AND CORRECT ANSWERS
◉ Results Oriented Budgeting.
Answer: Attempts to link a resource allocation to performance
criteria
◉ Budget Cycle.
Answer: 1. Planning 2. Formalization 3. implementation 4.
evaluation
◉ Procurement Cards.
Answer: payment method whereby internal customers are
empowered to deal directly with suppliers using a credit card
◉ Four principles of negotiation.
Answer: 1. separate people from the problem
2. create a variety of options before deciding which to pursue
3. focus on interests, not positions
4. use objective criteria
,◉ people elements to negotiation.
Answer: differences of perception, emotions, communications
◉ differences of perception.
Answer: it is crucial for both sides to understand the other's
viewpoint
◉ emotions.
Answer: negotiation can be a frustrating process
◉ communications.
Answer: negotiators may not be speaking to each other, but may
simply be grandstanding for their respective constituencies
◉ establish a BATNA.
Answer: The Best Alternative To a Negotiated Agreement
◉ stonewalling.
Answer: this occurs when one side has no intention of reaching an
agreement unless there is an irresistible offer.
◉ good samaritan.
,Answer: the other side is using this technique when it acts as if it is
doing you a favor or making a great sacrifice with its offer in order to
put you off guard and persuade you to accept it
◉ opposition negotiation tactics.
Answer: stonewalling, good samaritan, take it or leave it, splitting
the difference, nickel and dime, good/bad cop, pity me, piece-by-
piece, total package, refusal to negotiate, status, escalating demands,
divide and conquer, defense, win/win
◉ take it or leave it.
Answer: when the other side has made its final offer and says it will
no longer negotiate
◉ splitting the difference.
Answer: this involves offering to cut the dollar difference in half,
thus avoiding the discussion of the details of the deal
◉ nickel and dime.
Answer: the other side wants to negotiate each and every point
◉ good/bad cop.
Answer: this tactic is used to elicit feelings of sympathy and
understanding in order to get concessions
, ◉ pity me.
Answer: this tactic is designed to rely on the sense of fair play and
make it hard to walk away
◉ piece-by-piece.
Answer: this tactic is used to negotiate each item of a contract
◉ total package.
Answer: this tactic is used when an offer is acceptable, but one or
two major elements still need to be negotiated.
◉ refusal to negotiate.
Answer: in this tactic the other side wants a concession even to talk
◉ status.
Answer: sometimes the party you are negotiating with is perceived
to have a higher status, such as when the president of a company
personally negotiates with a buyer.
◉ escalating demands.
Answer: extreme demands may be made to persuade you to lower
your expectations for a final agreement.