Which of the following are advantages of having an agenda within a negotiation? Select TWO.
Answer : A, C
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.
Question 2
Which of the following behaviours can lead to a breakdown in trust because of the perceived lack of honesty? Select TWO
Answer : B, C
Behaviours that undermine honesty (e.g., exaggerated claims and favouritism) 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.
Question 3
In which circumstances may a buyer suggest that a negotiation meeting be held at the supplier's premises?
Answer : C
Holding a meeting at the supplier's site allows the buyer to gain insights into the supplier's capacity, infrastructure, culture, and quality systems. This firsthand observation strengthens understanding and informs negotiation strategy.
Question 4
The pain/gain share approach is used to incentivise contractors in long-term contracts to achieve a target cost or extra efficiencies. In which industry is this mechanism most common?
Answer : A
Construction projects often use pain/gain share mechanisms to align contractor performance with client objectives. They balance risk and reward---sharing savings or overruns based on project outcomes.
Question 5
In Herzberg's Two-Factor Theory, which of the following factors affect motivation? Select TWO
Answer : A, C
Herzberg identified motivators (e.g., achievement, recognition, responsibility) that increase satisfaction, and hygiene factors (e.g., pay, conditions) that prevent dissatisfaction. Both affect workplace motivation in different ways.
Question 6
When you have awareness of a skill but are not yet proficient, which stage of competence applies?
Answer : D
Conscious incompetence means 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.
Question 7
Jonathan is a procurement manager who has been asked to gather primary data for an upcoming negotiation. He sends out a survey. Was this correct?
Answer : A
Primary data is original information gathered firsthand for a specific purpose---such as surveys, interviews, or focus groups. By contrast, secondary data comes from existing sources. A survey, therefore, is an appropriate primary data-gathering tool.
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