Dynamics of Negotiations (Bellman) Final

Under the Foreign Corrupt Practices Act, an American executive is prohibited from paying both bribes and facilitation payments (or "grease payments") to government officials from other countries. True False

False

What strategies can a negotiator use to deal with trust dilemmas in situations that involve a mixed-motive structure where both negotiators have the incentive to compete and cooperate?

Focus on the future and the benefits of a long-term relationship; increase the amount of communication with the other negotiator to build trust through establishing rapport; emphasize the benefits of joint outcomes; and discuss the importance of maintaining good reputations. (See Box 8.1)

Identify and discuss Cialdini's six principles of influence.

Reciprocity - Be the First to Give; Scarcity - The Rule of the Rare; Authority - Showing Knowing; Commitment - The Starting Point; Liking - Making Friends to Influence People; and Consensus - People Proof, People Power.

Identify and describe the four types of trust.

Relation-based Knowledge-based Identity-based Institutional-based Calculus-based

In late October 2010, Manchester United soccer star Wayne Rooney announced that he would not agree to extend his contract and play for Manchester United. Several days later, Rooney surprised many of the fans of Manchester United who assumed he would never again play for the team by signing a new five-year contract with Manchester United. When asked about his sudden "change of mind," Rooney said that his previous statement was simply a "negotiations ploy," one to help improve his leverage with Manchester United. Is this type of "negotiations ploy" ethical? Why or why not?

This answer will vary depending on the student's sense of ethics.

What factors motivate people to act unethically?

Though not an exhaustive list, some factors include greed and the profit motive; competition and the desire to win; and justice or redressing unjust behavior.

Because of the cognitive bias of reactive devaluation, a negotiator should generally explain what he or she is giving up when making a concession. True False

True

Many managers try to quickly resolve workplace conflict because of an inherent human desire for "closure" of disputes. True False

True

A negotiator can improve his or her _______________ power by preparing to be knowledgeable about the specific issues being negotiated. a. expert b. reward c. coercive d. legitimate e. referent

a

Negotiators from the United States tend to use a/an _____________ communication style. a. direct b. indirect

a

A comparison of the country cultures of Japan and the United States using the GLOBE dimensions of cultural differences shows the differences between the two countries has/have: a. stayed the same since the Hofstede study. b. diminished since the Hofstede study.

b

Cultures that value Salacuse's cultural dimensions of ______________ and _____________ tend to see negotiations as a zero-sum distributive situation. a. assertiveness; egalitarianism b. assertiveness; competition c. harmony; egalitarianism d. harmony; assertiveness e. competition; egalitarianism

b

A negotiator maximizes his or her _______________ leverage when the standards, norms, and themes the negotiator uses to justify his or her proposals are the ones the other negotiator views as legitimate and relevant to the resolution of the parties' differences. a. positive b. negative c. cultural d. normative e. All of the above

d

Which of the following statements is false? a. Changing an established reputation in negotiations is difficult because people have a tendency to process only data that support their theories/beliefs and discount information that does not. b. Seeking feedback by asking questions of the other negotiator about your proposals provides a good way to check on his or her perception of the impression you are trying to create during the negotiation. c. Often times during negotiations between teams a "them versus us" attitude develops which causes both teams to use extremely competitive behavior. d. a and c e. None of the above

e

Which of the following statements is false? a. Mediation skills can be used by managers to build consensus, brainstorm and to resolve workplace disputes. b. Research shows that managers who use mediation skills are more effective in resolving workplace disputes than managers who do not use mediation skills. c. One problem faced by managers who attempt to mediate workplace disputes is the tendency to quickly find a solution to the problem rather that give the people involved in the dispute a chance to "be heard." d. Asking "why" and "why not" questions can help managers attempting to mediate workplace disputes find the root cause of the problem. e. None of the above

e

As a general rule, ethical issues only arise in distributive or "price-only" negotiations. True False

false

Sam (an avid hunter) has a dispute with his neighbor Sunny because Sunny leaves her dog out late at night and the dog barks a lot. Sam knows one reason Sunny does so because she works late at night and does not get home until after 11:00 P.M. Sunny worries if she leaves her dog inside of her house it will "go" (i.e., make a mess) in the house. Sam has a son (Donnie) who likes Sunny's dog and plays with it sometimes. Donnie, however, needs to be in bed each night by 9:00 P.M. Also, there is a city ordinance that forbids disturbing noise after 10:00 P.M. on week nights. Sam is considering which approach to take with Sunny to resolve this dispute.Give an example of a rights-based approach that Sam could use for resolving this dispute with Sunny.

