Deck 1: Negotiation: The Mind and the Heart

Question 1

"Most people do not stay in the same job that they take upon graduating from college or receiving their MBA degree.Sixty percent of younger workers said it is not very likely or not likely at all that they will stay with their current employers for the remainder of their working life." Which of the following best supports this statement?

A) People are fickle and get bored easily.
B) Negotiating with higher ups is not encouraged with most organizations.
C) People's interests are not always in alignment with the interests of the organizations.
D) Working for more companies provides more financial incentives than working for one.

Answer 1

C

Question 2

CEOs overly attribute their influence when deals are successful and this trait often leads CEOs to make more deals that are successful.

Answer 2

False

Question 3

Experience improves our confidence and accuracy.

Answer 3

False

Question 4

The truly effective negotiator is either tough as nails or soft as pudding.

Question 5

What change in the business world has necessitated that people be more and more dependent on others?

A) increased labor requirement
B) increasing specialization
C) rise in unemployment
D) centralized business structures

Question 6

Which of the following statements comes closest to defining negotiation?

A) Negotiation is a process of assessing the correctness of a decision or a plan.
B) Negotiation is a means of interchanging thoughts, opinions, and information.
C) Negotiation is a means of achieving one's objectives through interpersonal relationships.
D) Negotiation is the process of distorting something so it appears to be something entirely different.

Question 7

Negotiations occur only at the topmost hierarchical levels in the business world.

Question 8

What does the increasing interdependence of people,both laterally and hierarchically,within organizations imply?

A) that people need to know how to communicate well in different languages
B) that people need to know how to play different organizational roles
C) that people need to know how to further their interests independently
D) that people need to know how to integrate their interests and work across business units and functional areas

Question 9

Effective negotiators consider partial trust as being detrimental to negotiations.

Question 10

What makes it necessary for people to renegotiate their existence in organizations throughout their careers?

A) the static nature of business
B) hierarchical decision making
C) the existence of centralized business structures
D) the dynamic nature of business

Question 11

Does globalization present a challenge in negotiation?

A) No, it does not as globalization has eliminated the challenges pertaining to norms of communication while conducting negotiations.
B) Yes, it does as there can be challenges pertaining to norms of communication while conducting negotiations.
C) Yes, it does as most managers are not required to effectively cross cultural boundaries to do their jobs.
D) No, as most negotiators have developed a bargaining style that works only within a narrow subset of the business world.

Question 12

What do negotiations essentially boil down to?

A) people, communication, influence
B) communication, profits, advertising
C) influence, advertising, design
D) design, communication, profits

Question 13

Which of the following factors has created a culture of 24/7 availability?

A) information technology
B) marketing tools
C) economic infrastructure
D) product diversification

Question 14

Which of the following best describes one of the major shortcomings in negotiation: leaving money on the table?

A) making large concessions that result in a small share of the bargaining pie
B) failing to recognize and capitalize on their win-win potential
C) rejecting terms of offer that are better than other options available
D) feeling obligated to accept an agreement despite better alternatives being available

Question 15

Which of the following is considered a key communication and influence tool inside and outside the company?

A) negotiation
B) delegation
C) compensation
D) motivation

Question 16

Managers need to develop negotiation skills that are general enough to be used across different contexts but specialized enough to provide meaningful behavioral strategies in a given situation.Most managers do not consider this an uphill task.

Question 17

Managers tend to be enthusiastic when it comes to experimenting with change since going off the beaten track is very likely to render fruitful results to negotiations.

Question 18

Satisficing,if done thoughtfully,can be beneficial both for individuals and companies as negotiation strategies and skills can be cheaply employed to dramatically increase profit.

Question 19

People who had taken time to focus on values that were not important to them were less likely to focus on valid threats.Hence,their assessments of correlations in the data eventually proved to be erroneous and inaccurate.

Question 20

One of the biggest myths is that effective negotiation skills are something that people are born with.

Question 21

Identify an instance where the second statement explains the reason for the first statement.

A) Statement 1: Negotiations ended in a "walking away from the table" situation. Statement 2: The negotiator was driven by hubris.
B) Statement 1: Negotiators failed to recognize and capitalize on their win-win potential. Statement 2: Negotiation was conducted in a protected environment.
C) Statement 1: One of the negotiators made large concessions, resulting in a too-small share of the bargaining pie. Statement 2: The negotiator was driven by pride and ego.
D) Statement 1: The best alternative was not chosen in a negotiation. Statement 2: Both the parties were not interested in the outcome of the negotiation.

