MGMT 363 REVIEW TIPS ANSWERS AND QUESTIONS
SET A+
✔✔Negotiation Stage 1: Preparation - ✔✔First stage of negotiation, during which each
party determines its goals. Includes determining BATNA (Best Alternative to a
Negotiated Agreement). Most important stage.
✔✔BATNA - ✔✔Best Alternative to a Negotiated Agreement — a negotiator's best
alternative if negotiation fails. Determined during the preparation stage.
✔✔Negotiation Stage 2: Exchanging Information - ✔✔Second stage of negotiation,
during which each party makes the strongest case for its position.
✔✔Negotiation Stage 3: Bargaining - ✔✔Third stage of negotiation, during which each
party gives and takes to arrive at an agreement.
✔✔Negotiation Stage 4: Closing and Commitment - ✔✔Fourth and final stage of
negotiation, during which the agreement arrived at during bargaining gets formalized.
✔✔Negotiation Biases - ✔✔Perceived power relationship matters: negotiators who feel
more powerful demand more and concede less (distributive approach); those who feel
equal in power take a more integrative approach. Emotions can also hurt: positive
emotions may lead to agreeing too quickly; negative emotions lower judgment accuracy.
✔✔Power and Influence Effects on Performance - ✔✔Power and influence have a
MODERATE POSITIVE effect on performance. They increase internalization and
compliance (facilitating task performance), increase citizenship behavior, and decrease
counterproductive behavior.
✔✔Power and Influence Effects on Commitment - ✔✔Power and influence have a
MODERATE POSITIVE effect on commitment. Associated with increased affective
commitment. Little is known about effects on continuance or normative commitment.
, ✔✔Alternative Dispute Resolution (ADR) - ✔✔A process by which two parties resolve
conflicts through the use of a specially trained, neutral third party.
✔✔Mediation - ✔✔A process by which a neutral third party facilitates a dispute
resolution process but has NO formal authority to dictate a solution.
✔✔Arbitration - ✔✔A conflict resolution procedure in which an arbitrator or arbitration
board determines a BINDING settlement.
✔✔Leader-Member Exchange (LMX) Theory - ✔✔A theory describing how leader-
member relationships develop over time on a dyadic basis. Begins with role taking and
evolves into role making.
✔✔Role Taking (LMX) - ✔✔The phase in a leader-follower relationship when a leader
provides an employee with job expectations and the follower tries to meet those
expectations.
✔✔Role Making (LMX) - ✔✔The phase in a leader-follower relationship when a follower
voices their own expectations, resulting in a free-flowing exchange of opportunities,
resources, activities, and effort.
✔✔High-Quality Exchange Dyad (LMX Ingroup) - ✔✔Marked by frequent exchange of
information, influence, latitude, support, and attention. Characterized by higher levels of
mutual trust, respect, and obligation.
✔✔Low-Quality Exchange Dyad (LMX Outgroup) - ✔✔Marked by a more limited
exchange of information, influence, latitude, support, and attention. Characterized by
lower levels of trust, respect, and obligation.
✔✔Leader Effectiveness - ✔✔The degree to which the leader's actions result in the
achievement of the unit's goals, the continued commitment of the unit's employees, and
the development of mutual trust, respect, and obligation.
✔✔Leader Emergence - ✔✔The process of becoming a leader in the first place. Traits
are more predictive of emergence than of effectiveness.
✔✔Autocratic Style (Decision Making) - ✔✔The leader makes the decision alone
without asking for opinions or suggestions of the employees in the work unit.
✔✔Consultative Style (Decision Making) - ✔✔The leader presents the problem to
employees asking for their opinions and suggestions before ultimately making the
decision themselves.
SET A+
✔✔Negotiation Stage 1: Preparation - ✔✔First stage of negotiation, during which each
party determines its goals. Includes determining BATNA (Best Alternative to a
Negotiated Agreement). Most important stage.
✔✔BATNA - ✔✔Best Alternative to a Negotiated Agreement — a negotiator's best
alternative if negotiation fails. Determined during the preparation stage.
✔✔Negotiation Stage 2: Exchanging Information - ✔✔Second stage of negotiation,
during which each party makes the strongest case for its position.
✔✔Negotiation Stage 3: Bargaining - ✔✔Third stage of negotiation, during which each
party gives and takes to arrive at an agreement.
✔✔Negotiation Stage 4: Closing and Commitment - ✔✔Fourth and final stage of
negotiation, during which the agreement arrived at during bargaining gets formalized.
✔✔Negotiation Biases - ✔✔Perceived power relationship matters: negotiators who feel
more powerful demand more and concede less (distributive approach); those who feel
equal in power take a more integrative approach. Emotions can also hurt: positive
emotions may lead to agreeing too quickly; negative emotions lower judgment accuracy.
✔✔Power and Influence Effects on Performance - ✔✔Power and influence have a
MODERATE POSITIVE effect on performance. They increase internalization and
compliance (facilitating task performance), increase citizenship behavior, and decrease
counterproductive behavior.
✔✔Power and Influence Effects on Commitment - ✔✔Power and influence have a
MODERATE POSITIVE effect on commitment. Associated with increased affective
commitment. Little is known about effects on continuance or normative commitment.
, ✔✔Alternative Dispute Resolution (ADR) - ✔✔A process by which two parties resolve
conflicts through the use of a specially trained, neutral third party.
✔✔Mediation - ✔✔A process by which a neutral third party facilitates a dispute
resolution process but has NO formal authority to dictate a solution.
✔✔Arbitration - ✔✔A conflict resolution procedure in which an arbitrator or arbitration
board determines a BINDING settlement.
✔✔Leader-Member Exchange (LMX) Theory - ✔✔A theory describing how leader-
member relationships develop over time on a dyadic basis. Begins with role taking and
evolves into role making.
✔✔Role Taking (LMX) - ✔✔The phase in a leader-follower relationship when a leader
provides an employee with job expectations and the follower tries to meet those
expectations.
✔✔Role Making (LMX) - ✔✔The phase in a leader-follower relationship when a follower
voices their own expectations, resulting in a free-flowing exchange of opportunities,
resources, activities, and effort.
✔✔High-Quality Exchange Dyad (LMX Ingroup) - ✔✔Marked by frequent exchange of
information, influence, latitude, support, and attention. Characterized by higher levels of
mutual trust, respect, and obligation.
✔✔Low-Quality Exchange Dyad (LMX Outgroup) - ✔✔Marked by a more limited
exchange of information, influence, latitude, support, and attention. Characterized by
lower levels of trust, respect, and obligation.
✔✔Leader Effectiveness - ✔✔The degree to which the leader's actions result in the
achievement of the unit's goals, the continued commitment of the unit's employees, and
the development of mutual trust, respect, and obligation.
✔✔Leader Emergence - ✔✔The process of becoming a leader in the first place. Traits
are more predictive of emergence than of effectiveness.
✔✔Autocratic Style (Decision Making) - ✔✔The leader makes the decision alone
without asking for opinions or suggestions of the employees in the work unit.
✔✔Consultative Style (Decision Making) - ✔✔The leader presents the problem to
employees asking for their opinions and suggestions before ultimately making the
decision themselves.
