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CIPS L4M5 Exam Syllabus Topics:

SectionObjectives
Understand how to prepare for negotiations in procurement and supply- Analyze the factors that impact on the approach to commercial negotiations
  • 1. Policies, procedures and protocols
  • 2. The position of buyers and sellers
  • 3. Ownership and stakeholder perspectives
  • 4. The impact of time limits and deadlines
- Understand how to prepare for a negotiation
  • 1. Defining objectives and variables
  • 2. The best alternatives to a negotiated agreement (BATNA)
  • 3. The use of bargaining mixes and trade-offs
  • 4. Zones of potential agreement (ZOPA)
Understand the stages of commercial negotiations in procurement and supply- Understand the stages of a commercial negotiation
  • 1. Closure and agreement implementation
  • 2. Preparation and planning
  • 3. Clarification and justification
  • 4. Bargaining and problem solving
  • 5. Defining the ground rules
- Analyze the types of approaches that can be pursued in commercial negotiations
  • 1. The influence of power and trust in negotiations
  • 2. Distributive (win-lose) approaches
  • 3. Pragmatic and principled approaches
  • 4. Integrative (win-win) approaches
Understand the interpersonal skills required for effective negotiation- Analyze the interpersonal skills required for effective negotiation
  • 1. Questioning and listening skills
  • 2. Assertiveness
  • 3. Body language and non-verbal communication
  • 4. Influencing and persuasion skills
- Understand the behavioral aspects of negotiation
  • 1. Conflict handling styles
  • 2. Perception and bias
  • 3. Ethical and unethical practices
  • 4. Concessions and trade-offs

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CIPS Commercial Negotiation Sample Questions (Q78-Q83):

NEW QUESTION # 78
Which of the following are behaviours that builds trust between the buyer and the supplier in business relationship? Select TWO that apply.

Answer: B,C

Explanation:
Trust-building behaviours are as following:
Joint-effort issue resolution
Open sharing of information
Open and honest discussion on root cause of failures
Joint planning focusing on value for money and risk sharing
Commercial transparency and co-proposition of cost reduction and service improvement programmes Joint recognition and celebration of successes


NEW QUESTION # 79
The sourcing manager has decided to adopt an adversarial style of negotiation to take advantage of the buyer's greater bargaining power over the suppliers. In what other circumstances should an adversarial relationship be used?

Answer: A

Explanation:
An adversarial style is appropriate when issues are non-negotiable, such as health and safety commitments (D). In these scenarios, compliance is required without compromise, and a firm stance may be necessary. This aligns with CIPS guidance, where adversarial tactics are used in non-negotiable contexts to enforce strict standards.


NEW QUESTION # 80
Which of the following is the most appropriate approach to investors or shareholders who have high level of influence but low interest in the running of business?

Answer: B

Explanation:
Investors or shareholders who have high level of influence but low interest belong to 'Keep satisfied' quadrant of Mendelow's Stakeholder Matrix.
You may read 2 versions from L4M1 and L4M5 here:

Table Description automatically generated

LO 1, AC 1.1


NEW QUESTION # 81
Personal power is only used in distributive approach. Is this statement true?

Answer: B

Explanation:
Explanation
Power, or more precisely perceptions of power,are critically important in understanding the commercial negotiation process. From a commercial negotiation point of view (under any circumstances, either integrative or distributive approach), CIPS is interested in power from both a personal and organisational perspective.
When you are negotiating on behalf of your employer, you bring the power of your organisation (its brand, reputation and purchasing spend) as well your own personal power (6 sources of personal power, based on French and Raven's power base model) to the negotiation.
In both integrative and distributive approaches, personal power plays an important role. It helps both parties push through negotiating barriers and secure commitment and final agreement LO 1, AC 1.3


NEW QUESTION # 82
According to Fiona Dent and Mike Brent, which of the following are characteristics of Push approach? Select TWO that apply.

Answer: A,C

Explanation:
According to the book 'Influencing: Skills and techniques for business success' by Fiona Dent and Mike Brent, there are two major influencing styles. Push tends to be directive. It tells, and is clear and resolute, but needs to be employed in situations where firmness is required because of difficulties that exist or weakness is evident. Pull is more participatory and collaborative. It seeks to incorporate everyone's perspective. It can appear wishy-washy if not skilfully employed. That approach should be followed which is most likely to secure commitment and not mere compliance.
The two divisions can be further divided into four style categories: directive; persuasive reasoning; collaborative - team oriented, people oriented to inspire them with a vision. The directive style relies on your expertise and reputation being respected by others, and where there really does seem to be one answer. It is
"I" driven whereas persuasive reasoning is more "we" and issue driven. Directive styles can make the user appear as "a bull in a china shop"; persuasive reasoning can be portrayed as tough guy.
Collaborative influencing takes the "we" element further and seeks to mobilise everyone's ideas in a journey of discovery. It may have the flavour of "I'm your best friend", which may not go down too well. Visioning style is concerned to stir people's emotions in support of achieving an objective. This last one has been used by demagogues to stir people's hearts and minds for evil purposes as well as good.
A useful table offers the benefits, problems, words and body language associated with each style along with advice on when to use and when to avoid each. Cases and exercises illustrate these styles.
Empathy comes in for extended treatment with the definition of "standing in the other's shoes". This does not necessarily happen just intuitively, and therefore before a specific influencing effort there should be an intense effort to think about the other person or persons and to sense what it might feel like to be them - their hopes, fears, concerns, what turns them on, what turns them off, where are they coming from.


NEW QUESTION # 83
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