OAM 330 FINAL EXAM QUESTIONS WITH VERIFIED SOLUTIONS

Strategic Alliances and Power: how do you define the problem at the outset, before any of the teams met? What were your goals? (BEGINNING) Most groups define the problem in terms of economic return -"How much incremental gain can I make?" (especially A) -"Can I get my $3 back?" (B is wild card) Strategic Alliances and Power: Why do teams often get so caught up in the extra incremental gain? What are the costs to this? -A especially got too focused on incremental gain lose sight of the bigger picture; we need to come to them and get on their level -Power-we never talked to them "what are you going to do for us?" Strategic Alliances and Power: how did you define the problem as the negotiations unfolded? (AT THE END) Most groups realize that this is an exercise in trust and rapport -incremental gain is inconsequential -cost of mistrust is high Strategic Alliances and Power: Takeaway #1 Outcomes depend on relationships (definition) -coalitions are formed on the basis of the relationships between the parties as much the economic interests that attract the parties Strategic Alliances and Power: Takeaway #1 Outcomes depend on relationships (what two dimensions of relationships are important in forming alliances?) trust and rapport Strategic Alliances and Power: Takeaway #1 Outcomes depend on relationships (how do you assess whether another team is trustworthy and why is that important?) -body language -agreement within the group -important because it is one of the two dimensions of relationships that are important in forming alliances (#2 rapport) A: push too hard and more variability within the group B: how much they like the other groups - they were confused and thought A would not back their deal; hi how are you approach is much better C: band together because vulnerable which makes them more trustworthy? Strategic Alliances and Power: Takeaway #1 Outcomes depend on relationships (what are important considerations in group negotiations?) -trustworthiness of key individuals -binding agreement: collateral, written contract? -nonverbal cues: smiling, smirking, cut them, hands crossed, level in class (higher up), standing Strategic Alliances and Power: Takeaway #1 Outcomes depend on relationships (what leads to mistrust?) 1. Miscommunication - inconsistency (risky bet, 3 different rounds, big group makes it harder to get everyone on same page, no 50/50) 2. Inequity - those with greater resources are typically mistrusted (trustworthiness of A vs C - A more mistrusted, C more vulnerable from the beginning because of difference in power) Strategic Alliances and Power: Takeaway #1 Outcomes depend on relationships (how do you enhance trust?) 1. Focus on a shared problem or enemy -removes the perception that goals are at odds 2. Similarity -this is stressful, I want my money back 3. Schmoozing -increases liking and trust 4. Vulnerability (C) Strategic Alliances and Power: Takeaway #1 Outcomes depend on relationships (what is one method of trust repair?) APOLOGY Ex. Southwest: car hit infant -CEO offered any resources needed to recover, investigations to prevent further incidents, addressed the press and allowed them to ask any questions they want Ex. Iphone: drop the call when hold it a certain way -well, if you hold the phone "right" it would work, if you have a problem here is a new case Ex. Ebay: will you remove your negative feedback? -short apology (45% removal rate) -cash rebate (21% removal rate) Strategic Alliances and Power: Takeaway #1 Outcomes depend on relationships (what influences the development of rapport?) Team A usually says, "Your best option is to make a deal with us" -Teams B and C resent display of power Team A often invites others to "make us an offer" -"we're in a strong position, you're dependent on us" -induces resentment, undermines rapport Strategic Alliances and Power: Takeaway #1 Outcomes depend on relationships (what is the outcome?) Team C is usually in coalition because C has more time in the beginning to come up with a strategy and is more vulnerable Resource disadvantage offset by: -Negotiating order (B and C negotiate last - not just about control of resources but strategic timing) -time to plan strategy at the outset when A and B are negotiating in round #1 Strategic Alliances and Power: Takeaway #2 Power from process (definition) power derives not only from control of resources, but also from the process -the order of negotiations Team C had more time at the outset and the last meeting at the end Strategic Alliances and Power: Takeaway #2 Power from process (what is the bases of power? 5) Power: the ability to make things happen or get things done the way you want 1. legitimate 2. referent 3. expert 4. reward 5. coercive Strategic Alliances and Power: Takeaway #2 Power from process (what is legitimate?) one of the bases of power -position of authority (Dean) Strategic Alliances and Power: Takeaway #2 Power from process (what is referent?) one of the bases of power -identification, admiration, respect (well-liked) Strategic Alliances and Power: Takeaway #2 Power from process (what is expert?) one of the bases of power -unique knowledge of skill (Guthrie) Strategic Alliances and Power: Takeaway #2 Power from process (what is reward?) one of the bases of power -ability to give valued outcomes (parking, housing) Strategic Alliances and Power: Takeaway #2 Power from process (what is coercive?) one of the bases of power -ability to punish or withhold rewards Strategic Alliances and Power: Takeaway #2 Power from process (what are the advantages of hierarchical group structures?) This unequal power distribution has advantages 1. can reduce conflict by providing rules and criteria for decision-making 2. can increase efficiency by: -facilitating coordination -increasing motivation (to climb the hierarchy, at least among career-oriented employees) Strategic Alliances and Power: Takeaway #2 Power from process (what are the disadvantages of hierarchical group structures?) 1. induces resentment (challenge for A) 2. can promote competition vs. cooperation 3. people behave differently depending on their power position Strategic Alliances and Power: Takeaway #2 Power from process (how do you overcome the disadvantages of hierarchical group structures?) Reject self-serving attributions and perceptions of deservingness -Does A really deserve to be in their position? Engage in perspective-taking -Consider how those low in power perceive the rules of the game -Are you motivating the desired behavior? Reduce inequities -Status symbols Strategic Alliances and Power: what are the key takeaways? Outcomes depend as much on relationship as