Questions and correct Answers
Procurement Technology - correct answer-✅Helps accelerate business
improvements
Results Oriented Budgeting - correct answer-✅Attempts to link a resource allocation
to performance criteria
Budget Cycle - correct answer-✅1. Planning 2. Formalization 3. implementation 4.
evaluation
Procurement Cards - correct answer-✅payment method whereby internal customers
are empowered to deal directly with suppliers using a credit card
Four principles of negotiation - correct answer-✅1. separate people from the
problem
2. create a variety of options before deciding which to pursue
3. focus on interests, not positions
4. use objective criteria
people elements to negotiation - correct answer-✅differences of perception,
emotions, communications
differences of perception - correct answer-✅it is crucial for both sides to understand
the other's viewpoint
emotions - correct answer-✅negotiation can be a frustrating process
communications - correct answer-✅negotiators may not be speaking to each other,
but may simply be grandstanding for their respective constituencies
establish a BATNA - correct answer-✅The Best Alternative To a Negotiated
Agreement
stonewalling - correct answer-✅this occurs when one side has no intention of
reaching an agreement unless there is an irresistible offer.
good samaritan - correct answer-✅the other side is using this technique when it
acts as if it is doing you a favor or making a great sacrifice with its offer in order to
put you off guard and persuade you to accept it
opposition negotiation tactics - correct answer-✅stonewalling, good samaritan, take
it or leave it, splitting the difference, nickel and dime, good/bad cop, pity me, piece-
by-piece, total package, refusal to negotiate, status, escalating demands, divide and
conquer, defense, win/win
take it or leave it - correct answer-✅when the other side has made its final offer
and says it will no longer negotiate
,splitting the difference - correct answer-✅this involves offering to cut the dollar
difference in half, thus avoiding the discussion of the details of the deal
nickel and dime - correct answer-✅the other side wants to negotiate each and
every point
good/bad cop - correct answer-✅this tactic is used to elicit feelings of sympathy
and understanding in order to get concessions
pity me - correct answer-✅this tactic is designed to rely on the sense of fair play
and make it hard to walk away
piece-by-piece - correct answer-✅this tactic is used to negotiate each item of a
contract
total package - correct answer-✅this tactic is used when an offer is acceptable, but
one or two major elements still need to be negotiated.
refusal to negotiate - correct answer-✅in this tactic the other side wants a
concession even to talk
status - correct answer-✅sometimes the party you are negotiating with is perceived
to have a higher status, such as when the president of a company personally
negotiates with a buyer.
escalating demands - correct answer-✅extreme demands may be made to
persuade you to lower your expectations for a final agreement.
divide and conquer - correct answer-✅this is used to persuade various members of
the team to accept the opposition's position
defense - correct answer-✅this tactic tries to keep the other side on the defensive
negotiation tactics - correct answer-✅win/win, spiraling agreements, changing of
position, gathering information, making the cake bigger
win/win - correct answer-✅the goal of principled negotiation is that the interests of
both parties are satisfied
spiraling agreements - correct answer-✅begin by reaching a minimum agreement
even though it is not related to the objectives and build, bit by bit, on this first
agreement
changing of position - correct answer-✅formulate the proposals in a different way,
without changing the final result
gathering information - correct answer-✅ask for information from the other party to
clarify their position
making the cake bigger - correct answer-✅offer alternatives that may be agreeable
to the other party, without changing the terms
four activities of a price analysis - correct answer-✅1. review the competitive prices
offered
, 2. compare with catalog or published price data
3. compare with historical prices
4. obtain data from other jurisdictions that have procured the same product or
service
Conflict resolution - correct answer-✅mediation, arbitration, litigation
mediation - correct answer-✅a voluntary, flexible technique used to resolve
disputes
arbitration - correct answer-✅a process by which a dispute between parties is
presented to one or more disinterested parties for a decision whose decision the
contending parties agree to accept with no further appear process.
litigation - correct answer-✅a process by which one party to a contract brings suit
against the other party in a court of law
general conflict resolution skills - correct answer-✅communication, listening,
summarize, clarify, good speaking skills, communication side-trackers, win-win
options, brainstorming, find a fair solution
communication - correct answer-✅conflicts are often caused by problems in
communication
listening - correct answer-✅it is important to listen carefully
summarize - correct answer-✅when a person is finished expressing a thought,
summarize the facts and emotions behind what they have said so that they know
you have understood what they've said and how they are feeling.
clarify - correct answer-✅ask questions to clarify or make clearer different parts of
the problem to make sure that you fully understand the other person's perspective
good speaking skills - correct answer-✅send a clear message, with a specific
purpose and with respect to the listener
communication side-trackers - correct answer-✅don't interrupt, criticize, laugh at
the other person, offer advice or bring up your own experiences or change the
subject
win-win options - correct answer-✅an idea or suggestion in which both sides can
benefit is called a win-win option
brainstorming - correct answer-✅the first step in problem solving is to come up with
as many ideas as possible
find a fair solution - correct answer-✅then go through the ideas using fair criteria to
see which idea might be best
basic steps to conflict resolution - correct answer-✅1. personal preparation
2. obtain agreements