Negotiation Strategies Quiz
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Questions and Answers

What is the primary characteristic of distributive negotiation?

  • Collaboration between parties
  • Creating additional value for both sides
  • Mutual benefit for both parties
  • Maximizing one’s own share of resources (correct)

In negotiation, what does BATNA stand for?

  • Best Approach to Necessary Agreement
  • Best Alternative to Negotiated Agreement (correct)
  • Bargaining Average Tactic for Negotiation Assets
  • Basic Agreement Tactic for Negotiation Analysis

Which of the following describes integrative bargaining?

  • Involves a direct conflict between parties
  • Aims for a win-win situation through cooperation (correct)
  • Focus on maximizing one's own resources
  • Minimizes preparation and resources needed

What is a common reason for engaging in negotiation?

<p>To resolve a problem or dispute between the parties (A)</p> Signup and view all the answers

What is the target point in negotiation?

<p>The desired outcome one hopes to achieve (C)</p> Signup and view all the answers

Before entering any negotiation, which of the following is NOT a main point to decide on?

<p>The negotiation tactics of the other party (D)</p> Signup and view all the answers

What is the buyer's resistance point when negotiating the purchase of a house?

<p>$235,000 (A)</p> Signup and view all the answers

What preparation is necessary for a successful negotiation?

<p>Minimum preparation including target and resistance points (D)</p> Signup and view all the answers

Which of the following statements best characterizes a zero-sum game in negotiation?

<p>One party's gain is equal to the other party's loss (A)</p> Signup and view all the answers

What does the term 'bargaining zone' refer to?

<p>The space between the two parties’ reservation points (D)</p> Signup and view all the answers

What is the target price for the buyer when looking to purchase the house?

<p>$220,000 (A)</p> Signup and view all the answers

At what point should the buyer consider walking away from the negotiation?

<p>$235,000 (C)</p> Signup and view all the answers

If the seller's resistance point is at least $235,000, how does this affect the negotiation?

<p>It results in a negative bargaining zone. (B)</p> Signup and view all the answers

What is the maximum price the seller is willing to accept for the house?

<p>$225,000 (D)</p> Signup and view all the answers

Why is it important for a negotiator to never reveal their resistance point?

<p>It helps maintain control over the negotiation. (C)</p> Signup and view all the answers

What should the buyer do in a situation with a negative bargaining zone?

<p>Walk away from the negotiation. (B)</p> Signup and view all the answers

What does BATNA stand for?

<p>Best Alternative To a Negotiated Agreement (A)</p> Signup and view all the answers

How can attractive alternatives influence a negotiator's approach?

<p>Allows them to set higher goals (C)</p> Signup and view all the answers

What happens if a negotiator has no attractive alternatives?

<p>They will have less bargaining power (A)</p> Signup and view all the answers

What is the buyer's resistance point given a target of $220,000?

<p>$235,000 (B)</p> Signup and view all the answers

What might influence a buyer's target price?

<p>Interest rates and market conditions (C)</p> Signup and view all the answers

If a buyer finds a similar house priced at $230,000, how does this affect their negotiation?

<p>It strengthens their bargaining position. (B)</p> Signup and view all the answers

What is the main difference between BATNA and a reservation point?

<p>BATNA denotes the best alternative, while reservation points act as limits (A)</p> Signup and view all the answers

Why is it important for a negotiator to have alternatives?

<p>It provides leverage in decision-making (B)</p> Signup and view all the answers

What is a benefit of having a devil's advocate in a group setting according to the classic paradox?

<p>It leads to improved group performance. (B)</p> Signup and view all the answers

Which of the following is a source of conflict at work?

<p>Different training and experiences. (A)</p> Signup and view all the answers

What characterizes task/cognitive conflict?

<p>It involves differences in perspectives and judgments. (C)</p> Signup and view all the answers

Which hallmark emphasizes the importance of the other party feeling positive in negotiations?

<p>The other party feels good. (A)</p> Signup and view all the answers

What type of conflict is primarily emotional and directed at an individual?

<p>Affective/Relationship Conflict. (A)</p> Signup and view all the answers

What is a result of interdependence among groups in a work environment?

<p>Potential for conflict due to shared rewards. (C)</p> Signup and view all the answers

What is the concept of Reservation Price primarily based on?

<p>BATNA and premium factors (A)</p> Signup and view all the answers

What is the term for conflict related to unclear rules about how work is done?

<p>Ambiguity Conflict. (C)</p> Signup and view all the answers

How does knowing your BATNA help you in negotiations?

<p>It allows you to protect your resistance point. (B)</p> Signup and view all the answers

What suggests that making the first offer is advantageous in negotiations?

<p>The anchoring effect (A)</p> Signup and view all the answers

Which statement best describes the goal of conflict resolution in a negotiation?

<p>To create a win-win-win scenario. (B)</p> Signup and view all the answers

Which of the following is NOT a characteristic of integrative negotiations?

<p>Addressing positional issues primarily (B)</p> Signup and view all the answers

What type of negotiations aim to increase the total value for all parties involved?

<p>Integrative negotiations (B)</p> Signup and view all the answers

In integrative negotiations, what should parties primarily focus on?

