MAN 4401 EXAM PRACTICE QUESTIONS
AND 100% CORRECT ANSWERS!!
Define negotiation
An interpersonal decision making process necessary whenever we cannot achieve our objectives
single handedly. & it is decision making in which two or more parties talk in an effort to resolve
opposing interests
How does the 80-20 rule apply to negotiation?
80% should be preparing for the negotiation and 20% should be the actual work involved in the
negotiation
What are the common situations in which people negotiate?
- to agree on how to share or divide a limited resource
- to create something new that neither party could do on their own
- to resolve a problem or dispute between two parties
Why is the notation that you can only negotiate for either relationships or economics a false
dichotomy?
Taking one for the team doesn't actually maximize economic gain, we negotiate in long term
relationships with people who have short term memories, and the relational sacrifice we make
today may not be remembered tomorrow
Why is optimizing preferable to satisficing?
When optimizing we capture all of the potential gain in a situation. When satisficing we only do
just enough to reach minimum goals and we don't push to maximize ones potential gains
What are three key elements to improve your negotiation skills?
1. Diagnostic feedback: feedback about the counterpartys interests and priorities is especially
helpful
2. Strategy: once a negotiator learned they have not optimized a given situation they should ask
, themselves "what should I have done differently"
3. Focused behavioral practice: practice is key to becoming a successful negotiator
What are the 4 negotiation myths
1. Negotiations are fixed sums (what's good for one party has to be bad for the other)
2. You need to be either tough or soft in negotiation
3. Good negotiators are born
4. The best negotiators rely on intuition
What are the 5 outcomes of negotiation
Win-win, lose-lose, win-lose, lose-win & compromise
What mindsets do fixed pie negotiators take when preparing for negotiation?
1. Resign themselves to capitulating to the counterparty
2. Prepare for hard bargaining with the counterparty
3. Compromise in an attempt to reach a midpoint between opposing demands
The 3 primary steps to prepare for a negotiation
1. Self assessment: define goal, interests, rank issues, and know BATNA
2. Perspective taking: analyze other parties goals, limits, issues and set your own targets and
3. Situation: think long term/logistics. Time constraints, legal implications, topics to avoid, trust,
reputation
What is the relationship between a BATNA and resistance point?
Your BATNA is the best alternative you can take if negotiations fail and agreement can not be
made (your other option) while a resistance point is the worst agreement you will accept before
resorting to just taking the BATNA
How does agreement bias influence negotiation outcomes? Why is it especially detrimental
with a negative bargaining zone?
Agreement bias is settling for terms worse than one's alternatives
What is distributive negotiation and why does it occur?
AND 100% CORRECT ANSWERS!!
Define negotiation
An interpersonal decision making process necessary whenever we cannot achieve our objectives
single handedly. & it is decision making in which two or more parties talk in an effort to resolve
opposing interests
How does the 80-20 rule apply to negotiation?
80% should be preparing for the negotiation and 20% should be the actual work involved in the
negotiation
What are the common situations in which people negotiate?
- to agree on how to share or divide a limited resource
- to create something new that neither party could do on their own
- to resolve a problem or dispute between two parties
Why is the notation that you can only negotiate for either relationships or economics a false
dichotomy?
Taking one for the team doesn't actually maximize economic gain, we negotiate in long term
relationships with people who have short term memories, and the relational sacrifice we make
today may not be remembered tomorrow
Why is optimizing preferable to satisficing?
When optimizing we capture all of the potential gain in a situation. When satisficing we only do
just enough to reach minimum goals and we don't push to maximize ones potential gains
What are three key elements to improve your negotiation skills?
1. Diagnostic feedback: feedback about the counterpartys interests and priorities is especially
helpful
2. Strategy: once a negotiator learned they have not optimized a given situation they should ask
, themselves "what should I have done differently"
3. Focused behavioral practice: practice is key to becoming a successful negotiator
What are the 4 negotiation myths
1. Negotiations are fixed sums (what's good for one party has to be bad for the other)
2. You need to be either tough or soft in negotiation
3. Good negotiators are born
4. The best negotiators rely on intuition
What are the 5 outcomes of negotiation
Win-win, lose-lose, win-lose, lose-win & compromise
What mindsets do fixed pie negotiators take when preparing for negotiation?
1. Resign themselves to capitulating to the counterparty
2. Prepare for hard bargaining with the counterparty
3. Compromise in an attempt to reach a midpoint between opposing demands
The 3 primary steps to prepare for a negotiation
1. Self assessment: define goal, interests, rank issues, and know BATNA
2. Perspective taking: analyze other parties goals, limits, issues and set your own targets and
3. Situation: think long term/logistics. Time constraints, legal implications, topics to avoid, trust,
reputation
What is the relationship between a BATNA and resistance point?
Your BATNA is the best alternative you can take if negotiations fail and agreement can not be
made (your other option) while a resistance point is the worst agreement you will accept before
resorting to just taking the BATNA
How does agreement bias influence negotiation outcomes? Why is it especially detrimental
with a negative bargaining zone?
Agreement bias is settling for terms worse than one's alternatives
What is distributive negotiation and why does it occur?
