Assignment:
Negotiation Questions Answers
Question 1
In your own words, provide a definition of negotiation
Negotiation is a type of discussion between two opposing sides that have different interests aimed to attain agreement or disagreement. Both parties can either come to agree, disagree or one party domineers the other hence resulting in three main situations, that is, win-win, win-lose or lose- lose situation.
Question 2
When an individual is arguing over the price of a car at a used car lot, what type of negotiation situation is occurring?
a. Win-win negotiation situation
b. Win-lose negotiation situation
c. "I lose, you win" situation
d. None of these
Question 3
Identify and describe two types of interdependence, and how they affect outcomes.
There are three major types of interdependence recognized in an organization system. They include pooled, sequential and reciprocal interdependencies. In a pooled interdependence, both parties function differently, and they do not entirely depend on each other, but they contribute different pieces to a common puzzle. If a negotiation exists in this kind of interdependence, the involved parties would like to have a win-lose negotiation since there is no mutual relationship except the result. They will win to have an advantage over the other. In a sequential and reciprocal interdependencies, each unit output is an ingredient in the next unit except that reciprocal interdependence is cyclical. In this types of interdependencies, both parties from different groups will probably prefer to have a win-win type of negotiation since they entirely depend on each other outputs (Vitsounis & Pallis, 2012).
Question 4
In a short essay, explain Kelley's two dilemmas in Mutual Adjustment. What are they, and the role they play in negotiation?
Kelley identifies two types of dilemmas in mutual adjustment. The first dilemma is honesty that entails the extent to which each party can be honest in telling the truth. In a negotiation context, the parties involved may have doubts about each other, and they might view each other having self-interest aimed to exploit either of the two. At this kind of a negotiation, each party tries to gain a root of confidence by circulating multiple related questions and concerns to gain the conviction that the opponent is telling the truth.
The second type of dilemma entails trust. Trust is a virtue that is hard to earn, and it is only earned through actions and unwavering promises. In a negotiation setting, both parties may tend to behave and conduct themselves to appear right and gain first sight trust which will make their deal to be considered by the other party. The dilemma exists because both sides need to be convicted and convinced that they are in the right direction, and they are not misleading in any way
Question 5
The purpose of this type of negotiation situation is to create value, that is, to find a way for all parties to meet their objectives, either by identifying more resources or finding unique ways to share and coordinate the use of existing resources. Identify the type of negotiation:
Distributive bargaining
The bargaining range
Integrative negotiation
Both; 1 and 3
Question 6
Explain the two-dimensional framework for managing conflict in negotiation.
The two-dimensional framework is a dual concern model that assumes that people in a conflict have two autonomous types of interest which involve concern about their outcome and the other party's outcome (Mannix et al., 2011). These two concerns are compared to the graphical representation to predict the possible end point of a negotiation
Question 7
Tom decided to sell his old house, and purchase a new house that is closer to his work. He put his old house on the market, and after eight months he received an offer from Jennifer. After a short negotiating process, Tom agreed on the selling price. However, because he has not purchased a new home yet, he decided to postpone the closing sale for another five months. Jennifer was not happy with Tom's decision because of the inconvenience of having to wait that long, and the challenges of getting a bank to guarantee an interest rate for a loan that is so far in advance. To easer Jennifer's concerns, Tom adjusted the price so Jennifer would agree with the postponement. She agreed on the adjusted price but she would have preferred to close the deal sooner rather than later. Two months later, Tom found a home that met his requirements. The seller of the house, Lisa, set the asking price at $250,000, which was $20,000 above what Tom hoped to pay but $10,000 below the most he would be willing to pay. Tom realized that the more he paid for the house, the less he would have to make some other purchases, such as furniture or bedroom setting.
Using the example above, identify the following:
1. What is the target point?
The target is the time Tom gets a new house and sells the old house at the same time
2. What is resistance point?
The resistance point is when he either do not get a new house or had not yet found the buyer of the old house
3. What is a reservation price?
$260,000
4. What is the asking price?
$230,000
5. How does Tom decide on the initial offer
On the condition that he had already got a new house which was to correspond to the amount he should have sold the old house.
