Organizational Behavior, Version 1.1
Bauer & Erdogan
FWK Test Item File
Chapter 10
TRUE/FALSE
1. Social issues of ego and corporate pride played a key role in the falling apart of PointCast negotiations.
(True)
2. Managing conflict and engaging in effective negotiations are key factors for a successful organization.
(True)
3. Conflict management and negotiation tactics are art, not skills, and are very difficult to learn.
(False)
4. Intrapersonal conflict can arise due to role ambiguity and role conflict.
(True)
5. Interpersonal conflicts should be centered around individual differences, not ideas, to avoid conflict escalation.
(False)
6. Conflict in an organization is always bad.
(False)
7. If conflict in an organization is too low, performance is also likely low.
(True)
8. Personal conflicts can be good in certain circumstances, but task conflicts are never good.
(False)
9. Research on effective teams indicates that they are characterized by low but increasing levels of process conflict.
(True)
10. Research on effective teams indicates that they are characterized by low but increasing levels of task conflict.
(False)
11. Matrix-structured organizations often experience decisional conflict because each manager reports to two bosses.
(True)
12. Task independence is a root cause of much conflict in the organization.
(False)
13. Conflict can result in both positive and negative outcomes.
(True)
14. Conflict can be dysfunctional if it involves personal attacks.
(True)
15. A high-risk situation where workplace violence has an increased risk is being a bank teller.
(True)
16. If your job involves caring for others in a nursing home, you have an increased risk of experiencing workplace violence.
(True)
17. If the conflict in your workplace is between two individuals on a team, a good way to manage the conflict is to take a majority vote among other team members to determine who is right.
(False)
18. The avoidance conflict handling style is characterized by high levels of cooperativeness and assertiveness.
(False)
19. An individual who deals with conflict by saying, “Maybe we can both agree to give in a little,” has an accommodating conflict handling style.
(False)
20. Competition is an effective conflict handling style if the alternatives proposed are unethical.
(True)
21. The strategy to utilize to achieve the best outcome from conflict is the collaborating style.
(True)
22. Research suggests that when it comes to dealing with conflict, managers are more likely to engage in avoiding, accommodating or compromising styles than their subordinates.
(False)
23. The key to keeping conflict or disagreement healthy in an organization is to focus the discussion on the task, not the personalities.
(True)
24. Healthy conflict can be stimulated in a firm by having appointed individuals play “devil’s advocate.”
(True)
25. The BATNA phase of the negotiation process should be ignored.
(False)
26. The first place to begin the investigation phase of negotiation is to look at yourself.
(True)
27. The party with the best alternative to a negotiated agreement is in the best negotiating position.
(True)
28. Making a concession during negotiation is a sign of weakness.
(False)
29. The closure phase of the negotiation process may include finding a final offer that is unacceptable and from which the party has walked away.
(True)
30. The integrative approach is a new creative approach to negotiation that can lead to a “win-win” situation.
(True)
31. It is a perfectly acceptable business practice to attempt to negotiate a higher salary with your boss.
(True)
32. A common mistake women make is failing to negotiate their salary offers.
(True)
33. Those with unreasonable expectations in negotiations are no more likely to fail at negotiations than those with reasonable expectations.
(False)
34. Mediation is the process of bringing in a third party who has the authority to act as a judge and make a binding decision in the conflict situation.
(False)
35. The arbitration-mediation approach had led to voluntary agreements in a greater percentage of situations than the more common mediation-arbitration approach.
(True)
36. If your negotiating counterpart feels you are unfair or dishonest, he or she is less likely to make concessions.
(True)
37. The platinum rule of negotiations is to care for others enough to treat them the way they want to be treated and long-term relationships will be established.
(True)
38. Americans have a higher tolerance for conflict as a way of working through issues than their Japanese counterparts.
(True)
39. Japanese negotiators learn information from what is not said as well as what is said that is then used in negotiations.
(True)
40. Western cultures view negotiations as a social activity while their Eastern culture counterparts view it as a business activity.
(False)
MULTIPLE CHOICE
| Opening Section: Negotiation Failure: The Case of PointCast |
41. The lesson learned from PointCast is
a. social issues in negotiation can be deal-breakers.
b. take the first offer you are presented.
c. financial issues always make or break a deal.
d. unless you have to disclose something, don’t.
(a) Medium/Evaluation
| Section I: Understanding Conflict |
42. Conflict is
a. a process whereby two or more parties work toward an agreement.
b. a process where an outside third party enters the situation with the goal of assisting the parties to reach an agreement.
c. a process that involves people disagreeing.
d. a process that involves bringing in a third party who has the authority to act as a judge and will make a decision to which parties must adhere.
(c) Easy/Knowledge
43. Jared is a member of the engineering department in the manufacturing firm and also serves on the Strategy 2015 team, which is crafting an engineering strategy for the firm’s future. He has a “Do not miss” meeting in the engineering department scheduled for Wednesday at 8 a.m. and just received an urgent email about a “Can’t miss” meeting for the strategy group at 8:15 a.m. Wednesday morning. Jared is experiencing
a. interpersonal conflict.
b. role ambiguity.
c. role conflict.
d. group conflict.
(c) Medium/Application
44. Intrapersonal conflict is
a. a type of conflict between two people.
b. conflict that takes place between different groups such as between different departments.
c. a process that involves people disagreeing.
d. a type of conflict that arises when a person is uncertain about what is expected or wanted or has a sense of being inadequate to the task.
(d) Easy/Knowledge
45. All of the following are examples of intrapersonal conflict EXCEPT
a. role conflict.
b. role differences.
c. role ambiguity.
d. role reversal.
(d) Easy/Comprehension
46. Conflict between two individuals such as coworkers is
a. intrapersonal conflict
b. interpersonal conflict.
c. intergroup conflict.
d. interdepartment conflict.
