Business Negotiations
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Course Introduction
Business Negotiations is a course designed to equip students with the essential strategies, skills, and theoretical frameworks necessary for successful negotiation in various business contexts. Through interactive case studies, simulations, and practical exercises, students will explore key concepts such as bargaining tactics, effective communication, conflict resolution, ethical considerations, and the psychology of negotiation. Emphasis is placed on both distributive and integrative negotiation approaches, enabling participants to develop the ability to craft mutually beneficial agreements and resolve disputes efficiently. The course prepares students to confidently navigate negotiations in domestic and international business environments.
Recommended Textbook Negotiation Readings Exercises and Cases 6th Edition by Roy Lewicki
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Chapter 1: The Nature of Negotiation
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Q1) 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
Q2) 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 lot
Answer: bargaining
Q3) There are times when you should _________ negotiate.
Answer: not
Q4) Negotiation is a ____________ that transforms over time.
Answer: process
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Chapter 2: Strategy and Tactics of Distributive Bargaining
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Q1) What can happen when one or both parties do not think they got the best agreement possible?
Answer: One party or the other may try to get out of the agreement later or try to recoup losses or get even.
Q2) A ____________ bargaining range occurs when the buyer's resistance point is above the seller's.
Answer: positive
Q3) The ____________ ____________ is the point beyond which a person will not go and would rather break off negotiations.
Answer: resistance point
Q4) Commitments exchange ____________ for certainty of action.
Answer: flexibility
Q5) Distributive bargaining is basically a competition over who is going to get the most of a ____________ ____________.
Answer: limited resource
Q6) Define calculated incompetence.
Answer: The negotiating agent is not given all of the necessary information, making it impossible for information to be leaked.
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Chapter 3: Strategy and Tactics of Integrative Negotiation
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Q1) Research has shown that when brainstormers work at the process for a long period of time, the best ideas are most likely to surface during the ____________ part of the activity.
Answer: latter
Q2) Which of the following is a major step in the integrative negotiation process?
A) identifying and defining the problem
B) understanding the problem and bringing interests and needs to the surface
C) generating alternative solutions to the problem
D) choosing a specific solution
E) All of the above are major steps in the integrative negotiation process.
Answer: E
Q3) A ____________ goal is one in which both parties work toward a common end but one that benefits each party differently.
Answer: shared
Q4) As a problem is defined jointly, it should accurately reflect both parties' ____________ and ____________.
Answer: needs, priorities
Q5) _________ interests are related to how the negotiations unfold.
Answer: Process
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Chapter 4: Negotiation Strategy and Planning
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Q1) Why may bargainers want to consider "giving away something for nothing?"
Q2) What are the advantages and disadvantages of limiting a negotiator's authority?
Q3) A "field analysis" is one way to assess all the key parties in a ____________.
Q4) What are the most critical precursors for achieving negotiation objectives?
A) Effective strategizing, planning and preparation
B) goal setting and target planning
C) defining frames and setting goals
D) framing and strategizing
E) none of the above
Q5) ____________ strategies may generate a pattern of constantly giving in to keep the other happy or to avoid a fight.
Q6) Define goal.
Q7) Which of the following is not a reason that negotiations fail?
A) Allowing insufficient time for planning
B) Failing to set clear objectives
C) Understanding the strengths and weaknesses of their and the other party's positions
D) Depending on being quick and clever during negotiations
Q8) Why is it important to understand the typical steps or flow in a negotiation?
Q9) What elements of the negotiation protocol might it be useful to prenegotiate?
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Chapter 5: Perception, Cognition, and Emotion
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Q1) The frames of those who hear or interpret communication may create ____________ of their own.
Q2) Which of the following cognitive biases can lead negotiators to discount the worth or validity of the judgment of others?
A) Irrational escalation of commitment
B) Mythical fixed-pie beliefs
C) Anchoring and adjustment
D) Availability of information
E) Overconfidence
Q3) What are the two things to keep in mind about the effect of frames on risk in negotiation (according to Neale and Bazerman)?
Q4) ____________ ____________ occur when people generalize about a variety of attributes based on the knowledge of one attribute of an individual.
Q5) Disputes settled by ____________ usually create clear winners and losers.
Q6) What role do frames play in the way they are constructed so that bargainers define problems and courses of action jointly through their talk?
Q7) Define perception.
Q8) What is the best remedy for the winner's curse?