QUESTION 8
There are at least two reasons that an exaggerated opening offer is advantageous. Identify and explain the two reasons.
It provides an opening for negotiation. When negotiating, a client needs to a price to reduce, when one exaggerates, it gives a variation difference of adjusting to win the confidence of the client.
It leads to a win-win situation. The client is able to settle at a price agreeable for selling or transacting and nobody will loose from the negotiation.
Question 9
Without concessions (compromises), negotiations would not exist.
True
False
Question 10
Identify three typical hardball tactics, and describe each one of them.
1. Good cop/bad cop
Bad cop" plays the role of the bad guy who takes tough measures against the targeted party and leaves the negotiation table for the "Good cop" to come and offer the targeted party "an easy way out" of the situation
2. Bogey
Entails when a Negotiator pretends that an unimportant issue is quite important to him
and he use this tactic to trade and make concessions for issues that are really important
Question 11
Identify and describe the four major steps in the integrative negotiation process.
1. Interest identification. Before beginning a negotiation, the two parties should identify the major preferred interests that they need to keep.
2. Identify general criteria that must be present in an acceptable settlement. This criteria will lead the negotiation into the consideration of the identified interest.
3. Generate multiple options for settlement and select one by utilizing integrative option generating technique
4. Work toward agreement using the Agreement-in-Principle Process and other approaches that may lead to agreement
Question 12
The goal of creating value is to push the potential negotiation solutions toward a point where "there is no agreement that would make any party better off without decreasing the outcomes to any other party." Which of the following BEST describes the definition:
Pareto Efficient Frontier
Puerto Rico Negotiation Agreement
Claiming value to seller
Creating value
Question 13
This type of interest occurs in the negotiation situation when negotiators are concerned with the value of the ongoing relationship between the parties and the future of that relationship.
Substantive interests
Interests in principle
Relationship interests
Question 14
This technique is used to generate alternative solutions by requiring the parties to find more than one issue in conflict and to have different priorities for those issues. The technique is done by trial and error, and the parties must first establish which issues are at stake and then decide their individual priorities on these issues.
Modifying the Resource Pie
Compromise
Logrolling
Find a Bridge Solution
Question 15
Identify and describe the four ways that goals affect negotiation.
a. Longer time of a negotiation. Both parties take time to reach to their respective goals instead of settling down the negotiation.
b. Little concern for the core interest between two parties which may result to rise of conflict.
c. Unethical behavior may rise. One party may behave unethically when realizing that the set goals are not attainable.
d. May lead to poor negotiation strategy that may lead to a lose-lose situation which may not be beneficial to both parties
Question 16
This type of strategy may be appropriate when the negotiator considers the relationship outcome more important than the substantive outcome.
Competition strategy
Accommodation strategy
Collaboration strategy
Both; 1 and 3
Question 17
Being proactive about target setting is likely to make negotiators feel threatened and defensive and lessen their flexibility and creativity.
True
False
Question 18
Which of the following ethical approaches postulates that "one should follow one's group but also stick up for what one individually believes."
End-result ethics
Duty ethics
Personalistic ethics
Social contract ethics
Question 19
At what point in time is it all right to use ethically questionable tactics in negotiation?
When the major interest in that negotiation is relationship. Both parties need to maintain their relationship strong afterwards.
QUESTION 20
A negotiator who employs an unethical tactic will experience a positive consequence.???
True ?False
References
Managing the dynamics: Mutual adjustment and continuous negotiation. (2015). Alliances, 167- 179. doi:10.1002/9781118486382.ch8
Mannix, E. A., Neale, M. A., & Overbeck, J. R. (2011). Negotiation and groups. Bingley, U.K: Emerald.
Vitsounis, T. K., & Pallis, A. A. (2012). Port value chains and the role of interdependencies. Maritime Logistics: Contemporary Issues, 155-173.