L5M15 Advanced Negotiation Revision Q&A

Learning outcome 1.1:

Q1) List the potential different outcomes of a negotiation:

- Win / win
- Win / lose
- Lose / lose
- Lose / win

Q2) Can you describe the win / lose outcome?

One party achieves what it wants, at the expense of the other party that ‘loses out’.

Q3) What are the different purposes of a negotiation?

- Agree the terms of a contract

- Resolve a dispute arising from a breach of contract
- Negotiate an improvement in supply arrangements, such as switching to electronic ordering.

Q4) Can you summarise the 3 key stages of a negotiation?

- Preparing to negotiate
- The negotiations themselves, and reaching agreement
- Action after the negotiation, to put the agreement into effect

Q5) Under what circumstances can a negotiation be undertaken by an individual?

- The negotiator on each side may have the authority to reach an agreement, based on his or
her position and status within the organisation.
- The individual may be given authority to act for the organisation in a particular negotiation.

Q6) List the advantages of an individual negotiator:

- Speed
- Unique knowledge
- Interpersonal skills
- For a simple negotiation
- Cost
Q7) List the different team roles you might have in a negotiation team:

- The lead negotiator, who leads the discussions with the other party and who is also the
leader of the negotiating team.
- A subject expert: someone with a good knowledge and understanding of the matter being
negotiated.
- A note taker: someone who keeps a record of what is discussed during negotiations, for
future reference as and when required. In large negotiations, someone in each of the
negotiating teams may prepare formal minutes of meetings.
- Critic. This is the ‘bad cop’ in a ‘good cop, bad cop’ team arrangement.
- Relater. This is the ‘good cop’ in a ‘good cop, bad cop’ team arrangement.
- Builder. This individual puts together ‘deal packages’ to find an agreed outcome.
- Observer. An observer has a ‘watching brief’, studying the behaviour and responses –
including the body language – of individuals in the other negotiating team and passing these
observations to the team leader and lead negotiator.

Q8) List the advantages of negotiating in teams:

- Expertise
- Better performance
- Better decision-making
- Representing different stakeholder interests
- Risk

Q9) Which venues may we consider using for a negotiation?

- Home’ venue, at the organisation’s own premises

- ‘Away’ venue, at the premises of the other party
- A neutral venue, such as a meeting room in a hotel
- A virtual meeting, with both parties at their own ‘home’ location

Q10) There are many sources of intelligence that can be reviewed before a negotiation, this can be
made up of both internal and external data, can you think of some examples?

- SWOT
- PORTERS 5 FORCES
- STEEPLED
- Performance history
- Supplier feedback
- Customer and competitor feedback
- Product / service data
- Supplier’s finances
Q11) Can you recall the 5 different conflict management styles as identified by Thomas Kilmann?

- Competing (win / lose)

- Collaboration (win / win)
- Compromising (win / win or lose / lose)
- Avoiding (lose / lose)
- Accommodating (lose / win)

Q12) What do the acronyms MDO, LAA & BATNA stand for?

- The most desirable outcome (MDO): what the organisation would ideally like the agreed
outcome to be
- The least acceptable agreement (LAA) or minimum acceptable agreement (MAA): this is the
‘worst possible’ agreement that the negotiator would nevertheless be prepared to accept in
order to reach an agreement
- The best alternative to a negotiated agreement (BATNA): if the negotiator is unable to
achieve the LAA, there must be an alternative way forward.

Q13) What are the disadvantages of a formal agenda?

- Discussions at the meeting are limited to the agenda items: this may restrict the free flow of
ideas, particularly when two separate agenda items are closely related to each other.
- There is a risk that when a time is allocated to discussion of each item, some discussions will
be cut short.
- Arguably, the ‘side’ that sets the agenda has a psychological advantage over the other party,
by setting the framework for the discussions.

Learning outcome 1.2:

Q1) What are negotiation tools?

- Preparation sheets, tick lists and similar aids that are used to remind a negotiator what
needs to be done, or can be used by a negotiator to check that nothing has been overlooked
- Techniques or ploys to use in negotiating with the other party.
Q2) What does the PREPARE acronym stand for?

- Price
- Research
- Evaluate
- Plans
- Achieve
- Relinquish
- Exchange

Q3) Can you describe the good cop / bad cop negotiation ploy?