Page 7
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Chapter 6: Communication
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Q1) ____________ is the process by which messages are put into symbolic form.
Q2) _____________ ____________ involves receiving a message while providing no feedback to the sender about the accuracy or completeness of reception.
Q3) How can feedback be used strategically?
Q4) 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.
Q5) Define "reframing explanations."
Q6) What are the most dominant contributors to breakdowns and failures in negotiation?
A) failures and distortions in perception, meaning, and feedback
B) failures and distortions in perception, feedback, and behaviors
C) failures and distortions in perception, communication, and framing
D) failures and distortions in perception, cognition, and communication.
E) None of the above contribute to breakdowns and failures in negotiation.
Q7) _____________ 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.
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Q8) Messages are the ____________ forms by which information is communicated.
Chapter 7: Finding and Using Negotiation Power
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Q1) Define legitimate power.
Q2) If power is in the eye of the beholder, then how is power effective?
Q3) In which of the following types of power based on personality and individual differences would you find a person characterized by beliefs that power is distributed relatively equally across various groups, which compete and bargain for a share of the continually evolving balance of power?
A) the unitarian.
B) the radical.
C) the pluralist.
D) the idealist.
E) the conformist.
Q4) Seeking power in negotiation usually arises from one of which two perceptions?
Q5) The available labor supply, staff that can be allocated to a problem or task, temporary help is called ____________ ____________.
Q6) How are resources deployed generally speaking?
Q7) Do compliance strategies result in long-term or short-term persuasion? Why?
Q8) Power is the ____________ to alter the attitudes and behaviors of others that an individual brings to a given situation.
Q9) The hands of the unskilled, power can be dramatically ____________.
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Chapter 8: Influence
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Q1) The best way to inoculate people against attacks on their position is to involve them in developing a ____________.
A)True
B)False
Q2) Negotiators who can use active approaches are generally more persuasive than those who don't, since an active approach requires the receiver to exert effort, which leads to involvement, which leads to ____________.
Q3) ____________ involves enhancing the other's self-image or reputation through our statements or actions, and thus enhancing our own image in the same way.
Q4) Explain how people are motivated to behave consistently with their values that are their religious, social, or ethical standards.
Q5) What is the recency effect? When should it be used?
Q6) What questions do people ask themselves when determining how much to believe another person?
Q7) Explain how ingratiation helps a negotiator.
Q8) What does paraphrasing accomplish?
Q9) What is the philosophy behind the technique of "violating expectations?"
Q10) When can messages that contain threats be useful?
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Chapter 9: Ethics in Negotiation
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Q1) According to Hitt, what are the four standards for evaluating strategies and tactics in business and negotiation?
Q2) Incidences in cheating in the Boston Marathon included all but one motive. Which one was not identified as a motive for cheating in the race?
A) Some cheaters were angry or disturbed.
B) Some cheaters were seeking family approval.
C) Some cheaters were middle-aged males.
D) Some cheaters were after recognition.
E) Some cheaters were simply "caught up in the moment."
Q3) What is the implication of the dilemma of honesty?
Q4) What actions can a negotiator take to respond to the other party's distributive tactics or "dirty tricks?"
Q5) Research studies have shown that individuals who are strongly Machiavellian are
A) more willing and able con artists.
B) more likely to lie when they need to.
C) better able to tell bigger lies with out feeling anxious about it.
D) more persuasive and effective in their lies.
E) Individuals who are strongly Machiavellian have all of the above traits.
Q6) What is the purpose of using marginally ethical ambiguous negotiating tactics?
Page 11
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Chapter 10: Relationships in Negotiation
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Q1) How do people view goods in a market-pricing relationship?
Q2) Which type of justice is about the process of determining outcomes?
A) Distributive
B) Interactive
C) Procedural
D) Systemic
E) None of the above.
Q3) All but one of the following actions contributes to increase identification-based trust. Which one does not contribute?
A) Stand for the same principles.
B) Monitor the other party's actions.
C) Develop similar interests.
D) Try to develop similar goals, objectives and scenarios.
E) Try to be interested in the same things.
Q4) Only recently have researchers begun to examine actual negotiations in a rich ____________ context in order to offer better prescriptions on how to negotiate where the parties are deeply embedded in a relationship.
Q5) Under the four actions to manage the different forms of trust in negotiations, describe the basic steps to increase calculus-based trust.
