Human Behavior In Organization

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 Decisions

Non-Programmed Decisions

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 LevelLower levels

Upper levels

Time for resolution Short

Relatively long

Basis for resolution Decision rules, set procedures

Judgment and creativity

DECISION MAKING AND NEGOTIATION (An Interpersonal Process in Organization)

Information

Goals

Alternative Actions

ActionOutcome Probabilities

Action 1

Outcome 1.1 Outcome 1.2 Outcome 1.3

Action 2

Outcome 2.1 Outcome 2.2

Action 3

Outcome 3.1 Outcome 3.2 Outcome 3.3

Value of Outcomes Relative to Goals

Choice of One Alternative

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

M

WIN WIN

RELATIONSHIP

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 408441

DECISION MAKING AND NEGOTIATION (An Interpersonal Process in Organization)