?

Answer 10

No; although it can provide some short-term stress reduction from conflict, it does not change the situation

Question 11

When should avoidance be used?

Answer 11

When the issue is trivial, information is lacking, people need to cool down, or the opponent is very powerful and hostile

Question 12

When should accommodating be used?

Answer 12

When you are wrong, the issues is more important to the other party, or you want to build good will

Question 13

When should competing be used?

Answer 13

When you have a lot of power, you are sure of your facts, the situation is truly win-lose, or you will not have to interact with the other party in the future

Question 14

When should compromise be used?

Answer 14

When the conflict stems from scarce resources

Question 15

When should compromise not be used?

Answer 15

When conflicts stem from power asymmetry, because the weaker party may have little to offer the stronger party

Question 16

When should collaboration be used?

Answer 16

When the conflict is not intense and when each party has information that is useful to the other

Question 17

Define negotiation

Answer 17

A decision-making process among interdependent parties who do not share identical preferences

Question 18

Define threat in terms of negotiation

Answer 18

Implying that you will punish the other party if he or she does not concede to your position

Question 19

When can threats be used effectively in negotiation?

Answer 19

When one party has power over the other that corresponds to the nature of the threat, especially if no future negotiations are expected or if the threat can be posed in a civil and subtle way

Question 20

Define promises in terms of negotiation

Answer 20

Pledges that concessions will lead to rewards in the future

Question 21

When can promises be used effectively in negotiation?

Answer 21

When your side lacks power and anticipates future negotiations with the other side

Question 22

Define verbal persuasion

Answer 22

An attempt to change the attitudes of the other party toward your target position

Question 23

What are the two “prongs” of verbal persuasion?

Answer 23

1. Asserting the technical merits of the party’s position

2. Asserting the fairness of the target position

Question 24

When is verbal persuasion most effective?

Answer 24

When the persuaders are perceived as expert, likeable, and unbiased

Question 25

Define superordinate goals

Answer 25

Attractive outcomes that can only be achieved through collaboration

Question 26

Describe mediation in terms of negotiation

Answer 26

When a neutral third party helps to facilitate a negotiated agreement; they do anything that aids the process or atmosphere of a negotiation

Question 27

When does mediation work best in negotiation?

Answer 27

When the conflict is not too intense, and the parties are resolved to use negotiation to deal with their conflict

Question 28

Describe arbitration in terms of negotiation

Answer 28

When a third party is given the authority to dictate the terms of settlement of a conflict

Question 29

What are the two types of arbitration?

Answer 29

1. Conventional arbitration

2. Final offer arbitration

Question 30

Define conventional arbitration

Answer 30

The arbitrator can choose any outcome

Question 31

Define final-offer arbitration

Answer 31

Each party makes a final offer, and the arbitrator chooses one of them

Question 32

How do you best negotiate?

Answer 32

Plan

Question 33

How can you plan your negotiation?

Answer 33

1. Assess personal goals
2. Consider other party’s goals
3. Develop strategy

Question 34

Define the target in negotiation

Answer 34

What one would like to achieve

Question 35

Define the resistance point/reservation point in negotiation

Answer 35

The lowest acceptable outcome

Question 36

Define BATNA

Answer 36

Best Alternative To a Negotiated Agreement (i.e. your backup plan)

Question 37

What is the goal of distributive negotiation?

Answer 37

Individual gain

Question 38

What is the goal of integrative negotiation?

Answer 38

Mutual and individual gain

Question 39

What are the tactics used in distributive negotiations to claim value for self?

Answer 39

1. Threats/Promises
2. Firmness
3. Persuasion
4. Not “budging”
5. No compromise
6. No actual communication

Question 40

What are the tactics used in integrative negotiations that help you create value?

Answer 40

1. Information exchange
2. Framing differences as opportunities
3. Cutting costs
4. Increasing resources
5. Finding superordinate goals

Question 41

Define anchoring

Answer 41

An anchor is a standard against which future adjustments are measured

Question 42

Where is the bargaining zone?

Answer 42

The overlap between the two parties “aspiration range”; where they are willing to settle or make a deal