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.