use the city ordinance (Sam has a property right to be able to enjoy his home without the disruption of a barking dog. He may be able to file a police complaint against Sunny due to her barking dog as it violates the city ordinance.)

Define the following terms: consistent preference structure; preference reversal; and loss aversion.

A consistent preference means that in a choice problem you have the same preference for different options and are not affected by framing effects. Preference reversal occurs in a choice problem framed as a choice between a sure gain or a 50/50 chance of no further gain; most people select the sure gain. However, when these same people are faced with a choice problem framed as a sure loss and 50/50 chance of no further loss, people select the 50/50 chance. Although both choice problems effectively involve the same thing, people select a seemingly irrational preference reversal. Loss aversion reflects the tendency that most people have to avoid loss and are influenced by situations framed as a choice between gains and losses.

Why does telling an emotional or angry person to "calm down" or "get a grip on yourself" tend to make the person even more angry or upset?

An upset person has a great need to be heard ("listened to") and to have something done about his or her situation. People tend not to get upset about things that are not important to them - the anger and frustration may mask a very intensely-held intangible interest. Telling an angry person to "calm down" or "get a grip" minimizes the intensity of their feelings, suggests they are "irrational," and is seen (by the angry person) as a direct attack on their self-esteem. It also suggests you are not interested in hearing why they are angry or upset.

When would arbitration be a preferred way to resolve a dispute or negotiations impasse? Please explain your answer.

Arbitration would be a preferred way to resolve a dispute or negotiations impasse when: the parties need an answer to a fundamental question (e.g., was the contract violated or not, was the employee discharged for appropriate reasons, etc.); confidentiality of the process and outcome is important; the dispute involves technical matters that require the expert services of the arbitrator to resolve the matter; and the parties want a process that is faster and less expensive than going to court.

Give two examples of how a negotiator can gain leverage in a negotiation situation

BATNA (improve BATNA) Coalition (build leverage by gaining support of like-minded people)

How can a negotiator develop a reputation for being honest, trustworthy and fair during the rapport-building stage of the negotiation process?

Be consistent in what you say at the bargaining table; clearly communicate the issues on which you will be firm and those issues for which there may be some flexibility; use bluffing and threats in a limited way; ask for feedback from the other negotiator ("What do you think of that proposal," "If you were me, what suggestions would you have to deal with this problem,") to make sure their perception of your negotiations approach is consistent with how you want your reputation portrayed

What underlying interests are often times best addressed by an apology?

Effective apologies include recognition of the emotional impact of the action on the person, an expression of regret, and a commitment not to repeat the negative action. An apology may recognize and legitimate the reasons why the person is upset in the first place - "I understand why you are upset" (an intangible interest), or acknowledge that the person has not been treated fairly (another intangible interest).

Define what is meant by the concept of ethnocentrism.

Ethnocentricism 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."

Rapport generally means establishing a friendship with the other person in a negotiation or conflict situation. True False

False

Recent studies suggest that a person's emotions actually interfere with his or her ability to make "rational" decisions. True False

False

Research suggests that group stereotypes, both positive and negative, are good predictors of how a specific person from that group might behave at the bargaining table. True False

False

Research suggests that men set higher aspiration levels then women in unambiguous negotiation situations, i.e., negotiations where there is a clear zone of potential agreement. True False

False

Sam (an avid hunter) has a dispute with his neighbor Sunny because Sunny leaves her dog out late at night and the dog barks a lot. Sam knows one reason Sunny does so because she works late at night and does not get home until after 11:00 P.M. Sunny worries if she leaves her dog inside of her house it will "go" (i.e., make a mess) in the house. Sam has a son (Donnie) who likes Sunny's dog and plays with it sometimes. Donnie, however, needs to be in bed each night by 9:00 P.M. Also, there is a city ordinance that forbids disturbing noise after 10:00 P.M. on week nights. Sam is considering which approach to take with Sunny to resolve this dispute.Give an example of an interest-based approach that Sam could use for resolving this dispute with Sunny.

