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BATNA Negotiation Essay Example

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BATNA Negotiation

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BATNA Negotiation. A well defined BATNA prior to negotiation will assist the negotiator to identify between an attractive agreement and an unfavourable one 2005).Reservation price, unlike BATNA, is the least favourable outcome that one would accept as a negotiated agreement. This is the bottom line or the walk away price that a negotiator is ready to give or willing to get out of a negotiated agreement. Reservation price is derived from and sometimes can be the same as BATNA but they are two different concepts (Brett, 2007). Following example would better explain the difference between BATNA and reservation price:A business owner pays $15/square foot for his current office space in a suburban location. He is happy with the office and believes it is a fair price.

But he would be willing to pay $25/square foot for an office space in an urban location which puts him closer to his customer and gives him a strategic advantage. Therefore in this situation if he decides to look for office space in an urban location, then $25 would be his reservation price (the bottom line) and $15 would be his BATNA (best alternative).Therefore, it is very important for a negotiator to know his/her reservation price before going into negotiation. Knowing the reservation price gives clarity to a negotiator and allows him/her to make an informed decision.Irrespective of the reasons, unethical behaviour must be avoided under all circumstances. Success of a negotiation is negatively affected by unethical behaviour. Lying, manipulation, retracting, unfair competitive practices are some of strategies that fall under the category of unethical behaviour.Dealing with coalitions: In order to influence the outcome in a better way, subgroups join together to form coalitions. Coalitions might not share common interests but work together as the power of all parties is increased. Off-channel communication strategies are needed in order to form coalitions and these can be harmful or helpful based on negotiation type and the side you support.Formulating trade-offs: Trade-offs is the exchange of favours between parties to reach an agreement. One party offers another party something of value in return of something that is of value to the first party.Voting and Majority Rule: The main purpose of voting is to suppress minority opinion. But in a multiparty negotiation, voting is used for strategic purposes and groups tend to. BATNA Negotiation.

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References

Brett, J.M. (2007). Negotiating Globally: How to Negotiate Deals, Resolve Disputes, and Make Decisions Across Cultural Boundaries. NJ: John Wiley & Sons.

Carrell, M.R. & Heavrin, C. (2008). Negotiating Essentials: Theory, Skills, and Practices. NJ: Prentice Hall.

Mannix, E.A., Overbeck, J.R. & Neale, M.A. (2011). Negotiation and Groups. Bingley: Emerald Group Publishing.

Oliver, D. (2010). How to Negotiate Effectively. PA: Kogan Page Publishers.

Society for Human Resource Management (2005). The essentials of negotiation. Boston, MA: Harvard Business School Publishing.

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