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Negotiation Readings Exercises and

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Chapter 10
Relationships in Negotiation

Fill in the Blank Questions

1. Negotiations occur in a rich and complex social context that has a significant impact on how the
____________ interact and how the process evolves.
Answer: parties Page: 296

2. 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.
Answer: relationship Page: 297

3. Distributive issues within ____________ negotiations can be emotionally hot.


Answer: relationship Page: 299

4. In some negotiations, relationship preservation is the overarching negotiation goal and parties
may make concessions on ____________ issues to preserve or enhance the relationship.
Answer: substantive Page: 300

5. Salacuse says that negotiators should recognize a long-term business deal as a ____________
negotiation.
Answer: continuing Page: 301

6. In communal sharing, collective identity takes precedence over ____________ ____________.


Answer: individual identity Page: 302

7. It is clear that much of the early work of negotiation research has been dominated by the
assumptions of a ____________ ____________ relationship.
Answer: market pricing Page: 303

8. According to John Gottman’ studies; successful long-term relationships are characterized by


continuing to stress what one likes, values, appreciates and ____________ in the other
Answer: respects Page: 306

9. ____________ is the legacy that negotiators leave behind after a negotiation encounter with
another party.
Answer: Reputation Page: 307

106 Test Bank, Chapter 10


10. McAllister defines ____________ as "an individual's belief in and willingness to act on the
words, actions and decisions of another."
Answer: trust Page: 309

11. An individual's ____________ ____________ toward trust can be described as individual


differences in personality that make some people more trusting than others.
Answer: chronic disposition Page: 309

12. ____________ trust exists because the parties understand and appreciate each other’s wants and
come to understand what they must do to sustain the other’s trust.
Answer: Identification-based Page: 309

13. Parties affirm strong identification-based trust by developing a ____________ ____________;


co-locating; creating joint products or goals, such as a new product line or a new set of objectives;
and committing to commonly shared values.
Answer: collective identity Page: 310

14. Identification-based trust is defined as confident positive expectations regarding another’s


____________ and is grounded in perceived compatibility of values, common goals, and positive
emotional attachment to the other.
Answer: conduct Page: 311

15. Integrative processes tend to increase trust, while more ____________ processes are likely to
decrease trust.
Answer: distributive Page: 311, 312

16. Trustors, and those trusted, may focus on different things as ____________ is being built.
Answer: trust Page: 313

17. Distributive justice is about the distribution of ____________.


Answer: outcomes Page: 316

18. ____________ justice is about how organizations appear to treat groups of individuals and the
norms that develop for how they should be treated.
Answer: Systemic Page: 316

19. Negotiators who helped develop a group negotiation strategy were more ____________ to it and
to the group’s negotiation goals.
Answer: committed Page: 317

Lewicki/Barry/Saunders, Negotiation, 6/e 107


20. Trying to overcome a bad reputation, rebuilding trust, or restoring ____________ to a
relationship are much easier to talk about than to actually do!
Answer: fairness Page: 320

True/False Questions

T F 21. Negotiations occur in a rich and complex social context that has a significant impact on
how the parties interact and how the process evolves.
Answer: True Page: 296

T F 22. For decades researchers have examined negotiations in a relationship context, in order to
offer better prescriptions on how to negotiate where the parties have a substantial history
and anticipate a long future relationship
Answer: False Page: 297

T F 23. In a relationship, gathering information about the other's ideas, preferences and priorities
is often the most important activity.
Answer: True Page: 298

T F 24. One of the disadvantages of negotiating in a game or simulation is that there is a defined
end.
Answer: False Page: 299

T F 25. In relationship negotiations, parties should never make concessions on substantive issues
to preserve or enhance the relationship.
Answer: False Page: 300

T F 26. Authority ranking is a one-to one correspondence relationship in which people are
distinct but equal.
Answer: False Page: 302

T F 27. In a market pricing relationship, people see each other as interchangeable.


