Jack is considering a management position in an accounting firm. If Jack can't negotiate a salary of at least $90,000, he plans to keep his current job. The new firm cannot pay more than $95,000. If an agreement cannot be reached, the accounting firm will have to hire a far less qualified candidate. Which statement about Jack's BATNA is true?

a. Jack's BATNA is keeping his current job.

b. Jack's BATNA is not as good as the firm's BATNA.

c. Jack's BATNA is $5,000.

d. Jack's BATNA is $90,000.

Question

Chaz Rowland

Business

9 December, 17:14

Jack is considering a management position in an accounting firm. If Jack can't negotiate a salary of at least $90,000, he plans to keep his current job. The new firm cannot pay more than $95,000. If an agreement cannot be reached, the accounting firm will have to hire a far less qualified candidate. Which statement about Jack's BATNA is true?

a. Jack's BATNA is keeping his current job.

b. Jack's BATNA is not as good as the firm's BATNA.

c. Jack's BATNA is $5,000.

d. Jack's BATNA is $90,000.

+5

Answers (1)

Know the Answer?

Esteban Hendrix · Answer 1

a. Jack's BATNA is keeping his current job.

Explanation:

Best alternative to a negotiated agreement (BATNA) is the best alternative that gives positive outcome for an individual in case a negotiation fails and an agreement cannot be consummated.

Usually a party to a negotiation should not accept terms that are less than their BATNA. That is there are terms that will not be favourable to the alternative.

The opposite of this is WATNA (worst alternative to a negotiated agreement).

Jack is considering a management position with an accounting firm. Of he cannot negotiate a salary above $90,000 he has decided to keep his current job. So his BATNA is to keep his current job incase negotiation fails.