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. g oal. • 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 frequency of likelihood to various outcome.

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

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 LevelLo lLower levels

Upper levels

Time for resolution Short

Relatively long

Basis Basis for resolu resolutio tion n Decisio Decision n rule rules, s, set procedures

Judgment and creativity

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 PROCESS 1. The The Ratio ationa nall Appro pproac ach h 1. Stat State e the the Sit Situa uati tion onal al Goa Goal  l  2. Iden Identi tify fy the the Pr Proble oblem m 3. Dete Determ rmin inin ing g Deci Decisi sion on Typ Type e 4. Gene Genera rate te Alte Altern rnat ativ ives es 5. Eval Evalua uate te Alte Altern rnat ativ ives es 6. Choo Choose se an Alte Altern rnat ativ ives es 7. Impl Implem emen entt the the Plan lan 8. Cont Contro rol: l: Measu Measure re and Adju Adjust  st  2. The The Beh Behav aviioral oral Appr Approa oach ch 3. The The Pra Pract ctic ical al Appro pproac ach h 4. The The Perso ersona nall Appro pproac ach h

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

Group Problem Solving • Brainstorming • Nominal Group Technique • Delphi Technique

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

Win-Win Negotiation (by Ross Reck) A PRAM MODEL

PLANS

P

MAINTENANCE

M

WIN WIN

AGREEMENTS

A

RELATIONSHIP

R

REFERENCE • Managing People and Organization: Human Behavior Behavior by Moorehead/Griffin, Moorehead/Griffin, Chapter 15; Decision Making and Negotiation, pages 408441