Quick Answer: What Is Batna And Watna Negotiation In Procurement?

What is watna negotiation?

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A concept from negotiation theory, the WATNA is the worst result a party would ultimately achieve if it called off negotiations, for example, by terminating mediation..

What are the four principles of negotiation?

The book advocates four fundamental principles of negotiation: 1) separate the people from the problem; 2) focus on interests, not positions; 3) invent options for mutual gain; and 4) insist on objective criteria.

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.

What are the 7 basic rules of negotiating?

Terms in this set (7)Rule #1. Always tell the truth.Rule #2. Use Cash when making purchases.Rule #3. Use walk-away power. Don’t get emotionally attached to the item.Rule #4. Shut up. … Rule #5. Use the phrase: “That isn’t good enough”Rule #6. Go to the authority. … Rule #7. Use the “If I were to” technique. ”

What are 5 rules of negotiation?

1) SHUT UP and Listen :2) Be willing to Walk Away.3) Shift the Focus Light.4) Do Not take it Personally.5) Do Your Homework.

What are the 5 principles in negotiation?

Ethics and Negotiation: 5 Principles of Negotiation to Boost Your Bargaining Skills in Business SituationsPrinciple 1. Reciprocity: Would I want others to treat me or someone close to me this way?Principle 2. Publicity: … Principle 3. Trusted friend: … Principle 4. Universality: … Principle 5. Legacy:

What is Batna and watna in negotiation?

BATNA: Best Alternative to a Negotiated Agreement. WATNA: Worst Alternative to a Negotiated Agreement.

What is Batna in negotiation example?

If the value of the deal proposed to you is lower than your reservation value, you should reject the offer and pursue your BATNA. However, if the final offer is higher than your reservation value, you should accept the offer. For example, Company A makes a takeover offer of $20 million to Company B.

What is watna example?

WATNA stands for the Worst Alternative to a Negotiated Agreement. … In negotiation skills, it is good to know what you would reconsider and the rationale. In this example of selling a home, you may need to sell your home by a certain deadline to relocate for a new job.