<p>Commonalities between parties (D)</p> Signup and view all the answers

When considering your resistance point, what factor must influence your decision?

<p>The value of your BATNA (A)</p> Signup and view all the answers

What is an important component of successful integrative negotiations?

<p>Inventing options for mutual gain (D)</p> Signup and view all the answers

What is the primary outcome of the 'Forcing' conflict management strategy?

<p>The other person feels defeated. (C)</p> Signup and view all the answers

Which conflict management strategy involves neglecting the interests of both parties?

<p>Avoiding (D)</p> Signup and view all the answers

What potential risk is associated with the Accommodating strategy?

<p>Decreased power and credibility. (B)</p> Signup and view all the answers

What describes the outcome of the Compromising strategy?

<p>Gamesmanship and suboptimal resolutions. (C)</p> Signup and view all the answers

In which situation is the Collaborating strategy most effective?

<p>When issues can be resolved without blame. (D)</p> Signup and view all the answers

What is a common characteristic of the Avoiding strategy?

<p>It reflects an inability to handle emotions. (A)</p> Signup and view all the answers

Which conflict management strategy is associated with a win-lose orientation?

<p>Forcing (A)</p> Signup and view all the answers

How does the Accommodating strategy potentially benefit future negotiations?

<p>By allowing for additional concessions later. (A)</p> Signup and view all the answers

Flashcards

Distributive Negotiation

A negotiation style where one party's gain is directly at the expense of the other party. It's like a pie where each party wants to get the biggest slice.

Resistance Point

The minimum acceptable outcome for a party in a negotiation. It serves as a boundary beyond which a party would rather walk away than accept a deal.

Target Point

The ideal outcome a negotiator hopes to achieve in a negotiation.

Asking Price

The initial offer made by a negotiator. It often sets the tone for the negotiation.

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BATNA (Best Alternative To a Negotiated Agreement)

The best alternative to a negotiated agreement. It helps determine the strength of your negotiating position.

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Integrative Negotiation

A negotiation style that focuses on finding mutually beneficial solutions where both parties gain something.

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Negotiation

Decision-making situations involving two or more parties who are dependent on each other to achieve a common goal.

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Effective Negotiation

A negotiation typically involves the following: Defining the goals, understanding the other party's needs, developing options, and arriving at a mutually acceptable agreement.

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What is a BATNA?

The Best Alternative To a Negotiated Agreement; your walk-away point.

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How does the BATNA affect a negotiation?

A strong BATNA empowers you to set higher goals and make fewer concessions, while a weak BATNA weakens your negotiation position.

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In house buying, what is the BATNA?

The price you would be willing to pay for a similar or same house, giving you a viable alternative option.

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How does the BATNA affect the buyer's target price?

The buyer's BATNA heavily influences their target price and resistance point. A strong BATNA allows them to negotiate more aggressively.

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What is Buyer's Resistance Point?

The maximum price a buyer is willing to pay for a house before walking away from the deal.

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How does the BATNA affect the buyer's target?

The buyer's target price becomes more flexible when a strong BATNA exists, as they can confidently aim higher.

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What is Buyer's Target Price?

This is the preferred price the buyer hopes to achieve for a house.

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How does the BATNA connect to both the target price and resistance point?

The buyer's BATNA provides a clear benchmark for setting both their target price and their resistance point.

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Bargaining Zone

The space between two negotiators' resistance points where an agreement is potentially possible.

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Positive Bargaining Zone

A bargaining zone where the negotiators' resistance points overlap, making a mutually acceptable agreement possible.

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Negative Bargaining Zone

A bargaining zone where the negotiators' resistance points do not overlap, meaning a mutually acceptable agreement is unlikely.

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Don't Reveal Your Resistance Point

In a negotiation, never reveal your resistance point. It weakens your position and gives the other side an advantage.

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Buyer's Negotiating Strategy

A negotiating strategy where the buyer aims to purchase a property at a price as close to their target price as possible, while also setting a resistance point beyond which they would walk away.

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Seller's Negotiating Strategy

A negotiating strategy where the seller aims to sell a property as close to their target price as possible, setting a resistance point below which they would not sell.

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Negotiation Premium

The value added to your BATNA due to factors that make you want to finalize the deal, such as personal preferences or emotional attachments.

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Anchoring Effect

The anchoring effect is a cognitive bias that causes people to rely heavily on the first piece of information they receive (the anchor) when making decisions.

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Integrative Negotiation: Focus on Commonalities

A negotiation technique that focuses on finding common ground and addressing the underlying needs and interests of both parties.

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Integrative Negotiation: Exchange Information & Ideas

A negotiation technique that involves exchanging information and ideas to create options that benefit both parties.

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Integrative Negotiation: Committed to Meeting Needs of Both Parties

A negotiation technique that focuses on creating solutions that simultaneously meet the needs of all involved parties.

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Win-win-win Negotiation Strategy

A negotiation strategy where both parties aim to achieve a positive outcome where everyone feels satisfied with the agreement.

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Differentiation as a Source of Conflict

Differences in training, beliefs, experiences, or values that can lead to conflict.

