Test Bank for The Mind and Heart of the Negotiator , 7th Edition

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1The Mind and Heart of the Negotiator, 7e(Thompson)Chapter 1Negotiation: The Mind and The Heart1.1Multiple-Choice Questions1)Anytime you cannot get what you want without the cooperation of others, you are negotiating.In simple terms, negotiation is best described as:A) a contest of wills between opposing partiesB) an interpersonal decision-making process necessary whenever people cannot achieve theirobjectives single-handedlyC) a third-party mediationD) the process of compromise so as to instigate conflict, with one side coming out the victorAnswer: BPage Ref: 1AACSB: Interpersonal relations and teamworkDifficulty: Moderate2) Negotiators need to be effective in terms of maximizing all areas of potential value at thebargaining table. In virtually any negotiation, two things are at stake: economic value and:A) personal reputationB) a person's egoC) relationships and trustD) money and scarce resourcesAnswer: CPage Ref: 2AACSB: Interpersonal relations and teamworkDifficulty:Moderate3) Within organizations, people are increasingly interdependent both laterally and hierarchically.When negotiators are described as being interdependent, that means those people need to knowhow to:A) integrate their interests and work acrossfunctional areasB) have similar incentive structuresC) be self-sufficient and self-focusedD)develop different norms of communicationAnswer: APage Ref: 5AACSB: Interpersonal relations and teamworkDifficulty: Moderate

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24) Regarding some of the major shortcomings that negotiators struggle to overcome, "lose-lose"negotiation occurs when negotiators:A) settle for too little by making concessions that are too smallB) both parties make unwise sacrifices and fail to recognize and exploit opportunities for mutualgainC) accept all terms offered by the counterpartyD) do not sign a binding contractAnswer: BPage Ref: 4AACSB: Interpersonal relations and teamworkDifficulty: Moderate5) Negotiators often struggle with several shortcomings that trapthem into achieving less thanoptimal negotiation outcomes. When a negotiator rejects a proposalthat is demonstrably betterthan any other option available, the negotiator is being trapped by:A) the agreement biasB) the winner's curseC) hubrisD) settling for too littleAnswer: CPage Ref: 7AACSB: Interpersonal relations and teamworkDifficulty: Moderate6) In negotiation it is important to optimize one's strategies by attempting to achieve as much aspossible. Regarding this aspirational outlook,Nobel Laureate Herb Simon distinguishedoptimizing from satisficing.Satisficingis best definedas:A) helping other peopleB) negotiating a slice of the pie that is much larger than your original aspirationsC) doing just enough to reach one's minimum goalsD) setting high aspirationsAnswer: CPage Ref: 2AACSB:Interpersonal relations and teamworkDifficulty: Moderate7) When we delve into managers' theories about negotiation, we often find that they operate withfaulty beliefs. Which of the following is a myth that negotiators often hold about negotiation?A)Whatever is good for one party must be good for the counterpartyB) A good negotiator should always approach a counterparty as if they were of equal statusC) Good negotiators play it safe anddo not take risksD) Good negotiators rely on intuitionAnswer:DPage Ref: 10AACSB: Interpersonal relations and teamworkDifficulty: Moderate

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38) Negotiation is a mixed-motive enterprise, which refers to the fact that parties:A) manage both economicand psychological dimensionsB) have incentives to cooperate aswell as competeC) use both deliberate thought and intuitionD) balance rewards and costsAnswer: BPage Ref: 9AACSB: Interpersonal relations and teamworkDifficulty: Moderate9) Improving your skills in your pursuit to become a successful negotiatordepends on:A) learning how to "outsmart" the counterpartyB) taking advantage of the counterparty's lack of preparationC) seeking feedback, analysis, and focused practiceD)always lettingthe other party share their interests firstAnswer: CPage Ref: 8AACSB: Interpersonal relations and teamworkDifficulty: Moderate10) A key reason why business people need negotiation skills is due to the increasedspecialization of skills. This skillspecialization increases the need for negotiators to understandthe motivations behind another's behavior because:A) people are less dependent on each other for project successB) people are becoming less competitive with one another in the workplaceC)people are more dependent on each other in the workplaceD) managers must customize incentive and punishment structures for all employeesAnswer: CPage Ref: 5AACSB: Interpersonal relations and teamworkDifficulty: Moderate11) Information technologyprovides special opportunities and challenges for negotiators. One ofthe main challenges for negotiators is:A) disposing of old equipmentB) training employees in new software programsC) troubleshooting system security issuesD) working in a culture of24/7 availabilityAnswer: DPage Ref: 5AACSB: Interpersonal relations and teamworkDifficulty: Moderate