(b) Easy/Knowledge
47. Nancy and Mary are in the same sorority. Nancy is running for the university’s student government treasurer position. Mary says, “I’ll never vote for her, whether she is my sister or not.” Mary is experiencing what kind of conflict?
a. interpersonal
b. intergroup
c. intrapersonal
d. interdependent
(a) Medium/Application
48. Intergroup conflict
a. occurs between two individuals.
b. occurs within the individual.
c. occurs between two departments.
d. occurs between team members.
(c) Easy/Comprehension
49. Which of the following statements about conflict is INCORRECT?
a. Conflict can paralyze an organization.
b. Conflict can lead to less than optimal performance.
c. Conflict generally makes people uncomfortable.
d. Conflict is always problematic in an organization.
(d) Medium/Comprehension
50. Which of the following statements regarding the relationship between conflict and performance is INCORRECT?
a. Low conflict leads to low performance.
b. Medium conflict leads to high performance.
c. High conflict leads to low performance.
d. Low conflict leads to high performance.
(d) Difficult/Evaluation
51. In which of the following scenarios would you expect high performance?
a. The five team members never have a negative word to say to each other; there never seems to be any conflict on the team.
b. The two members of the team are constantly bickering. One never says anything without the other disagreeing.
c. The team members seem to get along well enough, but on occasion they will argue about a number of issues.
d. The three partners have an interesting relationship. Partner A is almost always in agreement with Partner B, but fights constantly with Partner C. Partners B and C get along at times and fight at times.
(c) Difficult/Synthesis
52. Research on effective teams indicates that they experience
a. high levels of relationship conflict.
b. moderate levels of process conflict at the beginning of the project timeline.
c. moderate levels of task conflict in the middle of the project timeline.
d. moderate levels of relationship conflict and high levels of process conflict.
(c) Difficult/Evaluation
| Section II: Causes and Cures for Conflict |
53. Which of the following is not a root cause of conflict in a workplace?
a. organizational structure
b. task interdependence
c. compatible goals
d. personality differences
(c) Easy/Comprehension
54. In which of the following scenarios are you most likely to experience conflict?
a. Resources within the firm are relatively plentiful and most departments in the organization are seeing a modest increase in their annual budget.
b. Interdepartment meetings have just been concluded that created a list of goals for each department that are compatible with one another.
c. The firm just instituted a matrix structure.
d. Self-awareness exercises have been completed and most of the team members were categorized as Type B.
(c) Difficult/Evaluation
55. Which of the following is not a root cause of conflict in the workplace?
a. task satisfaction
b. communication issues
c. limited resources
d. personality differences
(a) Easy/Comprehension
56. Which of the following is not a positive outcome of conflict in the organization?
a. increased creativity
b. accurate assumptions
c. enhanced decision making
d. individual viewpoint clarification
(b) Medium/Comprehension
57. Which of the following is NOT a negative outcome of conflict in the organization?
a. excessive personal attacks
b. climate of distrust
c. employee feelings of being demeaned with resulting lower morale
d. low individual stress
(d) Medium/Comprehension
58. Which of the following factors does NOT increase your risk for violence in the workplace?
a. caring for others emotionally
b. dealing with valuables
c. being well paid
d. supervising others
(c) Medium/Comprehension
59. Which of the following is a high-risk situation where your job might be at risk for workplace violence?
a. supervising others
b. denying requests made by others
c. caring for others
d. all of the above
(d) Medium/Comprehension
60. Which of the following occupations is least likely to offer an employee a high-risk situation for workplace violence?
a. law enforcement
b. education
c. bartending
d. overnight gas station attendant
(b) Medium/Comprehension
61. Which of the following statements regarding conflict and its cures is INCORRECT?
a. A bureaucratic organizational structure can lead to conflict between high and low power people.
b. To avoid conflict in communication, focus on the person, not behavior or its effects.
c. Conflict can be dysfunctional in an organization if it is excessive.
d. Consideration of a broader range of ideas is a positive outcome of conflict in the organization.
(b) Difficult/Synthesis
| Section III: Conflict Management |
62. Which of the following is an effective way to manage organizational conflict?
a. consensus decision making
b. change the team composition to have more diversity
c. create a common opposing force
d. eliminate hierarchy
(c) Easy/Comprehension
63. If there is conflict between two members of a team and the underlying reason for the conflict is personality differences, what is a viable way of managing the organizational conflict?
a. Change the structure of the organization.
b. Focus attention on a common enemy of the two clashing team members.
c. Take a majority vote on which individual is causing more issues on the team.
d. Change the composition of the team by separating the individuals at odds.
(d) Difficult/Synthesis
64. If two marketing groups within a firm’s marketing department are vying against each other for a larger percentage of the budget, which option that the marketing manager could consider to manage the organizational conflict would be MOST effective?
a. Take a majority vote on what the two departments feel is the best budget allocation.
b. Focus the attention of the two groups on a common “enemy” such as another firm that that they compete with for business.
c. Change the composition of the two departments.
d. Restructure the entire department so that teams are no longer used.
(b) Difficult/Synthesis
65. The conflict handling style that is uncooperative and unassertive is
a. compromise.
b. avoidance.
c. accommodation.
d. competition.
(b) Easy/Knowledge
66. The conflict handling style that is middle ground where an individual’s desire to get his or her way but respect others’ goals is
a. competition.
b. avoidance.
c. accommodation.
d. compromise.
(d) Easy/Knowledge
67. The competition conflict handling style
a. is a middle ground style.
b. is uncooperative and unassertive.
c. is cooperative and unassertive.
d. is highly assertive but low on cooperation.
