MGMT 451 Exam 1 Questions And Accurate Answers Rated A+

Negotiation - correct answers a form of decision making in which 2 or more parties talk with one another in an effort to resolve their opposing interests BATNA - correct answers best alternative to a negotiated agreement Reservation price - correct answers point at which you exercise your BATNA Target - correct answers optimistic outcome Opening offer - correct answers most optimistic possible outcome you can imagine Bargaining zone - correct answers the range of possible agreement between the two parties minimally acceptable settlements Two fundamental questions - correct answers 1. is the future relationship with the other party important? 2. is the reputation I create from this particular negotiation going to affect future negotiations When to walk away from a negotiation - correct answers - if time pressure is high - when your not prepared - a situation where you could lose everything - if the demands are illegal, unethical, or immoral - when the other party acts in bad faith - if waiting would improve your position The nibble - correct answers going after a sweetener right at the very end of the negotiation Snow job the person - correct answers inundate the other party with information to confuse and distract assume the close - correct answers take out the negotiating form and begin to complete it, then ask for a signature split the difference - correct answers great to use after an exaggerated opening exploding offers - correct answers creates time pressure and, hence, mistakes can be considered a hardball tactic Countering hardball tactics - correct answers - ignore them - call the other party on it - respond in kindness distributive/competitive negotiations - correct answers - win lose - fixed pie to be divided integrative/collaborative negotiations - correct answers - win win - pie an be expanded Competitive style: appropriate when - correct answers - speedy decision is needed - you are in a power position and your relationship with the other party is not important - unfavorable decision by the other party very costly to you Competitive style: Inappropriate when - correct answers - speedy decision isnt necessary - both parties are equally powerful - relationship is important to you - issue is complex Accommodative style: Appropriate when: - correct answers - preserving relationship is important - you anticipate reciprocation later - issue is more important to other party - you have less power Accommodative style: inappropriate when - correct answers - issue is important to you - the other party is wrong or unethical - relationship is unimportant Compromising style: appropriate when - correct answers - goals of parties are mutually exclusive - consensus can not be reached - parties are equally powerful - temporary solution to a complex problem - integrating or competitive styles failed Compromising style: inappropriate when - correct answers - problem is complex - one party is more powerful Collaborative style: appropriate when: - correct answers - issues are complex - one party alone cannot solve the problem - time is available for problem solving - other parties commitment is necessary for implementation Collaborative style: inappropriate when - correct answers - task or problem is simple - speedy decision is required - other parties are unconcerned about outcome - other parties do not have problem solving skills Avoiding style: appropriate when - correct answers - issue is trivial - potential dysfunctional effect of confronting the other party outweighs benefits of resolution - cooling off period is needed Avoiding style: inappropriate when - correct answers - issue is important to you - it is your responsibility to make the decision - prompt attention to the problem is needed Cognitive Biases: The winners curse - correct answers - feeling discomfort rom a negotiation win that comes to easily - this often leads to people backing out of future agreements Cognitive Biases: Anchoring and future adjustments - correct answers - accepting certain arbitrary benchmarks as real and valid - often leads to accepting deals that are heavily weighted against the person Cognitive biases: Mythical fixed pie beliefs - correct answers - leads negotiators to adopt a competitive strategy unnecessarily - one of the greatest challenges for negotiators irrational escalation of commitment - correct answers this bias occurs when people get into bidding wars and end up paying more for something than it is worth face saving - correct answers - maintaining face is a strong need - very public setting fuels bidding behavior because it is a greater threat to face Collaborative tactics in multi issue: 1. look for compatible issues - correct answers - agree to them immediately - take them off the tale to build trust and a sense of collaboration Collaborative tactics in multi issue: 2. Look for issues that can be traded off due to differential preferences - correct answers - relative importance of issues differ - expectations of the future differ - time orrientation differs - risk preference differs Collaborative tactics in multi issue: 3. split the difference on remaining issues that are competitive - correct answers - this is the most important issue is this tactic interdependent - correct answers when the parties depend on each other to achieve their own preferred outcome independent - correct answers when parties are able to meet their own needs without the help of others zero sum (distributive situations) - correct answers there can be only one winner or where the parties are attempting to get the larger share non zero sum - correct answers ones in which many people can achieve their goals and objectives substantive goals - correct answers money or a specific outcome intangible goals - correct answers beating the other party procedural goals - correct answers shaping the agenda, having a voice 4 ways that goals affect negotiations - correct answers 1. wishes are not goals 2. one goal may be linked to another parties 3. there are limits to what realistic goals can be 4. effective goals must be concrete, specific, measurable tactics - correct answers short term adaptive moves strategy - correct answers stability continuity and direction settling point - correct answers obtain as much of the bargaining range as possible disruptive action - correct answers to encourage a settlement, increase the costs of not reaching a negotiated agreement alliance with others - correct answers involve other parties who can influence the outcome in the process schedule manipulation - correct answers use schedule to increase time pressure key steps in the integrative negotiation process - correct answers 1. identify and define the problem 2. surface interests and needs 3. generate alternative solutions 4. evaluate and select alternatives log roll - correct answers the parties agree to trade off among issues so that one party achieves a preferred outcome on the first and the other on their second expand the pie - correct answers add resources so that both sides can achieve their objectives - when negotiations begin with a shortage of resources find a bridge solution - correct answers parties are able to invent new options that meet their needs nonspecific compensation - correct answers allow one person to obtain his objectives and compensate the other person for accommodating his interests cut the costs for compliance - correct answers one party achieves her objectives and the others costs are minimized if she agrees to go along super ordination - correct answers the differences in interest that gave rise to the conflict are superseded or replaced by other interests compromise - correct answers a solution that would not further the interests of either party perception - correct answers process individuals connect with the environment halo effects - correct answers when people generalize about a variety of attributes based on the knowledge of one attribute of an individual selective perception - correct answers when the perceiver singles out certain info