A negotiating team may include an aggressive member who challenges the other party’s views
aggressively, whilst another takes a more friendly and understanding approach. The ‘bad cop’
attracts the dislike of the other party, which is more willing to deal and reach agreement with the
friendly ‘good cop’.

Q4) Can you describe the Mother Hubbard negotiation ploy?

The other party loves doing business with you, but ‘the cupboard is bare’.
A negotiating party may say that it has nothing else that it can concede to the other party. So, if the
other party cannot accept what has been conceded already, there cannot be an agreement.

Q5) What does the acronym MIL stand for?

- M: Must have. These are the minimum terms that the negotiator must achieve; otherwise,
there can be no agreement.
- I: Intend. These are the terms that the negotiator intends to get as an outcome.
- L: Like. These are the additional terms that the negotiator would like to achieve if possible:
they would be a bonus.

Q6) One form of alternative dispute resolution is Conciliation; can you recall what this entails?

Conciliation – impartial conciliator (usually a subject matter expert) makes constructive suggestions
only.
Q7) Open questions typically begin with which words?

- How
- What
- When
- Why
- Who
- Where

Q8) Closed questions typically begin with which words?

- Could/can
- Should
- Would
- Will

Q9) What are the key features of using open questions?

- They encourage the other party to talk.

- They can be used to check the questioner’s understanding of something.
- They draw out information – facts and opinions – from the other party.
- They can be used to help the other party think through a problem.
- They explore the attitudes, feelings, and motivations of the other party.

Q10) What are the potential problems of a tired negotiator?

- stop listening to the discussions and so may miss some things that are said
- find it difficult to understand what is being said, through loss of concentration
- through loss of concentration, fail to see an opportunity for making progress in the
negotiation
- make concessions simply to bring the negotiation to a speedy conclusion
- lose interest and motivation to negotiate the best outcome.

Q11) How do we confirm an agreement?

- Negotiation meeting: agreement reached verbally and documented

- Interim document setting out the agreement in principle i.e., head of terms / letter of intent
- Legally binding contract between parties
Q12) Can you provide an example of a direct question?

A direct question calls for a short and brief answer. For example: ‘What percentage of orders did you
deliver on time and in full last year?’ ‘How many orders did you process last year?’

Q13) Can you provide an example of an indirect question?

An indirect question can be used as a ‘more polite’ way of asking a question, as an alternative to a
direct question. The person asked an indirect question may be able to avoid giving a direct answer.
For example: ‘Do you know what percentage of deliveries last year were on time and in full?’

Q14) What types of questions may you avoid using in a negotiation?

- Ambiguous question is defined as one where there is no specific query, it could have more
than one meaning, asking for several responses, or not clearly defining the subject/object.
Here is an example with reasons why they aren’t good questions: Did you see the film last
weekend? – what film? where did they see it?

- Multiple questions: this is a string of questions asked as one, for example, ‘How do you
ensure fixed prices, delivery, quality, and the level of after-sales service we require?’ They
are useful for putting the other party under pressure, but make sure that you get multiple
answers!

- Leading questions: leading questions indicate that a particular answer is expected, for
example, ‘So there will be no problem in meeting our quality requirements?’ The answer
sought is clearly ‘No’. Use leading questions to gain acceptance of your views.

- Loaded questions:
“Are you actually voting for this corrupt politician?”
This loaded question is worded to force someone to agree with one’s own views that a
politician is, in fact, corrupt. It suggests that the right answer is to say no, because if the
respondent says yes, it means that they are inadvertently agreeing that the politician is
corrupt, yet they’re still voting for the candidate.
This is a manipulative attempt to limit the potential replies to only those that would serve
the agenda of the person asking the question.
“Are you sure you want to hire an entitled millennial?”
By answering this question directly, the person being asked is agreeing with the sweeping
generalization that millennials feel entitled. Loaded questions are often used to exploit
stereotypes such as this to influence the interlocutor's decisions.
Learning outcome 1.3:

Q1) Can you provide some of examples of what might lead to lack of clarity in an agreement?

- Poor wording of an agreement, such as a contract, so that each party interprets the terms
differently
- Omissions from the agreement, so that there is no provision for some possible eventualities

Q2) How is clarity achieved?

