DECISION MAKING AND DECISION MAKING AND NEGOTIATIONNEGOTIATION

(An Interpersonal Process in Organization)

Course: Human Behavior in OrganizationCourse: Human Behavior in Organization

Nino Reiner F. Badiola, Nino Reiner F. Badiola, MBA-TEPPamantasan ng Lungsod ng MaynilaPamantasan ng Lungsod ng Maynila

NATURE OF DECISION MAKING

• The process of choosing from various alternative is a nature of Decision MakingDecision Making.

• It is usually guided by a goal.

• In a context of decision-making, information condition describe how much information is available about the frequency of likelihood to various outcome.

DECISION MAKING AND NEGOTIATIONDECISION MAKING AND NEGOTIATION(An Interpersonal Process in Organization)

Types of Decision

1.1. Programmed DecisionProgrammed Decision – is a decision that recurs often enough for a decision rule to be developed

2.2. Non-Programmed Non-Programmed DecisionDecision – is a decision that recurs infrequently and for which there is no previously established decision rule and it requires problem solving

DECISION MAKING AND NEGOTIATIONDECISION MAKING AND NEGOTIATION(An Interpersonal Process in Organization)

Characteristics of Programmed and Non-Programmed Decisions

DECISION MAKING AND NEGOTIATIONDECISION MAKING AND NEGOTIATION(An Interpersonal Process in Organization)

CharacteristicsCharacteristics Programmed Programmed DecisionsDecisions

Non-Programmed Non-Programmed DecisionsDecisions

Type of Decision Well structured Poorly structured

Frequency Repetitive and routine

New and unusual

Goals Clear, specific Vague

Information Readily available Not available, unclear channels

Consequences Minor Major

Organizational Level

Lower levels Upper levels

Time for resolution Short Relatively long

Basis for resolution

Decision rules, set procedures

Judgment and creativity

Outcome 1.1Outcome 1.2Outcome 1.3

Outcome 2.1Outcome 2.2

Outcome 3.1Outcome 3.2Outcome 3.3

Action 1

Action 2

Action 3

Information

GoalsAlternative

Actions

Action-Outcome

Probabilities

Value ofOutcomesRelativeto Goals

Choiceof One

Alternative

Elements of Decision MakingElements of Decision Making

A decision maker has a goal, evaluates the outcomes of alternativecourses of action in terms of the goal and selects one alternative to be implemented.

DECISION MAKING AND NEGOTIATIONDECISION MAKING AND NEGOTIATION(An Interpersonal Process in Organization)

DECISION MAKING PROCESS

1. The Rational Approach1. State the Situational Goal2. Identify the Problem3. Determining Decision Type4. Generate Alternatives5. Evaluate Alternatives6. Choose an Alternatives7. Implement the Plan8. Control: Measure and Adjust

2. The Behavioral Approach

3. The Practical Approach

4. The Personal Approach

DECISION MAKING AND NEGOTIATIONDECISION MAKING AND NEGOTIATION(An Interpersonal Process in Organization)

Group Decision Making

• Group Polarization

• Group Think Process (considering time and leadership style)

• Group Symptoms• Decision Making Defects• Decision Outcomes

Prescription• Leader Prescription• Organizational Prescription• Individual Prescription• Process Prescription

DECISION MAKING AND NEGOTIATIONDECISION MAKING AND NEGOTIATION(An Interpersonal Process in Organization)

Group Problem Solving

• Brainstorming

• Nominal Group Technique

• Delphi Technique

DECISION MAKING AND NEGOTIATIONDECISION MAKING AND NEGOTIATION(An Interpersonal Process in Organization)

Negotiation

Is the process in which two or more parties reach agreement even though they have different preferences.

• Four Approaches to Negotiation Individual Differences Situational Characteristics Game Theory Cognitive Approaches

DECISION MAKING AND NEGOTIATIONDECISION MAKING AND NEGOTIATION(An Interpersonal Process in Organization)

Win-Win Negotiation (by Ross Reck)

WINWIN

PLANS

P

RELATIONSHIP

R

AGREEMENTS

A

MAINTENANCE

M

A PRAM MODEL

DECISION MAKING AND NEGOTIATIONDECISION MAKING AND NEGOTIATION(An Interpersonal Process in Organization)

REFERENCE

• Managing People and Organization: Human Behavior by Moorehead/Griffin, Chapter 15; Decision Making and Negotiation, pages 408-441

DECISION MAKING AND NEGOTIATIONDECISION MAKING AND NEGOTIATION(An Interpersonal Process in Organization)