Quick Answer: What Is Watna Negotiation?

What is Batna and watna in negotiation?

BATNA stands for best alternative to a negotiated agreement.

WATNA is the worst alternative to a negotiated agreement..

What is watna example?

You call that someone and get a quote for $2,500. You can say, “Sure, let’s do it,” or you can let the negotiations begin! In this case, your BATNA, or best alternative to a negotiated agreement, would be to hire another person who will do the job for a lower price – but what is your WATNA?

What is the difference between Batna and watna?

BATNA definition: the Best Alternative to a Negotiated Agreement. WATNA definition: the Worst Alternative to a Negotiated Agreement. … In other words, what was the best alternative if he couldn’t negotiate a new contract.

Why is ZOPA important?

A “Zone of Possible Agreement” (ZOPA–also called the “bargaining range”) exists if there is a potential agreement that would benefit both sides more than their alternative options do. … The ZOPA/bargaining range is critical to the successful outcome of negotiation.

How do you increase power in negotiation?

Gain knowledge through research, preparation, asking questions, and active listening. will have because your opponent will have fewer alternatives. money into a negotiation, the more power you will have.

What is principled negotiation?

Principled negotiation is an interest-based approach to negotiation that focusses primarily on conflict management and conflict resolution. Principled negotiation uses an integrative approach to finding a mutually shared outcome.

What does watna stand for?

the Worst Alternative to a Negotiated AgreementWATNA stands for the Worst Alternative to a Negotiated Agreement. In the preparation phase of your negotiation, you need to consider what is the worst that will happen if you do not sell in a particular negotiation.

What is Zopa in negotiation?

A zone of possible agreement (ZOPA) is a bargaining range in an area where two or more negotiating parties may find common ground. A ZOPA can only exist when there is some overlap between each party’s expectations regarding an agreement.

What are the basic principles of negotiation?

7 principles for effective negotiationsKnow what are you trying to accomplish. … Develop a game plan before negotiations start. … Study and understand your counterpart. … Work towards a win-win. … Avoid negotiating with yourself. … React strongly to an untrustworthy party at the negotiating table. … Remember that it takes two parties to negotiate or renegotiate a deal.

What are the negotiation strategies?

Some of the different strategies for negotiation include: … yielding — conceding a point that is not vital to you but is important to the other party; valuable in ongoing negotiations. compromising — both parties forgoing their ideal outcomes, settling for an outcome that is moderately satisfactory to each participant.

What is the purpose of negotiation?

Usually, the purpose of negotiating is to reach an agreement to participate in an activity that will result in mutual benefits. Each party tries to come to an agreement that will serve its own interests.

What is negotiation simple words?

A negotiation is a strategic discussion that resolves an issue in a way that both parties find acceptable. In a negotiation, each party tries to persuade the other to agree with his or her point of view. By negotiating, all involved parties try to avoid arguing but agree to reach some form of compromise.

What do Batna and Zopa stand for?

Best Alternative To Negotiated AgreementThe terms are BATNA and ZOPA. BATNA stands for Best Alternative To Negotiated Agreement. Your BATNA is what you’ll do if you don’t reach a deal. … The ZOPA is the set of all deals that are at least as good for each party in a negotiation as their respective BATNAs.

What are the 5 stages of negotiation?

Negotiation Stages IntroductionThere are five collaborative stages of the negotiation process: Prepare, Information Exchange, Bargain, Conclude, Execute.There is no shortcut to negotiation preparation.Building trust in negotiations is key.Communication skills are critical during bargaining.

How is ZOPA calculated?

A ZOPA exists if there is an overlap between each party’s reservation price (bottom line). A negative bargaining zone is when there is no overlap. With a negative bargaining zone both parties may (and should) walk away.

How do you win a negotiation?

7 Tips to Win Any NegotiationFocus on the first 5 minutes. … Start higher than what you’d feel satisfied with. … You should make your arguments first. … Show that you’re passionate. … Drink coffee. … Convince the other party that time is running out. … Provide them with as much data as possible.

What are the 3 phases of negotiation?

The three phases of a negotiation are:• Phase One – Exchanging Information.• Phase Two – Bargaining.• Phase Three – Closing.More items…•