Business Negotiation
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Course Introduction
Business Negotiation is a course designed to equip students with essential skills and strategies for successful negotiation in a variety of business contexts. Covering both theory and practice, the course explores negotiation concepts, frameworks, and tactics used in commercial transactions, conflict resolution, and collaborative decision-making. Through case studies, simulations, and role-playing exercises, students develop an understanding of interests, positions, bargaining power, cross-cultural differences, and ethical considerations. By the end of the course, participants gain the ability to prepare for, conduct, and evaluate negotiations, enabling them to achieve mutually beneficial outcomes in professional environments.
Recommended Textbook
Negotiation 7th Edition by Roy J Lewicki
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20 Chapters
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Chapter 1: The Nature of Negotiation
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Sample Questions
Q1) 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
Q2) 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
Q3) Negotiation is a ____________ that transforms over time.
Answer: process
Q4) The two-dimensional framework called the _______________________ postulates that people in conflict have two independent types of concern.
Answer: dual concerns model
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Chapter 2: Strategy and Tactics of Distributive Bargaining
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Sample Questions
Q1) What are the three properties of commitment statements?
Answer: A high degree of finality,a high degree of specificity,and a clear statement of consequences.
Q2) Skilled negotiators may
A) suggest different forms of a potential settlement that are worth about the same to them.
B) recognize that not all issues are worth the same amount to both parties.
C) frequently save a final small concession for near the end of the negotiation to "sweeten" the deal.
D) make the last concession substantial to indicate that "this is the last offer".
E) Skilled negotiators may take all of the above actions.
Answer: E
Q3) What are the strategies for responding to hardball tactics?
Answer: Ignore them,discuss them,respond in kind,co-opt the other party.Also discussed in the text but not listed specifically:preparation,familiarity with hardball tactics,identification and discussing the tactics,halting the negotiation process,team negotiations.
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Chapter 3: Strategy and Tactics of Integrative Negotiation
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Sample Questions
Q1) A ____________ goal is one in which both parties work toward a common end but one that benefits each party differently.
Answer: shared
Q2) Focusing on interests allows parties to move beyond opening positions and demands to determine what the parties really want-what needs truly must be satisfied. A)True
B)False
Answer: True
Q3) People who are interdependent but do not trust each other will act ____________ or ____________.
Answer: tentatively;defensively
Q4) Integrative negotiation requires negotiators to accept both their own and the other's attitudes,interests and desires as ____________.
Answer: valid
Q5) What is a disadvantage to brainstorming over surveys?
Answer: The disadvantage of brainstorming is that is does not solicit the ideas of those who are not present at the negotiation.
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Chapter 4: Negotiation: Strategy and Planning
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Sample Questions
Q1) A negotiator's unilateral choice of strategy is reflected in the answers to two simple questions: how much concern does the actor have for achieving the ____________ outcomes at stake in this negotiation,and how much concern does the negotiator have for the current and future quality of the ____________ with the other party?
Q2) Why may bargainers want to consider giving away "something for nothing?"
Q3) It is sufficient to learn about the other party's interests and resources.
A)True
B)False
Q4) According to Greenhalgh's stage model of negotiation,_____________________ is extremely critical to satisfactorily moving the other stages forward.
Q5) In an accommodative negotiation,the relationships have:
A) a short-term focus
B) a long-term focus
C) may be either short term or long term
D) none of the above
Q6) Without effective planning and target setting,results occur more by ____________ than by negotiator effort.
Q7) What specific steps are entailed in effective planning?
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Chapter 5: Ethics in Negotiation
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Q1) "Calling" the tactic indicates to the other side that you know he is ____________ or
Q2) What is the implication of the dilemma of trust?
A) We believe everything the other says and can be manipulated by their dishonesty.
B) We do not believe anything the other says and therefore are immune to their dishonesty.
C) We tell the other part your exact requirements and limits in negotiation,and therefore we will never do better than this minimum level.
D) We never reveal our requirements and limits in negotiation,and therefore are able to far exceed that minimum level.
E) None of the above describes the implication of the dilemma of trust.
Q3) The concept of ____________ ethics states that the rightness of an action is determined by evaluating the pros and cons of its consequences.