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Chapter 11: Agents, Constituencies, Audiences
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Q1) The tactic of communicating though intermediaries is most often used under what circumstance?
A) when the negotiator represents an organization or group that has some formal hierarchy of power
B) when the other party is not representing his or her constituency's interests clearly and effectively at the table
C) when deliberations are deadlocked and need to be unfrozen
D) as an effort to build alliances and support for one's own position
E) Communicating through intermediaries and constituency members is used under all of the above circumstances.
Q2) What is a negotiating team?
Q3) The basic dilemma for a negotiator acting as an agent in a relationship negotiation is to determine how he or she can satisfy both his or her constituency's demands for ____________ and the other party's demand for ____________.
Q4) How can a concern for reputations create a problem for agents?
Q5) Individuals who are stronger in face threat sensitivity are more likely to agree to three statements according to a group of researchers. What are those three statements?
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Chapter 12: Coalitions
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Q1) Who is the founder of the coalition?
Q2) What are recurring coalitions?
Q3) How do relationship dynamics affect the formation and stability of coalitions?
Q4) The founder makes explicit offers to attract new coalition partners based on what three criteria?
Q5) Block argues that authentic tactics require parties to
A) say "yes" when they mean "no."
B) share only the information that is relevant to the issue at hand.
C) use language that describes reality.
D) reposition their endorsement or support for the sake of acceptance.
E) Authentic tactics require parties to do all of the above.
Q6) The "joining threshold" is
A) the total number of people who can join a specific coalition.
B) the level where a minimum number of people have joined a coalition and others begin to join because they recognize that their current friends and associates are already members.
C) the minimum number of people required for a coalition to be successful.
D) the level at which a new member must "pay" in order to join the coalition.
E) None of the above defines the joining threshold.
Q7) What are the properties of a coalition?
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Chapter 13: Multiple Parties and Teams
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Q1) 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.
Q2) ____________ of multiparty negotiations must be sensitive to keeping tight control over the group process while not directly affecting the group's outcome.
Q3) In a competitive negotiation, parties are likely to use information ____________-sharing very little with other parties, while attempting to gain much information from others
Q4) In what ways do multiparty negotiations differ from two-party deliberations?
Q5) What is the "illusion of consensus?"
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Chapter 14: Individual Differences I: Gender and Negotiation
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Q1) What role does mind-set play as a tool in negotiation for the different sexes?
Q2) What did Bowles and colleagues find out after investigating reactions to males and females who negotiate with aggressive tactics in a job interview situation?
Q3) What did researchers find in how same-sex pairs of men and women negotiated in a low-conflict bargaining situation?
Q4) In the study comparing the behavior of men and women in the "ultimatum game" the moral of the story seems to be that negotiators often harbor and act upon questionable assumptions that women will ____________ less and ____________ more.
Q5) Does an activated stereotype matter more than the actual gender of the negotiator.
Q6) Women tend to fare worse on salary negotiations because:
A) they tend to ask for higher salaries during interviews.
B) they tend to accept what is offered them.
C) they tend to not ask for more.
D) they tend to anticipate a hypothetical salary.
E) they tend to become overly involved with salary negotiations.
Q7) A study on aggressive behavior showed that females were ____________ times less likely to be hired when aggressive.
Page 16
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Chapter 15: Individual Differences 2: Personality and Abilities
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Q1) Self-monitoring
A) refers to the extent to which people are responsive to the social cues that come from the social environment.
B) refers to the extent to which people perceive that they have control over events which occur.
C) is considered to be a judgment about one's ability to behave effectively in a given situation.
D) is the negotiator's capacity to understand the other party's point of view during a negotiation.
E) None of the above describes self monitoring.
Q2) According to Walton and McKersie, negotiators who understand the other party's perspective will be more likely to
A) form arguments that are convincing to the other party.
B) maintain a distributive stance throughout the entire negotiation.
C) develop high levels of trust with the other party.
D) use Machiavellianism as a tool to achieve more power in the negotiation.
E) Negotiators who understand the other party's perspective well will be more likely to accomplish all of the above.
Q3) List characteristics of Machiavellianism .
Page 17
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Chapter 16: International and Cross-Cultural Negotiation
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Q1) We use the term "culture" to refer to the
A) religious beliefs of a group of people.
B) ethnicity of a group of people.
C) geographic nationality of a group of people.
D) shared values and beliefs of a group of people.