- The parties should understand whether their agreement is a legally binding contract, or
whether it is a commercial arrangement without legal obligation.
- For a complex contract, both parties should use the services of a lawyer (or possibly a legal
team), either to write or to review the terms in a draft contract. The lawyers may be in-
house employees or from a third-party law firm.
- A contract includes a list of terms and conditions: clear subheadings should be used to
indicate what issues are covered by each term or group of terms, such as liabilities and
indemnities, governing law, and so on.
- Many important contract details may be presented separately in an appendix or a schedule
to the contract.
- Both parties should check the wording of a contract or other agreement, to make sure that
the terms appear to be correct and complete.

Q3) Can you draw the Mendelow stakeholder map?

Learning outcome 2.1:

Q1) Which types of behaviours do you think can undermine trust in a negotiation?

- Conflicts of interest
- Hidden agendas
- False or exaggerated claims
- Lack of confidentiality
- Previous breach of trust

Q2) What is meant by stereotyping?

Stereotyping the other person, for example thinking of the other person as someone who is devious,
opinionated, or biased; or assigning characteristics to the other person because of their age, gender,
or ethnicity etc.

Q3) What is meant by the ‘halo effect’?

A negative ‘halo effect’ occurs when one trait of a person is used to make an overall judgment. It
supports rapid impressions, but often biased ones. For example, if a negotiator on the other side
does not smile, this may create a perception that this person is unfriendly or even hostile.

Q4) Can you explain the meaning of misrepresentation?

A misrepresentation is a false statement of a material fact made by one party which affects the
other party's decision in agreeing to a contract.

Q5) List the benefits of virtual negotiations:

- They allow parties to negotiate with each other when they are far apart geographically.
- Negotiations can be carried out and concluded more quickly.
- They save time and costs (travelling costs, negotiators’ time).

Q6) List the potential drawbacks of virtual negotiations:

- Opportunities for mass hacking of data

- Face to face meetings are usually more effective in establishing trust (shaking hands with
someone can release hormones which help a person assess another’s trustworthiness).
- Quality / technical issues may arise
Q7) What are the benefits of building mutual trust?

- Positive personal relationships are necessary, but this does not mean that the parties need
to become good friends.
- Each party should have respect for the other party’s position and objectives: they will not
agree with the other party when negotiations begin (otherwise there is no need to
negotiate) but they should understand ‘where the other party is coming from’ and respond
to the arguments of the other party in a positive manner.
- The aim is to reach an agreement that both sides consider reasonable.
- A clear objective for the relationship with benefits for both parties
- Transparency, and a willingness to share information and communicate openly
- The ability for both parties to monitor and measure the tangible benefits from their
relationship.
- Agility: the ability to negotiate new arrangements quickly in response to changing
circumstances in the business environment.

Q8) Assessing the situation before the face-to-face element of the negotiation deals with what
types of questions?

- What are the interests at stake?

- What is the timing of the negotiation?
- What is the location of the parties? – assess the cultural situation
- Is this a single or repetitive negotiation?
- What are the supplier’s values and do these conflict with yours?

Learning outcome 2.2:

Q1) A positional based approach to a negotiation can also be described as what?

- Adversarial
- Distributive
- Win-lose

Q2) A principled based approach to a negotiation can also be described as what?

- Collaborative
- Integrative
- Win-win
Q3) What are the 4 prescriptions for principled negotiations?

- Separate the person from the problem

- Focus on interests, not positions
- Invent options for mutual gain
- Insist on using objective criteria

Q4) Can you describe the effect of cultural differences?

- They create problems with communication. A negotiator may not understand properly what
the other party is saying.
- There can be problems with understanding the behaviour of the other negotiating party.
- Cultural differences may affect the substance of an appropriate deal during the negotiations.

Q5) Hofstede carried out a cross-cultural study to identify the similarities and differences among
many employees working for the same multinational company located in 40 countries IBM. Can
you recall the 5 different dimensions of culture which Hofstede identified?

- Power distance
- Individualism versus collectivism
- Masculinity versus femininity
- Uncertainty avoidance
- Long-term versus short-term orientation

Q6) How can we manage cultural differences?

- Learn as much as possible in advance about the culture of the other negotiating party.
- Show respect for cultural differences in discussions with the other party.
- Do not think in terms of cultural stereotypes.
- Be aware of how the other party may view and respond to your own cultural attitudes and
behaviours.
- Negotiate in teams rather than with individual negotiators.
- Recognise the cultural gap and look for ways to bridge it.