(d) Easy/Knowledge
68. The collaborative conflict handling style is
a. low in cooperativeness and low in competitiveness.
b. low in competitiveness and high in cooperativeness.
c. high in cooperativeness and high in competitiveness.
d. high in competitiveness and low in cooperativeness.
(c) Medium/Comprehension
69. The accommodation conflict handling style is
a. cooperative and unassertive.
b. uncooperative and unassertive.
c. cooperative and assertive.
d. uncooperative and assertive.
(a) Medium/Comprehension
70. Nicholas is the production manager for a manufacturing firm. He has two supervisors who are experiencing conflict with each other based upon personality differences. Nicholas should have held a meeting last week to discuss next year’s budget, but cancelled it because the two supervisors had a verbal confrontation on the shop floor the previous day. What conflict handling style is Nicholas demonstrating?
a. compromise
b. collaboration
c. avoidance
d. accommodation
(c) Medium/Application
71. The United Auto Workers (UAW) and Ford Motor Company were negotiating a new agreement to address the auto industry woes during a severe economic downturn. Ford offered to consider delaying layoffs if the UAW agreed to changes in contractual work rules related to the jobs bank. This negotiation suggests the use of what conflict handling style?
a. avoidance
b. collaboration
c. accommodation
d. compromise
(d) Medium/Application
72. Ned and Michael are managers of two different departments at Beckett Corporation. The two have not gotten along well over the years. Yesterday the two attended a budget meeting for the new fiscal year. Both wanted more funding for their departments. When the finance vice president suggested an increase for Ned’s department, Michael became quite agitated and made a number of accusations about the nature of the numbers that Ned had used to support his position. After the meeting, Michael cornered the finance vice president in his office and continued his spiel on why his department deserved the extra funding but Ned’s did not. What style of conflict handling does Michael exhibit?
a. compromise
b. accommodation
c. competition
d. avoidance
(c) Medium/Application
73. Olivia and her teenage daughter, Natalie, are arguing again about whether Natalie should go to a family gathering this Sunday or attend an outing with her friends. Olivia and her daughter argue about this topic every week. This time, Olivia turns to her daughter and says, “OK, if it is that important that you go out with Jenna Sunday, then I can agree this time around.” Olivia is using what conflict handling style?
a. accommodation
b. controlling
c. collaboration
d. avoidance
(a) Medium/Application
74. Maris Manufacturing is a unionized company producing customized metal units for the appliance and medical equipment industries. Each contract negotiation is a contentious affair for the union and management. However, over the past few months both union and management officials have become very concerned about the number of Maris union employees who are experiencing alcohol-related issues. Last month alone, six employees sought medical assistance under the employee assistance program. Management and union officials will be meeting next week to address the issue. This is an example of what conflict handling style?
a. accommodation
b. collaboration
c. compromise
d. competition
(b) Medium/Application
75. Which conflict handling style is indicated by an individual who says, “I don’t really care if we work this out.”?
a. accommodation
b. collaboration
c. avoidance
d. compromise
(c) Medium/Application
76. Which conflict handling style is indicated by an individual who says, “Maybe we can both agree to give in a little.”?
a. compromise
b. collaboration
c. accommodation
d. avoidance
(a) Medium/Application
77. Though no conflict handling style is perfect, which style seems to be the most effective in many different situations?
a. compromise
b. competition
c. collaboration
d. accommodation
(c) Medium/Comprehension
78. Research shows that when managers are dealing with conflict they prefer which conflict handling style?
a. compromising
b. accommodating
c. avoiding
d. forcing
(d) Medium/Comprehension
79. Research shows that when confronted with a conflict situation, subordinates are most likely to use all of the following conflict handling styles EXCEPT
a. compromising
b. forcing
c. avoiding
d. accommodating
(b) Medium/Analysis
80. With regard to conflict, which of the following statements is INCORRECT?
a. The best solution often requires a discussion of varying opinions.
b. A lack of disagreement may indicate employees are withholding opinions.
c. Conflict is inherently bad.
d. A key to a healthy discussion is a focus on tasks, not personalities.
(c) Difficult/Analysis
81. All of the following would be effective means of stimulating conflict EXCEPT
a. assigning someone to play devil’s advocate.
b. encouraging disagreement with no fear of reprisal.
c. creating competition between teams or individuals with a bonus for those with the best solution.
d. building clarity into the situation.
(d) Medium/Analysis
| Section IV: Negotiations |
82. Negotiation is
a. the process that involves bringing in a third party who has the authority to act as a judge and will make a binding decision.
b. the process that involves two people disagreeing.
c. the process where a third party enters a situation with the goal of assisting the parties to reach an agreement.
d. the process whereby two or more parties work toward an agreement.
(d) Easy/Knowledge
83. Which of the following is the first phase of the negotiation process?
a. investigation
b. presentation
c. determining BATNA
d. bargaining
(a) Easy/Knowledge
84. During which phase of the negotiation process does an individual assemble the information gathered in such a manner that his position is supported?
a. investigation
b. determining the BATNA
c. bargaining
d. presentation
(d) Easy/Comprehension
85. The investigation phase of the negotiation process involves
a. understanding what your alternatives are.
b. gathering information.
c. making concessions.
d. agreeing on terms.
(b) Easy/Comprehension
86. Which of the following statements regarding to the first phase of the negotiation process, investigation, is INCORRECT?
a. Investigation is the phase of the negotiation process that is often ignored.
b. Focus on the party with whom you are negotiating first and then analyze yourself.
c. The investigation phase of negotiation is designed to gather information.
d. The investigation phase necessitates a clear understanding of priorities.
(b) Difficult/Evaluation
87. The BATNA is
a. the first phase of the negotiation process.
b. a delaying tactic in negotiation.
c. important to assisting you in deciding whether to accept an offer or not.
d. the process of making concessions in negotiation.
