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Chapter 1The Nature of NegotiationFill in the Blank Questions1.People _ all the time.Answer: negotiate Page: 2 2.The term _ is used to describe the competitive, win-lose situations such as haggling over price that happens at yard sale, flea market, or used car lotAnswer: bargaining Page: 3 3.Negotiating parties always negotiate by _.Answer: choice Page: 6 4.There are times when you should _ negotiate.Answer: not Page: 6 5.Successful negotiation involves the management of _ (e.g., the price or the terms of agreement) and also the resolution of _.Answer: tangibles, intangibles Page: 8 6.Independent parties are able to meet their own _ without the help and assistance of others.Answer: needs Page: 9 7.The mix of convergent and conflicting goals characterizes many _ relationships. Answer: interdependent Page: 10 8.The _ of peoples goals, and the _ of the situation in which they are going to negotiate, strongly shapes negotiation processes and outcomes.Answer: interdependence, structure Page: 10 9.Whether you should or should not agree on something in a negotiation depends entirely upon the attractiveness to you of the best available _.Answer: alternative Page: 10 12 10.When parties are interdependent, they have to find a way to _ their differences.Answer: resolve Page: 12 11.Negotiation is a _ that transforms over time. Answer: process Page: 12 12.Negotiations often begin with statements of opening _. Answer: positions Page: 13 13.When one party accepts a change in his or her position, a _ has been made. Answer: concession Page: 13 14.Two of the dilemmas in mutual adjustment that all negotiators face are the dilemma of _ and the dilemma of _. Answer: honesty, trust Page: 14 15.Most actual negotiations are a combination of claiming and _ value processes. Answer: creating Page: 16 16._ _ is analyzed as it affects the ability of the group to make decisions, work productively, resolve its differences, and continue to achieve its goals effectively. Answer: Intragroup conflict Page: 18 17.Most people initially believe that _ is always bad.Answer: conflict Page: 19 18.The objective is not to eliminate conflict but to learn how to manage it to control the _ elements while enjoying the productive aspects.Answer: destructive Page: 20 19.The two-dimensional framework called the _ _ _ postulates that people in conflict have two independent types of concern.Answer: dual concerns model Page: 22 20.Parties who employ the _ strategy maintain their own aspirations and try to persuade the other party to yield. Answer: contending Page: 23 True/False QuestionsTF21.Negotiation is a process reserved only for the skilled diplomat, top salesperson, or ardent advocate for an organized lobby Answer: False Page: 2 TF22.Many of the most important factors that shape a negotiation result do not occur during the negotiation, but occur after the parties have negotiated. Answer: False Page: 3 TF23. Negotiation situations have fundamentally the same characteristics,Answer: True Page: 6 TF24.A creative negotiation that meets the objectives of all sides may not require compromise. Answer: True Page: 8 TF25. The parties prefer to negotiate and search for agreement rather than to fight openly, have one side dominate and the other capitulate, permanently break off contact, or take their dispute to a higher authority to resolve itAnswer: True Page: 8 TF26.It is possible to ignore intangibles, because they affect our judgment about what is fair, or right, or appropriate in the resolution of the tangibles.Answer: False Page: 8TF27.In any industry in which repeat business is done with the same parties, there is always a balance between pushing the limit on any particular negotiation and making sure the other partyand your relationship with himsurvives intact.Answer: True Page: 11TF28.When the goals of two or more people are interconnected so that only one can achieve the goalsuch as running a race in which there will be only one winnerthis is a competitive situation, also known as a non-zero-sum or distributive situationAnswer: False Page: 10 TF29.Remember that every possible interdependency has an alternative; negotiators can always say “no” and walk away.Answer: True Page: 12 TF30.A zero-sum situation is a situation in which individuals are so linked together that there is a positive correlation between their goal attainments. Answer: False Page: 10 TF31.The value of a persons BATNA is always relative to the possible settlements available in the current negotiation, and the possibilities within a given negotiation are heavily influenced by the nature of the interdependence between the parties. Answer: True Page: 12 TF32.The effective negotiator needs to understand how people will adjust and readjust, and how the negotiations might twist and turn, based on ones own moves and the others responses. Answer: True Page: 13 TF33.The pattern of give-and-take in negotiation is a characteristic exclusive to formal negotiations. Answer: False Page: 14, 15 TF34. In contrast, non-zero-sum or integrative or mutual gains situations are ones where many people can achieve their goals and objectives.Answer: True Page: 15 TF35.Negotiators do not have to be versatile in their comfort and use of both major strategic approaches to be successful.Answer: False Page: 16 TF36.Differences in time preferences have the potential to create value in a negotiation.Answer: True Page: 17TF37.Conflict