Question 22

What are the four kinds of negotiation traps?

A) agreement bias, loser's curse, walking away from the table, Dutch auction situation
B) winner's curse, Dutch auction situation, win-lose situation, disagreement bias
C) walking away from the table, disagreement bias, loser's curse, lose-lose negotiation
D) lose-lose negotiation, winner's curse, agreement bias, walking away from the table

Question 23

A failure in the process of negotiation can be attributed to certain factors.Identify the four fundamental problems associated with negotiations.

A) egocentrism, confirmatory information processing, satisficing, and self-reinforcing incompetence
B) over expectation, egocentrism, optimizing, and self-reinforcing incompetence
C) satisficing, confirmatory information processing, cynicism, and optimization
D) over expectation, egocentrism, self-reinforcing incompetence, optimizing

Question 24

What is meant by satisficing?

A) setting high aspirations and attempting to achieve as much as possible
B) achieving the same as what one had settled for
C) achieving effectively the same but getting something entirely different from what one had settled for
D) settling for something less than what one could otherwise have

Question 25

Two-thirds of MBA students rank their decision-making abilities as above average.What are they said to exhibit?

A) selfishness
B) egomania
C) self-serving tendencies
D) egocentrism

Question 26

Mr.Smith,manager of ABC Corp.,plans to acquire another company.He is on the verge of negotiating with the other company's manager.Mr.Smith is predisposed to attribute successful outcomes to his own skill while holding bad luck or others squarely responsible for all unsuccessful outcomes.This tendency has unfortunately led him to make deals that have not been successful.What is his problem known as in business negotiation terms?

A) confirmation bias
B) egocentrism
C) self-reinforcing incompetence
D) satisficing

Question 27

What does the term "winner's curse" imply?

A) negotiators optimistically settling for an undervalued deal
B) negotiators knowingly settling for an undervalued deal
C) negotiators settling for all the terms laid down by the other party
D) negotiators settling for none of the terms laid down by the other party

Question 28

Which term has Herb Simon been credited with?

A) greenwashing
B) cocooning
C) satisficing
D) social loafing

Question 29

What does the agreement bias refer to?

A) agreeing to something desirable
B) agreeing to all offered conditions
C) agreeing to something worse than the alternative
D) agreeing to nothing

Question 30

The negotiators working on a deal have come to the conclusion that whatever is good for one person must ipso facto be bad for the other party.What myth can be attributed to this conclusion?

A) myth of fixed nature
B) myth of self-perpetuation
C) myth of innate negotiation skills
D) myth of fixed sum

Question 31

While finalizing the deal,the negotiators end up making big concessions that leave one of them with a paltry share of the bargaining pie.What situation is being referred to here?

A) the winner's curse
B) the win-lose situation
C) the no-win situation
D) the Dutch auction situation

Question 32

People who are self-absorbed in terms of reflecting upon their own values are more likely to exhibit decision-making biases,such as the ________.

A) experience bias
B) confirmation bias
C) self bias
D) analysis bias

Question 33

Unable to arrive at common ground,the negotiators end up rejecting the terms offered by the other although the option offered is demonstrably better than any other option available to them.What is this shortcoming better known as?

A) turning away from the table
B) turning one's back from the table
C) walking away from the table
D) running away from the table

Question 34

Three weeks into the 2010 BP Deepwater Horizon oil disaster,the former chief executive of BP,Tony Hayward,downplayed the looming environmental disaster despite mounting evidence to the contrary.Hayward claimed the spill in Gulf of Mexico was "relatively tiny" compared with the "very big ocean." This is an example of a(n)________.

A) personal bias
B) analysis bias
C) confirmation bias
D) experience bias

Question 35

Florotron Corporation,a manufacturer of electronic appliances,invites tenders for placement systems and screen printers.The company shortlists two companies,after screening the tenders received.After negotiating with the representatives of both the companies,Florotron enters a contract with Company 1.They later realize that they had miscalculated the offers from Company 2 and it offered better terms.Which of the following shortcomings of negotiation is evident from this?

