DECISION MAKING AND

NEGOTIATION
(An Interpersonal Process in Organization)

Course: Human Behavior in Organization

Nino Reiner F. Badiola, MBA-TEP

Pamantasan ng Lungsod ng Maynila
NATURE OF DECISION
MAKING

The process of choosing from various

alternative is a nature of Decision 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 NEGOTIATION

(An Interpersonal Process in Organization)
Types of Decision

1. Programmed Decision
is a decision that
recurs often enough for
a decision rule to be
developed
2. Non-Programmed
Decision is a
decision that recurs
infrequently and for
which there is no
previously established
decision rule and it
requires problem
solving
DECISION MAKING AND NEGOTIATION
(An Interpersonal Process in Organization)
Characteristics of Programmed and
Non-Programmed Decisions
Characteristics Programmed Non-Programmed
Decisions Decisions
Type of Decision Well structured Poorly structured
Frequency Repetitive and New and unusual
routine
Goals Clear, specific Vague
Information Readily available Not available,
unclear channels
Consequences Minor Major
Organizational Lower levels Upper levels
Level
Time for resolution Short Relatively long
Basis for Decision rules, set Judgment and
resolution procedures creativity
DECISION MAKING AND NEGOTIATION
(An Interpersonal Process in Organization)
 Information

Value of
Action- Choice
Alternative Outcomes
Goals Outcome of One
Actions Relative
Probabilities Alternative
to Goals
Outcome 1.1
Action 1 Outcome 1.2
Outcome 1.3

Outcome 2.1
Action 2
Outcome 2.2

Outcome 3.1
Action 3 Outcome 3.2
Outcome 3.3
Elements of Decision Making

A decision maker has a goal, evaluates the outcomes of alternative

courses of action in terms of the goal and selects one alternative to
be implemented.

DECISION MAKING AND NEGOTIATION

(An Interpersonal Process in Organization)
DECISION MAKING PROCESS

1. The Rational Approach

1. State the Situational Goal
2. Identify the Problem
3. Determining Decision Type
4. Generate Alternatives
5. Evaluate Alternatives
6. Choose an Alternatives
7. Implement the Plan
8. Control: Measure and Adjust
2. The Behavioral Approach
3. The Practical Approach
4. The Personal Approach

DECISION 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 NEGOTIATION

(An Interpersonal Process in Organization)
Group Problem Solving

Brainstorming
Nominal Group Technique
Delphi Technique

DECISION 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 NEGOTIATION

(An Interpersonal Process in Organization)
Win-Win Negotiation (by Ross Reck)

A PRAM MODEL

PLANS
P

MAINTENANCE WIN RELATIONSHIP

M WIN R

AGREEMENTS
A

DECISION 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 NEGOTIATION

(An Interpersonal Process in Organization)