Solved: What are the key terms used in Negotiating Genius by Malhotra and Bazerman and what

Ralph Waldo Emerson once said ‘Man hopes, Genius creates’.

This is the main idea of ‘Negotiation Genius’ by Malhotra and Bazerman. No one is born genius negotiator. Rather, it requires careful preparation and sound conceptual framework of the negotiation process.

Following are the key terms used by them and which constitute 5 step methodology to negotiate.

1. Assess your BATNA (Best alternative to negotiated agreement) – It implies you need to assess your course of action if your negotiation fails using a 3 step process

• Identifying all the alternative options you might pursue
• Estimate the value associated with each alternative and
• Select your BATNA : your best alternative

2. Calculate your Reservation Value – It’s your walk away point in the negotiation which is dependent on analysis of BATNA

3. Assess opposite party’s BATNA – Here, you need to calculate how high you might be negotiating

4. Calculate the other party’s Reservation Value

5. Evaluate ZOPA (The Zone of Possible Agreement) – ZOPA is equivalent to all the deals which would be acceptable to both the parties