People ____________ all the time. ________________________________________
2.
The term ____________ is used to describe the competitive, win-lose situations such as haggling over price that happens at yard sale, flea market, or used car lot. ________________________________________
3.
Negotiating parties always negotiate by _________. ________________________________________
4.
There are times when you should _________ negotiate. ________________________________________
5.
Successful negotiation involves the management of ____________ (e.g., the price or the terms of agreement) and also the resolution of _________. ________________________________________
6.
Independent parties are able to meet their own ____________ without the help and assistance of others. ________________________________________
7.
The mix of convergent and conflicting goals characterizes many ____________ relationships. ________________________________________
8.
The ____________ of people's goals, and the ____________ of the situation in which they are going to negotiate, strongly shapes negotiation processes and outcomes. ________________________________________
9.
Whether you should or should not agree on something in a negotiation depends entirely upon the attractiveness to you of the best available ______. ________________________________________
10.
When parties are interdependent, they have to find a way to ____________ their differences. ________________________________________
11.
Negotiation is a ____________ that transforms over time. ________________________________________
12.
Negotiations often begin with statements of opening _________. ________________________________________
13.
When one party accepts a change in his or her position, a ____________ has been made. ________________________________________
14.
Two of the dilemmas in mutual adjustment that all negotiators face are the dilemma of ____________ and the dilemma of _________. ________________________________________
15.
Most actual negotiations are a combination of claiming and ____________ value processes. ________________________________________
16.
________________________ is analyzed as it affects the ability of the group to make decisions, work productively, resolve its differences, and continue to achieve its goals effectively. ________________________________________
17.
Most people initially believe that ____________ is always bad or dysfunctional. ________________________________________
18.
The objective is not to eliminate conflict but to learn how to manage it to control the ____________ elements while enjoying the productive aspects. ________________________________________
19.
The two-dimensional framework called the ____________________________________ postulates that people in conflict have two independent types of concern. ________________________________________
20.
Parties who employ the ____________ strategy maintain their own aspirations and try to persuade the other party to yield. ________________________________________
True / False Questions
21.
Negotiation is a process reserved only for the skilled diplomat, top salesperson, or ardent advocate for an organized lobby. True False
22.
Many of the most important factors that shape a negotiation result do not occur during the negotiation, but occur after the parties have negotiated. True False
23.
Negotiation situations have fundamentally the same characteristics. True False
24.
A creative negotiation that meets the objectives of all sides may not require compromise. True False
25.
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. True False
26.
It is possible to ignore intangibles, because they affect our judgment about what is fair, or right, or appropriate in the resolution of the tangibles. True False
27.
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. True False
28.
A zero-sum situation is a situation in which individuals are so linked together that there is a positive correlation between their goal attainments. True False
29.
The value of a person's BATNA is always relative to the possible settlements available in the current negotiation, and the possibilities within a given negotiation are heavily influenced by the nature of the interdependence between the parties. True False
30.
In any industry in which repeat business is done with the same parties, there is always a balance between pushing the limit on any particular negotiation and making sure the other party—and your relationship with him—survives intact. True False
31.
Remember that every possible interdependency has an alternative; negotiators can always say "no" and walk away. True False
32.
The effective negotiator needs to understand how people will adjust and readjust, and how the negotiations might twist and turn, based on one's own moves and the others' responses. True False
33.
The pattern of give-and-take in negotiation is a characteristic exclusive to formal negotiations. True False
34.
In contrast, non-zero-sum or integrative or mutual gains situations are ones where many people can achieve their goals and objectives. True False
35.
Negotiators do not have to be versatile in their comfort and use of both major strategic approaches to be successful. True False
36.
Differences in time preferences have the potential to create value in a negotiation. True False
37.
Conflict doesn't usually occur when the two parties are working toward the same goal and generally want the same outcome. True False
38.
Intragroup conflict occurs between groups. True False
39.
Negotiation is a strategy for productively managing conflict. True False
40.
The dual concerns model has two dimensions: the vertical dimension is often referred to as the cooperativeness dimension, and the horizontal dimension as the assertiveness dimension. True False
Multiple Choice Questions
41.
Which perspective can be used to understand different aspects of negotiation?
A.
economics
B.
psychology
C.
anthropology
D.
law
E.
All of the above perspectives can be used to understand different aspects of negotiation.
42.
To most people the words "bargaining" and "negotiation" are
mutually exclusive.
interchangeable.
not related.
interdependent.