(c) Medium/Analysis
88. All of the following statements are correct with regard to determining your BATNA EXCEPT
a. The party with the best BATNA is in the best negotiating position.
b. You must determine your own BATNA but there is little you can do with regard to the BATNA of the party with whom you are negotiating.
c. Assessing the best alternative to a negotiated agreement assists you in deciding whether to accept an offer.
d. The reason you negotiate is to obtain something better than what you would obtain without negotiating, so know your alternatives.
(b) Difficult/Evaluation
89. Which of the following statements regarding the bargaining phase of negotiation is correct?
a. The bargaining phase gets the least amount of attention during the negotiation process.
b. Making concessions during the negotiation process is a sign of weakness.
c. A key to the bargaining phase is asking questions.
d. This is the phase of negotiation where you determine your BATNA.
(c) Difficult/Evaluation
90. Which of the following statements regarding the closure phase of negotiations is INCORRECT?
a. Closure is the phase of the negotiation process where you either have come to an agreement or walk away from an unacceptable offer.
b. Rejection of an offer during closure can be an opportunity to learn.
c. It is not always clear why an agreement has not been reached during negotiation.
d. If the best offer in a negotiation has been rejected, there is nothing left to do.
(d) Medium/Analysis
91. The department managers for Zylog Corporation are meeting for a budget meeting. If the marketing manager gets the 6% increase he is requesting, the human resource manager will not get any increase in his department budget. This is an example of what kind of negotiation strategy?
a. integrative approach
b. accommodating approach
c. distributive approach
d. concession approach
(c) Medium/Application
92. If both parties to a budget negotiation seek to expand the overall budget so that each party gets more, this is an example of which kind of negotiation strategy?
a. integrative approach
b. accommodating approach
c. distributive approach
d. concession approach
(a) Medium/Application
93. The first step to an integrative approach to negotiation is
a. listening.
b. exploring options to achieving goals.
c. adopting a cooperative stance.
d. adopting an adversarial stance.
(c) Medium/Analysis
94. Which of the following statements regarding negotiation strategies is correct?
a. An adversarial stance is needed to begin integrative negotiation.
b. Focusing on a “fixed pie” in negotiations is a good approach because it controls the number of options to be considered.
c. Reviews of negotiation experiments indicate that in almost all those situations where an integrative approach to negotiations could be adopted, such an approach was utilized.
d. Listening is a key element in the integrative approach to negotiation.
(d) Difficult/Synthesis
95. Which of the following steps is the FIRST you should undertake in negotiating a higher salary?
a. Overcome your fear.
b. Get the facts.
c. Know what you want.
d. Be assertive.
(a) Easy/Comprehension
96. Which of the following is NOT a recommended step in negotiating a higher salary for yourself?
a. Overcome your fear.
b. Begin aggressively.
c. Get the facts.
d. Listen more than you talk.
(b) Medium/Analysis
97. Which of the following is NOT a common mistake in negotiations?
a. Letting your ego get in the way.
b. Deciding to negotiate.
c. Having unrealistic expectations.
d. Getting overly emotional.
(b) Medium/Analysis
98. Mark has been the teachers’ union representative for contract negotiations for the past five contracts. Today the school district presented a counterproposal in which they requested that teachers make a minimal contribution for their healthcare premiums. The expiring contract makes the school district entirely responsible for the premiums. Mark is outraged. He throws the proposal given him on the floor and yells at the school district representative as he exits the negotiation room, “This is a pure and simple insult to my members and I will not sit at a table with anyone who treats them so poorly.” Mark is committing what negotiation mistake?
a. having unrealistic expectations
b. letting past negative outcomes impact the present ones
c. getting overly emotional
d. letting his ego get in the way
(c) Difficult/Evaluation
99. Which of the following statements regarding common mistakes in negotiations is correct?
a. Research shows that negotiation avoidance is particularly pronounced among men.
b. Setting high goals decreases some of the tension of negotiations.
c. Negotiators that have engaged in ineffective negotiations in the past are more likely to learn lessons which make them successful negotiators in the future.
d. Those with greater power are more likely to be effective when using anger in negotiations.
(d) Difficult/Analysis
100. Research indicates which of the following findings regarding negotiations is correct?
a. Those who encounter anger during negotiation are likely to counter with an accommodation approach to negotiations.
b. Though men have a greater tendency to negotiate in a salary situation, they are no more successful than women in securing an increase.
c. Setting integrative goals is no more likely to improve the chances of arriving at an agreement than going into negotiations with adversarial goals.
d. Individuals who were unable to negotiate a deal in previous negotiation situations tended to have lower outcomes in subsequent negotiations than those who had initially negotiated deals in the past.
(d) Difficult/Evaluation
101. Which of the following is NOT a good piece of advice to offer individuals who want to engage in successful negotiations?
a. Don’t establish deadlines; when the negotiations are over, they are over.
b. Be patient; don’t rush things.
c. Don’t worry about periods of silence; just wait.
d. Focus on agreement first and then go back to those areas that are unresolved.
(a) Medium/Analysis
102. Mediation is
a. the process of bringing in a third party who has the authority to act as a judge and will make a binding decision.
b. the process where a third party enters the situation with the goal of assisting the parties to reach an agreement.
c. the process whereby two or more parties work toward an agreement.
d. the process that involves people disagreeing.
(b) Easy/Knowledge
103. Allan is a member of a union. The supervisor at the firm where he works gave Allan a three-day suspension for not wearing his protective shoes on the manufacturing floor of his firm. Allan appealed the suspension and the company’s plant manager refused to rescind the suspension. The union wants to appeal this decision to a neutral third party for a ruling. What procedure does the union want to utilize?
a. mediation
b. negotiation
c. arbitration
d. conflict management
(c) Easy/Application
104. Which of the following statements regarding the process of mediation is INCORRECT?
a. A mediator determines the underlying interests.
b. A mediator clears up misunderstandings.
c. A mediator resolves the charge made in a negotiation.
d. A mediator incorporates areas of agreement into resolutions.
