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BATNA: Roe and Purpose

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In negotiations, an acceptable outcome is not always reached. Having a strong BATNA defined during your preparations for negotiation is a must. The stronger your BATNA, the more you can potentially ask for in your negotiation. There's no shame in walking away from the table if your BATNA is a better deal than the negotiations can provide for you; in fact - it is often the right thing to do in such cases.

Please summarize the role and purpose of a BATNA and explain how one is chosen. What would be an example of a BATNA in a workplace conflict situation?

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This posting describes the role and purpose of BATNA in negotiation.

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BATNA means the Best)Alternative To a Negotiated(Agreement. The meaning is that it is the most useful option that a negotiating party can avail itself of if negotiations break down and there is no contract. To a bargained, BATNA is an opportunity if negotiations collapse. The role of BATNA is that it gives an opportunity if the bargaining fails, gives power to the negotiating party, and helps fix the reservation point for the negotiator. The key source of power is that the BATNA provides a good alternative to negotiation if the talks cannot reach an agreement (a). The main importance of BATNA is that finding out the BATNA before negotiation helps the bargainer know and understands the alternatives available to him if the negotiations fall short. The main point of BATNA is that when negotiators fail BATNAs exist, it is the most attractive opportunity available if talks stop working, and BATNA can be used to fix the reservation value. When preparing for negotiations, the negotiators can improve their position by finding and studying several BATNAs.

The first step for choosing a BATNA is to list all alternatives if the current negotiations fall short. The second step is to assess the options based on the value of following an option. The ...

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Kasim Johar, MBA
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  • MBA, Indian Institute of Social Welfare and Business Management
  • BSc, University of Calcutta
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