Find ways to help (Sam and Sunny both have interests in being "good neighbors" and likely both care for the dog. Sam may offer to do some "dog sitting" since his son currently plays with the dog and Sam may be in need of a hunting dog on occasion.)

You belong to a homeowners association in your neighborhood. The EBC Construction Company is building a condominium complex in two vacant lots adjacent to your neighborhood. Since there is no fence around the construction site, many families in the neighborhood are concerned about the safety of their children who see the construction site, and the large hole where the foundation for the condominiums is being constructed, as a "neat place" to play. The owner of the EBC Construction Company told you two weeks ago that a fence would be installed around the construction site "ASAP" (As Soon As Possible). You are scheduled to meet with the construction company's owner this afternoon to convince him to install the fence within the next two days. What type of power can you use to persuade the owner to install the fence? Explain why it might be effective.

In order to convince the EBC Construction Company owner to see things your way, you will need to base your proposal to install the fence within the next two days on authoritative standards or objective information. Your authoritative standard in this regard could be based on his promise to build the fence ASAP (the norm is that people in business should "keep their word"); or a shared interest in protecting the safety of the children living near the construction site; or the fact that installing a fence may be required by local building codes and would not be expensive compared to the cost of injuries suffered by children who are attracted to play at the construction site. The power you would use would be based on coercive power - the threat of negative publicity and lawsuits. If you had knowledge about local building codes, or about "industry standards" for protecting children around construction sites, you would have expert power.

What type of disputes or negotiations situations would be best suited for the use of a mediator? Please explain your answer.

Mediation is appropriate: 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; the parties want to reach mutually satisfactory solutions; there are concerns about future litigation and repetitive claims; there are no novel legal issues in the dispute nor is there a desire by one or both of the parties to create new legal precedent through litigation; the cost of going to court (litigation) exceeds the value of the dispute; and neither party's case is a "clear winner."

Identify and discuss the four-step N.I.C.E approach advocated by Shapiro and Jankowski.

N.I.C.E. stands for Neutralize your emotions; Identify the type [of difficult person you are dealing with]; Control the encounter; and Explore the options.

What steps can a negotiator take to repair or restore the level of trust in a negotiation?

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; ask the other person what he or she is fair, or what they would need to continue the negotiation; and think about ways to prevent future problems (i.e., trust dilemmas) from occurring.

You determine during negotiations that the other negotiator is concerned about finding a new parts supplier for her company (the XYZ Company). Your company (you believe) would be a perfect parts supplier for the other negotiator's company given your company's on-time delivery record and relative close geographic proximity to XYZ. What could you say to the other negotiator that would emphasize how much XYZ could lose if she is unable to make a deal with your company? Explain how you could use the scarcity effect and the notion of loss aversion to persuade the other negotiator to reach an agreement with you.

Since loss aversion assumes that people are more sensitive to losses then they are to gains of the same size, you would want to emphasize that XYZ will be missing out on a good business partner if they cannot reach an agreement with your company. To play upon the scarcity effect ("People want what they cannot have"), you could emphasize (assuming this is true) that many companies are partners with your company and several others are interested in working with you because of your company's reputation.

