Project Management Professional PMP · Free Practice Question Medium
Question 81
Mike is a project manager who is a very skilled negotiator. He has honed his skills over several years and after making a few mistakes along the way. He started by negotiating too softly and always giving in. Then he overcorrected by negotiating too hard. Later in his career, he settled into a principled negotiation approach. Which one of the following statements best describes Mike's approach to contract negotiation?
- A Aim for fair and equitable agreements.
- B Get the best deal for the organization.
- C Only negotiate from a position of strength or advantage.
- D Never reveal your actual number.
Reveal correct answer
Correct answer: A
Explanation
The best choice is to aim for a fair and equitable agreement for both parties. This means that the vendor and Mike's organization agree to what is being purchased and the price point that will be paid to the vendor. A good deal is when both people feel like they have won and are happy. Never revealing your actual number may be good negotiating advice for some, but it is not the best choice presented. Sometimes you will need to reveal your budget to determine what you can afford from the vendor. You cannot always negotiate from a position of strength. For example, consider a small organization negotiating a sale to a large enterprise. The small organization cannot necessarily negotiate from strength in that scenario. Getting the best deal for the organization seems like a good choice, but it does not consider what is fair for the products or services the vendor is providing. The best choice is fair and equitable contract negotiations.Discussion
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