FRONT PAGE

NATIONAL POLYTECHNIC INSTITUTE

SUPERIOR SCHOOL OF COMMERCE AND ADMINISTRATION

(SANTO TOMAS UNIT).

Decision-Making and Negotiation

Learning Activity 1. Analysis of Decisions

STUDENT:

Miguel Ángel Flores Trujillo.

ENROLLMENT NUMBER:

20210A1511

PROFESSOR:

LEONARDO ESTEBAN BRISEÑO RIOS

GROUP:

4DX20
 INSTRUCTIONS
Learning Activity 3. Different Decision-Making Types

Learning Activity 3. Different Decision-Making Types

There are different models that can be used for decision-making; identifying them
is very important. Implementation of courses of action can generate profits or
losses, so it is a significant responsibility making the best decision to ensure the
company’s long-term profitability and growth. In this point it is where we will be able
to see that the greatest strategists make excellent decisions, which is directly
related to the vision of the company’s future.

So, it is important that the administrator develops some objective and subjective
skills. Among the objective skills required, it is found the ability to apply scientific
decision-making models based on the analysis of probabilities and their axiomatic
structure. In the case of subjective decision models, choices are made based on
the administrator’s experience and the contributions of his close collaborators.

In this activity, you will compare the different types of decision-making. To start
with, check and analyze the following resources:

• Decision-Making Models

• Rational Model, Bounded Rationality and Intuition; [Organizational Behavior]

MeanThat MeanThat (2015, June 8). Rational Model, Bounded Rationality and
Intuition | Organizational Behavior | Mean That [Video file]. Retrieved from
https://www.youtube.com/watch?v=HAxt2HQJqJA

• Decision Making Steps Perryman, B. (2014, November 27). Decision-Making

Steps [Video file]. Retrieved from https://www.youtube.com/watch?
v=EfH8QmlBLZU&list=PLO0-B5NoHH7W-5wxSNBMVrmspkfVyuvUr

Based on the information given in these three resources as well as in the support
materials of activities 1 and 2, research on the following decision-making models:
rational, limited rationality, political and intuitive.

Then, design a matrix in which you give and explain the definition and
characteristics of each one of the previous models.

Create your matrix in a Word document, Arial font 12 points, single spacing.
Organize the information in an orderly, clear and coherent manner. Mention at
least three sources in an APA format, and design a cover with your data and this
subject.

Subsequently, participate in this discussion forum answering the following

questions.
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  What model do you think is the best to use within organizations? Support
your ideas.
 For solving all the conflicts, you face every day, which model do you use
the most? Why?

Content
FRONT PAGE..........................................................................................................1
INSTRUCTIONS...................................................................................................... 2
Learning Activity 3. Different Decision-Making Types...........................................2
Introduction...............................................................................................................4
MATRIX....................................................................................................................5
What model do you think is the best to use within organizations? Support your
ideas.........................................................................................................................7
For solving all the conflicts, you face every day, which model do you use the most?
Why?........................................................................................................................ 7
REFERENCE SOURCES........................................................................................ 8

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 Introduction.
Decision-making is a fundamental aspect of human life, influencing our choices in
both personal and professional realms. However, not all decisions are made equal,
and understanding the various types of decision-making processes is essential to
navigate the complex web of choices we encounter daily.

From intuitive and emotionally driven decisions to highly rational and data-focused
choices, this exploration delves into the diverse world of decision-making types,
shedding light on the factors that shape our paths and the impact these choices
have on our lives and organizations.

Intuitive decisions, for instance, often draw upon our gut feelings and past
experiences, allowing us to make quick judgments in situations where time is of the
essence. On the other hand, rational decisions demand a structured approach,
relying on careful analysis and objective data to arrive at the most logical choice.

Emotion-driven decisions, fueled by our inner feelings, can lead to passionate

outcomes, while data-focused decisions, rooted in evidence and analysis, tend to
be more methodical and less influenced by sentiment. Each type brings its own
strengths and weaknesses, shaping the outcomes that follow.