Jane Wilkens booked a vacation trip to Hawaii with her mother. Unfortunately, Ms. Wilkens' mother passed away before the trip. Ms. Wilkens was able to cancel her hotel reservation for Hawaii without having to pay a penalty or a cancellation fee. She contacted Hawaiian Airlines about reimbursing her for the cost of her airline tickets. A month later, Ms. Wilkens received a letter from Hawaiian Airlines "resolution coordinator" Paul Whitaker indicating that Hawaiian Airlines was willing to reimburse Ms. Wilkens for the price of her airline tickets, subject to a $75 per person "service fee." Mr. Whitaker further indicated in his letter that Hawaiian Airlines "now considered the case closed." In a December 19, 2007 Los Angeles Times article - "Airline Descends to a New Low: A Death Fee" - Ms. Wilkens made the following comments about her dispute with Hawaiian Airlines: 6 "I thought that [the $75 per ticket service fee] was ridiculous...I bought those tickets nine months in advance and canceled seven months in advance. It's not like they wouldn't have time to resell them. It wasn't the money...It was the principle...It's morally wrong." Based on her comments, and experiences with Hawaiian Airlines as summarized above, identify what you consider to be Ms. Wilkens' tangible and intangible interests in her dispute with Hawaiian Airlines. Assume you are a representative for Hawaiian Airlines and have been ask to write a letter of apology to Ms. Wilkens. Which of Ms. Wilkens' interests would you emphasize in your letter? Why?

Tangible: To be reimbursed for the $75 per ticket service fee; based on the circumstances some sort of formal acknowledgement for her mother's loss or written apology for the delayed response and manner in which the "death fee" was handled.Intangible: Respect/recognition for being a good customer and being treated fairly - particularly since the hotel did not charge a cancellation fee; important process-based interests - "It was the principle" - to have heard interests heard and to have a different appeal process - the Airlines considered the case "closed" without giving Ms. Wilkens the opportunity to "appeal" that decision.An apology to Ms. Wilkens should first acknowledge the loss of her mother and recognize how disappointed Ms. Wilkens must have been to have her mother pass away before they could take their planned trip to Hawaii. Her intangible interests are, based on her comments, are more important than the tangible interest of having the $75 "death fee" refunded or waived.

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

The benefits of using an agent include his or her expertise, detachment, tactical flexibility or status. There also may be ethical reasons to use an agent and use of an agent may allow the principal and agent to use a good cop/bad cop approach. The problems associated with using an agent include the expense, additional communication links, the agent's interests may differ from those of the principal, an agent may have different ethical standards than the principal and use of agents may keep the principals from communicating with each other.

People generally overestimate their abilities to find the best solution to a conflict situation, including a problem they are trying to resolve through negotiations. True False

True

The temptation to act unethically may be stronger in a situation both negotiators view as zero-sum. True False

True

Women who are asked to negotiate on behalf of someone else generally set higher pre-negotiation targets and make higher initial offers compared to situations when they are negotiating on their own behalf. True False

True

An outcome can be considered Pareto Optimal if: a. both parties are satisfied with the outcome. b. both parties did equally well. neither party can do better unless the c. other party does worse. d. a and b e. a, b and c

a

The best predictor of future trustworthy behavior is probably ________________ trust. a. relation-based b. knowledge-based c. identity-based d. institutional-based e. calculus-based

a

When comparing the United States to Japan on Hofstede's dimensions of cultural differences: a. Japan scores higher than the United States on the dimension of uncertainty avoidance. b. the United States scores higher than Japan on the dimension of long-term orientation. c. Japan scores higher than the United States on the dimension of individualism. d. a and b e. a and c

a

Which of the following are steps in Ury's breakthrough strategy? a. Go to the Balcony. b. Neutralize your Emotions. c. Explore the Options. d. Reach for Compromise. e. All of the above

a

Which of the following communication channels is the richest in terms of the type and completeness of information being communicated? a. Face-to-face b. Telephone c. E-mail d. Text messaging e. Video conferencing

a

__________________ would best explain why many negotiators prefer to make the first offer in a negotiation. a. Anchoring b. The contrast effect c. Availability bias d. The self-fulfilling bias e. Selective attention

a

___________________ is more similar to a court trial than is __________________. a. Arbitration; mediation b. Mediation; arbitration

a

During a job interview, the company's human resources director tells you that you are "lucky to get an interview" because "200 people applied for this job." She adds, "If you are lucky enough to get a job offer from us, I hope you don't think we will negotiate with you over the starting salary. If you try to negotiate salary, we will rescind the job offer and give it to another candidate who would be happy to accept the offer." Based on her comments, the human resources director is attempting to demonstrate her perceived _____________ power in your negotiation. a. expert b. coercive c. legitimate d. referent e. All of the above

