Collective Bargaining and Negotiation Model Question Paper

(Maximum Marks: 40, Maximum Allotted Time: 120 min)

Submitted by – Harshdeep Singh Hora (2012B2A4540G)

Instructions for Questions 1 to 7: Fill in the blanks with appropriate answers. Each blank carries 0.5
mark. Marks will be awarded only for completely correct answers. (0.5 x 10 = 5 marks)

1. __________ is the course of action that would be taken in the case of no agreement.
2. The price above which a buyer will not pay to make a purchase and below which a seller
would be unwilling to make a sale is called ______________.
3. According to the article “Getting Past Yes” by Danny Ertel, negotiators are of two types:
___________-minded and ______________-minded.
4. Based on the reading “Harnessing the Science of Persuasion”, the principle of persuasion
that states that people repay in kind is called the principle of _____________.
5. There exists a need for secrecy in a _______________, while the need for transparency is
important in a _____________.
6. A deal where one party “wins” by a particular amount, while the other party “loses” by that
exact amount is referred to as a ________________ game.
7. In the article “Six Habits of Merely Effective Negotiators”, the two forms of bias that can
prompt errors in the negotiation process are _______________ and ______________.

Instructions for Questions 8 to 12: The following questions carry 5 marks each. (5 x 5 = 25 marks)

8. Evaluate the importance of BATNAs in a negotiation process. You may base your answer on
the reading “Six Habits of Merely Effective Negotiators” by James K. Sebenius.
9. How would you deal with another party in a negotiation if you feel that they operate out of
their position and not their interests?
10. What do you understand by the term “anchor” in reference to a negotiation? What is the
importance of an anchor in a negotiation process? Evaluate the possible future course of a
negotiation in case the anchor is set at extremes.
11. Describe the conditions in which conducting an auction would be better than a negotiation.
12. What challenges are likely to be faced in a cross-border negotiation, especially when the
cultural contexts differ between the parties involved in the negotiation? What steps can be
taken to make such negotiations more effective?

Instruction for Question 13: The following question carries 10 marks. (1 x 10 = 10 marks)

13. Mr. Shahrukh is an angel investor who is looking to invest in a healthcare technology startup
as part of his portfolio. On the basis of his past investments, if he spots a startup business
with significant potential earnings, he negotiates for a major stake in the company,
essentially making him the owner of the company. In the past, he has been able to invest
and acquire several such startups which are now extremely profitable.

You are Mr. Chatur, who has founded a healthcare technology startup business which is
extremely innovative and offers several industry applications. Mr. Shahrukh has expressed
an interest in your startup and is willing to offer you the amount that you need as funding
for your startup. This works well for you, since you are desperately in need for funds for your
operations. However, you have reservations in allowing Mr. Shahrukh to become a principal
owner of your startup in lieu of the funding he is willing to provide to you. Luckily, as part of
the course “Collective Bargaining and Negotiation” that you studied during your MBA, you
remembered the methods of negotiating with people in power. On the basis of your
knowledge in this regard, describe your approach in a negotiation process with Mr.
Shahrukh.