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412) Besides differences in language and currency issues, one of the main challenges thatglobalization presents for negotiators is:A) the tendency of people to see what they want to see when appraising their own performanceB) learning and adjusting to different norms of communication between partiesC) finding housing for employeesD) influencing the economic forces within the foreign countryAnswer: BPage Ref: 6AACSB: Interpersonal relations and teamworkDifficulty: Moderate13) Negotiators who have developed a bargaining style that works only within a narrow subset ofthe business world will suffer unless they can:A) act morecompetitivelyB) act more cooperativelyC) take risksD) broaden their negotiation skills across businesses, industries, and culturesAnswer: DPage Ref: 6AACSB: Interpersonal relations and teamworkDifficulty: Moderate14) One of the major shortcomings in negotiation occurs when negotiators make too-largeconcessions resulting in a too-small share of the bargaining pie. This negotiation trap is called:A) egocentrismB) the confirmation biasC) the winner's curseD) the mixed-motive negotiatorAnswer: CPage Ref:7AACSB: Interpersonal relations and teamworkDifficulty: Moderate15)With regard to negotiation style, truly effective negotiators are neither tough or soft, butrather they:A) are friendlyB) are principledC) rely on intuitionD) are dignifiedAnswer: BPage Ref: 10AACSB: Interpersonal relations and teamworkDifficulty: Moderate

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516) Negotiation experience in the absence of ________, is largely ineffective at improvingnegotiation skills.A) optimismB) successful outcomesC) high profile partiesD) diagnostic feedbackAnswer: DPage Ref: 8AACSB: Interpersonal relations and teamworkDifficulty: Moderate17) Effective negotiation involves all of the below listed strategies EXCEPT:A) deliberate planningB) thoughtful preparationC) the useof a "gut feeling" or intuitionD) strategic reasoningAnswer: CPage Ref:10AACSB: Interpersonal relations and teamworkDifficulty: Moderate18)A key to successful preparation is assuming the counterparty is as smart, informed, andmotivated as youare. What is the name of such a perspective?A) The optimizing modelB) The fraternal twin modelC) The satisficing modelD) The fixed-pie biasAnswer:BPage Ref: 11AACSB: Interpersonal relations and teamworkDifficulty: Moderate19) In negotiation,people hold tightly to several false beliefs about the process. Of these, thefixed-sum perception is defined as:A) the assumption that attacking theother party is the best way to get most of the pieB) the assumption that capitulating to the other negotiating party's demands is the best way to awin-win agreementC) the belief that whatever is good for one party must ipso facto be bad for the other partyD) the assumption that sticking to your demands and refusing anything but the majority of thepie isthe best way to get most of the pieAnswer: CPage Ref: 9AACSB: Interpersonal relations and teamworkDifficulty: Moderate

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620) The process of negotiation is best described as a ________, which involves both ________and ________.A) self-assessment; focus; introspectionB) grass-is-greener negotiation; selectiveness; restlessnessC) strategic risk; aggressiveness; gamblingD) mixed-motive enterprise;cooperation; competitionAnswer: DPage Ref: 10AACSB: Interpersonal relations and teamworkDifficulty: Moderate21)Educated, smart, motivated people often do not realize their negotiating potential. Over________ of corporate executives and CEO's leave money on the table at the conclusion of anegotiation.A) 25%B) 46%C) 66%D) 80%Answer: DPage Ref: 2AACSB: Interpersonal relations and teamworkDifficulty: Moderate22) Many negotiators approach a negotiation from the perspective of having to choose between:A) getting what they want or being likedB) a choice that puts them in a weak position or a choice that might strengthen them in the futurebut has an uncertain probabilityC) the lesser of two evilsD) being aggressive toward the counterparty or being legalistic with the counterpartyAnswer: APage Ref: 2AACSB: Interpersonal relations andteamworkDifficulty: Moderate