Answer: True Page: 303

T F 28. 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.
Answer: True Page: 304

T F 29. First impressions and early experiences with others are powerful in shaping others’
expectations; once these expectations are shaped, they become easy to change over time.
Answer: False Page: 307

108 Test Bank, Chapter 10


T F 30. In calculus-based trust, the promise of reward is likely to be a more significant motivator
than the threat of punishment.
Answer: False Page: 309

T F 31. Identification-based trust relies on information about the other rather than the
management of rewards and punishments.
Answer: False Page: 309

T F 32. Trust development is a mutual process, and while parties can initiate actions which may
move the trust-development process forward, the strongest trust must be mutually
developed at a pace acceptable to both parties.
Answer: True Page: 311

T F 33. It is the early research on trust that has revealed somewhat more complex relationships
between trust and negotiation behavior.
Answer: False Page: 313

T F 34. Reciprocity occurs among individuals who are better at taking the perspective of the
other in a negotiation, and can also be ‘coached’ by encouraging a negotiator to consider
the views of the other party in their decision making.
Answer: True Page: 313

T F 35. Systemic justice is about the way that organizations appear to treat groups of individuals.
Answer: True Page: 316

T F 36. 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.
Answer: False Page: 316

T F 37. The four forms of justice (distributive, procedural, interactive, systemic) are separate
entities that are never intertwined.
Answer: False Page: 318

T F 38. Perceptions of distributive unfairness are likely to contribute to parties' satisfaction with
the result of a decision, while perceptions of procedural unfairness are likely to contribute
to the parties' dissatisfaction with the result or with the institution that implemented the
unfair procedure.
Answer: True Page: 318

Lewicki/Barry/Saunders, Negotiation, 6/e 109


T F 39. Idiosyncratic deals are much more common today, and they are not reserved only for a
special few.
Answer: True Page: 319

T F 40. Building a relationship may be an essential critical component of being successful in


negotiation.
Answer: True Page: 320

Multiple Choice Questions

41. Laboratory controlled research is much easier to conduct than field research because studying live
negotiators in the middle of an often complex negotiation causes them to object to all but one of
the following?
A) to conduct interviews.
B) to ask questions.
C) to publicly report actual successes.
D) to publicly report actual failures.
E) they object to all the above.
Answer: Page: 297

42. In a transactional negotiation, the most important issue is usually the


A) enhancing the relationship.
B) better deal.
C) dependence dynamics.
D) inventory questions.
E) all of the above.
Answer: B Page: 298

43. Which of the following parameters shapes our understanding of relationship negotiation strategy
and tactics?
A) Negotiating within relationships takes place at a single point in time.
B) Negotiation in relationships is only about the issue.
C) Negotiating within relationships may never end.
D) Parties never make concessions on substantive issues.
E) All of the above parameters shape our understanding of relationship negotiation strategy and
tactics.
Answer: C Page: 299

44. Because relationship negotiations are never over,


A) parties generally tackle negotiations over tough issues first in order to "get off on the right
foot."
B) it is often impossible to anticipate the future and negotiate everything "up front."
C) issues on which parties truly disagree will go away with the conclusion of the negotiation.
D) parties should never make concessions on substantive issues.
E) All of the above are consequences of relationship negotiations.

110 Test Bank, Chapter 10


Answer: B Page: 300

45. Jeswald Salacuse suggests which rule for negotiating a relationship?


A) minimize the prenegotiation stage of the relationship
B) recognize a long-term business deal as a continuing negotiation
C) eliminate the need for mediation or conciliation
D) end all discussions when the contract is signed
E) Salacuse suggests all of the above rules for negotiating a relationship.
Answer: B Page: 301

46. Communal sharing is a relationship of


A) unity, community, collective identity, and kindness.
B) asymmetric differences.
C) one-to-one correspondence.
D) balanced reciprocity.
E) None of the above describes a relationship of communal sharing.
Answer: A Page: 302

47. An example of authority ranking as a form of relationship would include


A) college roommates
B) fraternal organizations
C) auto salesperson and buyer
D) soldiers and their commander
E) church congregates
Answer: D Page: 302

48. Higher ranks dominate lower ranks is an example of “authority ranking” as a fundamental
relationship form. Under what other form would you find the concept of “tit-for-tat” revenge?
A) communal sharing
B) authority ranking
C) equality matching
D) market pricing
E) none of the above
Answer: C Page: 302

49. The values that govern a market pricing relationship are determined by a market system and
include all but which of the following?
A) utility points
B) the relationship with the negotiator
C) ratio of price to goods
D) fair pricing
E) the dollars
Answer: B Page: 303

Lewicki/Barry/Saunders, Negotiation, 6/e 111


50. Which of the statements is supported by research in communal-sharing relationships?
A) Parties in a communal-sharing relationship are more cooperative and empathetic.
B) Parties in a communal-sharing relationship craft better quality agreements.
C) Parties in a communal-sharing relationship focus more attention on the norms that develop
about their working together.
D) Parties in a communal-sharing relationship are more likely to share information with the
other and less likely to use coercive tactics.
E) All of the above statements are supported by research in communal sharing relationships.
Answer: E Page: 304, 305

