What are the three key elements necessary for managing negotiations within relationships?

HR Final Exam

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 :


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?

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