b

In ____________________ cultures, negotiators may not have the authority to close the deal and may need to get a superior's approval before making a commitment. a. low power distance b. high power distance c. low uncertainty avoidance d. high uncertainty avoidance e. a or c

b

The Golden Rule, "do unto others as you would have them do to you," is consistent with a/an __________________ approach to ethics. a. absolutist b. relativist c. pragmatist

b

There are several forms of Alternative Dispute Resolution (ADR). Which of the following types of third parties have high control over the process but no control over the outcome? a. Arbitrators b. Mediators c. Judges d. Managers e. None of the above

b

Traditional male and female skills and stereotypes would associate men with _____________________ and women with ________________________. a. integrative negotiation; distributive bargaining b. distributive bargaining; integrative negotiation

b

Which of the steps of Ury's breakthrough strategy best correlates to the negotiation technique of role reversal? a. Go to the Balcony. b. Step to their Side. c. Explore Options. d. Reach for Compromise. e. Control the Encounter.

b

You will be negotiating with your landlord about the monthly rent for next year's apartment lease. Your landlord is a practicing lawyer who is known for being very aggressive and competitive in the courtroom. As you prepare for your negotiation, you assume that the lawyer will be using a competitive approach with and you expect her to use hardball tactics. Your assumptions about the landlord illustrate the __________ effect. a. halo b. horns c. contrast d. bogey e. in-group favoritism

b

Barbarians at the Gate was a movie (based on a best-selling book) that portrayed the bidding war in the 1980s between F. Ross Johnson and Henry Kravis for the leveraged buyout of RJR Nabisco. Johnson and Kravis continued to bid to take control of RJR Nabisco even though many thought the ultimate deal cost the "winner" (Johnson) more than what the transaction was worth. This type of behavior best illustrates the cognitive bias of: a. anchoring. b. the endowment effect. c. irrational escalation of commitment d. overconfidence. e. reactive devaluation.

c

Choose the appropriate letter below to fill in the two blanks in the following sentence. "Power and rights are used to _______________; interests are used to ______________." a. choose; decide b. punish; integrate c. distribute; integrate d. divide; conquer e. a and c

c

Hall defines two time systems in the world: monochromic ("M-time") and polychromic time ("P-time"). Those in M-time are low-context cultures and prefer to deal with things one at a time in a linear fashion and those in P-time are in high-context cultures and are comfortable with the simultaneous occurrence of many things. Which of the following countries is more likely to operate on M-time? a. Brazil b. Spain c. United States d. Italy e. Nigeria

c

Hofstede studied over 100,000 IBM employees in 66 countries and found that the culture of the countries varied along four dimensions. Of these, which dimension has proved the most useful for evaluating and predicting the extent of cultural differences in international commerce? a. Power distance b. Masculinity-feminity c. Individualism-collectivism d. Uncertainty avoidance e. None of the above

c

Labor negotiations between Mott's Apple Juice and its unionized employees primarily illustrated the use of _________________ leverage. a. positive b. negative c. normative

c

The cognitive bias of _________________ may cause an experienced negotiator to think he or she is always right in a negotiation thus failing to understand and appreciate the interests of the other negotiator. a. irrational escalation of commitment b. reactive devaluation c. overconfidence d. anchoring e. None of the above

c

Which of the following is not included by French and Raven in their study of the five major types of power that influence social relationships? a. Expert power b. Reward power c. Physical power d. Coercive power e. None of the above

c

Which of the following is not one of Hofstede's dimensions that differentiate culture? a. Power distance b. Uncertainty avoidance c. Tolerance for ambiguity d. Individualism-collectivism e. All of the above are Hofstede's dimensions of cultural differences

c

Which of the following steps would not be consistent with Cialdini's authority principle? a. Be the first to give concessions. b. Emphasize the unique features of what you are promoting. c. Admit weaknesses of what you are promoting first. (correct) d. Point out the similarities between yourself and the audience. e. Show that others are in agreement with what you are promoting.