(c) Medium/Comprehension
105. Which of the following statements regarding third party negotiations is correct?
a. Individuals who utilized mediation indicated in a survey that they would not be supportive of using the process again.
b. The mediator assists the parties in agreeing on mutually exclusive resolutions.
c. Arbitrators help prepare for a formal hearing.
d. Arbitration is an acceptable practice for many companies to resolve challenging problems.
(d) Medium/Evaluation
106. A mediator should enter a negotiation when
a. personal differences are detected.
b. the parties are only talking for short periods of time and tension is rising.
c. the parties are unable to find a solution.
d. a quick resolution is desired but not imperative.
(c) Medium/Evaluation
107. Which of the following statements regarding the arbitration-mediation approach is INCORRECT?
a. Agreements between the two parties are less likely to occur with an arbitration-mediation approach than a mediation-arbitration approach.
b. In the arbitration-mediation approach, the arbitrator makes a decision and then places it in a sealed envelope while the mediation progresses.
c. The arbitration-mediation approach begins with both sides formally presenting their cases to the arbitrator.
d. The mediation-arbitration approach is a more common approach than the arbitration-mediation one.
(a) Medium/Evaluation
| Section V: The Role of Ethics and Culture in Negotiations |
108. Which of the following statements regarding ethics and negotiations is INCORRECT?
a. Hardball negotiation tactics are fair game; the goal after all is to “get” all you can.
b. If you try to destroy one party in negotiating, that party may return the favor at a future date.
c. A party who feels you are being unfair will be less likely to make concessions.
d. A party who feels you are dishonest may refuse to negotiate with you at all.
(a) Medium/Evaluation
109. Which of the following statements regarding negotiations around the world is correct?
a. American negotiators like to establish a strong relationship first while Chinese negotiators like to “get down to business”.
b. Japanese negotiators have a higher tolerance for conflict as a way of working through issues than their American counterparts.
c. Japanese negotiators reveal more information during negotiations than their American counterparts.
d. Japanese negotiators are likely to interpret negotiation offer patterns over time and include them in their negotiations.
(d) Difficult/Evaluation
110. All of the following statements regarding negotiations around the world are correct EXCEPT
a. Given their culture, Chinese negotiators are uncomfortable saying “no.”
b. Some cultures find it disrespectful to negotiate prior to establishing a trusting relationship.
c. Since Japan is a high context culture, information for negotiation is learned from what is not said as well as what is said.
d. Eastern cultures tend view negotiations as a business activity while Western cultures see it as a social activity.
(d) Difficult/Evaluation
FILL IN THE BLANK
111. The social issues of _________ and ____ derailed the PointCast deal and are among the most difficult aspects of negotiating mergers today.
(ego, corporate pride)
112. __________ is the process that involves people disagreeing.
(Conflict)
113. When you are uncertain about what is expected or wanted, or have the sense of being inadequate to perform a task, you are experiencing _____________ _____________.
(intrapersonal conflict)
114. Union and management conflicts are examples of ____________ conflict.
(intergroup)
115. A __________ amount of conflict is related to high performance.
(moderate)
116. Two root causes of work conflict are task _______________ and ____________ goals.
(interdependence, incompatible)
117. The _________ conflict handling style is uncooperative and unassertive.
(avoidance)
118. A person with a(n) _________ conflict handling style might say, “If it’s important to you, I can go along with it.”
(accommodation)
119. The conflict handling style in which an individual has some desire to express his own concerns and get his way but still respects the other person’s goals is the _______________ style.
(compromising)
120. The conflict handling style in which people are highly assertive but low on cooperation is _______________.
(competition)
121. When two people who are in conflict emphasize problem solving and integration of each other’s goals, they are utilizing a ____________ conflict handling style.
(collaboration)
122. The ____________ conflict handling style has the most potential to be highly effective in many different situations.
(collaboration)
123. The process where two parties work toward an agreement is ____________.
(negotiation)
124. BATNA stands for _____ ___________ ___________ ___________ ____________.
(best alternative to negotiated agreement)
125. A key stage that is often ignored in the negotiating process is the ____________ phase where information is gathered.
(investigation)
126. ___________ is the third phase of the negotiation process where you assemble the gathered information in a way to support your position.
(Presentation)
127. The ______________ phase of the negotiation process is where each party discusses his goals and seeks to get an agreement.
(bargaining)
128. A _____________ is giving up something to get something in return.
(concession)
129. The final phase of the negotiation process, ______________, is where the two parties either come to an agreement on terms or one party has found the final offer to be unacceptable and walks away from it.
(closure)
130. The traditional “fixed-pie” approach where negotiators see the situation as a pie that has to be divided between them is the ______________ negotiation strategy.
(distributive)
131. The ____________ negotiation strategy looks for ways for the two parties to integrate goals under a larger umbrella.
(integrative)
132. Mediation, arbitration and other ways of resolving conflicts with the help of a specially trained third party without need for a formal trial or hearing is called _____________ _________ _____________.
(Alternative Dispute Resolution)
133. ___________ is a process where an outside third party enters the situation with the goal of assisting the parties to reach an agreement.
(Mediation)
134. The conflict resolution process where a neutral third party listens to each side’s case and makes a binding decision is called ___________.
(arbitration)
135. Commonly, the conflict resolution process of _________ follows that of ___________ but research indicates that the process of _____________ followed by ____________ actually leads to more voluntary agreements between the parties.