doesnt usually occur when the two parties are working toward the same goal and generally want the same outcome.Answer: False Page: 18TF38.Intragroup conflict occurs between groups. Answer: False Page: 18 TF39.Negotiation is a strategy for productively managing conflict.Answer: True Page: 20 TF40.The dual concerns model has two dimensions: the vertical dimension is often referred to as the cooperativeness dimension, and the horizontal dimension as the assertiveness dimension.Answer: True Page: 22 Multiple Choice Questions41.Which perspective can be used to understand different aspects of negotiation? A)economics B)psychology C)anthropology D)law E)All of the above perspectives can be used to understand different aspects of negotiation. Answer: E Page: 3 42.To most people the words bargaining and negotiation are A)mutually exclusive. B)interchangeable. C)not related. D)interdependent. E)None of the above. Answer: B Page: 3 43.A situation in which solutions exist so that both parties are trying to find a mutually acceptable solution to a complex conflict is known as which of the following? A)mutual gains B)win-lose C)zero-sum D)win-win E)None of the above. Answer: D Page: 3 44.Which is not a characteristic of a negotiation or bargaining situation? A)conflict between parties B)two or more parties involved C)an established set of rules D)a voluntary process E)None of the above is a characteristic of a negotiation. Answer: C Page: 8 45.Tangible factors A)include the price and terms of agreement. B)are psychological motivations that influence the negotiations. C)include the need to look good in negotiations. D)cannot be measured in quantifiable terms. E)None of the above statements describe tangible factors. Answer: A Page: 8 46.Which of the following is not an intangible factor in a negotiation? A)the need to look good B)final agreed price on a contract C)the desire to book more business D)fear of setting a precedent E)All of the above are intangible factors. Answer: B Page: 8 47.Interdependent parties relationships are characterized by A)interlocking goals. B)solitary decision making. C)established procedures. D)rigid structures. E)Interdependent relationships are characterized by all of the above. Answer: A Page: 10 48.A zero-sum situation is also known by another name of a situation. Which of the following is that? A)integrative B)distributive C)win-lose D)negotiative E)None of the above. Answer: B Page: 10 49.BATNA stands for A)best alternative to a negotiated agreement. B)best assignment to a negotiated agreement. C)best alternative to a negative agreement. D)best alternative to a negative assignment. E)BATNA stands for none of the above. Answer: A Page: 12 50.What are the two dilemmas of negotiation? A)the dilemma of cost and the dilemma of profit margin B)the dilemma of honesty and the dilemma of profit margin C)the dilemma of trust and the dilemma of cost D)the dilemma of honesty and the dilemma of trust E)None of the above. Answer: D Page: 14 51.How much to believe of what the other party tells you A)depends on the reputation of the other party. B)is affected by the circumstances of the negotiation. C)is related to how he or she treated you in the past. D)is the dilemma of trust. E)All of the above. Answer: E Page: 14 52.Satisfaction with a negotiation is determined by A)the process through which an agreement is reached and the dollar value of concessions made by each party. B)the actual outcome obtained by the negotiation as compared to the initial bargaining positions of the negotiators. C)the process through which an agreement is reached and by the actual outcome obtained by the negotiation. D)the total dollar value of concessions made by each party. E)Satisfaction with a negotiation is determined by none of the above. Answer: C Page: 15 53.Which of the following statements about conflict is true? A)Conflict is the result of tangible factors. B)Conflict can occur when two parties are working toward the same goal and generally want the same outcome. C)Conflict only occurs when both parties want a very different settlement. D)Conflict has a minimal effect on interdependent relationships. E)All of the above statements about conflict are true. Answer: B Page: 18 54.In intragroup conflict, A)sources of conflict can include ideas, thoughts, emotions, values, predispositions, or drives that are in conflict with each other. B)conflict occurs between individual people. C)conflict affects the ability of the group to resolve differences and continue to achieve its goals effectively. D)conflict is quite intricate because of the large number of people involved and possible interactions between them. E)None of the above describes intragroup conflict. Answer: C Page: 18 55.Which of the following contribute to conflicts destructive image? A)increased communication B)misperception and bias C)clarifying issues D)minimized differences; magnified similarities E)All of the above contribute to conflicts destructive image. Answer: B Page: 19 56.In the Dual Concerns Model, the level of concern for the individuals own outcomes and the level of concern for the others outcomes are referred to as the A)cooperativeness dimension and the competitiveness dimension. B)the assertiveness dimension and the competitiveness dimension. C)the competitiveness dimension and the aggressiveness dimension. D)the cooperativeness dimension and the assertiveness dimension. E)None of the above. Answer: D