c

Yifei's family has owned and operated a restaurant for nearly 30 years. Now that Yifei's parents have decided to retire, Yifei (who has no interest in managing the restaurant) is looking to sell the business. Several realtors have suggested that the market value for the restaurant is approximately $500,000. When Yifei shared this information with her parents, both became extremely upset. Yifei's father said, "We built that restaurant from the ground up. You and your brother grew up working in the restaurant. We can't sell the business for anything less than one million dollars." The $1 million value Yifei's father places on the restaurant, when the market value for the restaurant is half that amount, is most likely motivated by the: a. anchor and adjustment effect. b. availability bias. c. endowment effect. d. norm of reciprocity. e. fixed pie perception.

c

You are scheduled to negotiate with another person who, like you, graduated from the same university. Because of your common experience at the university, you believe that the other negotiator will be fair and someone you can trust. The assumptions you are making about the other negotiator: a. reflects the notion of identity-based trust. b. are the product of a selective attention process. c. will prove to be true as research demonstrates that a shared experience, like attending the same university, is a good predictor of future behavior. d. a and b e. a, b and c

c

Sam (an avid hunter) has a dispute with his neighbor Sunny because Sunny leaves her dog out late at night and the dog barks a lot. Sam knows one reason Sunny does so because she works late at night and does not get home until after 11:00 P.M. Sunny worries if she leaves her dog inside of her house it will "go" (i.e., make a mess) in the house. Sam has a son (Donnie) who likes Sunny's dog and plays with it sometimes. Donnie, however, needs to be in bed each night by 9:00 P.M. Also, there is a city ordinance that forbids disturbing noise after 10:00 P.M. on week nights. Sam is considering which approach to take with Sunny to resolve this dispute.Give an example of a power-based approach that Sam could use for resolving this dispute with Sunny.

coercive, referent power (Sam may use coercive power by threatening to shoot the dog if Sunny cannot keep it from barking. He might also find other neighbors equally annoyed by the dog's barking (referent power))

"Matching intensity" with someone who is emotional in a conflict situation means that you try to get as upset or angry as the other person a. The best approach to take in a conflict situation with someone who is very emotional is to let them "vent" and ask very few questions until the person has "cooled down" b. Telling someone who is angry in a conflict situation to "calm down" or to "act rationally" may be seen by that person as an attack on their self-esteem c. "Matching intensity" with someone who is emotional in a conflict situation means that you try to get as upset or angry as the other person d. a and c (correct) e. a, b and c

d

Sam realizes that there are four criteria for evaluating the process and outcomes obtained by using interests vs. rights vs. power approaches in his dispute with Sunny. Which of the following is not one of these four criteria for evaluation? a. Transaction costs. b. Likelihood of reoccurrence. c. Satisfaction with the outcomes. d. Size of the pie claimed. e. Effect on the relationship.

d

The company you work for has recently decided to implement a dress code for all office staff. The decision to implement this new policy was made by the company's owner and chief executive officer (CEO). You don't want to dress like everyone else in the office; however, you have decided to comply with this policy due to the owner and CEO's ________________ power. a. expert b. reward c. coercive d. legitimate e. referent

d

The process of trading off low-priority issues for higher-priority issues in an integrative negotiation is referred to as ____________________. a. an information exchange b. brainstorming c. role reversal d. logrolling e. a multi-attribute utility analysis

d

What steps can you take to best deal with a negotiator who is known for using "unethical" tactics? a. Ask questions of the other negotiator about his or her proposals in order to determine if the negotiator's answers are consistent. b. Use "fairness" and "accountability" as authoritative standards in the negotiation. c. "Fight back" by using your own unethical tactics. d. a and b e. a, b and c

d

Which of the following cultural variables or dimensions are included in both Hofstede's study and the GLOBE study? Humane orientation. Performance orientation. Future orientation. Power distance. All of the above

d

Which of the following cultural variables or dimensions are included in both Hofstede's study and the GLOBE study? a. Humane orientation b. Performance orientation c. Future orientation d. Power distance e. All of the above