Q4) Negotiators who are considering the use of deceptive tactics should ask themselves what three questions in order to evaluate the desirability of the tactic?
Q5) The use of unethical tactics may provoke what response from the "victim?"
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Page 7
Chapter 6: Perception, Cognition, and Emotion
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Q1) Reframing does not require negotiators to be flexible during a negotiation but they should anticipate that multiple contingencies may arise during negotiations.
A)True
B)False
Q2) If perceptual distortions and initial assumptions are correct,then negotiators may not be able to reverse their effects.
A)True
B)False
Q3) Frames are important in negotiation because disputes are often nebulous and open to different interpretations.
A)True
B)False
Q4) Parties are likely to assume a particular frame because of one factor.
A)True
B)False
Q5) A key issue in perception and negotiation is framing.What is framing?
Q6) The frames of those who hear or interpret communication may create ____________ of their own.
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Chapter 7: Communication
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Q1) _____________ is conceptualized as an activity that occurs between a sender and a receiver.
Q2) What are the five linguistic dimensions of making threats?
Q3) A communicative framework for negotiation is based on what assumptions?
Q4) _____________ techniques allow negotiators to understand more completely the other party's positions by actively arguing these positions until the other party is convinced that they are understood.
Q5) The use of _____________________ is defined as when negotiators use positive words when speaking of their own positions,and negative words when referring to the other party's position.
Q6) Define "reframing explanations."
Q7) _____________ and ____________ are the conduits by which messages are carried.
Q8) Gibbons,Bradac,and Busch suggest that threats can be made more credible and more compelling by using
A) positively polarized descriptions of the other party.
B) low immediacy.
C) high intensity.
D) low verbal diversity.
E) None of the above can make threats more credible and compelling.
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Chapter 8: Finding and Using Negotiation Power
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Sample Questions
Q1) Visibility is the same as centrality or criticality in network structure.
A)True
B)False
Q2) According to Deutsch,an actor does not have power in a given situation and cannot satisfy the purposes that he is attempting to fulfill in that situation.
A)True
B)False
Q3) Culture-both organizational and national-often translates into deeply embedded structural ____________ in a society.
Q4) Employees who want to succeed rapidly are frequently counseled to find jobs with high ____________ and ____________ in an organization so they can get the experience and visibility necessary for rapid promotion.
Q5) The effective use of power requires a sensitive and deft touch,and its consequences may not vary greatly from one person to the next.
A)True
B)False
Q6) The effective use of power requires a ____________ and ____________ touch.
Q7) State the "relational" definition of power as defined by Deutsch.
Page 10
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Chapter 9: Influence
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Q1) What does paraphrasing accomplish?
Q2) In mapping the influence landscape,it is important to attend not just to the target of influence,but also to ____________ or coalitions that support the target.
Q3) A useful negotiating tactic,therefore,is to identify and discuss experiences,characteristics,and opinions you hold in common with the other party and this tactic is labeled
A) perceived emotion.
B) perceived ingratiation.
C) perceived friendliness.
D) perceived similarity.
E) perceived helpfulness.
Q4) In structuring the message,one important thing to emphasize is the ____________ the other party gains from accepting our proposal.
Q5) Establishing your personal expertise is preferred to highlighting differences in positional power,especially if the goal is no just simple short-term ____________,but longer term relational benefits as well.
Q6) The norm of reciprocity suggests that when we receive something from another person we should:
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Chapter 10: Relationships in Negotiation
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Q1) An individual's ____________________ toward trust can be described as individual differences in personality that make some people more trusting than others.
Q2) Define interactional justice.
Q3) Parties who are in a communal-sharing relationship (or who expect to have future interaction)focus their attention more on the other party's outcomes as well as their own.
A)True
B)False
Q4) Integrative processes tend to increase trust,while more ____________ processes are likely to decrease trust.
Q5) When some groups are discriminated against,disfranchised,or systematically given poorer salaries or working conditions,the parties may be more concerned about specific procedural elements and less concerned that the overall system may be biased or discriminatory in its treatment of certain groups and their concerns.
A)True
B)False
Q6) Why are negative reputations difficult to repair?
Q7) Describe an equality matching relationship.
