R.

K Institute of Management & Research

Negotiation & Selling skills

4th Session - Negotiation Models

(BATNA, Dyad, ZOPA, 9 Grid)
 Negotiation Models

• BATNA – Better Alternative To a Negotiated Agreement

• ZOPA – Zone Of Possible Agreement

• DYAD – Interaction between 2 people

• 9 Grid –Potential and Performance matrix

 BATNA
BATNA – Better Alternative To a Negotiable Agreement

• Convince others about your BATNA

• Use various Sources of Power to strengthen BATNA

• Can be used as a powerful weapon

• Wide areas of application in day-to-day life

 Leveraging power from your BATNA
BATNA – The most essential source of bargaining power is
the ability to walk away

• Believing that you have a strong BATNA

• Changes in BATNA can occur during Negotiation process

• Can result in a WIN-LOSE type of outcome

 Negotiation Models

• BATNA – Better Alternative To a Negotiated Agreement

 BATNA -Leveraging sources of Power
• Reward Power: Controlling resources that could offer a
reward
• Coercive Power: Controlling resources that could punish
• Legitimate Power: Position or Authority offers an
additional power
• Expert Power: Controlling the relevant knowledge or
information- choosing either to communicate or not
• Reference Power: Personal attributes like charisma,
intellect, determination, confidence etc.
 BATNA -Leveraging through Persuasion
• Framing the Question
• Creating Persuasive Arguments –logos /pathos /ethos
logos(logic) - focus on the rationality of the argument
pathos(passion) – focus on the emotion involved in an argument
ethos(character) – focus on the person making the argument

• Using Persuasive Language

• Focusing on the Listener’s Perspectives
 Tools for Persuasive Communication
• Verbal Communication

• Non-verbal Communication

• Stereotyping and Prejudice

• Understanding Emotions
 Persuasion through Process
• Whom to Influence and How

• Shape Perceptions of Interests and Goals

• Use a Negotiating process that fosters a beneficial

outcome for both the parties
BATNA -Leveraging through Pressure Tactics
• When and how to use Power

• Use of Threat in a Negotiation

 Negotiation Model -ZOPA
Its a zone or a range wherein the two entities discussing
with each other come to a mutual settlement. In this
range, both the parties agree to the terms & conditions
of their deal and finally the deal is completed.
Zone of Possible Agreement, is the area where parties
negotiate and bargain with each other in order to
maximize their benefit from the deal; eventually come
to a consensus to strike the deal.
Negotiation Model -ZOPA
 DYAD model …
• Defined as a group of two people, the smallest possible social
group - "dyadic" describes their interaction
• Lasting communication of ideas between two people for long
duration of time or any intensive duration of deeper impact is
called Dyadic communication
• Pair in a dyad can be linked via romantic interest, family relation,
interests, work, partners in crime etc. Relation may be equal,
asymmetrical or hierarchical
• Strength of DYAD depends on time spent together and
emotional intensity of the relationship etc.
• DYAD can be unstable because both persons must cooperate to
make it work. If one of the two fails to complete their duties, the
group would fall apart
 Negotiation Model - 9 Grid
• McKinsey developed the 9 Box matrix in the 1970s to help GE
prioritize investments across its 150 business units
• Later on, Human Resources teams co-opted this model as a
talent management tool, and replaced the two industry axes
with people specific ones: performance and potential
• The main goal of the 9 Box Matrix is to categorize employees,
determine which to promote, retain and invest in, and which to
reallocate
• Individual managers categorize employees, starting with the
stars as benchmarks and move down and across the matrix to
fill out the rest
• Then management team meets to calibrate their
categorizations which are then converted into compensation
and appraisal
 9 Grid model …
PERFORMANCE LOW MEDIUM HIGH
/ POTENTIAL

LOW Under Effective Trusted

Performer Employee Professional
Enigma Growth STAR
Employee
MEDIUM Assess Core High Impact
Employee Contributor

HIGH Enigma Growth STAR

Employee
9 Grid model …
 Leveraging power from your BATNA
BATNA –Best alternative to a negotiated agreement –The
most essential source of bargaining power is the ability to
walk away

• Believing you have a strong BATNA

• Convincing others of the strength of your BATNA

• Changes in BATNA during the Negotiation process

 Leveraging the sources of Power
• Reward Power: Controlling resources that could offer a
reward
• Coercive Power: Controlling resources that could punish
• Legitimate Power: Position or Authority offers an
additional power
• Expert Power: Controlling the relevant knowledge or
information- choosing either to communicate or not
• Reference Power: Personal attributes like charisma,
intellect, determination, confidence etc.
 Leveraging power through Persuasion
• Framing the Question
• Creating Persuasive Arguments –logos /pathos /ethos
• Using Persuasive Language
• Focusing on the Listener’s Perspectives
• Tools for Persuasive Communication—Verbal/Non-
verbal/Stereotyping & Prejudice/ Undertsanding Emotions

• Persuasion through Process –Who /How /What

• Persuasion through Pressure tactics