Page: 22 57.An individual who pursues his or her own outcomes strongly and shows little concern for whether the other party obtains his or her desired outcomes is using another of the following strategies. Which one? A)yielding B)compromising C)contending D)problem solving E)None of the above. Answer: C Page: 23 58.Negotiators pursuing the yielding strategy A)show little interest or concern in whether they attain their own outcomes, but are quite interested in whether the other party attains his or her outcomes. B)pursue their own outcome strongly and shows little concern for whether the other party obtains his or her desired outcome. C)shows little interest or concern in whether they attain their own outcomes, and does not show much concern about whether the other party obtains his or her outcomes. D)show high concern for attaining their own outcomes and high concern for whether the other attains his or her outcomes. E)Negotiators pursuing the yielding strategy demonstrate none of the above behaviors. Answer: A Page: 23 59.Parties pursuing one of the following strategies show little interest or concern in whether they attain their own outcomes, and do not show much concern about whether the other party obtains his or her outcomes. Which of the ones listed below?A)contending B)compromising C)problem solving D)yielding E)None of the above. Answer: E Page: 24 60.Whereas distributive bargaining is often characterized by mistrust and suspicion, integrative negotiation is characterized by which of the following?A)obligation and perseverance B)avoidance and compromise C)influence and persuasiveness D)trust and openness E)cognition and emotion Answer: D Page: 26 Short Answer Essays61.What are the three reasons negotiations occur? Answer: Negotiations occur for several reasons: (1) to agree on how to share or divide a limited resource, such as land, or property, or time; (2) to create something new that neither party could do on his or her own, or (3) to resolve a problem or dispute between the parties. Page: 2 62.Is the give-and-take process used to reach an agreement the “heart of the negotiation” as most people assume”?Answer: While that give-and-take process is extremely important, negotiation is a very complex social process; many of the most important factors that shape a negotiation result do not occur during the negotiation, but occur before the parties start to negotiate, or shape the context around the negotiation. Page: 3 63.Why do parties negotiate by choice? Answer: That is, they negotiate because they think they can get a better deal by negotiating than by simply accepting what the other side will voluntarily give them or let them have. Negotiation is largely a voluntary process. We negotiate because we think we can improve our outcome or result, compared to not negotiating or simply accepting what the other side offers. It is a strategy pursued by choice; seldom are we required to negotiate. Page: 6 64.What are tangible and intangible factors in negotiation? Answer: Tangible factors include quantifiable items, such as the price, terms of agreement, etc. By intangible factors, we are referring to the deeper psychological motivations that may directly or indirectly influence the parties during the negotiation. Page: 8 65.What are the three ways that characterize most relationships between parties? Answer: Most relationships between parties may be characterized in one of three ways: independent, dependent, and interdependent. Page: 9, 10 66.Define zero-sum situation. Answer: Individuals are so linked together that there is a negative correlation between their goal attainments. Page: 11 67.Describe a “mutual gains” situation.Answer: when parties goals are linked so that one persons goal achievement helps others to achieve their goals, it is a mutual-gains situation, also known as a non-zero-sum or integrative situation, where there is a positive correlation between the goal attainments of both parties. Page: 10 68.What does BATNA stand for? Answer: Best Alternative To a Negotiated Agreement. Page: 12 69.What role do concessions play when a proposal isnt readily accepted? Answer: If the proposal isnt readily accepted by the other, negotiators begin to defend their own initial proposals and critique the others proposals. Each partys rejoinder usually suggests alterations to the other partys proposal, and perhaps also contains changes to his or her own position. When one party agrees to make a change in his or her position, a concession has been made (Pruitt, 1981). Concessions restrict the range of options within which a solution or agreement will be reached; when a party makes a concession, the bargaining range (the difference between the preferred acceptable settlements) is further constrained. Page: 13 70.What are concessions? Answer: A concession has been made when one party accepts a change in his or her position. Concessions restrict the range of options within which a solution or agreement will be reached. Page: 13 71.Describe the strategies and tactics a negotiator would employ in a distributive bargaining situation.Answer: In distributive situations negotiators are motivated to win the competition and beat the other party, or gain the largest piece of the fixed resource that they can. In order to achieve these objectives, negotiators usually employ “win-lose” strategies and tactics. This approach to negotiation
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