None of the above.
43.
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?
mutual gains
win-lose
zero-sum
win-win
44.
Which is not a characteristic of a negotiation or bargaining situation?
conflict between parties
two or more parties involved
an established set of rules
a voluntary process
None of the above is a characteristic of a negotiation.
45.
Tangible factors
include the price or terms of agreement.
are psychological motivations that influence the negotiations.
include the need to look good in negotiations.
cannot be measured in quantifiable terms.
None of the above statements describe tangible factors.
46.
Which of the following is not an intangible factor in a negotiation?
the need to look good
final agreed upon price on a contract
the need to appear "fair" or "honorable"
to maintain a good relationship
All of the above are intangible factors.
47.
Interdependent parties' relationships are characterized by
interlocking goals.
solitary decision making.
established procedures.
rigid structures.
Interdependent relationships are characterized by all of the above.
48.
A zero-sum situation is also known by another name of a situation. Which of the following is that?
integrative
distributive
negotiative
49.
BATNA stands for
best alternative to a negotiated agreement.
best assignment to a negotiated agreement.
best alternative to a negative agreement.
best alternative to a negative assignment.
BATNA stands for none of the above.
50.
What are the two dilemmas of negotiation?
the dilemma of cost and the dilemma of profit margin
the dilemma of honesty and the dilemma of profit margin
the dilemma of trust and the dilemma of cost
the dilemma of honesty and the dilemma of trust
51.
How much to believe of what the other party tells you
depends on the reputation of the other party.
is affected by the circumstances of the negotiation.
is related to how he or she treated you in the past.
is the dilemma of trust.
All of the above.
52.
Satisfaction with a negotiation is determined by
the process through which an agreement is reached and the dollar value of concessions made by each party.
the actual outcome obtained by the negotiation as compared to the initial bargaining positions of the negotiators.
the process through which an agreement is reached and by the actual outcome obtained by the negotiation.
the total dollar value of concessions made by each party.
Satisfaction with a negotiation is determined by none of the above.
53.
Which of the following statements about conflict is true?
Conflict is the result of tangible factors.
Conflict can occur when two parties are working toward the same goal and generally want the same outcome.
Conflict only occurs when both parties want a very different settlement.
Conflict has a minimal effect on interdependent relationships.
All of the above statements about conflict are true.
54.
In intragroup conflict,
sources of conflict can include ideas, thoughts, emotions, values, predispositions, or drives that are in conflict with each other.
conflict occurs between individual people.
conflict affects the ability of the group to resolve differences and continue to achieve its goals effectively.
conflict is quite intricate because of the large number of people involved and possible interactions between them.
None of the above describes intragroup conflict.
55.
Which of the following contribute to conflict's destructive image?
increased communication
misperception and bias
clarifying issues
minimized differences; magnified similarities
All of the above contribute to conflict's destructive image.
56.
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
cooperativeness dimension and the competitiveness dimension.
assertiveness dimension and the competitiveness dimension.
competitiveness dimension and the aggressiveness dimension.
cooperativeness dimension and the assertiveness dimension.
57.
An individual who pursues his or her own outcomes strongly and shows little concern for whether the other party obtains his or her desired outcomes is using another of the following strategies. Which one?
yielding
compromising
contending
problem solving
58.
Negotiators pursuing the yielding strategy
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.
pursue their own outcome strongly and shows little concern for whether the other party obtains his or her desired outcome.
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.
show high concern for attaining their own outcomes and high concern for whether the other attains his or her outcomes.
Negotiators pursuing the yielding strategy demonstrate none of the above behaviors.
59.
Whereas distributive bargaining is often characterized by mistrust and suspicion, integrative negotiation is characterized by which of the following?
obligation and perseverance
avoidance and compromise
influence and persuasiveness
trust and openness
cognition and emotion
Short Answer Questions
60.
What are the three reasons negotiations occur?
61.
Is the give-and-take process used to reach an agreement the "heart of the negotiation" as most people assume.
62.
Why do parties negotiate by choice?
63.
What are the three ways that characterize most relationships between parties?
64.
Define "zero-sum" situation.
65.
Describe a "mutual gains" situation.
66.
What does BATNA stand for?
67.
What role do concessions play when a proposal isn't readily accepted?
68.
What are concessions?
69.
Describe the strategies and tactics a negotiator would employ in a distributive bargaining situation.
70.