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Chapter 11: Agents, Constituencies, Audiences
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Q1) An audience may be directly and seriously affected by the results of a particular negotiation but unable to exert leverage on the negotiations because they have no means for determining their _________ sentiments or making decisions among themselves.
Q2) Audiences can ____________ negotiators by publicly praising them and ____________ negotiators by firing them.
Q3) The social environment becomes much less complex and dynamic as we add negotiating parties.
A)True
B)False
Q4) Audiences maintain control over negotiators by holding them ____________ for their performance.
Q5) How does a negotiator develop relationships with both his or her constituency and with the other party?
Q6) Negotiators who have constituents are usually involved in three or four distinctly different relationships-and often in two separate and distinct negotiations.
A)True
B)False
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Chapter 12: Coalitions
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Q1) Which of the following is not a property of a coalition?
A) A coalition is an interacting group of individuals.
B) A coalition is independent of the formal structure of the organization.
C) A coalition consists of mutually perceived membership.
D) A coalition is focused on a goal or goals internal to the coalition.
E) All of the above are properties of coalitions.
Q2) The ____________ develops some form of action agenda,vision,or commitment,and persuades others to join him or her in pursuing it.
Q3) Coalitions build by
A) organizing members through formal meetings.
B) adding one member at a time.
C) mobilizing departments or divisions.
D) unification in a single,defining event.
E) Coalitions are built by all of the above.
Q4) In organizational settings,veto players are most likely to be founders because they already control a majority of the power in the organization.
A)True
B)False
Q5) Who is the founder of the coalition?
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Chapter 13: Multiple Parties and Teams in Negotiation
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Q1) During the information management phase of multiparty negotiations,____________ "patrol" the environment and bring in relevant external information that may be useful to the group.
Q2) In multiparty negotiations,multiple parties are negotiating together to achieve a ____________ objective or group consensus.
Q3) What are the three key stages and phases that characterize multilateral negotiations?
A) the prenegotiation stage,managing the actual negotiations,and managing the agreement stage.
B) the coalition building stage,the relationship development stage,the networking stage.
C) the coalition building stage,the networking stage,and the actual negotiation stage.
D) the prenegotiation stage,the networking stage,and the managing the agreement stage.
E) None of the above lists the three key stages and phases that characterize multilateral negotiations.
Q4) How can members of coalitions exert greater strength in multiparty negotiations?
Q5) Additional parties may be invited to a multiparty negotiation to:
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Page 15
Chapter 14: Individual Differences I: Gender and Negotiation
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Q1) Which of the following statements about the important factors that affect how women and men approach negotiations is untrue?
A) Women are more aware of the complete relationship among the parties who are negotiating and are more likely to perceive negotiation as part of the larger context within which it takes place than to focus only on the content of the issues being discussed.
B) Women tend not to draw strict boundaries between negotiating and other aspects of their relationships with other people but instead see negotiation as a behavior that occurs within relationships without large divisions marking when it begins and ends.
C) Men can be characterized as using power to achieve their own goals,or to force the other party to capitulate to their point of view.
D) Men use dialogue in two ways: (a)to convince the other party that their position is the correct one and (b)to support various tactics and ploys that are used to win points during the discussion.
E) Negative stereotypes about female bargainers do not shape expectations and behaviors by both men and women at the negotiating table.
Q2) What is the difference between sex and gender?
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Page 16
Chapter 15: Individual Differences II: Personality and Abilities
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Q1) Neale and Northcraft found that experts were more ____________ at the beginning of the negotiations than were amateurs.
Q2) Define "interpersonal trust."
Q3) In experiments by Christie and Geis,high Machs
A) attempted significantly more manipulative behaviors than low Machs.
B) initially tried harder to persuade the confederate not to cheat.
C) were constantly sought after by others to be in coalitions.
D) tended to become more exploitative over time.
E) All of the above describe the behavior of high Machs.
Q4) According to Jordan and Roloff,high self-monitors achieve outcomes with higher percentages of their goals than do low self-monitors.
A)True
B)False
Q5) What is the difference between high self-monitors and low self-monitors?
Q6) As identified by Thomas' research,the ____________ style is high on assertiveness and cooperativeness.
Q7) The ____________ style is low on both assertiveness and cooperativeness according to Thomas' research.