A) leaving money on the table
B) settling for too little
C) walking away from the table
D) agreement bias

Question 36

Albert,sales representative of an FMCG company,is calling on one of the distributors.The distributor asks for a credit term of ninety days.Albert knows the maximum credit period offered by his company is 75 days although 50 days is the preferred norm.Without much effort,he convinces the distributor to agree to 75 days of credit.Albert is not bothered to attempt a lower credit term,although it is worth trying.Albert's inefficiency in bargaining can be attributed to ________.

A) satisficing
B) optimizing
C) confirmation bias
D) self-reinforcing incompetence

Question 37

An experienced negotiator of a company manages to convince his counterpart about the terms and conditions that are being put forward.Though this puts the other negotiator at a distinct disadvantage,he or she feels compelled to accept the resolution.What is this situation known as?

A) agreement bias
B) lose situation
C) loser's curse
D) winners curse

Question 38

Santor Hydroelectric Corporation engages in the acquisition,development,and operation of hydroelectric power projects in China.In order to perform large scale annual maintenance works at one of its facilities,the company initiates discussions with Albama Associates,a large maintenance company.The associates of both the companies are unable to arrive at a consensus on the pricing and other terms.Albama finally decides to decline the offer although it is an extremely profitable one.Which of the following traps of negation has occurred here?

A) leaving money on the table
B) settling for too little
C) walking away from the table
D) agreement bias

Question 39

The negotiation process of two corporate giants ends with both leaving money on the table.This situation is known as a ________.

A) win-lose situation
B) lose-lose situation
C) win-win situation
D) no win situation

Question 40

Abraham,the CEO of a consulting firm,leads the employees of the firm.He is involved in almost all of the critical negotiations that the company engages in.He is also involved in a variety of activities such as HR planning,marketing communication etc.Which of the following tasks,if performed by Abraham,would increase the chances of a confirmation bias?

A) Abraham is allowed to appraise his own performance when reviews are conducted.
B) Abraham is the ultimate authority who decides the allocation of the company's funds.
C) Abraham is often involved in the recruitment and selection of managers.
D) Abraham, being a finance graduate, also functions as the CFO of the firm.

Question 41

What are the major shortcomings in negotiations?

Question 42

Which of the following statements is true?

A) Feedback can be largely ineffective in improving negotiation skills.
B) People tend to remember their failures.
C) Success adds to experience which always improves our ability to negotiate.
D) Experienced people can have inaccurate judgment.

Question 43

According to the negotiation myth of fixed-pie,________.

A) what is settled for must be achieved by hook or by crook
B) the party with a distinct advantage can throw its weight around
C) the very fact that causes one to lose ground causes the other to gain ground
D) negotiators are born and cannot be made

Question 44

Negotiators with a string of successful acquisitions and very few failures develop great confidence in the accuracy of their skills.This is an illustration of the myth that ________.

A) negotiators need to believe in their gut feelings
B) experience improves confidence, but not necessarily accuracy
C) negotiators always have astute judgment
D) negotiators are innately gifted

Question 45

The negotiators of a company use a "tough" style of negotiation in the hope that the other party will capitulate.The negotiators of the company can be said to exhibit the myth that ________.

A) negotiators end up settling for too little or too much
B) aggressive negotiators have a history of successful deals
C) negotiators consider whatever good as bad for the other party
D) good negotiators take grave risks

Question 46

In a desperate bid to see the negotiation through,a manager concedes to all of the demands and requests of the other party.However,there is nothing asked for on a quid pro quo basis.He deems the negotiation a success,having finally clinched the deal.What negotiation myth has the manager succumbed to?

A) negotiators need to be trusting of the other party
B) negotiators just need to get the deal through, irrespective of other factors
C) negotiators need to be either tough or soft
D) negotiators need to work independently to make the process a success

Question 47

According to Walton and McKersie's conceptualization,negotiation is a ________.

A) single-motive enterprise
B) mixed-motive enterprise
C) purely cooperative enterprise
D) purely competitive enterprise

Question 48

Can egocentrism be considered the same as self-reinforcing incompetence? Why or why not?

Question 49

A highly experienced negotiator credits his successes solely to his spontaneous gut feeling.His attitude pertains to the myth that ________.

A) negotiations are fixed sum
B) negotiation skills are god-gifted
C) good negotiators rely on intuition
D) experienced negotiators have accuracy

Question 50

Effective negotiation requires ________ and ________.

A) inherent skills; feedback
B) practice; feedback
C) practice; performance
D) inherent skills; practice