OAM 330 Final Exam Questions and Answers with Complete Solution

OAM 330 Final Exam Questions And Answers with Complete Solution Who is more likely to negotiate on salary: men or women? AnswerMen (T/F) People who negotiate are more likely to increase their starting salaries AnswerTrue Why don't people negotiation for better pay when offered a job? (3 reasons) Answer1. Uncomfortable asking for more 2. Worried the offer will be rescinded 3. Not wanting to appear greedy What is surprising to hear about negotiations and employers? AnswerMany employers expect to negotiate salaries (often offer less than they're willing to pay) Define negotiate Answerto confer with another so as to arrive at the settlement of some matter What are your best options if you can't reach a deal? AnswerBest Alternative To Negotiated Agreement (BATNA) Reservation price AnswerWorst offer you're willing to accept. Target Price Answerideal agreement Bargaining Zone Answerrange between buyer and seller's reservation prices What is the specific bias effect of making the first offer? AnswerThe anchoring effect; the person who makes the first offer often "wins" the negotiation What is true about recipients and anchoring? AnswerRecipients use the first offer as an anchor and don't adjust enough What is the effect of making a strong first offer? Answersets tone to claim more of the pie; gives you flexibility to claim concessions When should you make a strong first offer and anchor? Answer1. When you're knowledgable and wellprepared 2. When you can estimate the counterpart's BATNA or reservation price 3. when the longterm relationship is not very important to you How should you anchor with your first offer? Answer1. Prepare and share a legitimate reason to justify your anchor 2. Use precise numbers (final prices are closer to anchor) How can you counter a strong, anchor first offer? Answer1. Reanchor: make an equally extreme counteroffer Use your target price, not your reservation price Ask counterpart to try again Threaten to walk away but only if you're willing to do it What is the effect of making concessions on your partner? AnswerPartners who "get concessions" feel greater buyin and responsibility for settlements How do you allow yourself room to make concessions? AnswerBe flexible on issues that are less important to you How does size and sequencing affect your concessions? AnswerYou should make your concessions smaller as you approach your goal and develop rationale around each of your concessions What are the two ways to approach compatible issues? Answer1. Cooperative: build common ground 2. Competitive: strategically demand concessions When should you share your reservation price? AnswerYou shouldn't. It's subjective but you should share with caution When should you share BATNA? AnswerShare BATNA only when it can be a source of power and leverage Should BATNA change during a negotiation? AnswerBATNA should NOT change during the negotiation, although, improving your BATNA can improve your position What are higher alternatives good for? Answer1. Set higher target prices 2. Make fewer concessions (Implication: improve your alternatives) Distributive Bargaining AnswerTypically involves a single issue (ex: price) Fixedsum structure: one party's gain is another party's equivalent loss Directly conflicting interests: each party is trying to maximize their share Integrative Bargaining AnswerCompatible interests but negative bargaining zone (no overlap between the buyer and seller's reservation prices) What are some integrative solutions? AnswerConsider the terms and conditions of a negotiation offer, not just the price When do distributive issues happen? AnswerWhen you value things in exactly the inverse way as your partner. The more your partner gets, the less you get and vice versa. (ex: salary negotiation) When do compatible issues happen? AnswerWhen you and your partner both want the same thing. The same outcome is good for both of you. When do integrative issues happen? AnswerWhen you and your partner have different priorities on different issues (almost always is the case), you can trade what you want less of for what you want more of. Distributive Negotiations Qualities AnswerWin/lose Positional Claiming value Goal: individual gain Often no further relationship Dividing the pie Integrative Negotiations Qualities AnswerWin/win Interest based Creating value Goal: mutual/ individual gain Longterm relationship Expanding the pie What does it mean to expand the pie? AnswerLook for creative ways to increase resources available to both sides What are some steps to expanding the pie? AnswerPerspective taking Analyzing interests Ask questions Expand the time horizon What is the key to expanding the pie? AnswerSharing information — builds trust but creates vulnerability What are the two approaches to the negotiator's dilemma? Answer1. Sharing info selectively 2. Rank ordering What are the advantages of rank ordering? AnswerSignals interests to counterpart Protects you from being vulnerable Encourages reciprocation Creates opportunities for tradeoffs What's positions vs interests? AnswerPositions: what you want Interests: why you want it if you focus entirely on positions then you can fail to uncover interests which is often necessary for effective integrative bargaining (T/F) distribution of information is necessary to choosing the optimal decision/ solution AnswerTrue What are the weaknesses of groups? Answer1. Common knowledge effect Social loafing Conformity Define the common knowledge effect AnswerGroups tend to focus on what everyone knows and not specialized information Why are group members less likely to introduce or discuss unshared info? Answer Because of the motivation to reach group consensus What are the consequences of the common knowledge effect? AnswerFail to recognize unique information and leverage expertise of members Can lead to suboptimal decisions Why does the common knowledge effect happen? AnswerSocial reasons: social costs of revealing unique info (incompetence, liking), shared info encourages validation Biases: anchor, confirmation bias, commitment/ consistency How do we counter the common knowledge effect? Answer1. Get information on the table before people vote or commit to a preference 2. Frame the task as problemsolving rather than a judgement or personal preference 3. Cultivate a norm of constructive disagreement Social loafing AnswerThe tendency for people to put less effort into a task when they are in a group When is social loafing likely? AnswerWhen there are large teams and when the team is judged as whole