BATNA
BEST ALTERNATIVE TO NEGOTIATED
AGREEMENT
GROUP MEMBERS
Aditee Sharma.
Komal Anusaye.
Hussain Baji.
Ravi Bhadauria.
Suraj Bhandare.
Negotiation
An interactive process
between two or more parties
seeking to find common ground on an
issue/ issues of mutual interest or dispute
where the involved parties seek to make or find a mutually
acceptable agreement that will be honoured by all the
parties concerned.
Negotiation Agenda: A formal agreed upon list of goals
to be achieved.
Negotiation Meeting: Negotiation meetings are typically
where most of the deal is negotiated.
Whenever we are confronted by a conflict, we
have three sets of needs to be negotiated:
Substantive needs -the problem that we feel needs to be
solved.
Procedural needs- relate to the process of addressing
these substantive needs.
Psychological needs -relate to a fostering a safe
environment.
Alternatives to negotiating are commonly
divided into three categories:
Best Alternative to a Negotiated Agreement (BATNA)
Worst Alternative to a Negotiated Agreement (WATNA)
Most Likely Alternative to a Negotiated Agreement -
(MLATNA)
BATNA:
An acronym by Roger Fisher and William Ury
Best Alternative to a Negotiated Agreement.
It is the alternative action that will be taken when an
agreement fails to materialize.
Prior to the start of negotiations, each party should have
ascertained their own individual BATNA.
Determining Your BATNA
BATNAs are not always readily apparent. Fisher and Ury
outline a simple process for determining your BATNA:
1. Develop a list of actions you might conceivably take if
no agreement is reached;
2. Improve some of the more promising ideas and convert
them into practical options; and
3. Select, tentatively, the one option that seems best
Characteristics of batna
BATNA gives you confidence.
BATNA is a benchmark
BATNA must be realistic
BATNA can be improved
EXAMPLE
suppose you want to have an air conditioner installed in
your office.
You have a coupon from the newspaper that offers
instalment within one week for Rs20000.
This could be your BATNA as you enter into negotiations
with another provider.
You know that, should the negotiations fail, you can
always have the air conditioner installed for Rs20000
within one week.
You’re negotiating with the other provider to come to a
better agreement than this.
When a negotiator fails to explore its
BATNA,
Strong internal pressure to make an agreement.
They will face the peril of becoming committed to reach
an agreement.
They will become beholding to the whims of the law of
agreement.
BATNAs and the Role of Third Parties
"How could you do that?
What would the outcome be?
What would the other side do?
How do you know?
" Or the third party may simply insert new information
into the discussion
Let see with a small example
negotiating for a salary increase with my current boss
number of options and alternative available can offer
Boss can offer me a big increase, no increase, or an
increase of any number of figures in between.
Increment on performance, the cost of living, or relations
with company
If boss cannot reach an agreement
I still have a choice
I can resign. What, then, other alternatives?
Another company, change careers, resume my studies,
retire early, start your own business
Or run away and join the circus.
strengthen your position using BATNA:
1. You can improve your BATNA.
2. You can determine the other side's BATNA.
3. You can weaken the other side's BATNA.
Knowing your BATNA before you begin a negotiation will
give you additional power to get what you want.