51. What key elements become more critical and pronounced when they occur within a negotiation?
A) the agency relationship, the number of negotiation parties, and the role of emotion
B) the agency relationship and the role of trust and fairness
C) the roles of reputation, trust and justice
D) the structure of the constituency and the agency relationship
E) none of the above is key elements in managing negotiations within relationships
Answer: C Page: 307

52. Reputation is:


A) a perceptual identity.
B) reflective of the combination of personal characteristics.
C) demonstrated behavior.
D) intended images preserved over time.
E) all of the above statements define reputation.
Answer: E Page: 307, 308

53. In calculus-based trust


A) the trustor calculates the value of creating and sustaining trust in the relationship relative to
the costs of severing it.
B) the relationship develops over time, largely because the parties develop a history of
experience with each other which allows them to predict the other's behavior.
C) regular communication and courtship are key processes.
D) the parties effectively understand and appreciate the other's wants.
E) All of the above statements are inherent in calculus based trust.
Answer: A Page: 309

54. 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.
Answer: B Page: 309, 310

112 Test Bank, Chapter 10


55. Which type of justice is about the process of determining outcomes?
A) Distributive
B) Interactive
C) Procedural
D) Systemic
E) None of the above.
Answer: C Page: 316

56. How parties treat each other in one-to-one relationships is the process of which of the following
justices?
A) Procedural
B) Interactional
C) Systemic
D) Distributive
E) None of the above
Answer: B Page: 316

57. Which of the following conclusions about the issue of fairness is not a true statement?
A) Involvement in the process of helping to shape a negotiation strategy increases commitment
to that strategy and willingness to pursue it.
B) Negotiators (buyers in a market transaction) who are encouraged (“primed”) to think about
fairness are more cooperative in distributive negotiations.
C) Parties who are made offers they perceive as unfair may reject them out of hand, even though
the amount offered may be better than the alternative settlement, which is to receive nothing
at all.
D) Establishment of some “objective standard” of fairness has a positive impact on the
negotiations and satisfaction with the outcome.
E) All of the above are true statements.
Answer: E Page: 317

58. Denise Rousseau has researched and defined the “idiosyncratic deal” as the unique ways that
employers may come to treat certain employees compared to others in the same office or
environment. Which observation stated below is inaccurate?
A) Deals are more common when workers are willing to negotiate.
B) Deals are more likely to work effectively when performance criteria are clear and well
specified.
C) Deals are more common in certain countries, such as the United States, the United Kingdom
and New Zealand.
D) Deals are more common when workers are located in large organizations.
E) Deals are more likely to work when workers trust the performance appraisal process.
Answer: D Page: 319

59. Which question that should be asked about working on the improvement of a relationship is
false?
A) If the relationship is in difficulty, what might have caused it, and how can I gather
information or perspective to improve the situation?
B) How can we take the pressure off each other so that we can give each other the freedom of

Lewicki/Barry/Saunders, Negotiation, 6/e 113


choice to talk about what has happened, and what is necessary to fix it?
C) Trust repair is a long and slow process. It requires adequate explanations for past behavior,
apologies, and perhaps even reparations. Interestingly, cultures differ in the way they manage
this process
D) Must we surface the deeply felt emotions that have produced anger, frustration, rejection and
disappointment? Should we effectively vent these emotions, or understand their causes, so
that we can move beyond them?
E) How can we begin to appreciate each other’s contributions, and the positive things that we
have done together in the past? How can we restore that respect and value each other’s
contributions?
Answer: D Page: 320, 321

60. Within relationships, we see that parties shift their focus considerably, away from a sole focus on
price and exchange, to also attend to
A) the future of the relationship.
B) the level of trust between the parties.
C) the emotions and evaluations of the other negotiator.
D) questions of fairness.
E) Within relationships, parties shift their focus to attend to all of the above.
Answer: E Page: 321

Short Answer Essays

61. How does context affect negotiation?


Answer: One major way that context affects negotiation is that people are in relationships that
have a past, present and future. Page: 296

62. Why are some research questions best answered under controlled laboratory conditions?
Answer: Because it would be impossible to simulate the same conditions repeatedly in actual
negotiations. Page: 297

63. In relationship negotiation, the resolution of simple distributive issues can have what effects on
future decisions?
Answer: The settlement of any one negotiation issue can create undesired or unintended
precedents for the future. These negotiations may not only set precedents, or blueprints for how
similar future issues should be resolved, but they may also shift the nature of the future
relationship, particularly around power and dependence. Page: 298