Q7) what is meant by having a conflict of interest?

A negotiator may have a conflict of interest. This occurs when the individual’s personal interests are
at cross-purposes with the best interests of the organisation that the negotiator represents.
Q8) How can an organisation try to prevent corruption and fraud?

- Recruiting and employing honest individuals

- Having control procedures in place (‘internal controls’) that reduce the risk of fraud
- Conducting audits that search for fraudulent activity. Audits for fraud may be carried out
either by the organisation’s own internal audit unit, or by an external audit firm.
- A company may ask a key supplier to provide evidence of the effectiveness of its own
internal controls to prevent or detect fraud.
- Code of ethics
- Segregation of duties
- Delegated levels of spend
- Rotating buyers

Q9) What are some examples of procurement fraud?

- Corrupt payments (‘kickbacks’) paid by a supplier or contractor to a person who has enabled
it to win a contract.
- Corrupt influence.
- Billing fraud.

Q10) Can you define bribery and provide some examples?

The Bribery Act 2010 defines bribery as giving or receiving a financial or other advantage in connection
with the "improper performance" of a position of trust, or a function that is expected to be performed
impartially or in good faith.

Bribery does not have to involve cash, or an actual payment exchanging hands and can take many
forms such as a gift, lavish treatment during a business trip or tickets to an event.

The types of bribery that take place in the commercial sector are numerous.

Some simple examples follow:

• bribery to secure or keep a contract.

• bribery to secure an order.
• bribery to gain any advantage over a competitor.
• bribery of a local, national, or foreign official to secure a contract.
• bribery to turn a blind eye to a health safety issue or poor performance or substitution of
materials or false labour charges.
• bribery to falsify an inspection report or obtain a certificate.
Learning outcome 3.1:

Q1) Can you describe the push style of persuasion?

Push style (good at gaining compliance) – uses logic, facts, and reasoning to make a case for change.
This style can be effective in getting results but not commitment.

Q2) Can you describe the pull style of persuasion?

Pull style (are good for winning hearts and minds) – motivates individuals by focusing on a positive
vision and collaborative approaches to problem solving. It focuses on listening and involving others,
so it can encourage commitment, though it may take longer for results to show.

Q3) List some different persuasion techniques which you may consider using in a negotiation:

- Bridging – compromise
- Rationalisation – logic
- Asserting – threat
- Inspiring – emotion
- Negotiating – bargaining

Q4) What are French and Raven’s bases of personal power?

- Legitimate: This comes from the belief that a person has the formal right to make demands,
and to expect others to be compliant and obedient.
- Reward: This results from one person's ability to compensate another for compliance –
authority to give out rewards.
- Expert: This is based on a person's high levels of skill and knowledge.
- Referent: This is the result of a person's perceived attractiveness, worthiness and right to
others' respect.
- Coercive: This comes from the belief that a person can punish others for noncompliance.

Q5) What body language / tone of voice is most favourable in a collaborative negotiation?

- Matching your body language, such as adopting the same body postures, and using the same
gestures
- Maintaining eye contact
- Using the same tone, rhythm
- Avoiding body postures that indicate a lack of positive interaction, such as sitting back in a
chair with arms folded or sitting with legs crossed.
Q6) Can you explain the power of networking?

- Improves access to what is happening

- Facilitates the sharing of information
- Makes it easier to exert influence, because it is easier to influence someone you know than
strangers.

Q7) List some examples of why organisations might form a strategic alliance:

- Technology development
- Operations and logistics
- Marketing, sales & service
- Multiple activities

Q8) Can you think of some causes of organisational conflict?

- Interdependence and shared resources. Conflict can occur when work groups are dependent
on each other to perform their tasks, such as in supply chains and cross-functional
operations. Conflict can arise when one work group considers that its performance is being
affected (for the worse) by the failure of others.
- Differences in goals, values, and perceptions. Individuals and groups have their own
interests and objectives, different priorities, and different viewpoints. Conflict arises when
they are not compatible with those of someone else.
- Power imbalance. When one work group feels that it lacks sufficient power or resources, it
may compete for more, creating conflict with other groups.
- Ambiguity. Conflict can arise when there is uncertainty and mistrust about the motives and
intentions of others.

Q9) What are some general reasons for resistance?