(arbitration, mediation, arbitration, mediation)
136. If your counterpart feels you are being __________ in your negotiations, he is less likely to make any concessions.
(unethical or dishonest or unfair)
SHORT ANSWERS
137. Briefly describe the “social issues” that are some of the most difficult aspects of negotiating that keep firms such as PointCast from reaching agreement.
The chapter opens with a description of PointCast, one of the Silicon Valley’s hottest start-ups on the 1990s, in merger negotiations with Rupert Murdoch’s News Corporation. Though media speculation valued PointCast at $750 million, Murdoch offered a package of $450 million that PointCast rejected. Subsequent decisions to go public also failed and ultimately, PointCast was sold for $7 million. The missed opportunity is often cited as one of the biggest mistakes in Internet history and is largely credited to the social issues of ego and corporate pride which created conflict in the initial merger negotiations. Apparently PointCast CEO Christopher Hassett believed the hype about his firm and was unwilling to alter his perception during negotiations. Social issues can get in the way of fruitful negotiations and produce painful lessons.
138. Name the three types of conflict and briefly describe each.
Conflict is the process that involves people disagreeing. The three types of conflict include intrapersonal conflict (which arises in a person due to uncertainty about what is wanted or expected or when you feel inadequate to perform a task), interpersonal conflict (which is conflict between individuals sometimes due to personality or competition differences), and intergroup conflict (which occurs between groups like union and management or different departments within the same firm).
139. Describe the inverted-U relationship that exists between conflict and performance.
Conflict in an organization is not always bad. Research tends to suggest that both low and high levels of conflict lead to lower performance. Moderate conflict, on the other hand, leads to higher levels of performance. The moderate conflict is viewed as optimal because it creates a situation where there is healthy debate on ideas, stimulating, for example, creativity. In general, personal conflict is never healthy, but others, like task conflict can be beneficial to the firm.
140. Describe two root causes of conflict at work.
Six root causes of workplace conflict are: organizational structure, limited resources, task interdependence, incompatible goals, personality differences and communication problems.
An organizational structure like a matrix can present workplace conflict because it has each manager reporting to two bosses while a bureaucratic structure has different levels of people with different power creating high-power and low-power clashes.
Limited resources like money create conflict around budget time when an increase in one department’s budget will necessitate a decrease in a second department’s budget.
Task interdependence creates conflict when the output of one individual is the input of another. If the first individual delays his output, he has negatively impacted another.
Incompatible goals create conflict when two parties believe their goals to be mutually exclusive and then end up being connected in some manner. For example, compensation systems often reward salespeople for the amount of sales they make regardless of the production department’s ability to fill those orders.
Personality differences are the most common basis of conflict in the organization. Type A and Type B personalities often do not mix when work needs to be completed on a deadline.
Communication problems also create conflict. Dealing with people who do not return phone calls can be very trying for many individuals.
141. What are two positive and two negative outcomes of conflict?
Positive conflict outcomes include: considering a broader range of ideas resulting in a stronger idea; bringing forward assumptions that may be inaccurate or invalid; increasing participation or creativity; and clarifying individual views.
Negative outcomes of conflict include: increased stress and anxiety which decreases productivity and satisfaction; the feeling of defeat or detachment that some people experience which lowers their morale; and the development of a climate of distrust which hinders teamwork and cooperation.
142. What are some of the factors that increase the risk for you to experience workplace violence on the job?
Two general categories of situations increase your risk of experiencing workplace violence: dealing with people and being in high-risk situations.
In dealing with people, circumstances like caring for others either emotionally or physically, interacting with frustrated customers, supervising other and denying requests others make of you increases your chances of experiencing workplace violence.
Being in high-risk situations like dealing with valuables and money; handling weapons; working with drugs, alcohol or those under the influences of either of them; and working nights and weekends increases your chances of experiencing workplace violence.
143. Describe two ways in which organizational conflict can be managed.
Change the structure: When a structure in an organization is dysfunctional, as when a firm uses a matrix and there is confusion as to which of two bosses a manager should attend to first, then the structure may need to be altered.
Change the team composition: When team members clash repeatedly, it may be a good idea to change one or two team members to ensure greater harmony.
Create a common opposing force: When two work groups within a department are clashing over, for example, funding, a manager could divert their anger toward each other by focusing their attention on another department entirely which received substantial funding increases in the last budget cycle.
Consider majority rule: When group members are disagreeing over ideas, take a vote and the idea with the most support wins.
Problem solve: A common approach, the problem solving approach gets group members to focus on the task and not on the people involved so that the root cause of the problem is found.
144. List and briefly describe each of the five conflict handling styles.
Avoidance is where the individual is uncooperative and unassertive. The person practicing this conflict resolution style denies conflict is there.
Accommodation is where the individual is cooperative and unassertive. The person gives in to what the other side wants even if it means giving up personal goals.
Compromise is a middle ground style where individuals express their own concerns and want to get their own way, but respect the other person’s goals.
Competition is where the person wants to reach his goal regardless of what others say or feel.
Collaboration is the style high in both assertiveness and cooperation. This is the strategy that tends to be most effective in the most different conflict situations.
145. List the steps in the negotiation process.
Investigate, determine your best alternative to a negotiated agreement, present, bargain, and close.
146. Briefly describe the two negotiation strategies.
The distributive approach to negotiation is the fixed pie approach where if one department increases its budget, another department’s budget is cut.
The integrative approach to negotiation is a more creative approach where both parties look for ways to integrate their goals under a larger umbrella.
147. List and describe two common mistakes made in negotiation.
Failing to negotiate or taking the first offer: Research indicates that women are less likely to negotiate their starting salary than men and that this may be a contributing factor to the lower salaries women receive than their male counterparts.