E) Culture refers to none of the above.
Q2) The "culture-as-learned-behavior" approach concentrates on creating a ____________ of behaviors that foreign negotiators should expect when entering a host culture.
Q3) What did researchers Adler, Brahm and Graham find about the differences in negotiation strategies and tactics in the cultures of the Chinese and Americans?
Q4) In group-oriented cultures
A) the individual comes before the group's needs.
B) decisions are primarily made by senior executives.
C) decision making is an efficient, streamlined process.
D) negotiators may be faced with a series of discussions over the same issues and materials with many different people.
E) All of the above occur in group-oriented cultures.
Q5) How does the nature of agreements vary between cultures?
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Chapter 17: Managing Negotiation Impasses
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Q1) How can parties expand the number of issues involved in a negotiation?
Q2) Schneider suggests what options for handling offensive behavior?
A) ignoring it, confronting it, deflecting it, engaging it
B) ignoring it, manipulating it, responding in kind, engaging it
C) manipulating it, confronting it, responding in kind, engaging it
D) confronting it, deflecting it, responding in kind, engaging it
E) Schneider suggests none of the above options for handling offensive behavior.
Q3) Why is intransigence a powerful but dangerous card for a negotiator to play in multilateral negotiations?
Q4) In Osgood's synchronized de-escalation, what does GRIT stand for?
Q5) Which of the following is not one of Fisher's major approaches to fractionating conflict?
A) reduce the number of parties on each side
B) restrict the precedents involved, both procedural and substantive
C) state issues in concrete terms rather than as principles
D) role reversal and imaging processes
E) All of the above encompass Fisher's approaches to fractionating conflict.
Q6) Babcock, Wang and Loewenstein found support for the hypothesis that negotiators choose ____________ to reflect a supportive, self-serving bias for their positions.
Page 19
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Chapter 18: Managing Difficult Negotiations
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Q1) Define a shadow negotiation.
Q2) The ____________ negotiation occurs in parallel with the substantive negotiation and is concerned with how the negotiation will proceed.
Q3) Sometimes problems in negotiation can be traced to difficulties in the other party's ____________ style.
Q4) How does the concept of tone play in the successful management of conversations?
Q5) Ury's "breakthrough approach" operates on the principle of acting ____________, requiring users to do the opposite of what they might naturally do in difficult situations.
Q6) An ____________ is an attempt to induce compliance or force concessions from a presumably recalcitrant opponent.
Q7) One goal of negotiators should be to ensure the ____________ application of integrative negotiating under appropriate circumstances in order to produce better agreements.
Q8) What are the advantages of Ury's "go to the balcony" approach?
Q9) The challenge at the stage of framing the problem is to change the negotiation by proactively __________ his or her tactics.
Q10) What are the three components of ultimatums?
Page 20
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Chapter 19: Third-Party Approaches to Managing Difficult Negotiations
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Q1) The compensation form of mediation strategy involves
A) a high concern for parties' aspirations and a high perception of common ground.
B) a high concern for parties' aspirations and a low perception of common ground.
C) a low concern for parties' aspirations and a high perception of common ground.
D) a low concern for parties' aspirations and a low perception of common ground.
E) The compensation form of mediation strategy involves none of the above.
Q2) The ____________ form of mediation strategy has a low concern for aspirations and a low perception of common ground.
Q3) ____________ is the most common form of third-party intervention that is largely procedural in nature.
Q4) ____________ typically involves a structured process in which disputing parties have relatively free rein to present their stories, while the arbitrators decide the outcome, often imposing a resolution on the disputants.
A)True
B)False
Q5) Define mediator flexibility.
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Chapter 20: Best Practices in Negotiations
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Q1) Negotiators need to be reminded that certain factors influence their own behavior. What are those factors?
A) strengths
B) tangibles
C) weaknesses
D) intangibles
E) negotiables
Q2) While some people may look like born negotiators, negotiation is fundamentally a skill involving ____________ and _____________ that everyone can learn.
Q3) Excellent negotiators understand that negotiation embodies a set of A) values.
B) alternatives.
C) paradoxes.
D) BATNAs.
E) principles.
Q4) Negotiators also need to remember that _____________ factors influence their own behavior (and that it is not uncommon for us to not recognize what is making us angry, defensive, or zealously committed to some idea).
Q5) What often happens to negotiators without a strong BATNA?
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