Question 1During which phase of the negotiation process do the parties exchange their initial proposals or demands?A. definition of ground rulesB. integration of preferencesC. preparation and planningD. bargaining and problem solvingE. clarification and justificationQuestion 2In a negotiation process, which of the following activities is most likely to be included in the “definition of ground rules” step?A. justifying your original demandsB. determining time constraints, if any, applicable to negotiationC. formalizing the agreement that has been worked outD. determining your best alternative to a negotiated agreementE. determining the history leading up to the negotiationQuestion 3Xanadu Industries manufactures and sells the same calipers as Utopia Industries. Employee wages account for thirty-five percent of the cost of manufacturing calipers at both Xanadu Industries and Utopia Industries. Xanadu Industries is seeking a competitive advantage over Utopia Industries. Richard, the manager put in charge of devising a strategy to meet this end, suggests lowering employee wages. This leads to a grave conflict between Richard and the labor union. Which of the following, if true, would suggest that the labor union will accept Richard’s suggestion to lower the wages?A. Xanadu Industries has taken away twenty percent of Utopia Industries’ business over the last year.B. Utopia Industries pays its employees, on average, ten percent more than does Xanadu Industries.C. Many people who work for manufacturing plants live in areas in which the manufacturing plant is the only source of employment.D. As they make a large number of precision instruments, caliper manufacturers receive huge volume discounts on raw materials.E. Utopia Industries recently set up a new manufacturing facility in the vicinity.Question 4During a negotiation, making an initial offer leads to the ________ bias.A. anchoringB. framingC. attributionalD. beliefE. self-servingQuestion 5Labor and management at Leo Trucking cannot seem to agree upon a contract for the truck drivers. As each side contends that they are bargaining fairly, no agreement seems to be possible. The drivers are threatening to go on strike, and management knows that such a strike would prove to be costly.None of the parties involved in the dispute wants to reach a win-win agreement. They are each highly focused on their demands which they would like to achieve, otherwise known as their ________ points.A. focalB. resistanceC. targetD. distributionE. toleranceQuestion 6According to the traditional view of conflict, all conflict is ________.A. harmful and must be avoidedB. rational and cannot be avoidedC. necessary and improves creativity of a groupD. healthy and improves productivityE. natural and helps generate discussionQuestion 7The division manager at Xperience Inc. wants to replace the SAP ERP currently used in his division with Epicor ERP as it costs 30 percent less to train new staff in Epicor ERP. But this leads to a conflict with the general manager, who insists that they can simply hire only people who already know how to use SAP ERP. Which of the following, if true, weakens the general manager’s objection to the replacement of SAP ERP with Epicor ERP?A. Experienced users of SAP ERP command much higher salaries than do prospective employees who have no experience in the use of any ERP.B. The high costs of updates and upgrades make Epicor ERP more expensive to maintain than SAP ERP.C. The average productivity of employees in the company is below the average productivity of the employees of its competitors.D. Once employees learn how to use an ERP system, they tend to change employers more readily than before.E. Currently all employees in the company are required to attend workshops on how to use SAP ERP.Question 8Which of the following conflict handling intentions is assertive and uncooperative?A. compromisingB. collaboratingC. competingD. avoidingE. accommodatingQuestion 9Which of the following statements is true regarding the managed conflict perspective?A. It classifies conflicts into functional and dysfunctional conflicts.B. It proposes that some conflict is absolutely necessary for a group to perform effectively.C. It argues that all conflicts are bad and should be eliminated.D. It is based on the view that conflicts reduce the long-term viability of the group.E. It argues that conflicts improve creativity of the group.Question 10Which of the following terms best describes the process that occurs when two or more parties decide how to allocate scarce resources?A. unionizationB. differentiationC. associationD. integrationE. negotiationQuestion 11Porco Rosso, an aircraft manufacturer, develops a new engine model, PR-4, with safety features lacking in the earlier model, PR-3, which is still being manufactured. During the first year that both were sold, the PR-3 far outsold the PR-4, even after rigorous presentations and negotiations with potential customers for PR-4. Porco Rosso thus concluded that safety was not the customers’ primary consideration. Which of the following, if true, would weaken Porco Rosso’s conclusion?A. Several customers of Porco Rosso also bought engines from other manufacturers who did not provide additional safety features in their newer models.B. Customers prefer and find safer, earlier engine models that have been tried and tested to newer engine models.C. The PR-4 model can be used in all planes in which the PR-3 model can be used.D. Both private plane owners and commercial airlines buy engines from Porco Rosso.E. There was no significant difference in price between the PR-3 and PR-4.Question 12For process conflict to be productive, it must be ________.A. kept at moderate levelsB. kept at moderate-to-high levelsC. subject to managerial controlD. kept lowE. kept highQuestion 13When one person seeks to satisfy his or her own interests regardless of the impact on the other parties to the conflict, that person is using the conflict-handling intention of ________.A. collaboratingB. accommodatingC. avoidingD. competingE. compromisingQuestion 14Megatron Construction is having a dispute with a home buyer about some of the terms of their building contract. Both the company and the home buyer want to avoid the expenses and trouble of going to court, but they cannot agree on how to settle their disagreement.The home buyer wants to bring in a third party who will have the authority to dictate an agreement. This person will be a(n) ________.A. mediatorB. consultantC. conciliatorD. arbitratorE. plaintiffQuestion 15Megatron Construction is having a dispute with a home buyer about some of the terms of their building contract. Both the company and the home buyer want to avoid the expenses and trouble of going to court, but they cannot agree on how to settle their disagreement.The two parties eventually agree to ask Sam Spade, an attorney and trusted friend, to help them informally to solve their problem. Sam’s role is that of a(n) ________.A. plaintiffB. mediatorC. arbitratorD. consultantE. conciliatorQuestion 16Which of the following statements is true regarding integrative bargaining?A. Integrative bargaining involves low information sharing.B. Integrative bargaining leaves one party a loser.C. Integrative bargaining focuses on long-term relationships.D. Integrative bargaining is used in labor-management negotiations most of the time.E. Integrative bargaining operates under zero-sum conditions.Question 17What factor would most likely increase the negative impact of an arbitration session?A. limited options of the arbitratorB. voluntary nature of the arbitrationC. establishment of an agreement that is nonbindingD. heavy-handedness of the arbitratorE. compulsory nature of the arbitrationQuestion 18A collectivist Chinese manager is most likely to use which of the following techniques for conflict management?A. pressurizingB. competing tacticsC. authoritative commandD. direct confrontationE. avoidingQuestion 19According to the ________ view of conflict, conflict can be a positive force in a group and some conflict is absolutely necessary for a group to perform effectively.A. resolution focusedB. interactionistC. traditionalD. managedE. transactionalQuestion 20Your ________ determines the lowest value acceptable to you for a negotiated agreement.A. hidden valueB. BATNAC. asking priceD. bid priceE. margin of errorQuestion 21It seems that your work group is in conflict much of the time. One colleague has suggested that you, as the supervisor, are responsible for eliminating the conflict so that your work group can function harmoniously. Another colleague has suggested that conflict is good for stimulating creativity and productivity within the work environment. You are unsure about whether you should try to eliminate the conflict within your group or learn to deal with it positively.When your work group disagrees, the disagreements usually concern how the group’s work should be accomplished. The type of conflict experienced by your group is known as a ________ conflict.A. processB. relationshipC. traditionalD. reactiveE. taskQuestion 22In which of the following situations is mediation most likely to be effective?A. None of the parties is willing to disclose its BATNA.B. The conflict between the parties involved in mediation is at a moderate level.C. One of the parties involved in the negotiation perceives the mediator as coercive.D. One of the parties involved in the negotiation perceives the mediator as biased.E. There is a large gap between the target points of both the parties.Question 23It seems that your work group is in conflict much of the time. One colleague has suggested that you, as the supervisor, are responsible for eliminating the conflict so that your work group can function harmoniously. Another colleague has suggested that conflict is good for stimulating creativity and productivity within the work environment. You are unsure about whether you should try to eliminate the conflict within your group or learn to deal with it positively.If you support the idea that conflict should be eliminated, you are supporting which of the following views of conflict?A. the interactionist viewB. the moderated acceptance viewC. the optimistic viewD. the traditional viewE. the human relations viewQuestion 24Which of the following methods of third-party negotiation always results in a settlement?A. arbitrationB. executionC. conciliationD. mediationE. consultancyQuestion 25Megatron Construction is having a dispute with a home buyer about some of the terms of their building contract. Both the company and the home buyer want to avoid the expenses and trouble of going to court, but they cannot agree on how to settle their disagreement.Megatron wants to bring in a neutral third party who will facilitate a negotiated solution by using reasoning, persuasion, suggesting alternatives, and the like. This person is known as a(n) ________.A. consultantB. plaintiffC. mediatorD. bailorE. arbitratorQuestion 26The two general approaches to negotiation are ________ bargaining and ________ bargaining.A. legal; restrictiveB. emotional; rationalC. affective; reflectiveD. distributive; integrativeE. formal; informalQuestion 27The ________ view of conflict focuses on productive resolution of conflicts.A. managedB. transactionalC. rationalD. traditionalE. interactionistQuestion 28In which