Letting your ego get in the way: PointCast is a classic example of a firm that could have been part of a successful merger until its CEO let his ego do the talking and the deal was squelched.
Having unrealistic expectations: In labor contract negotiations, the unrealistic expectations often set forth in the initial contract proposal by the union are called “pie in the sky” demands.
Getting overly emotional: Anger never serves anyone when negotiating. Bargaining should involve the task or issue at hand and not the personalities involved.
Letting past negative outcomes affect the present ones: Research indicates that those who have been less successful in past negotiations tend to have lower outcomes than those who had successfully negotiated deals in the past.
148. Describe two alternative dispute resolution techniques.
Mediation is the process where a neutral third party enters a stalled negotiation to assist the parties involved in getting back on track. The mediator works with both parties to reach a solution without representing either side.
Arbitration is the process where a neutral third party listens to each party’s side in a dispute and then renders a decision. In most cases the decision is said to be binding, which means both parties must adhere to it.
ESSAY
149. Janice is a new manager for XYZ Corporation. She is about to attend two weeks of management training. The first topic she will examine is that of conflict and its management. You are the instructor for the conflict seminar. Describe the types of conflict Janice and other managers may face in the workplace, their underlying causes and some strategies for managing those conflicts in the workplace.
There are three types of conflict that should be noted at the outset of the seminar session. The three are: intrapersonal, interpersonal and intergroup conflict.
Intrapersonal conflict arises when an individual does not know what is expected or wanted of him in the workplace or where he feels inadequate to perform a task. Perceived lack of trust of the employee, role ambiguity and role conflict are causes of intrapersonal conflict. Clarifying the employee’s role and empowering him with various responsibilities are two viable options for managing this type of conflict in the workplace.
Interpersonal conflict is likely the most common form in the workplace. Personality differences are a key cause of such conflict. Problem solving approaches that focus attention on the task or issue at hand and not on the personalities are two options to consider in dealing with this type of conflict. If neither of those works, there is always the possibility that a manager should consider moving or removing one of the personalities from his department.
Intergroup conflict is often found between groups in a single department or between departments in a workplace. In unionized settings in the United States, the union and management tend to have longstanding adversarial relations. One effective way of dealing with intergroup conflict is to create a common “enemy” for the clashing parties. Diverting their attention from each other and refocusing it on an outside group can actually result in more cooperation among group members and ultimately, a more cohesive group.
150. Angelo is the new superintendent of the school district. In his first two weeks on the job he makes it a point to talk to every staff and faculty member as well as key stakeholders in the community and those who interact with the district on a regular basis. His assessment after those interviews is that the district is conflict-ridden. Seemingly everywhere he turns intrapersonal, interpersonal and intergroup conflicts are found. Discuss how he can get his arms around this situation and begin to manage some of the conflicts he is encountering.
Angelo needs to determine the root causes of the conflicts. Such root causes can cover a wide spectrum but some common ones are: organizational structure, limited resources, task interdependence, incompatible goals, personality differences and communication problems.
Each of the root causes identified could take substantial time and effort to address, but identification is always the first step. If organizational structure seems to be an issue, Angelo might consider changing it. He needs to understand how authority really flows in the district as well as how communication and decision making flows. Once that is assessed, the nature of changes needed may be obvious.
Limited resources are always an issue regardless of the nature of the organization, but Angelo may want to consider getting a clear handle on what each department’s budget is and how such budgets are determined yearly. He may want to institute some changes in identification of new spending items separating out, for example, those items basic to the educational process and required by law and those discretionary that enhance the curriculum.
Task interdependence may be an issue in the staff areas. Again, a thorough assessment of what jobs’ outputs become the inputs for other jobs and the timing of each could lead to the redesign of some jobs for enhanced efficiency and effectiveness.
Incompatible goals and communication problems could be intertwined. Understanding how information is disseminated to employees in the district may indicate a very haphazard pattern. Some of the information partially or incompletely disseminated may be the district and individual goals. When that information is clarified and input appropriately received and processed, both problems may be addressed.
Personality differences are the common denominator in the conflicts of many organizations. Focusing employee attention on the task and not the personalities involved is always the first step but sometimes that proves to provide only temporary relief and the ultimate step of moving or removing individuals must be assessed.
151. Nejah and Omar are two supervisors in the production department of a manufacturing firm. The two have known each other since high school intensely dislike each other and their animosity repeatedly spills over into the workplace. Kareem is the production department manager. After yesterday’s five-minute shouting match between Nejah and Omar on the factory floor with the production crew looking on, Kareem is at wit’s end. Using the conflict handling style grid as a focal point, discuss what style Kareem might use to handle this situation.
Kareem might have used the avoidance style of conflict handling to have allowed this situation to escalate to this point. In short, he may have denied that the two individuals had a personality conflict or simply delayed handling it because it was so longstanding he felt it would resolve itself as it had in the past.
Kareem might want to consider collaboration or compromise as his conflict handling style with Omar and Nejah but it will take time and patience to use either because of how much ill-will has built up between the two. In compromise, Kareem will need to find a middle ground for the two where he accounts for and assists the pair in recognizing the desires of each and how those wants can be expressed and then both rescinded a bit. Kareem must be cautious in making sure each party gives in the same amount as the other and that each party accepts and perceives the fallback in position to be equivalent. An alternative approach to this conflict scenario might be collaboration. In this scenario both parties will argue for their respective positions, personalities taken out of the mix, supporting each position with facts and rationale. Then, with Kareem’s oversight, both sides will attempt to secure a win-win situation. Again the time and effort Kareem might invest in trying such a conflict resolution needs to be considered.
