Strategic Negotiation Planning- ZOPA and BATNA Development for Sharon Slade, Netflix’s Chief Human Resources Officer

Strategic Negotiation Planning- ZOPA and BATNA Development for Sharon Slade, Netflix’s Chief Human Resources Officer

Alice Jones, like Sharon Slade, has a ZOPA and BATNA position she may settle for as she heads to the severance negotiation. ZOPA refers to a zone of agreement with which all parties in a negotiation process agree (Sebenius, 2017). In the context of Alice Jones and her negotiation with the Netflix chief human resource officer, the ZOPA refers to the terms Alice and the employer find acceptable for the severance arrangement. One of the ZOPA positions relevant in this case is for Alice Jones to demand severance pay from Netflix so that she can exit the company. That way, she will get enough money to sustain herself before she gets another job, while Netflix will have an opportunity to release the unwanted employee. By understanding her transaction point, Alice will avoid the temptation of selecting choices she may regret later (Opresnik, 2014). Notably, the ZOPA is valid since it considers Netflix’s need to release Alice and streamline its human resource capital.

On the other hand, if the ZOPA is not accepted by Netflix, Alice will need a BATNA. A BATNA is the best alternative course a negotiator can take if the process fails to yield fruits (Andrade et al., 2010). In the context of Alice Jones versus Netflix, the negotiation may fail to yield her demands, including the payment of a severance package. If that is the case, Alice may take appropriate legal action to challenge the company’s decision to terminate her contract- this constitutes her BATNA position. Having a BATNA position before heading to a negotiation table will save Alice from settling for unacceptable terms (Opresnik, 2014). If Netflix insists on terminating her contract without offering a severance pay package, legal action may make the company pay. Besides, the best alternative to the ZOPA will give Alice the flexibility to exclude unfavorable options from the onset of the negotiation (Alfredson & Cungu, 2008). At the negotiation table, Alice should not accept anything less than termination accompanied by a severance package.

References

Alfredson, T., & Cungu, A. (2008). Negotiation Theory and Practice A Review of the Literature. https://www.fao.org/3/bq863e/bq863e.pdf

Andrade, F., Novais, P., Carneiro, D., Zeleznikow, J., & Neves, J. (2010). Using BATNAs and    WATNAs in online dispute resolution. In New Frontiers in Artificial Intelligence: JSAI- isAI 2009 Workshops, LENLS, JURISIN, KCSD, LLLL, Tokyo, Japan, November 19-20,     2009, Revised Selected Papers 1 (pp. 5-18). Springer Berlin Heidelberg.

Negotiation Journal, 33(2), 89–99. https://doi.org/10.1111/nejo.12176

Opresnik, M. O. (2014). Hidden Rules of Successful Negotiation and Communication. Springer    International Publishing.

Sebenius, J. K. (2017). BATNAs in Negotiation: Common Errors and Three Kinds of “No.”

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prompt: In Module One, you developed the ZOPA (zone of possible agreement) and BATNA (best alternative for a negotiated agreement) for Sharon Slade, Netflix’s chief human resources officer, for use in the upcoming negotiations.

In this assignment, put yourself in the shoes of Alice Jones, the executive facing possible severance in our case study.

Develop a ZOPA and BATNA position for Alice based on your review of her biography and the background information in the case study (located in the Final Project Guidelines and Rubric document in the Assignment Guidelines and Rubrics section of the course). As you develop your response, consider the following:

If Alice were fired, what would be unacceptable options for her in a severance agreement?
What options could Alice offer that could move severance negotiations toward her goal of keeping her position at Netflix?
Then, determine Alice Jones’ best alternative to a negotiated agreement (BATNA), i.e., her “Plan B.” It is important to do this before entering into negotiations to ensure that she does not agree to unfavorable conditions. Questions that can help formulate Alice Jones’ BATNA include:

What do you believe are the interests of the other party, i.e., Sharon Slade and Netflix?
What actions and alternatives are you prepared to consider if you (Alice Jones) cannot reach a negotiated agreement within your Zone of Possible Agreement?
What creative alternatives can be considered based on the interests of the other party (Sharon Slade & Netflix)?
What trade-offs exist on the standard ZOPA that could result in a creative, successful agreement?
Post your ZOPA and BATNA on the discussion topic. Then, review the recommendations of at least two other peers. In your replies, provide constructive feedback on their recommendations.