64. What does Salacuse say is the importance of prenegotiation?


Answer: The prenegotiation process enhances gaining information about the other party and
builds a relationship that may enhance trust, information sharing and productive discussions.
Page: 301

65. Define a relationship.

114 Test Bank, Chapter 10


Answer: A pairing of entities that has meaning to the parties, in which the understood form of
present and future interactions influences their behavior today. Page: 302

66. Describe an equality matching relationship.


Answer: Equality matching is a one-to-one correspondence relationship in which people are
distinct but equal, as manifested in balanced reciprocity, equal share distributions or identical
contributions, in-kind replacement compensation, and turn-taking. People see each other as equal
and separate, but often interchangeable; each is expected to both contribute equally to others and
receive equally from others. Page: 302

67. How do people view goods in a market-pricing relationship?


Answer: In market-pricing relationships, parties can attempt to change the ratio of price to goods
in their own favor (maximize their utility) or they can seek what may be defined as a fair price.
Page: 303

68. What are some of the findings of the limited amount of negotiation research about communal-
sharing relationships?
Answer: Studies have shown, however, that compared to those in other kinds of negotiations,
parties who are in a communal-sharing relationship: Are more cooperative and empathetic, craft
better quality agreements, perform better on both decision making and motor tasks, focus their
attention on the other party’s outcomes as well as their own, are more likely to share information
with the other and less likely to use coercive tactics, and are more likely to use indirect
communication about conflict issues and develop a unique conflict structure (among other
findings). Page: 303

69. What two questions should be asked when arriving at an impasse?


Answer: Ask what logic or data might change their views; and, ask if there is any way
you might jointly design a technique that might provide more information. Page: 305

70. Give some examples of traits that help influence the definition of a reputation.
Answer: Traits may include qualities such as age, race and gender; education and past experience,
and personality traits, skills and behaviors. Page: 308

71. Why are negative reputations difficult to repair?


Answer: The more long-standing the negative reputation, the harder it is to change that reputation
to a more positive one. Reputations need to be actively defended and renewed in others eyes.
Particularly when any event is likely to be seen by others in a negative light, we must work hard
to defend and protect our reputation, and actively work to make sure that others do not remember
the experience in a negative way. Page: 309

72. What are the three things that contribute to the level of trust one negotiator may have for another?
Answer: The individual's chronic disposition toward trust; situation factors; and the history of the
relationship between the parties. Page: 309

Lewicki/Barry/Saunders, Negotiation, 6/e 115


73. What are Lewicki and Wiethoff’s two types of trust?
Answer: Calculus-based trust and identification-based trust. Page: 309

74. Define identification-based trust.


Answer: Identification-based trust is based on identification with the other's desires and
intentions. At this level, trust exists because the parties effectively understand and appreciate the
other's wants; this mutual understanding is developed to the point that each can effectively act for
the other. Page: 309

75. Why is distrust growing in today’s economy?


Answer: Distrust is increasing in today’s work environment, as a weak economy, corporate
scandals, and the increasing discrepancy between chief executive and worker-level salaries
continues to increase. Page: 310

76. Under the four actions to manage the different forms of trust in negotiations, describe the basic
steps to increase calculus-based trust.
Answer: 1) Create and meet the other party’s expectations. 2) Stress the benefits of creating
mutual trust. 3) Establish credibility. 4) Keep promises. 5) Develop a good reputation. Page:
312

77. Do many people approach a new relationship with an unknown party with remarkably high levels
of trust?
Answer: Yes, most of us assume that the other can be trusted and are remarkably willing to trust
the other even with very little information or knowledge about the other. Page: 313

78. What role does trust play in an online negotiation?


Answer: Face-to-face negotiation encourages greater trust development than negotiation on-line.
There is evidence that parties anticipating an online negotiation expect less trust before the
negotiations began, are less satisfied with their negotiation outcomes, are less confident in the
quality of their performance during the negotiation, trust the other less after the negotiation, and
have less desire for a future interaction with the other party. Page: 314

79. Define interactional justice.


Answer: Interactional justice is about how parties treat each other in one-to-one relationships.
Page: 316

80. How does an egocentric bias play out in judgments about fairness?
Answer: Recent research has shown that this egocentric bias can be diminished by strong
interactional justice. That is, recognizing the need to treat the other person fairly, and actually
treating the other fairly, lead to a smaller egocentric bias, a more even split of the resources,
quicker settlements, and fewer stalemates. Page: 317

116 Test Bank, Chapter 10


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