The competition style of conflict handling would not be effective in this scenario since the two parties involved are already competitive. Adding Kareem’s competitive style would only make it seem like he is playing favorites further escalating the situation. The accommodation style may also prove to be less effective in this scenario since it involves one side giving up a personal goal to facilitate the other. Since the feud between these two is so long-standing, this style might take so much time to initiate and carry through to fruition that it is a pointless exercise.
152. The Challenger incident is widely recognized as a situation of groupthink at NASA. While some testing had indicated potential concerns with cold weather and the sustainability and performance of “O-rings” in the shuttle design, the desire of NASA executives to meet a timetable for budgetary and public relations reasons caused that information to not be properly presented in the debate over launch timing. What are some ways that NASA executives could stimulate conflict in such meetings to avoid future tragedies?
Conflict can be stimulated by encouraging people to raise issues and disagree with the status quo without fear of any retribution or reprisal. The freedom to dissent without retribution must be a part of the organization culture. Written procedures ensuring such positive conflict outcomes are a good beginning but a conscious management of vital discussions by a manager in which such dissent is featured is also critical.
Assign an employee a devil’s advocate role in all meetings. If you know that someone will always question the issue or the solution to it, you are more accepting and prepared for such dissent and it brings out the key inaccuracies in assumptions much faster.
Create competition among teams or individuals with “prizes” or bonuses for those who come up with the best solution to a problem or issue. Rewards that are understood, attainable and appreciated are motivating.
Build ambiguity into the process. When clarity is not found, questions are asked and those questions can stimulate greater creativity or pinpoint problematic areas.
153. Mario is preparing to negotiate a marketing agreement for his product with an advertising firm. What are the key steps he should prepare for in that negotiation?
At the outset, Mario needs to do some investigation and gather information. The better informed you are, the better bargaining position you place yourself in. In Mario’s case, he should begin by looking at his own goals. What does he want to get out of the negotiation? What can he achieve? What can he concede?
His second step will be to develop his best alternative to a negotiated agreement or BATNA. The reason he is negotiating is to produce results that are better than what he could have obtained without negotiating, so what are those results? Thinking through his BATNA will assist him in ultimately deciding to go with the advertising firm or walk away for another option.
Mario must prepare for his presentation where he will bring together the information he has gathered in a manner that will support his position.
The actual bargaining will be when the two parties meet to discuss their goals and attempt to reach an agreement. Mario must keep in mind that a regular part of such bargaining is making some concessions. His BATNA will guide him in assessing such concessions. Further, Mario must understand that he can ask questions during this phase to ensure he is getting the best deal for himself and to understand, possibly, why a deal is not made.
Finally, the bargaining needs to come to a close either with an agreement or with one or the other party walking away.
154. Clarissa is preparing for a meeting with a manager at a firm that has just offered her a job. Clarissa was approached by this firm while she was working for one of its competitors and the new firm has convinced her that she has greater opportunities there so she has tentatively accepted its offer contingent on salary negotiations. What advice would you offer to Clarissa to assist her in obtaining a higher salary from those negotiations?
The first piece of advice to be offered to Clarissa is to negotiate! Research indicates that women are less likely to engage in negotiations over salary and less likely attain higher levels of salary than their male counterparts. To get to a higher level, Clarissa must negotiate.
In order to negotiate, Clarissa must overcome any fears she might have of the process. Especially since she wants to go to this firm, she may be afraid of angering her manager before she even gets going in the new firm. That said, it doesn’t hurt to ask, particularly if you are prepared to defend your request.
Get the facts. Make sure you have checked with various websites to understand what the market rate is. Clarissa does not want to over or undersell herself and her skill set in the market.
Build your case. Clarissa must be very clear as to why she believes she is worth a specific dollar amount. She must clearly indicate what she will contribute to this firm and why she believes such a contribution is equate with a specific dollar figure.
Know what you want: Clarissa must be clear on her salary goal and how set she is in that goal. If the new firm is unwilling to meet her salary demands, will she walk away?
Don’t make the first offer. Clarissa should allow her new manager to initially name the starting figure. Negotiations generally work with one party starting high and the other countering.
Listen more than talk. Clarissa may learn a lot by listening so temper your comments with periods when you listen to the new manager for best results.
155. Antonio is preparing to negotiate his individual contract with a financial services firm. He is very nervous and does not want to shortchange himself. Provide him some advice for being successful at negotiations.
Focus on securing an agreement. If the goal is an agreement, when an issue arises that might lead to an impasse, simply set it aside as something you agree to disagree on and address it later. Dealing with contentious issues at a later time or in a different environment often leads to their resolution.
Be patient. If there is no deadline in place to reach an agreement by, be flexible.
Recognize whose reality you are dealing with. Each side perceives their version of reality. Be clear on yours.
Deadlines: If a deadline is established, negotiators tend to move toward agreement as that deadline approaches.
Be comfortable with silence: After an offer or counteroffer is made, allow the other party to contemplate it. Do not expect an immediate response.
156. Alemeda has just been hired by an aluminum maker to negotiate supply agreements between the aluminum firm and various international companies. What are some cultural issues that Alemeda should keep in mind as she begins negotiations?
Alemeda should recognize that some cultures have a lower threshold for conflict than others. Countries like Japan and Korea, for example, prefer harmony to conflict. Americans and Germans, in contrast, have a higher tolerance for conflict as a way to work through issues.
The nature of the relationship between negotiating parties also differs based upon the culture. Americans are prone to “getting right down to business” while negotiators in Japan and China must establish a friendly, trust-based relationship before bargaining. Consequently, Japanese negotiators, because of their high context culture are likely to look for patterns in what is not said as well as what is said during negotiations and factor those patterns into their offers.
Similarly, the relationship between the negotiators impacts the view of the overall activity. Americans view the negotiation as a business activity while Brazilians see it as a social activity.
In all cases, Alemeda must assess the cultural implications of negotiations before initiating the activity.
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