DECISION

MAKING &
NEGOTIATION

Nemelyn Joy Laguitan

 Summary
To
Ona24great extent,1981,
February our lives are Bahru
a Johore
defined
Company, by Coffee
the choices we make
Products Sdn and
Bhd,
D the
wasoutcomes
given a we negotiate. license
manufacturing
C under the Industrial Coordination Act
B Every
of 1975day,toeach
organization
person
produce
— faces
— and(instant)
soluble
With choices
each
and the
A coffee powder.
negotiations
company, that
the license,
will determine by
wholly-owned
success,
Malaysianshappiness, wealth,
acquired health,
the necessary
and security.and other equipment to
machinery
set up a processing plant capable of
producing spray-dried instant coffee
from raw coffee beans.
 Summary

On 24 February 1981, a Johore Bahru

Company, Coffee Products Sdn Bhd,
D wasDECISION MAKING
given a manufacturing license
C under the Industrial
Identifying and Coordination
choosing Act
B of 1975 to produce soluble (instant)
solutions
coffee powder. that
With the lead to
A desired end
company,
license, the
result
wholly-owned by
Malaysians acquired the necessary
machinery and other equipment to
set up a processing plant capable of
producing spray-dried instant coffee
from raw coffee beans.
 NATURE OF DECISION MAKING

- The process of choosing from various

D alternative is a nature of Decision
C Making
B - It is usually guided by a goal.
A - In a context of decision-making,
information condition describe how
much information is available about
the frequency of likelihood to various
outcomes.
 Types of Decision
D
C 1.Programmed Decision
- is a decision that recurs often enough for a decision rule
B to be developed

2.Non-Programmed Decision
A
- is a decision that recurs infrequently and for which there
is no previously established decision rule and it requires
problem solving
 Three categories of decision based on
the level that may occur
D
C 1.Strategic Decision
B - Set the course of an organization

2. Tactical Decision A
- Decision about how things will get done

3. Operational Decision
- Decisions that employees make each day to make the
organization run
D
C
B
A
D Elements of Decision Making
C
B
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 A
 DECISION MAKING PROCESS
D 1. State the Situational Goal

C 2. Identify the Problem

3. Determining Decision Type
B
4. Generate Alternatives
5. Evaluate Alternatives
A
6. Choose an Alternatives
7. Implement the Plan
8. Control: Measure and Adjust
 Who Has The Power?
- Technically, everyone in the company has the power to make or
D influence decisions and generate an impact on the organizational

C behavior of the business.

- However, certain positions have more power than others and
B
therefore their decisions can lead them to have more control over
the business.
A
- Someone who is in management, for example, will certainly have
more power than someone who is in an entry-level office position
at the same company.
 Negotiation

D - Is the process in which two or more parties reach agreement even

C though they have different preferences

- The process of talk about each individual position about an issue B

and tries to get a solution that benefits both parties. A
- Negotiation requires participants to recognize issues, about which
they differ, educate each other about their needs and interests,
generate possible settlement options and bargain over the terms of
the final agreement.
 TYPES OF INTEGRATION

Distributive negotiation
D - Also called positional negotiation
C
- A negotiation approach in which a series of positions, alternative B
solutions that meet particular interests or needs, are selected by a
negotiator, ordered sequentially according to preferred outcomes
A
and presented to another party in an effort to reach agreement.
 TYPES OF INTEGRATION

Integrative negotiation

D - Also known as interest-based or principled negotiation

C
- It is process that attempts to develop the quality and likelihood of
B
A
negotiated agreement by providing an alternative to conventional
distributive negotiation techniques.

- Interest-based bargaining which involves parties in a collaborative

effort to jointly meet each other's needs and satisfy mutual interests
rather than moving from positions to counter positions to a
compromise settlement
 Conditions that affect the success or failure of negotiations:
1. Identifiable parties who are willing to participate:
The people or groups who have a chance in the result must be
specific and willing to sit down at the bargaining table if productive

D negotiations are to occur.

2. Interdependence:
C
The participants need either each other's assistance or restraint from
B
A
negative action for their interests to be satisfied. If one party can get
his/her needs met without the collaboration of the other, there will
be little impetus to bargain.
3. Readiness to negotiate:
When participants are not mentally equipped to talk with the other
parties, when sufficient information is not obtainable, or when a
negotiation scheme has not been prepared, people may be unwilling
to begin the process.
 Conditions that affect the success or failure of negotiations:

D 4. Means of influence or leverage:

There are numerous ways to influence in negotiation over issue such C
as enquire thought-provoking questions, provide needed information, B
to get the advice of experts, appealing to influential associates of a
party, exercising legitimate authority or providing rewards.
A
5. Agreement on some issues and interests:
Parties must have sufficient issues and interests in common to do
themselves to a joint decision-making process.
 Conditions that affect the success or failure of negotiations:

D 6. Will to settle:
C
- In order to have successful negotiations, contributors have to desire
B
A
to settle

7. The agreement must be rational and be implemented:

Participants in negotiations must be able to establish a realistic and
workable plan to carry out their agreement if the final settlement is
to be acceptable and hold over time.
There are five steps to the negotiation process

D
C
B
A
There are five steps to the negotiation process

1. Preparation and Planning:

Before the start of negotiations one must be aware of conflict the D
history leading to the negotiation the people involved and their C
perception of the conflict expectations from the negotiations etc. B
2. Definition of Ground Rules:
A
Once the planning and strategy is developed, one has to begin
defining the ground rules and procedures with the other party over
the negotiation itself that will do the negotiation.
There are five steps to the negotiation process
D
3. Clarification and Justification:
C
When initial positions have been exchanged, both the parties will
B
A
explain amplify, clarify, bolster and justify their original demands.

4. Bargaining and Problem Solving:

The essence of the negotiation process is the actual give and take in
trying to hash out an agreement.
There are five steps to the negotiation process D
C
5. Closure and Implementation: B
The final step in the negotiation process is formalization the
agreement that has been worked out and developing and
A
procedures that are necessary for implementation and monitoring.
DECISION MAKING
& NEGOTIATION
THANK YOU!
 Group Decision Making
- Group Polarization
- Group Think

D Process (considering time and leadership style)

•Group Symptoms
C •Decision Making Defects

B
•Decision Outcomes

Prescription
•Leader Prescription A
•Organizational Prescription
•Individual Prescription
•Process Prescription

Group Problem Solving

•Brainstorming
•Nominal Group Technique
•Delphi Technique