stage of the conflict process does conflict become visible?A. personalizationB. behaviorC. outcomesD. intentionsE. incompatibilityQuestion 29Matt works as a sales representative at Tandem Industries which manufactures and sells bicycles. He’s the best salesman on the floor, but he also receives the highest number of customer complaints for late deliveries. Which of the following, if true, best explains this situation?A. The company keeps inventory levels low in order to reduce costs.B. The company’s sales and logistics functions are tightly integrated.C. The company has an efficient credit verification process.D. The company’s manufacturing facility is functioning at optimum capacity.E. The company uses enterprise solutions to manage inventory.Question 30During which phase of the negotiation process do the parties have the actual discussion to hash out an agreement?A. preparation and planningB. closure and implementationC. bargaining and problem-solvingD. definition of ground rulesE. integration of preferencesQuestion 31According to a newly added office smoking regulation, only employees who have an enclosed office may smoke at their desks. This leads to a major conflict between various employees as virtually all employees with enclosed offices are higher level managers, and all other employees lack enclosed offices. Therefore, the lower level employees who smoke argue that they should be offered enclosed offices. Which of the following, if true, strengthens the employees’ argument?A. The smoking regulations allow all employees who smoke an equal opportunity to do so, regardless of an employee’s job level.B. The company is a zealous supporter of the “Kick the Butt” campaign a corporate anti-smoking campaign.C. Higher level managers, who have enclosed offices, are willing to share their offices with lower level employees.D. The company has a limited budget for infrastructure modifications.E. Employees at the higher level, who do not smoke, do not have enclosed offices.Question 32Labor and management at Leo Trucking cannot seem to agree upon a contract for the truck drivers. As each side contends that they are bargaining fairly, no agreement seems to be possible. The drivers are threatening to go on strike, and management knows that such a strike would prove to be costly.The management has decided to try to find a win-win solution to help both parties resolve their differences. Management is attempting to engage in ________ bargaining.A. integrativeB. surfaceC. reflectiveD. distributiveE. reformatoryQuestion 33Which of the following statements is true regarding negotiation that takes place in a collectivist culture?A. Collectivists are less likely to seek to preserve relationships and promote the good of the group as a whole than individualists.B. Collectivist cultures see people as autonomous, not as people deeply embedded in social situations.C. Collectivists are more likely to confront differences of opinion directly and openly as compared to individualists.D. The method of conflict management preferred by collectivist managers is competing.E. As compared to individualists, collectivists are less likely to see offers from their counterparts as unfair and to reject them.Question 34Labor and management at Leo Trucking cannot seem to agree upon a contract for the truck drivers. As each side contends that they are bargaining fairly, no agreement seems to be possible. The drivers are threatening to go on strike, and management knows that such a strike would prove to be costly.As both sides agree that they are competing over a fixed amount of resources, each side feels that what one side wins, the other loses. Based on this information, we can say that the two sides are engaged in ________.A. arbitrationB. conciliationC. integrative bargainingD. mediationE. distributive bargainingQuestion 35Stage II of the conflict process deals with the conflict being ________.A. expressed and resolvedB. internalizedC. analyzedD. apparent and experiencedE. perceived and feltQuestion 36Which of the following statements is true regarding task conflicts?A. Task conflicts hinder creativity and innovation.B. Task conflict won’t benefit groups performing routine tasks.C. Task conflicts relate to how the work gets done.D. Task conflict focuses on interpersonal relationships.E. Task conflicts are almost always dysfunctional.Question 37Luke’s cubicle neighbor Leia, though an understanding and great co-worker, talks loudly on the phone. Luke gets annoyed every time Leia’s phone rings, but he has decided it’s simply not worth the trouble to talk to her about it. Luke’s conflict-handling intention is called ________.A. accommodatingB. collaboratingC. avoidingD. compromisingE. competingQuestion 38Bill is negotiating for the labor union. Today, he is presenting the evidence and papers that demonstrate the average wages in the area, the cost of health care for the average worker, and a pie graph demonstrating how these costs affect the new salary request. Which phase of the negotiation process is Bill currently in?A. clarification and justificationB. definition of ground rulesC. closure and implementationD. bargaining and problem solvingE. preparation and planningQuestion 39Which of the following conflict-handling intentions involves accepting a solution that provides incomplete satisfaction of both parties’ concerns?A. competingB. avoidingC. compromisingD. collaboratingE. accommodatingQuestion 40With reference to the interactionist view of conflict, conflict that relates to the content and goals of work is called ________ conflict.A. jobB. relationshipC. communicationD. taskE. process
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