Why should negotiators be versatile in their comfort and use of both value claiming and value creating strategic approaches?
71.
Define synergy?
72.
Name the four levels of conflict that are commonly identified.
73.
Explain how conflict is a potential consequence of interdependent relationships.
74.
How does decreased communication contribute as one of the destructive images of conflict in a negotiation?
75.
Conflict also has productive aspects and one of those is that conflict encourages psychological development. Elaborate.
76.
The Dual Concerns Model is a two-dimensional framework that postulates that people in conflict have two independent types of concern. What are those two types of concerns?
77.
Where would you likely to find the concept of "yielding" on the dual concerns model?
78.
What are the five major strategies for conflict management (as identified in the Dual Concerns framework)?
Chapter 01 The Nature of Negotiation Answer Key
Fill in the Blank Questions
1.
People ____________ all the time. negotiate
The term ____________ is used to describe the competitive, win-lose situations such as haggling over price that happens at yard sale, flea market, or used car lot. bargaining
Negotiating parties always negotiate by _________. choice
There are times when you should _________ negotiate. not
Successful negotiation involves the management of ____________ (e.g., the price or the terms of agreement) and also the resolution of _________. tangibles; intangibles
Independent parties are able to meet their own ____________ without the help and assistance of others. needs
The mix of convergent and conflicting goals characterizes many ____________ relationships. interdependent
The ____________ of people's goals, and the ____________ of the situation in which they are going to negotiate, strongly shapes negotiation processes and outcomes. interdependence; structure
Whether you should or should not agree on something in a negotiation depends entirely upon the attractiveness to you of the best available ______. alternative
When parties are interdependent, they have to find a way to ____________ their differences. resolve
Negotiation is a ____________ that transforms over time. process
Negotiations often begin with statements of opening _________. positions
When one party accepts a change in his or her position, a ____________ has been made. concession
Two of the dilemmas in mutual adjustment that all negotiators face are the dilemma of ____________ and the dilemma of _________. honesty; trust
Most actual negotiations are a combination of claiming and ____________ value processes. creating
________________________ is analyzed as it affects the ability of the group to make decisions, work productively, resolve its differences, and continue to achieve its goals effectively. Intragroup conflict
Most people initially believe that ____________ is always bad or dysfunctional. conflict
The objective is not to eliminate conflict but to learn how to manage it to control the ____________ elements while enjoying the productive aspects. destructive
The two-dimensional framework called the ____________________________________ postulates that people in conflict have two independent types of concern. dual concerns model
Parties who employ the ____________ strategy maintain their own aspirations and try to persuade the other party to yield. contending
Negotiation is a process reserved only for the skilled diplomat, top salesperson, or ardent advocate for an organized lobby. FALSE
Accessibility: Keyboard Navigation
Many of the most important factors that shape a negotiation result do not occur during the negotiation, but occur after the parties have negotiated. FALSE
Negotiation situations have fundamentally the same characteristics. TRUE
A creative negotiation that meets the objectives of all sides may not require compromise. TRUE
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. TRUE
It is possible to ignore intangibles, because they affect our judgment about what is fair, or right, or appropriate in the resolution of the tangibles. FALSE
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. FALSE
A zero-sum situation is a situation in which individuals are so linked together that there is a positive correlation between their goal attainments. FALSE
The value of a person's BATNA is always relative to the possible settlements available in the current negotiation, and the possibilities within a given negotiation are heavily influenced by the nature of the interdependence between the parties. TRUE
In any industry in which repeat business is done with the same parties, there is always a balance between pushing the limit on any particular negotiation and making sure the other party—and your relationship with him—survives intact. TRUE
Remember that every possible interdependency has an alternative; negotiators can always say "no" and walk away. TRUE
The effective negotiator needs to understand how people will adjust and readjust, and how the negotiations might twist and turn, based on one's own moves and the others' responses. TRUE
The pattern of give-and-take in negotiation is a characteristic exclusive to formal negotiations. FALSE
In contrast, non-zero-sum or integrative or mutual gains situations are ones where many people can achieve their goals and objectives. TRUE
Negotiators do not have to be versatile in their comfort and use of both major strategic approaches to be successful. FALSE
Differences in time preferences have the potential to create value in a negotiation. TRUE
Conflict doesn't usually occur when the two parties are working toward the same goal and generally want the same outcome. FALSE
Intragroup conflict occurs between groups. FALSE
Negotiation is a strategy for productively managing conflict. TRUE
The dual concerns model has two dimensions: the vertical dimension is often referred to as the cooperativeness dimension, and the horizontal dimension as the assertiveness dimension. TRUE
Negotiations occur for several reasons: (1) to agree on how to share or divide a limited resource, such as land, or property, or time; (2) to create something new that neither party could do on his or her own, or (3) to resolve a problem or dispute between the parties.
