Blog: HRM624 Assignment No. 2 Solution

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 make

Based 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) 

Important Tips
1. This Assignment can be best attempted from the knowledge acquired after
watching video lecture no. 1 to lecture no. 11 and reading handouts as well as
recommended text book).
2. Video lectures can be downloaded for free from Online VU Lectures.

Schedule 
Opening Date and Time June 17, 2011 At 12:01 A.M. (Mid-Night)
Due Date and Time June 22, 2011 At 11:59 P.M. (Mid-Night)


Note: Only in the case of Assignment, 24 Hrs extra / grace period after the above mentioned due date is usually available to overcome uploading difficulties which may be faced by the students on last date. This extra time should only be used to meet the emergencies and above mentioned due dates should always be treated as final to avoid any inconvenience.

Important Instructions: 

Please read the following instructions carefully before attempting the assignment solution.

Deadline:

• Make sure that you upload the solution file before the due date. No
assignment will be accepted through e-mail once the solution has been
uploaded by the instructor.

Formatting guidelines:

• Use the font style “Times New Roman” and font size “12”.
• It is advised to compose your document in MS-Word 2003.
• Use black and blue font colors only.

Solution guidelines:

• Every student will work individually and has to write in the form of an
analytical assignment.
• Give the answer according to question.
• For acquiring the relevant knowledge don’t rely only on handouts but
watch the video lectures and use other reference books also.

Rules for Marking

Please note that your assignment will not be graded or graded as Zero (0) if:

• It has been submitted after due date
• The file you uploaded does not open or is corrupt
• It is in any format other than .doc (MS. Word)
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SOLUTION:

 KEY POINTS

Power, Conflict, and BATNA Power:

The force to modify behavior of individuals, groups, societies, or nations

Conflict: Clash of interests among individuals, groups, societies, or nations

BATNA: Best Alternative to the Negotiated Agreement

 Knowing, the BATNA protects a disputant, and the team, from irrational action. Trying to resolve a conflict without knowing the BATNA put the team in the untenable position of not knowing whether to negotiate or to stop negotiating. Many disputants deal with this pressure to act irrationally by developing a bottom line. If the negotiation leads to deal that’s as good as the bottom line, the negotiators will settle; otherwise they won’t.

 Knowing the BATNA also helps a disputant and the team to act with efficiency. The team chooses to negotiate only if there appear to be potential benefits to negotiating, stays in negotiation only as long as it appears to be potentially beneficial, and gains a clear idea of what to do in the event that negotiation does not lead to settlement. There is less wasted time, money, effort and trauma. Source VU Handouts solutions

 In this Scenario;

Knowing my BATNA will help me get a better view of my interest as well as the supplier’s. After following the steps to get up to the mark regarding my BATNA I will be precisely able to know about supplier’s benefits and the best alternates he may have. Although the situation goes totally in his favour but still I can pursue my benefits and goals, while considering our mutual benefits like:

>   He wants to sale his product and I want to buy his product; it is a mutual benefit for both of us as if he does not sale I cannot buy and vice versa

>  He needs customer and I need a vendor

>  Getting profit is his interest and getting appropriate supply is mine

While considering the aforementioned points I will be able to get the best deal out of the whole scenario.
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