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Semester “Spring 2011”
“Conflict Management (HRM624)”
Assignment No.2 Marks: 15
BATNA When people do not have the power to force a desired outcome, they generally negotiate but only when they believe that they would get some advantage by doing so. A negotiated solution is advantageous only under certain conditions –when a better option is not available. Consider the following scenarios:Let us say, you are a buyer and goes to a supplier to purchase some obligatory goods to complete a project. The supplier envisages your urgency; his eyes begin to glow with expectations as you do not know any other supplier of that material. You want the lowest price possible while he wants the higher price. You have no fallback position as you both are in the same boat, but it is the supplier who is holding the oars.In another scenario, you arranged a meeting with your supplier where your position is quiet different from the first scenario. Before arranging the meeting, you set up talks with two other suppliers who are ready and able to handle all your needs. When you meet with this supplier, you can calmly sit back in your chair, and allow the supplier to finish his speech. Now, watch the gleam fading from his eyes when you start talking about his competitor’s willingness to solve your problem. The talks suddenly become more responsive. So, who is holding the oars now?Any successful negotiation must have a fundamental framework based on knowing the following:• The alternative to negotiation• The minimum threshold for a negotiated deal• How flexible a party is willing to be, and what trade-offs it is willing to makeBased on the above mentioned scenarios and information, answer the following questions:1. Explain the significance of knowing your BATNA position in first scenario?(8 marks)2. Why it is important to know the negotiable position of your counter part?(7 marks)
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