L4M5 Exam Dumps - CIPS Level 4 Diploma in Procurement and Supply Questions and Answers

A useful and simple shorthand for preferred negotiation styles is summarised by four simple descriptor: 'warm', 'tough', 'logical' and 'dealer', which can be applied to describe individuals' dominant preferred style in most circumstances.

Warm - a people person

Tough - a hard-nosed negotiator

Logic - a numbers person

Dealer - a trader who loves bargaining

Strengths, weaknesses of dealer style are described below:

LO 2, AC 2.4

Trust develops when organisations consistently deliver on commitments—meeting deadlines, respecting terms, and fulfilling promises. While audits, contract management, and data gathering support oversight, they do not in themselves build trust. In collaborative negotiations, reliability becomes the foundation of long-term partnerships, reducing the need for constant monitoring. CIPS highlights that trust is fragile and must be reinforced through transparency, consistent behaviour, and alignment of actions with words. This credibility is more persuasive than any formal monitoring.

Distributive negotiation carries several risks beyond justlosing out on value. These includedamaging supplier relationships,eroding trust, andreaching an impasse, where neither party can agree. This could result in delayed projects, increased costs, or supplier withdrawal.

“Distributive negotiation can lead to a breakdown in communication, impasses, and long-term relationship damage. The win-lose mindset can prevent collaborative problem-solving.”

(L4M5 Commercial Negotiation, 2nd edition, Section 3.5 - Risks of Distributive Approaches)

Accepting gifts during a negotiation can createconflict of interestconcerns and may violate ethical standards. Best practice requires rejecting such offers to maintain transparency and objectivity in decision-making.

Essentially, for trained negotiators under most circumstances, the physical locations of negotiations and the room layout should not make much difference to the outcomes of the meeting. It is reasonable to assume that most commercial negotiations are based at least initially on a principled- or pragmatic-type approach. It is arguable also that any advantage gained through intentionally creating an uncomfortable environment to put short-term pressure on TOP is likely to be short-lived as TOP will likely reflect on this later and seek means to get even.

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.

Avoiding is unassertive and uncooperative. When avoiding, an individual does not immediately pursue his or her own concerns or those of the other person. He or she does not address the conflict. Avoiding might take the form of diplomatically sidestepping an issue, postponing an issue until a better time, or simply withdrawing from a threatening situation.

LO 1, AC 1.1