HRM 595 Final Exam ANSWERS
1. Joe McDonald is the HR manager of ACME chemicals. His boss, Bill Jacobs, is concerned that the interactions between the various departments of the company are inconsistent and that there is too much competition between departments rather than cooperation. Bill has asked you about ways to improve the negotiations between business units. In your explanation to Bill, you need to explain the following: What are the three primary reasons that negotiations occur? What is the difference between bargaining and negotiation? Why must successful negotiations involve both tangible and intangible components? Do you think that ACME needs to pursue an integrative or a distributive approach to their future interdepartmental negotiations? (Points : 20)
2. Define the term conflict and describe how it impacts the negotiation process. Your explanation should include the 4 levels of conflict and the dysfunctions that conflict can create. In your response, you need to also provide your opinion as to whether conflict is always a negative component in negotiations. If not, why? (Points : 15)
3. Jack Johnson owns a 1998 Ford Mustang that he is looking to sell. He advertises in the Auto Trader. Mary Smith responds to his ad and expresses interest in purchasing the vehicle. Jack is asking $3500 for the car. Mary is looking to pay no more than $2500 for the vehicle. Would you describe this negotiation as a distributive or an integrative negotiation? Why? Jack has set $3500 as the price of his car but is willing to take $3000 for the vehicle. Anything under $3000 will not be accepted. Mary wants to pay $2500 for the car, but is willing to go up to $3000. Anything over $3000 will cause the deal to fail. Define and contrast the Walkaway Points, Target Points and Asking Price/Initial Offer of the parties. What are some of the strategies that could be used by each party to achieve the outcome they desire? (Points : 30)
4. What makes an integrative negotiation different from a distributive negotiation? Define the key steps in the integrative negotiation process. How does establishment of a BATNA aid the parties in realizing their integrative outcome? (Define the term BATNA in your response). If a win-win outcome is beneficial to both parties, then why is it so difficult to achieve? (Points : 30)
5. Often there are other parties to a negotiation that can add great complexity to the process. Define the following terms: Negotiating Dyad; Agent; Constituency; Bystander; Audience. What are some of the reasons that an individual might engage the services of an agent to represent him/her in a negotiation? (Discuss at least three) What are the three distinct relationships that an Agent has to maintain in the negotiation process? (Points : 30)
6. Marie Smith is the head of Marketing for Jones Construction. Harry Brown is the on-site project manager for all major construction projects. Marie is interested in expanding the budget for general marketing activities. Harry wants these resources reserved for existing projects. Marie comes to you for advice on the key steps she should use in preparing for her negotiation with Harry. Discuss the 7 steps to an ideal negotiation process. (Points : 15)
7. As Marie and Harry enter into their negotiations, their perceptions of each other will be an important component to the negotiation process. Define perception and the role it plays in the negotiation process. What are the four major perceptual errors that tend to occur? What does the term framing mean and how does it relate to the issue of perceptions? How can we counter these perceptual errors? (Points : 30)
8. We have discussed the importance of communication in the negotiation process. We reviewed the concept of communication as a sender encoding a message to a receiver who decodes the message and then responds back to the sender thus creating the feedback process important to every negotiation. What are the major sources of distortion that can interfere with communication? (Name and define at least 3) What are the three key questions we need to ask regarding communication in negotiations? What role does listening play in the communications process (Describe the 3 types of listening). What are some of the ways that a negotiator can improve his/her communication skills? (Points : 30)
9. When we look at the complexities of the negotiation process, there are many situations where a negotiator might consider the use of questionable tactics to accomplish his/her goals. This brings up the important question of ethics in negotiation. Define the 4 types of ethical reasoning. Why do people use deceptive/ambiguous tactics in negotiation? What are some of the factors that shape a predisposition to the use of unethical tactics? How can we effectively respond to the use of unethical practices? (Points : 20)
10. Barney and Marilyn have been married for six months. They engage in negotiations consistently as a way to improve their understanding of each other and to build a loving relationship. How does this relationship negotiation differ from the negotiation practices that we have discussed involving business relationships? Research has uncovered 4 fundamental types of relationship forms. Define and contrast them. Which of the four types represent the relationship between Barney and Marilyn? What are the three key elements necessary for managing negotiations within relationships? Which do you think is the most important? Why? (Points : 30)