Q8) How do scholars feel about the overall importance of dispositions? Page 17
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Page 18
Chapter 16: International and Cross-Cultural Negotiation
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Q1) What is the main challenge for every global negotiator?
Q2) Negotiation in risk-____________ cultures will seek further information and will be more likely to take a wait-and-see stance.
Q3) The "embrace the other party's approach" strategy involves
A) adopting completely the approach of the other party.
B) both parties making mutual adjustments to find a common process for negotiation.
C) creating a new approach that may include aspects of either home culture or practices from a third culture.
D) persuading the other party to use your approach.
E) The "embrace the other party's approach" strategy involves all of the above.
Q4) There are six factors identified by Salacuse in the environmental context that make international negotiations more challenging than domestic negotiations they are: political and legal pluralism,international economics,foreign governments and bureaucracies,instability,ideology,and ____________.
Q5) How does the nature of agreements vary between cultures?
Q6) What are the disadvantages to using the "induce the other party to use your approach" strategy?
Q7) What is the most frequently studied aspect of international negotiations?
Page 19
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Chapter 17: Managing Negotiation Impasses
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Q1) In the imaging process,parties in conflict are asked to engage in the following activities in what order?
A) describe how they see themselves,state how they think the other party would describe them,describe how the other party appears to them,state how they think the other party sees themselves
B) describe how they see themselves,describe how the other party appears to them,state how they think the other party would describe them,state how they think the other party sees themselves
C) describe how the other party appears to them,state how they think the other party sees themselves,describe how they see themselves,state how they think the other party would describe them
D) state how they think the other party would describe them,state how they think the other party sees themselves,describe how they see themselves,describe how the other party appears to them
E) In the imaging process,parties can engage in the above activities in any order they choose.
Q2) How can parties expand the number of issues involved in a negotiation?
Q3) How can a third party or a common enemy be used as a superordinate goal?
Q4) As conflict intensifies the size and number of the issues ____________.
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Chapter 18: Managing Difficult Negotiations
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Q1) Conflicts involving ultimatums often fall prey to escalation problems through severe ____________ spirals.
Q2) What are the three types of power moves?
Q3) Some people are invariably difficult and their behavior follows predictable and one of the other following patterns.Which one?
A) aggressive
B) confusing
C) contentious
D) identifiable
E) counter indicating
Q4) What are the advantages of Ury's "go to the balcony" approach?
Q5) The pervasive unhappiness resulting from the use of ultimatums will not taint future dealings between the parties.
A)True
B)False
Q6) Relating to difficult people in negotiation or other highly charged,results-oriented exchanges is a critically important skill.
A)True
B)False
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Chapter 19: Third Party Approaches to Managing Difficult Negotiations
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Q1) Failure to use third-party intervention when appropriate is just as wasteful and damaging to the ultimate negotiation process as using the wrong intervention method.
A)True
B)False
Q2) Moore states that in the premediation stages,the mediator is attempting to
A) define issues and set an agenda.
B) establish relationships with the disputing parties.
C) generate options for settlement.
D) uncover hidden interests of the disputing parties.
E) In the premediation stages,the mediator is attempting to accomplish all of the above.
Q3) What does the ADR stand for in ADR systems?
Q4) Research suggests that when parties are pressured or required to enter mediation,they generally come away finding it to be a fair and satisfactory process. A)True B)False
Q5) If intervention becomes advisable,it should be done in a ____________ and ____________ manner.
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Chapter 20: Best Practices in Negotiations
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Q1) Negotiators who take the time to pause and reflect on their negotiations will find that they continue to refine their skills,and that they remain sharp and focused for their _____________ negotiations.
Q2) Why is a negotiator like an athlete?
Q3) Why is communicating with a coalition critical?
Q4) Negotiators do not have to be aware of the effect of intangible factors on their own aspirations and behavior.
A)True
B)False
Q5) What are the three things that negotiators can do to manage the perceptions of fairness and rationality proactively?
Q6) At the top of the best practice list for every negotiator is A) managing coalitions.
B) diagnosing the structure of the negotiation.
C) remembering the intangibles.
D) preparation.
E) protecting your reputation.
Q7) Why is the BATNA an important source of power in a negotiation?
Q8) Why is it said that reputations are like eggs?
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