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723) Negotiators often believe that if they make a personal sacrifice in the hopes of securing abusiness relationship rather than pushing to attain things that are important to them hope theirpersonal sacrifice will be remembered by the counterparty and rewarded in future negotiations.This strategy is NOT advisable because:A) the personal sacrifice may make them look weak to the counterpartyB) team members and the counterparty are not to be trustedC) the relational sacrifice a person makes today may not be remembered or reciprocated by thereceiving party tomorrowD) the only strategy of consistent success in a negotiation is being aggressive, holding one'sground, and making very few concessions to the counterpartyAnswer: CPage Ref: 2AACSB: Interpersonal relations and teamworkDifficulty: Moderate24)People often struggle with which negotiation strategies to use in short versus long-termrelationships. If a negotiator believes that a negotiation is a single-shotsituation and that theywon't need to interact with the counterparty in the future, the negotiator will often use:A) an aggressive negotiation strategyB) a passive negotiation strategyC) an agent to represent themselvesD) a contingent contractAnswer:APage Ref: 3AACSB: Interpersonal relations and teamworkDifficulty: Moderate25) Agreements where the outcome is one that creatively combines the negotiating parties'interests in a way that maximizes the joint economic value is called:A) a compromise agreementB) a fixed-sum agreementC) a reverse-split agreementD) an integrative agreementAnswer: DPage Ref: 4AACSB: Interpersonal relations and teamworkDifficulty: Moderate

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826) Following negotiation, there are always concerns by both partiesthat the agreed upon termswill be honored. It has been found that successful contract negotiations consider specificobjectives when assessing the quality of contracts. Which of the following is NOT one of thoseobjectives?A) How to maximize the likelihood of reaching a good agreementB) How to reach an agreement that will lastC) How to reachan agreement that will need several ratifications by other parties to refine termsD) How to reach an agreement that fulfills the intended purposeAnswer: CPageRef: 7AACSB: Interpersonal relations and teamworkDifficulty: Moderate27)Most negotiations are ________, meaning that if parties work together, they can create morejoint value than if they are purely combative.A) fixed-sumB) win-loseC) variable-sumD) focal-point basedAnswer: CPage Ref: 9AACSB: Interpersonal relationsand teamworkDifficulty: Moderate28) Of the many types of feedback that are potentially available to negotiators, information aboutthe counterparty's ________ and ________ is particularly important.A) interests; prioritiesB) experience; specialized expertiseC) skills; failuresD) reputation; honestyAnswer: APage Ref: 8-9AACSB: Interpersonal relations and teamworkDifficulty: Moderate29) People who view negotiationas a challenge and believe that negotiation ability can beimproved with experience and practice:A) achieve better deals when they see the negotiation as fixed-sumB) are naïve and achieve lower-quality deals than naturally gifted negotiatorsC) are moresuccessful in reaching high-quality dealsD) are more successful when they approach negotiations aggressivelyAnswer: CPage Ref: 10AACSB: Interpersonal relations and teamworkDifficulty: Moderate

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91.2Discussion Questions1)What are the key reasons why effective negotiation skills are increasingly important in thebusiness world?Answer: They are increasingly important because of the following key reasons: (1) knowledgeeconomy, (2) specialized expertise, (3) information technology, and (4) globalization.Page Ref: 4-6AACSB: Interpersonal relations and teamworkDifficulty: Moderate2) With regard to how people fall short in negotiating, what are the most common "traps" ofnegotiation?Answer: Leaving money on the table (also known as "lose-lose" negotiation); settling for toolittle (also known as "the winner's curse"); walking away from the table (sometimes thisshortcoming is traceable to hubris or pride; other times, it results from a gross miscalculation);and settling for terms that are worse than the alternative (also known as the "agreement bias").Page Ref: 7AACSB: Interpersonal relations and teamworkDifficulty: Easy3) What are some of the primary reasons why overconfidence can be detrimental in negotiation?Answer: People with more experience grow more confident, but the accuracy of their judgmentand the effectiveness of their behavior does not increase in a commensurate fashion.Overconfidence can be detrimental because it may lead people to take unwise risks.Page Ref: 8-9AACSB: Interpersonal relations and teamworkDifficulty: Moderate4) What are the most prevalent myths about negotiation, and how do these myths hamperpeople's ability to learn effective negotiation skills?Answer: The most prevalentmyths are:Myth 1: Negotiations are fixed-sum in nature;Myth 2:Negotiators need to be either tough or soft;Myth 3: Negotiation skills are something that peopleare born with;Myth 4: Good negotiators rely on intuition or "gut feeling."Page Ref: 9-11AACSB: Interpersonal relations and teamworkDifficulty: Easy5)What is the fraternal twin model of negotiation, and why does it contribute to more successfuloutcomes in negotiation?Answer: The fraternal twin model assumes that the counterparty is every bit as motivated,intelligent, and prepared as you are. Thus, it contributes to more successful outcomes becauseparties rely on simultaneously expanding and allocating the pie of resources, rather than on"outsmarting" or tricking the other party.Page Ref: 11AACSB: Interpersonal relations and teamworkDifficulty:Hard