While that give-and-take process is extremely important, negotiation is a very complex social process; many of the most important factors that shape a negotiation result do not occur during the negotiation, but occur before the parties start to negotiate, or shape the context around the negotiation.
That is, they negotiate because they think they can get a better deal by negotiating than by simply accepting what the other side will voluntarily give them or let them have. Negotiation is largely a voluntary process. We negotiate because we think we can improve our outcome or result, compared to not negotiating or simply accepting what the other side offers. It is a strategy pursued by choice; seldom are we required to negotiate.
Most relationships between parties may be characterized in one of three ways: independent, dependent, and interdependent.
Individuals are so linked together that there is a negative correlation between their goal attainments.
When parties' goals are linked so that one person's goal achievement helps others to achieve their goals, it is a mutual-gains situation, also known as a non-zero-sum or integrative situation, where there is a positive correlation between the goal attainments of both parties.
Best Alternative to a Negotiated Agreement.
If the proposal isn't readily accepted by the other, negotiators begin to defend their own initial proposals and critique the others' proposals. Each party's rejoinder usually suggests alterations to the other party's proposal, and perhaps also contains changes to his or her own position. When one party agrees to make a change in his or her position, a concession has been made (Pruitt, 1981). Concessions restrict the range of options within which a solution or agreement will be reached; when a party makes a concession, the bargaining range (the difference between the preferred acceptable settlements) is further constrained.
A concession has been made when one party agrees to make a change in his or her position. Concessions restrict the range of options within which a solution or agreement will be reached.
In distributive situations negotiators are motivated to win the competition and beat the other party, or gain the largest piece of the fixed resource that they can. In order to achieve these objectives, negotiators usually employ "win-lose" strategies and tactics. This approach to negotiation—called distributive bargaining—accepts the fact that there can only be one winner given the situation, and pursues a course of action to be that winner. The purpose of the negotiation is to claim value—that is, to do whatever is necessary to claim the reward, gain the lion's share, or gain the largest piece possible.
Not only must negotiators be able to recognize which strategy is most appropriate, but they must be able to use both approaches with equal versatility. There is no single "best", "preferred" or "right" way to negotiate; the choice of negotiation strategy requires adaptation to the situation, as we will explain more fully in the next section on conflict. Moreover, if most negotiation issues/problems have claiming and creating values components, then negotiators must be able to use both approaches in the same deliberation.
"The whole is greater than the sum of its parts."
The four levels of conflict are: 1) intrapersonal or intrapsychic conflict, 2) interpersonal conflict, 3) intragroup conflict, and 4) intergroup conflict.
Conflict can result from the strongly divergent needs of the two parties, or from misperceptions and misunderstandings. Conflict can occur when the two parties are working toward the same goal and generally want the same outcome, or when both parties want very different outcomes. Regardless of the cause of the conflict, negotiation can play an important role in resolving it effectively. In this section, we will define conflict, discuss the different levels of conflict that can occur, review the functions and dysfunctions of conflict, and discuss strategies for managing conflict effectively.
Productive communication declines with conflict. Parties communicate less with those who disagree with them, and more with those who agree. The communication that does occur is often an attempt to defeat, demean, or debunk the other's view or to strengthen one's own prior arguments.
It helps people become more accurate and realistic in their self-appraisals. Through conflict, persons take others' perspectives and become less egocentric. Conflict helps persons to believe that they are powerful and capable of controlling their own lives. They do not simply need to endure hostility and frustration but can act to improve their lives.
Concern about their own outcomes (shown on the horizontal dimension of the figure) and concern about the other's outcomes (shown on the vertical dimension of the figure).
Yielding (also called accommodating or obliging) is the strategy in the upper left-hand corner. Actors pursuing the yielding strategy show little interest or concern in whether they attain their own outcomes, but they are quite interested in whether the other party attains his or her outcomes. Yielding involves lowering one's own aspirations to "let the other win" and gain what he or she wants. Yielding may seem like a strange strategy to some, but it has its definite advantages in some situations.
Contending, Yielding, Inaction, Problem Solving, and Compromising.
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