What Is Watna Negotiation?

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…•.

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.

Why is Batna so important?

Importance of BATNA BATNA is often used in negotiation tactics. Good negotiation tactics are important for negotiating parties to know in order for their side to win or to create a win-win situation for both parties. … It provides an alternative if negotiations fall through. It provides negotiating power.

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.

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 negotiation skills?

These skills include:Effective verbal communication. See our pages: Verbal Communication and Effective Speaking.Listening. … Reducing misunderstandings is a key part of effective negotiation. … Rapport Building. … Problem Solving. … Decision Making. … Assertiveness. … Dealing with Difficult Situations.

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.

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 does watna stand for?

Worst Alternative to a Negotiated AgreementWorst Alternative to a Negotiated Agreement (WATNA) Related Content. 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 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. …

What is Batna and watna negotiation in procurement?

BATNA stands for best alternative to a negotiated agreement. WATNA is the worst alternative to a negotiated agreement.

How do you calculate Batna?

Fisher and Ury outline a simple process for determining your BATNA: develop a list of actions you might conceivably take if no agreement is reached; improve some of the more promising ideas and convert them into practical options; and. select, tentatively, the one option that seems best.

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.

What is Zopa in negotiation?

The Zone of Possible Agreement, or ZOPA, is the range in a negotiation in which two or more parties can find common ground.

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.