d

Which of the following negotiation concepts were illustrated in the case about Republic Windows and Doors Co. (the Chicago company that closed its operations and laid off all of its employees)? a. The employees' threat of filing a lawsuit against the company to force payment of severance pay to laid off employees is an example of coercive power. b. Power and leverage are the same thing. c. The employees formed coalitions with state and national political leaders to improve their leverage with the company - an example of referent power. d. a and c e. a, b and c

d

Which of the following statements about third-party intervention (i.e., mediation and arbitration) is true? a. A mediator generally has more control of the settlement terms of a dispute than does an arbitrator. b. As a general rule, an arbitrator has more control of the process of dispute resolution than does a mediator. c. A mediator has a legal obligation to make sure that a mediated agreement is fair for both parties. d. As a general rule, mediation is used to resolve a dispute in a situation in which the ongoing relationship between the parties continues to be important. e. All of the above

d

Which of the following statements is true? a. A shared common identity, such as same home town, same college, same business fraternity, etc., provides the basis for identity-based trust. b. A negotiation will likely take on a distributive tone if both negotiators fail to establish the degree of trust necessary to share critical information. c. As a general rule, knowledge-based and relation-based trust are both equally effective predictors of future trustworthy behavior. d. a and b e. a, b and c

d

Which of the following statements would best be described as a "two-sided" message that both captures the attention of the other negotiator and emphasizes one of the negotiator's key points? a. "If you increase your offer on price by $5 per unit, then I could provide you with an additional one year full warranty." b. "If you can't increase your salary offer to $45,000, I have no other choice than to take the other job offer." c. "Don't you understand? If we can't reach an agreement today, we will be involved in a very costly lawsuit." d. "I understand your proposal to be that you don't intend to pay any more than $10 per widget and that both price and product quality are very important to you. Let me tell you how our proposal would satisfy those interests." e. "Let's just cut to the chase. How much are you looking to spend today on a new car?"

d

You own a company that employs nurses who provide care to cancer patients who are living at home. Last week, you told your nursing staff that they would have to all start wearing a new uniform that you designed. The uniforms bear the company's logo. Prior to last week, the nurses could wear "business casual" clothes when they visited patients. Some of the nurses have already complained to you about the added cost of having to buy the new uniforms. Others have complained that you never gave them any input in the design of the uniform. Two other nurses asked why the employees working in the company's medical equipment warehouse were exempt from this new uniform policy. Based on these facts: a. You may be able to address the nurses' intangible interests involving the cost of the new uniforms by having the company pay for them. b. The nurses' concerns about how you made the decision about the new uniforms, without soliciting their input, reflect an intangible interest. c. Some of the nurses' complaints about the new uniform policy can be explained by their opposition to changing the status quo. d. b and c e. a, b and c

d

You rent an apartment in College Town from a landlord named Betty Page. Ms. Page has demanded that you pay for damage to the lobby area of the apartment building that she believes was caused by several of your friends. You believe that the damage was caused by other tenants in the apartment building. Ms. Page has threatened to withhold the amount of the damage ($250) from your security deposit. Your uncle, a lawyer, has offered to sue Ms. Page on your behalf if she does not return your entire security deposit when your lease ends in two weeks. You need to get the full amount of your security back as you are moving from College Town to Portland, Oregon (and will likely never see Ms. Page again) and need the money to help pay for your moving expenses. You have a meeting with Ms. Page later today to try to work things out with her - and to get your full security deposit back. Based on these facts: a. your Best Alternative to a Negotiated Agreement (BATNA) is to pay Ms. Page for the damage to the lobby area of the apartment building. b. you can use the threat of going to court as negative leverage during your negotiation with Ms. Page. c. the negotiation situation with Ms. Page will likely require an avoidance strategy. d. a and b e. a, b and c

d

A scene from the movie The Goodbye Girl was used in this chapter to illustrate the negotiation concept/tactic of: a. improving one's Best Alternative to a Negotiated Agreement (BATNA). b. using intense language and mirroring to establish rapport with someone who is upset. c. brainstorming a solution to a problem. d. a and c e. b and c

