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.
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 LevelLower levels Upper levels

Time for resolution Short Relatively long

Basis for resolution Decision rules, set Judgment and
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)