- Employee participation (or lack of it) in the change process: people often do not like being
told what to do without consultation
- Employee trust (or lack of it) in management
- Poor communication about the proposed change, and lack of information

Q10) Can you describe Lewin’s 3-step change model?

- Unfreeze
- Transition
- Refreeze
Q11) Can you explain the concept of Lewin’s force field analysis?

- The driving forces for change may include logical arguments, such as a need to respond to
technological change or changes in the economy.
- The restraining forces will be largely the resistance from people, which should be reduced,
for example by means of effective communication, involvement of the people affected in
the process, and training in the new sets of knowledge and skills required.

Q12) What are the 5 stages of the Kubler-Ross change curve?

- Denial
- Anger
- Bargaining
- Depression
- Acceptance

Learning outcome 3.2:

Q1) What does the OCEAN acronym stand for in relation to the big five personality traits?

- Openness to Experience: prefers routine, practical vs. imaginative, spontaneous

- Conscientiousness: impulsive, disorganized vs. disciplined, careful
- Extraversion: reserved, thoughtful vs. sociable, fun-loving
- Agreeableness: suspicious, uncooperative vs. trusting, helpful
- Neuroticism: calm, confident vs. anxious, pessimistic

Q2) Describe Herzberg’s two-factor theory of motivation:

- Hygiene factors (= factors causing dissatisfaction); and

- Motivator factors (= factors causing satisfaction and helping to motivate individuals).

Hygiene factors

Company policy

Supervision

Working conditions

Basic pay (i.e., not including bonuses)

Relationship with colleagues

 Motivator factors

Achievement

Recognition

Responsibility

Advancement

The work itself

Q3) List the hierarchy of stages as described by Maslow starting from the lowest level:

- Physiological needs are basic needs for living, such as food, drink, clothing, and shelter.
- Safety needs are needs for protection, security, and stability in life. Individuals want to feel
safe against the risk of unemployment.
- Social needs are the needs for relationships, with family, friends, and work colleagues.
- Esteem needs are the needs for a sense of achievement, status, responsibility, and
recognition by other people.
- Self-actualisation needs are the needs for personal growth and self-fulfilment. This need can
never be fully satisfied.

Q4) Can you provide 4 examples of different leadership styles?

- Autocratic
- Consultive
- Democratic
- Laissez-faire

Q5) What does Adair say about motivation?

Adair says that 50% of motivation comes from within the individual. The other 50% of motivation
comes from influences outside the individual, including the influence of the leader.

The 50:50 Rule: just as the Pareto principle (or 80:20 rule) is the ratio of the vital few and the trivial
many, the Adair 50:50 rule (from his book Effective motivation) states that: ‘50% of motivation
comes from within a person, and 50% from his or her environment, especially from the leadership
encountered therein’.
Q6) How does McGregor’s Theory X & Y impact your choice of leadership style?

If you believe that your team members dislike their work and have little motivation, then, according
to McGregor, you'll likely use an authoritarian style of management. This approach is very "hands-
on" and usually involves micromanaging people's work to ensure that it gets done properly.
McGregor called this Theory X.

On the other hand, if you believe that your people take pride in their work and see it as a challenge,
then you'll more likely adopt a participative management style. Managers who use this approach
trust their people to take ownership of their work and do it effectively by themselves. McGregor
called this Theory Y.

Q7) Empowerment is the authority or power given to someone to do something, such as

employees being allowed greater freedom and self-control over their work. What are the
potential benefits of empowerment?

- Empowerment can strengthen motivation by enabling individuals to obtain intrinsic rewards

from their work, such as a sense of importance and achievement: they work harder because
they want to have a sense of achievement.
- Empowerment can result in better decisions, particularly where they require knowledge of
the task, because decisions are taken by someone ‘on the front line’.

Q8) Can you describe the characteristics of a flat organisational structure?

- Because there is no middle management (or few middle managers) responsibilities are
delegated to the ‘workers’ more than in a functional organisation.
- Work is organised into teams rather than departments. Team leaders are likely to have a
consultative or participative style of leadership.
- Flat organisations may therefore be considered more ‘democratic’ in the way that they
operate.

Q9) What is a matrix organisational structure?

This is where you will find dual authority i.e., staff in different functions or regions are responsible
both to their departmental managers and to the project manager.