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 MATRIX
Decision
Making Definition
Model.
This model is based on the idea that decision- 
makers are perfectly rational, have access to
complete information, and can evaluate all
“Rational alternatives in a logical and objective manner
rationality” to maximize their objectives. It assumes that
decision-makers have complete and accurate
information, clear objectives, and the ability to
objectively evaluate alternatives.
"Bounded According to this model, decision-makers 
Rationality” face constraints on time, resources, and 
access to complete information. Instead of 
Characteristics
 Decision-makers seek the optimal
solution.
They evaluate all available alternatives.
 They use complete and accurate
information.
 They make decisions without emotional or
social influences.
 Idealistic, it's unlikely that decision-makers
have all the necessary information to
make a rational decision.
Decision-makers simplify the process.
They rely on heuristics and quick
judgments.
They do not consider all possible
alternatives.
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 seeking the optimal solution, they seek a
satisfactory solution that is good enough  They accept a certain degree of
uncertainty.
given the constraints. This assumes that  More realistic than the rational rationality
decision-makers have limited information, model, it acknowledges the limitations of
decision-makers.
ambiguous objectives, and cognitive biases.
 Decisions reflect the interests of groups
In this model, it is recognized that decisions or individuals.
are influenced by power struggles,  Power struggles and negotiations can
negotiations, and conflicts of interest within occur.
an organization. Decisions are made not only  Decision-making may not be transparent.
Politician based on logic and objectivity but also on  Decisions may not always be optimal
political and social considerations. It assumes from a logical standpoint.
that decision-making is a process of  Power and influence are important in the
negotiation and conflict among the interests decision-making process, and decision-
of different groups involved. making is often a slow and complex
process.
Intuitive This model is based on decision-making that  It relies on intuition and quick judgment.
relies on intuition and experience. Decision-  Less logical analysis and more
makers trust their instincts and prior experience.
knowledge to make quick decisions,  Often used in high-pressure or uncertain
especially in situations where information is

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limited or not available. It assumes that
situations.
intuition plays a significant role in decision-
 May not always be rational or logical.
making.

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 What model do you think is the best to use within organizations? Support
your ideas.

I believe that the bounded rationality model is the best one to use within
organizations. This model recognizes that decision-makers have limited
information, ambiguous objectives, and cognitive biases. This is realistic, as it's
unlikely that decision-makers have all the necessary information to make a rational
decision.

The bounded rationality model is also flexible. It allows decision-makers to use a

variety of techniques to gather information, evaluate alternatives, and make
decisions. This is important in organizations where decisions are often complex
and involve multiple stakeholders.

Furthermore, the bounded rationality model is adaptable. It can be used in a variety

of situations, from routine decisions to strategic ones. This makes it a valuable tool
for decision-makers in all organizations.

For solving all the conflicts, you face every day, which model do you use the
most? Why?
To resolve the conflicts I face every day, I use a combination of the bounded
rationality and political models. The bounded rationality model helps me gather
information and evaluate alternatives. This allows me to make decisions that are
objective and fair to all involved. The political model helps me understand the
different perspectives of stakeholders. This allows me to reach agreements that
are acceptable to all.

For example, I recently had to resolve a conflict between two teams that were
competing for the same budget. I used the bounded rationality model to gather
information about each team's needs. I also used the political model to understand
the priorities of each team's managers. In the end, I reached an agreement that
allocated the budget fairly between the two teams.

In general, I believe that the combination of the bounded rationality and political
models is the best way to resolve conflicts in organizations. These models allow
me to make decisions that are objective, fair, and acceptable to all involved.

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 REFERENCE SOURCES

1. Canós Darós, L., Pons Morera, C., Valero Herrero, M., and Maheut, J. P. D.
The title translates to "Decision Making in the Company: Process and
Classification."

https://riunet.upv.es/handle/10251/16502

2. Simon, H. A. (1979). Models of bounded rationality. Cambridge, MA: MIT

Press.

https://books.google.com.mx/books?
hl=es&lr=&id=9CiwU28z6WQC&oi=fnd&pg=PA1&dq=Simon,+H.+A.+(1979).
+Models+of+bounded+rationality.+Cambridge,+MA:
+MIT+Press.&ots=GLZR6oaI6d&sig=qThndVxqrDT5ix9O1AWYtbjWWQY

3. Pulgarin, S. A., & Rivera Rodríguez, H. A. (2012). Las herramientas

estratégicas: un apoyo al proceso de toma de decisiones gerenciales
(Strategic tools: Supporting the managerial decision-making process).
Criterio libre, 10(16), 89-114.

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2121616

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