L5M15 Advanced Negotiation Questions and Answers

Behaviours thatundermine honesty(e.g.,exaggerated claimsandfavouritism) erode credibility and trust in negotiations. Hardball techniques can be competitive but are not inherently dishonest; lack of a fixed agenda affects structure, not honesty.

In Tuckman’s team development model:Forming → Storming → Norming → Performing → Adjourning/Mourning. “Storming” is the first stage listed here and marks initial conflict as roles and norms form.

Consulting leadershipinvolves engaging team members in decision-making, valuing their input before implementing actions. It encourages ownership, trust, and collaboration—sitting between directive and participative styles.

Sharing warehousing, distribution, or production capacity is characteristic ofoperations and logisticsalliances—aimed at cost leverage, service improvements, and risk sharing in physical operations.

CIPS emphasises proportionate risk management.Low-impact/low-probability risksshould bemonitored or accepted, while high-impact or high-probability risks should be mitigated or eliminated. Attempting to remove all risks wastes resources.

Positional bargainingstarts from fixed stances and tends toward adversarial exchanges and concession trading, often impeding creative, interest-based outcomes.

Rationalisingbelongs to thepush influencing style. It uses logic, facts, and evidence to convince others, leveraging authority or data. It contrasts withpull techniquessuch as inspiring and consulting, which engage others collaboratively.

In high-value, high-risk partnerships, success depends oncollaboration, trust, and shared goals. Hence,inspiring,consulting, andcollaboratingstyles promote open communication and joint problem-solving.

A clear agenda maintains structure, ensures that important issues are discussed, and prevents digression. It keeps discussions focused and efficient, though overly rigid agendas can limit responsiveness to opportunities.

Soft skills are interpersonal and behavioural capabilities that enable effective collaboration and impact, such as communication, influencing, and managing change. Technical/market knowledge and numerical skills are valuable but are classed as hard/technical skills rather than soft skills.

Holding a meeting at thesupplier’s siteallows the buyer to gain insights into the supplier’s capacity, infrastructure, culture, and quality systems. This firsthand observation strengthens understanding and informs negotiation strategy.

“On-time delivery” measures operational performance, not environmental sustainability. Environmental KPIs focus on resource usage, emissions, waste, and biodiversity—measuring environmental impact rather than service metrics.

Conscious incompetencemeans recognising a skill gap—you understand what’s required but haven’t yet mastered it. It’s the second stage in the four-stage competence model: (1) Unconscious incompetence → (2) Conscious incompetence → (3) Conscious competence → (4) Unconscious competence.

Effective negotiators adapt betweenpush and pull stylesdepending on context. While push techniques (assertion, logic) can help when cost pressure is key,pull techniques(consulting, inspiring) strengthen relationships and trust—vital for long-term supplier collaboration.

The “Hawthorne effect” suggests performance can improve simply because people know they are being studied/observed—attention and interest from management can boost engagement.

Reciprocated concessionsoccur when both sides trade something of value—such as exchanging discounts for improved terms. This supports balanced negotiation progress and fosters trust.

Aconflict of interestarises when personal relationships or financial interests could influence—or appear to influence—professional judgement. It must be declared and managed to maintain ethical integrity.

When stakeholders holdhigh poweror influence, communication should bedirect and engaging, ensuring clarity and accountability.

Face-to-faceteam meetingsallow discussion and immediate feedback, whileemailsprovide documented communication. Noticeboards and website articles are better suited for lower-power or external audiences.

“Warm and tough” means balancing firmness on issues with respect and empathy in style. Confidence and assertiveness maintain authority while preserving positive tone—ideal for collaborative negotiation.

In CIPS terms,crowdsourcingmeans collecting information or opinions from a large group via digital platforms. It can be useful forresearching suppliers, validating performance, and benchmarking reputations before negotiations.

Distributive bargaining treats the deal as a fixed pie: what one party gains, the other loses. It typically uses competitive tactics aimed at claiming value rather than creating it and is closely associated with win–lose outcomes.

Pain/gain share arrangements distribute both upside (gain) and downside (pain) between buyer and supplier, promoting fairness and shared accountability. This shared-risk structure encourages collaboration and continuous improvement.

While alliances can deliver benefits (e.g., shared resources, economies of scale), they also poserisks, notablyconfidentiality issues(data sharing vulnerability) andpotential disputesover governance, profit sharing, or objectives.