e

An increasing number of companies are negotiating with customers and vendors by e-mail. Using e-mail as the primary method of communication for a negotiation: a. is convenient when the parties are located (geographically) far apart. b. provides a clear record of the different proposals and counter-proposals made during the negotiation. c. frequently increases the risk of reaching an impasse compared to face-to-face negotiations. d. a and b e. a, b and c

e

Conflict in the workplace can be caused by: a. disputes over organizational resources. b. personality disputes between co-workers. c. value differences between managers and employees who are of different socio-economic backgrounds. d. the lack of information about workplace policy changes. e. All of the above

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If you find yourself in a negotiation situation requiring the use of strategies that are awkward or unpleasant for you to use, what should you do? a. Hire an agent to negotiate for you. b. Be honest with the other negotiator about your weaknesses and immediately start making concessions to finish the negotiation as quickly as possible. c. Find someone who can help you better prepare for the negotiation. d. Bluff and act as though you know what you are doing. e. a or c

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In the movie Boiler Room, Vin Diesel plays a stock broker who convinces a doctor - over the telephone - to purchase 2,000 shares in an unknown pharmaceutical company because of the claimed income potential of one of the drugs the pharmaceutical company was preparing to sell on the market. The stock broker tells the doctor that if he does not invest in the company "right now" that he will "watch his colleagues get rich." In convincing the doctor to buy the 2,000 shares, the stock broker used negotiations technique/tactic of ______________ to "make the deal" with this doctor. a. the norm of reciprocity b. overcommitment c. splitting the difference d. nibbling e. the scarcity effect

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In which of the following situations would it be appropriate to use a mediator as a third-party? a. When discovery of underlying issues and interests is needed. b. When confidentiality of the process and outcome is important. c. When one of the parties wants a public decision to use as a precedent or standard for future cases. d. When one of the parties will not negotiate in good faith. e. a and b

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The United States scores low on Hofstede's dimension of: a. ambiguity tolerance. b. feminity. c. power distance. d. individualism. e. long-term orientation.

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There are several forms of Alternative Dispute Resolution (ADR). Which of the following types of third parties have low control over the process but high control over the outcome? a. Arbitrators b. Mediators c. Judges d. Managers e. a and c

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Which of the following are suggested ways to break an impasse/deadlock in a negotiation? a. Change the location or setting of the negotiation. b. Change negotiators. c. Use a third-party, such as a mediator, to help open up communications between the negotiators. d. a and b e. a, b and c

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Which of the following is a communication goal that a negotiator can achieve through the use of active listening? a. Active listening allows the negotiator to acknowledge that he or she heard what the other negotiator said. b. Active listening allows the negotiator to correct any misunderstandings he or she may have about the other negotiator's proposals. c. Active listening allows the negotiator to set a positive tone for the negotiation by showing respect for the other negotiator. d. Active listening sets an expectation of reciprocity that both negotiators will actively listen to what is said at the bargaining table. e. All of the above

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Which of the following statements about gender and negotiations is true? a. Men have been shown to claim more value in zero-sum negotiations than women. b. Women may not claim as much value as men in zero-sum negotiations because they do not generally set their aspirations as high as men. c. Babcock's research suggests that women may be less willing than men to initiate negotiations when it comes to employment offers. d. Women may be hesitant to initiate negotiations due to a fear of being seen in a negative light for doing so. e. All of the above

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Which of the following statements about global negotiations is true? Which of the following statements about global negotiations is true? a. Effective international negotiators tend to have good listening skills and high "social intelligence" - the ability to get along with other people. b. "Culture" affects many different aspects of international negotiations, including the specific people present at the bargaining table, the sequence of issues to be negotiated and the length of the actual negotiation. c. An American involved in international business negotiations should avoid agreeing to local customs (e.g., a local custom of paying bribes to government or company officials) that conflict with his/her own ethical standards or with American law. d. International negotiators must accept and value cultural differences of the other negotiators at the bargaining table. e. All of the above

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