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106) Why does the fixed-sum myth effect the strategic choices that negotiators make and whatstrategy to effective negotiators follow?Answer: The fixed-sum myth gives rise to a myopic view of the strategicchoices thatnegotiators have. Most negotiators believe they must choose between behaving in a tough,punitive fashion to the counterparty or to the other extreme of being soft and concessionary.Effective negotiators are principled, and follow an enlightened view of negotiation strategy.They recognize that to achieve their own outcomes they must work effectively with the otherparty and cooperate, thus leveraging their own power and strengths.Page Ref: 10AACSB: Interpersonal relations and teamworkDifficulty: Hard7) Why is it beneficial forstudents of negotiation to learn and practice negotiation skills in adomain or industry that is unfamiliar to them?Answer: It is beneficial for students of negotiation to learn negotiation skills in an industry thatis unfamiliar because learning negotiation skills in a context in which one already has someexpertise may lead to context-dependence, so much so that the learned negotiation skills will nottransfer to other situations.Page Ref: 9AACSB: Interpersonal relations and teamworkDifficulty: Moderate8) When evaluating the success of a negotiation, what post-negotiation factors should you reviewand consider?Answer: Post-negotiation you should consider the post-deal implementation, the durability ofthe agreement, how your reputation will beaffected by the agreement (or lack thereof), how youand perhaps the counterparty feel about negotiating together again, and the level of trust you feelfor the counterparty and if the counterparty feels they cantrust you to honor the terms of youragreement.Page Ref: 8, Exh. 1-1AACSB: Interpersonal relations and teamworkDifficulty: Hard9) Regarding short-versus long-term relationships, how are our interactions as negotiatorsaffected by the digital worldand what precautions should we take becauseof this interactivemedium?Answer: The networked, virtual world blurs the distinction between short and long termnegotiation relationships because most of our interactions are recorded or known to others. Evenif a negotiator does not actually meet a given counterparty again, by virtue of social media, adetailed account of their interactions world surely be visible for anyone to see. For these reasons,it is with caution that negotiators should assume the details of their communications andbehavior will be accessible for anyone who might be interested and consequently, act as thoughall negotiations have long-term implications.Page Ref: 3AACSB: Interpersonal relations and teamworkDifficulty: Hard

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1110)How has the popularity of decentralized business structures and the decline of hierarchicaldecision making challenged managers?Answer: The advent of decentralized business structures and the decline of hierarchical decisionmaking provides opportunitiesfor managers, but also poses some daunting challenges. Peoplemust continually create possibilities, integrate their interests with others, and recognize theinevitability of competition both within and between companies. Thus managers must be in anear-constant mode of negotiating opportunities. Negotiation comes into play when managersparticipate in joint ventures, partnerships, product launches, reorganizations, and project teams.Page Ref: 5AACSB: Interpersonal relations and teamworkDifficulty: Hard

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1The Mind and Heart of the Negotiator, 7e(Thompson)Chapter 2What to Do Before Negotiation2.1Multiple-Choice Questions1)In any negotiation scenario, a negotiator needs to determine what would constitute an idealoutcome, however, problems oftenarise such as the winner's curse. In negotiation, the winner'scurse occurs when:A) a negotiator sets his/her aspirations too highB) a negotiator makes an offer that is immediately accepted by the other partyC) the counterparty demonstrates retaliativebehaviorD) no one can be trustedAnswer: BPage Ref: 14AACSB: Interpersonal relations and teamworkDifficulty: Moderate2) Many negotiators do not think carefully about what they want before entering negotiations.One type of problematic negotiationbehavior known as reactive devaluation refers to:A) a negotiator who does not know what he or she really wants other than not wanting what theother party is offeringB) a negotiator who sets the target point too high and refuses to make any concessionsC) a negotiator who overvalues the counterparty's offerD) an negotiator who opens the negotiation by setting their target too lowAnswer: APage Ref: 14AACSB: Interpersonal relations and teamworkDifficulty: Moderate3) A negotiator's BATNA (Best Alternative to a Negotiated Agreement) determines the point atwhich a negotiator is prepared to:A) make larger concessionsB) keep options openC) reject the terms of and walk away from a negotiated agreementD) identify the counterparty's alternativesAnswer: CPage Ref: 15AACSB: Interpersonal relations and teamworkDifficulty: Easy

