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MGMT 353 Final || with 100% Correct Answers.
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Key Reasons for the importance of negotiation correct answers 1. The dynamic nature of the business. 2. Interdependence 3. Information Technology 4. Globalization The Dynamic Nature of the Business correct answers The nature of business is always changing constantly and people must negotiate ...

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  • August 25, 2024
  • 31
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

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  • key reasons for the importance of negotiation

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  • MGMT 353
  • MGMT 353

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MGMT 353 Final || with 100% Correct Answers.
Key Reasons for the importance of negotiation correct answers 1. The dynamic nature of the
business.
2. Interdependence
3. Information Technology
4. Globalization

The Dynamic Nature of the Business correct answers The nature of business is always changing
constantly and people must negotiate their existence within the company.

Interdependence correct answers The increasing interdependence of people in organizations,
both laterally and hierarchically, implies that people need to know how to integrate their interests
and work across business units and functional areas

Information technology correct answers Technology has created a 24/7 availability. This makes
it possible to communicate with people anywhere around the world, day or night, and managers
are expected to negotiate at a moment's notice.

Globalization correct answers Presents challenges in terms of different norms of communication.
Must broaden your negotiation skills to effectively work with different people across functional
units, industries, and cultures.

Negotiation Traps correct answers 1. Leaving money on the table
2. Settling for too little
3. Walking away from the table
4. Settling for terms that are worse than your best alternative.

Leaving money on the table (lose-lose) correct answers Fail to recognize and capitalize on their
win-win potential

Settling for too little (winner's curse) correct answers Negotiators make too large concessions,
resulting in a too small share of the bargaining pie

Walking away from the table correct answers Negotiators reject terms offered by the other party
that are demonstrably better than any other option available to them

Settling for terms that are worse than your best alternative ("agreement bias") correct answers
Negotiators feel obligated to reach an agreement even when the settlement terms are not as good
as the other alternatives.

Why are people ineffective negotiators? correct answers 1. Egocentrism
2. Confirmation Bias
3. Satisficing
4. Self-Reinforcing Incompetence

,Egocentrism correct answers The tendency for people to view their experiences in a way that is
flattering or fulfilling to them.

Confirmation Bias correct answers The tendency to search for information that supports our own
beliefs and disregard all other information that doesn't fit.

Satisficing correct answers Choosing an option that is acceptable, although not necessarily the
best or perfect. The opposite of optimizing.

Self-Reinforcing Incompetence correct answers Overconfidence leads to doing worse than you
thought like when taking a test. Most people are "blissfully unaware of their own incompetence"
and the fact that people are reluctant to change their behavior and experiment with new because
of the risks.

Negotiation Myths correct answers 1. negotiations are fixed-sum
2. you need to be either tough or soft
3. good negotiators are born
4. life experience is a great teacher
5. good negotiators take risks
6. good negotiators rely on intuition

Negotiations are Fixed-sum correct answers Whatever is good for that person must be bad for the
other party.

You need to either be tough or soft correct answers The effective negotiator is neither tough nor
soft, but rather principled.

Negotiators are born correct answers Most of us don't get an opportunity to effectively
negotiate/develop those skills in a disciplined fashion; rather most learn by doing.

Good Negotiators Take Risks correct answers Effective negotiation necessitates taking risks and
gambles. "This is my final offer" in hopes of getting the other party to agree to the terms.

Good negotiators rely on intuition correct answers Negotiation style involves a "gut feeling" or
intuition. Effective negotiation involves deliberate thought and preparation and is quite
systematic.

Chapter 2: correct answers What to do before negotiation.

Fixed-Pie Perception correct answers negotiators usually adopt one of three mindsets when
preparing for a negotiation.
1. Soft Bargaining
2. Hard bargaining
3. Win-Win Negotiation

Soft Bargaining correct answers Capitulating the other side.

,•Advantages:
•emphasizes the importance of building and maintaining a relationship
•can be efficient;
•agreement can be highly likely
•Makes concessions readily in order to agree

•But will it be a wise agreement? Possibly not!
•Two problems with "soft bargaining"
•If primarily concerned with relationship, agreement could end up sloppy without our interests
protected
•Makes us vulnerable to someone who plays a hard game of positional bargaining

Hard Bargaining correct answers When preparing for attack
•Sees any situation as a conflict of wills
•Wants to win
•Produces Hard Responses
•Harms Relationships
•Can leave both parties exhausted and worn out

Win-Win Negotiation correct answers Problem-solving approach in which all parties involved
feel they've reached a successful outcome, meeting or exceeding the needs of all parties.

Mixed-Motive Enterprise correct answers A negotiation involving both cooperation and
competition

Effective Preparation correct answers 1. Self Assessment
2. Other assessments
3. Situation Assessments

Self Assessments: correct answers 1. What do I want: Target points (ideal outcome)
2. What if your alternative to reaching an agreement: BATNA (reality, time-sensitive, no
manipulation of your BATNA. Should only change based on facts and evidence).
3. Determine your Reservation point: all things relevant to your job interview for example. (The
lowest offer you will take).
4. Be aware of sunk costs: money that you invested, now gone.
5. Assess your risk: Risk aversion, strategic risk, BATNA risk, contractual risk
6. Am I going to regret this? Counterfactual thinking
7. Sure Thing Principle
8. Appropriate Confidence Level

Other Assessments: correct answers 1. Who are the other parties?
2. Are the parties Monolithic?
3. Counterparties' Interests and Position/ BATNAs

Situation Assessment correct answers 1. One shot, Long Term or repetitive?
2. Does the negotiation involve scarce resources, ideologies, or both?

, 3. Negotiation of Necessity or Opportunity?
4. Transaction or dispute?
5. Linkage effects present?
6. Agreement required?
7. Is it legal to negotiate?
8. Is ratification required?
9. Time related costs involved?
10. Official or unofficial?
11. Where is the Negotiation taking place? Public or Private?
12. Third Party Possibility?
13. Who will make the first offer? Based on conventions.
14. Does this involve more offers than one?
15. Is communication explicit or tacit?
16. Power differential between parties?
17. Is precedent important?

Chapter 3 correct answers Distributive Negotiation

ZOPA correct answers Zone of Possible Agreements
range between negotiators' reservation points.

Negative Bargaining Zone correct answers Indicates that there is no positive overlap between the
parties reservation points

Bargaining Surplus correct answers The amount of overlap between parties' reservation points.

Negotiator's Surplus correct answers The positive difference between the settlement outcome and
the negotiator's reservation point.

Pie-Slicing Strategies correct answers 1. Assess and Improve your BATNA
2. Determine your Reservation point, but do not reveal it.
3. Research the counter party's BATNA and estimate their reservation point.
4. Set High Aspirations (Be realistic, but optimistic).
5. Make the first offer if you are prepared.
6. Immediately Re-anchor if the other party opens first.
7. Plan your concessions
8. Support your offer with facts
9. Appeal to Norms of Fairness
10. Do not fall for the "Even Split" Ploy.

Assess and Improve your BATNA correct answers Negotiators should take a considerable
amount of time to improve your BATNA before a negotiation. Nothing can help you more than
having a great BATNA.

Determine your reservation point, but do not reveal it. correct answers If you reveal your
reservation points and/or BATNA, the counter party has no incentive to offer you more.

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