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Affective/Relationship Conflict

Conflict that arises from an emotional reaction towards another person instead of the issue at hand.

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Devil's Advocate

A person assigned to challenge the dominant view in a group to stimulate critical thinking and generate more diverse solutions.

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Process Conflict

Conflict that focuses on disagreements about tasks, processes, or procedures.

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Ambiguity as a Source of Conflict

Conflict that arises from a lack of clear rules or procedures on how work should be done.

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Resources as a Source of Conflict

Conflict that arises when groups compete for the same limited resources.

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Task/Cognitive Conflict

Conflict that arises from disagreements in perspectives and judgments regarding a specific issue.

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Forcing

A conflict management style where one party prioritizes their own needs over the other party's, often using authority, manipulation, or bullying. This approach leads to a feeling of victory for the dominant party, but it can breed resentment, hostility, and potential retaliation from the other party.

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Avoiding

A conflict management style characterized by sidestepping or delaying conflict resolution, avoiding addressing the issues at hand. This approach reflects an inability to effectively manage emotions associated with the conflict and often results in inaction or further complications.

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Accommodating

A conflict management style where one party sacrifices their own needs to satisfy the other party's concerns, often prioritizing preserving a relationship over addressing the actual issues. This approach may lead to the other party taking advantage and can weaken the accommodating party's power and credibility.

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Compromising

A conflict management style where both parties compromise and give up some of their desired outcomes to reach a partially satisfying solution for both. While expedient, compromise may not find the most effective solutions and can foster a sense of gamesmanship.

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Collaborating

A conflict management style that seeks mutually beneficial solutions by addressing the concerns of both parties without assigning blame. This approach fosters collaboration and creates a win-win situation, leading to a more effective resolution of the conflict.

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Study Notes

Organizational Behaviour - Negotiation

  • Negotiation is a decision-making process where interdependent parties aim for an agreement.
  • Almost everyone negotiates daily, both in personal and professional settings.
  • Key aspects of negotiation include distributive and integrative bargaining.
  • Key considerations are target point, resistance point, BATNA.

Distributive Negotiation

  • Focuses on securing the most favourable outcome for one party, often at the expense of the other.
  • "Win-lose" scenario where one party's gain is the other's loss.
  • Targets maximizing one's own share of limited resources.
  • Preparation for distributive negotiation includes:
    • Establishing a target point (aspiration point) - the desired outcome.
    • Determining a resistance point (walk-away point) - the point where a party is unwilling to negotiate further.
    • Identifying BATNA (Best Alternative To a Negotiated Agreement) - an alternative course of action if a negotiation fails.

Integrative Negotiation

  • Seeks mutually beneficial solutions for all parties.
  • Focuses on finding solutions that meet the needs of both parties and expand the available resources.
  • Often involves:
    • Exploring commonalities and shared interests
    • Finding ways to increase the "pie" by creating new options
    • Active listening and understanding the needs of other parties

Negotiation Issues

  • Price, possession date, electronics, appliances, paint are some issues that arise in condo purchases and other similar interactions.

Bargaining Zone

  • The bargaining zone (ZOPA) is the range between the resistance points of both parties where negotiated agreements are possible.
  • A "positive" bargaining zone exists where agreement is possible if within the ZOPA.
  • A "negative" bargaining zone indicates there is no overlap between parties' resistance points, making an agreement harder to reach.

BATNA (Best Alternative To a Negotiated Agreement)

  • Alternative options in case the negotiation fails.
  • An attractive BATNA gives the negotiator more leverage.
  • Having a strong BATNA helps protect the resistance point from undue influence by other parties.

Conflict Resolution

  • A win-win-win outcome is optimal when resolving conflicts in all parties.

Sources of Conflict at Work

  • Incompatible goals creating an interference
  • Differentiation between employees regarding expertise, values, beliefs, or experiences.
  • Interdependence making tasks and rewards reliant on other party's performance.
  • Ambiguity about unclear or missing rules.
  • Competition for limited resources.
  • Group identification that may not align with other groups.

Types of Conflict

  • Task/Cognitive Conflict: focus-oriented and often results in identifying solutions; includes assertive discussion on the issues/ideas.
  • Affective/Relationship Conflict: focused on emotional clashes; aimed at specific individuals rather than the issue; frequently causes stress and retaliation and poor communication.
  • Process Conflict: disagreements about procedures for task execution.

Opening Offer

  • Research shows that setting the first offer (opening offer) is important, due to the 'anchoring effect'.
  • Making the opening offer sets a benchmark that influences the other party's expectations and the overall negotiation.

Key Concepts

  • Importance of the relationship (in the matrix) which influences the choices in a conflict, and which strategy a negotiator may opt for during a conflict.
  • Understanding how different outcomes and issues influence conflict resolution.
  • Finding ways to improve the outcome of negotiations by considering multiple ideas and using frameworks like the Dual Concerns Model.

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Related Documents

Week 9 Negotiation and Conflict PDF

Description

Test your knowledge on key concepts in negotiation, such as distributive negotiation, BATNA, integrative bargaining, and the importance of target points. This quiz will help you understand the dynamics of negotiation and the strategies to effectively engage in it.

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