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24)Your BATNA is time sensitive and is subject to market forces, thus negotiators shouldconstantly attempt to improve their BATNAs. One strategy for improving one's BATNAinnegotiation is to:A) discuss it in explicit terms with the counterpartyB) identifyseveral alternative options before going to the negotiation tableC) replace it with an aspiration pointD) revise it in reaction to progress of the negotiationAnswer:BPage Ref: 15AACSB: Interpersonal relations and teamworkDifficulty: Easy5) A negotiator's reservation point has the most direct influence on their final outcome. Anegotiator's reservation point is a quantification of the negotiator's:A) target pointB) BATNAC) bargaining zone (ZOPA)D) opening offerAnswer: BPage Ref: 16AACSB:Interpersonal relations and teamworkDifficulty: Easy6) When facing risk, many negotiators do not weigh a course of action by its impact on totalwealth, rather they generally frame outcomes as either gains or losses relative to some arbitraryreference point. Instead, negotiators should consider the impact of three types of risk with regardto their alternatives. These three types of risk include:A) tactical risk,strategic risk, and overconfidence riskB) failure risk, BATNA risk, and information-sharing riskC) contractual risk, overconfidence risk, and failure riskD) strategic risk, BATNA risk, and contractual riskAnswer: DPage Ref: 21AACSB: Interpersonal relations and teamworkDifficulty: Moderate7)In negotiation, buyers and sellers may adopt differing bargaining positions for an object, buttheir private valuations for the object should not differ as a consequence of who has possession.This situationis termed the endowment effect and is best described as:A) the difference between what sellers demand and what buyers are willing to payB) a tendency for people to value an object more once they own itC) the intrinsic value we associate with a certain outcomeD) saving money instead of purchasing goodsAnswer: BPage Ref: 23AACSB: Interpersonal relations and teamworkDifficulty: Moderate

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38) In negotiation, a dispute is best defined as a situation in which:A) parties have to resort to their BATNAsB) parties fail to exchange resourcesC) a claimis made by one party and rejected by the other partyD) negotiators turn down favors and rewards from othersAnswer: CPage Ref: 27AACSB: Interpersonal relations and teamworkDifficulty: Easy9) In negotiation which of the following statements is generally NOT true when it comes to anegotiator's BATNA?A) It is dynamic and constantly changingB) Negotiation terms less than your BATNA should be acceptedC)It is determined by the negotiator's available optionsD) The counterparty has an incentive to minimize the quality of your BATNAAnswer: BPage Ref: 15AACSB: Interpersonal relations and teamworkDifficulty: Moderate10) A more accurate model of negotiation is to approach it as a decision-making enterprise that isbest described as a ________, which involves both ________ and ________.A) self-assessment; focus; introspectionB) grass-is-greener negotiation; selectiveness; restlessnessC) strategic risk; aggressiveness; gamblingD) mixed-motive enterprise; cooperation; competitionAnswer: DPage Ref: 13AACSB: Interpersonal relations and teamworkDifficulty: Moderate11) Effective negotiation preparation encompasses three general abilities: situational awareness,perspective-taking, and:A) financial assessmentB) location assessmentC) team assessmentD) self-assessmentAnswer: DPage Ref: 13AACSB: Interpersonal relations and teamworkDifficulty: Easy

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412) In preparing for negotiation, a negotiator needs to determine what would constitute anidealoutcome, or favorable set of terms, also known as a:A) winner's resultB) target pointC) BATNAD) reservation pointAnswer: BPage Ref: 12AACSB:Interpersonal relations and teamworkDifficulty: Easy13) In order to reach a successful negotiation outcome, the negotiators must understand that theirBATNA is:A) the outcome that the negotiator wishes to achieveB) able to be modified by persuasive offersC) not time sensitiveD) determined by objective realityAnswer: DPage Ref: 15AACSB: Interpersonal relations and teamworkDifficulty: Moderate14) The term used to represent the quantification of a negotiator's BATNA with respect to otheralternatives is known as:A) the reservation pointB) the target pointC) the focal pointD) a sunk costAnswer: APage Ref: 16AACSB: Interpersonal relations and teamworkDifficulty: Moderate15)Negotiators who make the mistake of not developing a reservation point before theynegotiate often focus on an arbitrary value that masquerades as a reservationpoint. Sucharbitrary points are called:A) personal blind spotsB) focal pointsC) sunk costsD) linkage effectsAnswer: BPage Ref: 16AACSB: Interpersonal relations and teamworkDifficulty: Easy

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