Question 1

Negotiation is a relatively simple process and a soft skill that applies only to a few supply managers.

Accepted Answer

Negotiation is a complex process that involves various factors such as communication, preparation, understanding needs and interests of both parties, and finding mutually beneficial solutions. It is a crucial skill for all supply managers as they engage in negotiations regularly with suppliers, stakeholders, and internal teams.

Question 2

Referent power is most successful in negotiation when the referents are aware that a counterpart identifies with or has an attraction to them.

Accepted Answer

Referent power is the influence that one has based on their charisma, likability, or personal attractiveness. This type of power is most effective in negotiation when the counterpart feels a sense of identification or attraction to the person with referent power. This is because the counterpart is more likely to be influenced by someone they admire or respect. Therefore, the statement is true.

Question 3

Use of electronic media such as e-mail, texting, and instant messaging, has no measurable impact on the dynamics and effectiveness of a negotiation.

Accepted Answer

Electronic media can have a significant impact on the dynamics and effectiveness of a negotiation. It can be harder to establish rapport, read body language and tone, and misunderstandings can arise more easily. However, the extent of this impact will depend on various factors such as the context, the individuals involved, and the level of trust and understanding already established.

Question 4

Knowledgeable negotiators do not need to understand their counterparts through research and experience.

Accepted Answer

Understanding one's counterparts through research and experience is an important part of being a knowledgeable negotiator.

Question 5

In win-win negotiation, if one party gains, it is only at the expense of the other party.

Accepted Answer

In win-win negotiation, both parties aim to gain something, and the negotiation is focused on finding a mutually beneficial solution. It is not a zero-sum game where one party's gain is the other party's loss. Both parties can come out of the negotiation with a positive outcome.

Question 6

During an international negotiation, an interpreter might verbally communicate yet not fully convey the significance of unspoken actions, signals, and customs that may be invisible to the foreign or nonnative negotiator.

Accepted Answer

Verbal communication is only one aspect of communication, and there may be important nonverbal or cultural cues that an interpreter may not fully convey.

Question 7

Sharing the underlying interests behind a position may cause a negotiator's power to shift toward the other party, ultimately resulting in a less than desired outcome.

Accepted Answer

Sharing underlying interests can give the other party more insight and leverage in the negotiation, potentially leading to a less favorable outcome for the sharing party.

Question 8

The manner in which a negotiator approaches concession making is an important part of every successful negotiation strategy.

Accepted Answer

Concession making is a critical part of negotiation, and the approach a negotiator takes can have a significant impact on the outcome of the negotiation. Experienced negotiators will typically develop specific concession strategies in advance of negotiation, taking into account factors such as the value of concessions, the timing of concessions, and the potential impact on the negotiation overall. Effective concession making can help negotiators achieve their desired outcomes, whereas poor concession strategies can result in unfavorable outcomes or even failure to reach an agreement.

Question 9

The effective use of information in a negotiation does not necessarily mean open and complete sharing.

Accepted Answer

Effective use of information in a negotiation means strategically sharing relevant information rather than openly disclosing all information. It is important to consider what information will be useful in achieving your desired outcome while also protecting sensitive information.

Question 10

An experienced negotiator has no need to practice or rehearse a complex negotiation before commencing the formal negotiation.

Accepted Answer

Even experienced negotiators can benefit from practicing and rehearsing a complex negotiation before entering into the formal negotiation. This allows the negotiator to refine their strategy, identify potential obstacles and counterarguments, and feel more confident and prepared during the actual negotiation.

Question 11

People seldom show the tendency to fill in the gaps when a discussion encounters silence.

Accepted Answer

People do have a tendency to fill in the gaps when a discussion encounters silence, as silence can create discomfort or uncertainty. This may lead individuals to try to fill the silence with their own ideas, thoughts, or assumptions, even if they may not be accurate.

Question 12

An integral part of negotiation involves each party trying to persuade the other party to do something that is in its own best interests.

Accepted Answer

Negotiation often involves advocating for one's own interests and trying to influence the other party to make concessions or agree to a particular outcome that benefits both parties.

Question 13

A willingness to offer large concessions is always in the best interests of a buyer.

Accepted Answer

Offering large concessions as a buyer may lead to overpaying or accepting unfavorable conditions, which is not always in the best interests of the buyer. It's important to negotiate strategically and weigh the pros and cons of each concession.

Question 14

It is easy to develop common ground in the negotiation without knowing what the other party is seeking.

Accepted Answer

Developing common ground in negotiation often requires understanding the other party's goals and interests. Without knowing what the other party is seeking, it can be difficult to identify areas of potential agreement and find mutually beneficial solutions.

Question 15

Excessive formality in negotiation can effectively constrain the parties and restrict the free exchange of ideas and solutions.

Accepted Answer

Excessive formality can create barriers to effective communication and limit creative problem solving. By adhering too strictly to formalities such as rigid agendas or strict protocol, parties may miss opportunities for compromise and productive dialogue.

Question 16

When preparing for a negotiation with a supplier located in another country, companies must invest in substantial extra time and effort in planning for the negotiation to accommodate new language translations, travel, modes of transportation, and other foreign business requirements.

Accepted Answer

Negotiating with a supplier in another country requires additional planning and consideration for language barriers, cultural customs, travel arrangements, and other foreign business requirements.

Question 17

A tactic used during one negotiation may not be successful or applicable to another negotiation, even with the same counterpart.

Accepted Answer

Negotiations can involve different issues, contexts, and goals, so it is important to adapt one's negotiating style and approach to fit the specific situation. What works in one negotiation may not be effective or appropriate in another, even if the negotiator is dealing with the same person or organization.

Question 18

Packaging issues together risks undermining an entire negotiation if the parties reach impasse on a single issue within the linked proposal.

Accepted Answer

Packaging issues together can create interdependencies between different issues, which means that a single disagreement on one issue can block progress on other issues as well. This can lead to an impasse and potentially undermine the entire negotiation.

Question 19

Before actual negotiations begin, the parties need to believe realistically that they can reach an agreement.

Accepted Answer

If the parties do not believe that they can reach an agreement, it is unlikely that they will be motivated to invest time, effort, and resources in negotiating. A belief in the possibility of success can provide the necessary motivation to enter into negotiations and work towards a mutually acceptable outcome.

Question 20

Good negotiators know that reaching agreement is the end of the negotiation process.

Accepted Answer

Reaching agreement is just one aspect of the negotiation process. After reaching agreement, there may be other steps such as implementation, follow-up, and evaluation. A good negotiator understands that these additional steps are also important and should be considered as part of the overall negotiation process.

Quiz 13: Negotiation and Conflict Management