Under EU public procurement directives, which of the following are procedures in which there is no commercial negotiation allowed?
Correct Answer: B,C
Explanation Under the European Union public procurement directives, all public sector bodies must abide by certain rules when they procure goods and services over a threshold value. Theserules are codified under 5 procurement procedures: 1. Open Procedure 2. Restricted Procedure 3. Competitive Dialogue 4. Competitive Procedure with Negotiation 5. Innovation Partnerships. Under normal circumstances, there is no commercialnegotiation allowed under the two most commonly used procedure, Open and Restricted. Under these procedures, the prices and terms and conditions of contract should be decided via reference only to the tenderers' responses to the buyer's requests for tenders, and not through 'post-tender negotiation'. Under the other procedure, negotiation within the rules is permitted. Interested learners can read more about these procedures here. LO 1, AC 1.1
Question 47
Which of the following are examples ofnon-verbal negotiation? Select THREE that apply.
Correct Answer: B,D,F
Explanation Nonverbal communication is important because it gives us valuable information about a situation including how a person might be feeling, how someone receives information and how to approach a person or group of people. There are several types of nonverbal communications you should be aware of, including: 1. Body language Body language is the way someone situates their body naturally depending on the situation, the environment and how they are feeling. Example: Someone might cross their arms if they are feeling angry or nervous. 2. Movement The way you move your arms and legs such as walking quickly or slowly, standing, sitting or fidgeting, can all convey different messages to onlookers. Example: Sitting still and paying attention in a meeting conveys respect and attention. 3. Posture The way you sit or stand can also communicate your comfort level, professionalism and general disposition towards a person orconversation. Example: Someone might slouch their shoulders if they feel tired, frustrated or disappointed. 4. Gestures While gestures vary widely across communities, they are generally used both intentionally and unintentionally to convey information toothers. Example: Someone in the United States might display a "thumbs up" to communicate confirmation or that they feel positively about something. 5. Space Creating or closing distance between yourself and the people around you can also convey messages about your comfort level, the importance of the conversation, your desire to support or connect with others and more. Example: You might stand two to three feet away from a new contact to respect their boundaries. 6. Paralanguage: Paralanguage includes the non-language elements of speech, such as your talking speed, pitch, intonation, volume and more. Example: You might speak quickly if you are excited about something. 7. Facial expressions One of the most common forms of nonverbal communication isfacial expressions. Using the eyebrows, mouth, eyes and facial muscles to convey can be very effective when communicating both emotion and information. Example: Someone might raise their eyebrows and open their eyes widely if they feel surprised. 8. Eye contact Strategically using eye content (or lack of eye contact) is an extremely effective way to communicate your attention and interest. Example: Looking away from someone and at the ground or your phone may convey disinterest or disrespect. 9. Touch Somepeople also use touch as a form of communication. Most commonly, it is used to communicate support or comfort. This form of communication should be used sparingly and only when you know the receiving party is okay with it. It should never be used to conveyanger, frustration or any other negative emotions. Example: Placing your hand on a friend's shoulder may convey support or empathy.
Question 48
An experienced procurement professional is developing strategies for forthcoming negotiations with her key supplier. To avoid negotiation deadlocks, she identifies the reasons whynegotiations could fail. Which of the following are most likely to be reasons for negotiation failures? Select TWO that apply.
Correct Answer: A,E
It has been said that most negotiations are won (or lost) at the preparation stage. Success in a negotiation cannot be claimed unless you can refer back to your objectives and show how you have achieve them. In broad terms, negotiation plans/strategies involve 4 key activities: 1. Developing and prioritising your objectives and limits 2. Seeking to understand TOP's objectives 3. Developing concession plans 4. Planning the resources and logistics required and agreeing team roles. Questions to gain an understanding of why a negotiation failed Did we collect and make effective use of all information available when preparing for the negotiation? Did we set objectives for the negotiation that were stretching and achievable and established MIL objectives? Did we determine a strategy for the negotiation? Did the other party understand our needs correctly? Were we aware of the underlying interests of the other party? Were our proposals convincing enough for acceptance by the other party? Did we explore different variables in the negotiation? Did we fully understand all proposals? Did we give any unplanned concessions and did we check the importance of these? Did we focus on common interests? Did we ask a range of questions? Did we get answers to all our questions? Could we answer all the questions addressed to us in a proper and positive way? Did we summarise effectively? Did we use different methods of persuasion in the negotiations? Which tactics did we use and what effect did they have? Did our negotiating team work well as a team? Did we help to create a co-operative atmosphere
Question 49
In a commercial negotiation, a procurement professional negotiates on his company's behalf. The power of buying organisation is the only factor that influences the behaviours of the other party. Is this assumption true?
Correct Answer: B
The assumption is false, because when aprocurement professional negotiates on behalf of his employer, he brings the power of his organisation (its brand, reputation and purchasing spend) as well his own personal power (that which is embedded within him) to the negotiation. From a negotiation perspective, both organisational and personal power have the ability to influence the behaviours of other or the cause of event. This power is clearly core to negotiation, and of enormous important in seeking to achieve the objectives.
Question 50
Which of the following are recognised techniques in contract negotiation? Select THREE that apply.
Correct Answer: A,C,F
Explanation The question asks about negotiation techniques which are not present in the book. In this question, there are only 3 recognised techniques: - Framing and reframing: A frame is an assumption, or set of assumptions, that guides our attention and behavior. Reframing is the ability to identify and significantly change assumptions or perspectives. Framing has a significant impact on the effectiveness of negotiation outcomes and negotiator working relationships. You can read more on framing and reframing here. - Anchoring: Anchoring bias is well-known cognitive bias in negotiation and in other contexts. The anchoring bias describes the common tendency to give too much weight to the first number put forth in a discussion and then inadequately adjust from that starting point, or the "anchor." We even fixate on anchors when we know they are irrelevant to the discussion at hand. You can read more on anchoring here. - Pacing and leading: Pacing and leading is a two-step lever of persuasion. First - You "match your pace" to the person you want to influence in as many ways as possible. You can do this by mimicking the way the person talks, stands, their appearance, etc. You can also mimic less tangible aspects like the way they act, or their emotional state.Second - Once you've set your pace with someone, lead them to whatever decision or behavior you want them to take! You can read more on pacing and leading here.
