Alpha Ltd, a French company deals with the network safety. This company enters into agreement with
Company X to organize files and protect sensitive data from hacking. The French company appoints two
experienced software engineers to work in the premises of the Company X. Going through the files of
Company X, both engineers (Ben and Tom), looked at some information that was harmful to French
Government. The information was about a special rocket to be dropped over Paris. If this would have
happened the estimated number of people killed would reach 300,000 in the first two hours. According to both
rules of Company X and contract, engineers were bound to not disclose any information to public or third
Engineer Ben was thinking to immediately inform French government about this information although this
could cost him and his company a lot. Saving the lives of hundreds of thousands of people is more important
than saving the interest of one company. Therefore, Ben decided to report this information to French
government. Engineer Tom had a very good offer by Company X to continue to work for them even after the
contract with Alpha Ltd will finish. After hearing the concern of Ben, Tom thought that the information they
saw was just an information and was unclear whether it was serious. According to his moral beliefs someone
should be very cautious to jump into conclusion. On top of that, Tom has a contract with Alpha Ltd which
requires him to maintain confidentially and not reveal any sensitive information of the company to third parties
during his job with Company X. Tom argued further that their job is only to keep safe the network of Company
X and nothing more than that. So, Tom disagrees with Ben.

Ben and Tom had a dispute about the information about launching of the rocket over Paris. In a hot
discussion Ben challenged Tom and asked him whether he looked at the plan and whether understood the
risk it entails to French people and humanity generally. Tom’s reaction was that Ben always like conspiracy
theories and this is because he reads a lot of espionage books.
Which deceptive tactic Tom used to trick Ben
and reason why? (5 points)

B) Tom told to his wife what happened between him and Ben. He explained to her the way he replied to Ben.
She disagreed with the Tom’s reply and asked him why he behaved in this way. Tom’s answer was that the
offer he received by Company X was five times higher than his current salary he gets from Alpha Ltd. At the
end of the day what he cares most is his career. In addition, Tom told his wife that Ben deserved that answer.
Tom continued saying that Ben always wants to make things look dramatic. And, with Benit isis very difficult
to speak differently. It is the only way to stop Ben from continuing his conspiracy theory-like behaviour with
his workmates.
What justifications/rationalizations did Tom use to convince his wife? And what is the
factor that shaped Tom’s predisposition to use an unethical technique? Discuss your answer. (15 points)

2. A) Explain the main differences between Stereotyping and Halo effects and justify your answer with
examples please. (5 points)
B) Show and explain which of the cognitive biases applies to the following
B1) In a salary negotiation, job applicant, Bob, who assumes that salary is the only issue insists on $55, 000 when
the employer is offering $52, 000. Only when the two parties discuss the possibilities further, they discover that
Bob’s moving expenses and starting date can be also negotiated, which may facilitate resolution of the salary
(5 points)

B2)After investigation and analysis of Tom before surgery, doctor said that Tom has 10% chance of deathafter
the surgery. Tom becamevery nervous. He changed his doctor. His new doctor said that the surgery has %90
survival rate. Then he decided to have the surgery.
(5 points)

B3) In an antique store Helena saw a clock that she and her husband fell in love with. After spending the
afternoon in the neighborhood deciding a negotiation strategy (opening offer, bottom line, timing) she and her
husband returned to the store to enact their strategy. The store owner accepted their first offer. Upon arriving
home, sufferingfrom the purchase, they left the clock in the garage, where it remains collecting dust.
(5 points)

3. A) Explain the importance of ‘Reputation’ in managing negotiations within relationships. (10points)

B) On February 14, 2007 (Valentine’s day in the US) airline JetBlue suffered a major crisis. Two inches of snow
and ice at JFK airport led to 1,000 flight cancellations, massive delays, and passengers stranded on planes for
up to nine hours.JetBlue founder andCEO David Neeleman wasfacedwiththe challenge of how to repair the
public’s trust in a way that would strengthen the strong brand identity that the company had created. In the
week following the crisis, he appeared in every local and national news media. He accepted responsibility for
bad decisions and organizational problems. He apologized repeatedly, promised refunds for stranded
passengers, and promised to fix the problems that created the disaster. He also introduced a customer ‘bill of
rights’. Two weeks after meltdown, 43 percent of a sample of people visiting JetBlue’s website said the airline
was still their number-one favorite.
After using which strategies, did Neeleman become successful to repair the passenger’s trust. Please justify
your answer. (20 points)
4. A) Write three results according to theories and empirical findings about gender differences in
negotiation. Please explain your answer by giving examples. (10 points)
B) Please explain what Conflict Management Style is. Discuss which conflict management style do ‘Proself’ and ‘Pro-social’people in Social Value Orientations prefer?Discuss which conflict management
style do ‘internals’ and ‘externals’ in the Locus of control prefer? Justify your answer please. (20 points)

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