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CIPS L4M5 Exam Syllabus Topics:

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

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                        CIPS Commercial Negotiation Sample Questions (Q352-Q357):

                        NEW QUESTION # 352
                        Listening is a key activity in negotiation. Which of the following are characteristics of effective listeners?
                        * Showing empathy
                        * Persuading
                        * Paraphrasing
                        * Offering immediate solutions

                        Answer: B

                        Explanation:
                        Effective listeners demonstrate empathy and use paraphrasing to confirm understanding. These skills help build rapport, validate the speaker, and ensure accurate interpretation. Persuading and immediate solutions are active interventions, not listening behaviours. CIPS emphasises active listening as central to persuasion and relationship building in negotiation, enabling buyers to uncover underlying interests and respond appropriately.
                        Reference: CIPS L4M5 (2nd ed.), LO 3.2 - Listening and questioning as persuasive communication tools.


                        NEW QUESTION # 353
                        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?

                        Answer: B

                        Explanation:
                        The assumption is false, because when a procurement 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.


                        NEW QUESTION # 354
                        Which of the following method should be used in negotiation if both parties want to communicate verbally and non-verbally without having to meet face-to-face?

                        Answer: A

                        Explanation:
                        Using webcams in a web conference means you are able to communicate both verbally and non verbally.
                        Over the phone, you cannot see TOP, the only cue/signal you have regarding their mood, interest and attitude is person's voice, intonation and any delay.
                        A teleconference is a telephone meeting among two or more participants involving technology more sophisticated than a simple two-way phone connection.
                        In-person meeting requires you team and TOP to be in the same place at the same time.
                        LO 2, AC 2.4


                        NEW QUESTION # 355
                        Which of the following is the definition of safety margin?

                        Answer: C

                        Explanation:
                        :
                        As a financial metric, the margin of safety (safety margin) is equal to the difference between current or forecasted sales and sales at the break-even point. The margin of safety is sometimes reported as a ratio, in which the aforementioned formula is divided by current or forecasted sales to yield a percentage value. The figure is used in both break-even analysis and forecasting to inform a firm's management of the existing cushion in actual sales or budgeted sales before the firm would incur a loss.
                        This is a question that a student met in her actual exam. The margin of safety is not even mentioned in the CIPS study guide.


                        NEW QUESTION # 356
                        AB Manufacturing seeks to buy a new materials resource planning (MRP) software system. At the 'defining the business need' stage of the procurement cycle, the procurement manager ensured that all the internal stakeholders involved had the power to contribute and sign off on requirements. For the MRP system, the procurement manager consulted the head of production planning of AB Manufacturing. The head of production contributed to demand levels, existing manufacturing planning, and existing staff levels. What type of power does the head of production demonstrate?

                        Answer: D


                        NEW QUESTION # 357
                        ......

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