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CIPS L4M5 Exam Syllabus Topics:

SectionObjectives
Topic 1: Power, ethics and communication in negotiation- Influencing factors
  • 1. Communication and interpersonal skills
    • 2. Ethical considerations in negotiation
      • 3. Sources of negotiation power
        Topic 2: Negotiation strategies and tactics- Approaches to negotiation
        • 1. Tactical behaviours and influence techniques
          • 2. Concession strategies
            • 3. Collaborative and competitive strategies
              Topic 3: Negotiation planning and preparation- Preparation techniques
              • 1. BATNA and reservation points
                • 2. Information gathering and analysis
                  • 3. Setting objectives and targets
                    Topic 4: Negotiation fundamentals- Principles of commercial negotiation
                    • 1. Definition and purpose of negotiation
                      • 2. Types of negotiation (distributive vs integrative)

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                        CIPS Commercial Negotiation Sample Questions (Q271-Q276):

                        NEW QUESTION # 271
                        Which of these personal power bases stems from the manager's position in the organisation and the authority that lies in that position?

                        Answer: B

                        Explanation:
                        Explanation
                        Legitimate power comes from the belief that a person has the formal right to make demands, and to expect others to be compliant and obedient. Legitimate power comesfrom rules, formal authority, organisation rank, staff grade or official position held. In commercial negotiation, legitimate power can be demonstrated by job title and rank.
                        LO 1, AC 1.3


                        NEW QUESTION # 272
                        In which of the following scenarios could you adopt a distributive-based negotiation approach?

                        Answer: C


                        NEW QUESTION # 273
                        Which of the following roles would support negotiations with an external supplier when planning a negotiation for a low-value, routine purchase? Select TWO that apply.

                        Answer: B,E

                        Explanation:
                        For low-value, routine purchases, the involvement of The procurement manager (C) and An internal business user (E) is appropriate. The procurement manager brings expertise in supplier engagement, while the internal business user provides insights on specific needs for the product or service. Involving high-level roles, like the CEO or a legal advisor, is unnecessary for routine purchases, as per CIPS guidance on resource alignment in procurement.


                        NEW QUESTION # 274
                        XYZ Ltd decides to go to market for a cleaning contract to service a number of offices. It knows that it will get a price which may, or may not, be better than the one it is currently paying. To gain leverage in the marketplace, the organisation decides to add other related services to the scope, such as gardening, security and maintenance, which increase the value of the contract. This is an example of which forms of spend consolidation?

                        Answer: D

                        Explanation:
                        Buying organisation may increase its leverage with suppliers by concentrating spend. Supplier spend consolidation can take many forms as outlined below:
                        - Vendor base reduction: straightforward reduction of number of suppliers in any category
                        - Volume pooling: pooling cross organisational requirement until your order volume is high enough to attract new bidders/additional discounts
                        - Volume redistribution: making recommendations following spend analysis to move from one supplier to another
                        - Volume consolidation across categories: certain purchase requirements may be common across a number of categories. In the scenario, XYZ has combined different categories but closely related to office services into a larger contract so that they can increase their leverage.
                        - Standardisation and harmonisation of specifications: analysis of specifications and standards for a high spend purchased input, may show that there is a little difference between them and that the specification can be standardised or at least harmonised across the group or across national, regional or global operations.
                        - Forming purchasing consortia: buyers may decide to come together and combine their purchase volumes to attract better deals.
                        LO 1, AC 1.3


                        NEW QUESTION # 275
                        Which of the following is active listening?

                        Answer: B

                        Explanation:
                        Summarising what has been said is a key component of active listening, as it demonstrates understanding and engagement in the conversation. Active listening involves confirming and clarifying information, which helps build rapport and ensures accurate communication, as outlined in CIPS's guidelines for effective negotiation communication.


                        NEW QUESTION # 276
                        ......

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