Definition of Decision making, Factors Controlling Decision making, 6C's of Decision Making, Steps of Decision Making, Decision making techniques, Definition of Negotiation, Stages of negotiation, fundamentals of negotiation, Negotiation styles and Negotiation concepts.

1. Decision MakingDecision Making
and Negotiation
Prof Piyalee Bhattacharya
KSD’s Model College, Dombivali,
Maharashtra

2. Definition
The process of examining your possibilities
options, comparing them, and choosing a
course of action.
Decision making can be defined as a process ofDecision making can be defined as a process of
choosing between alternatives to achieve a
goal. It is the process by which an individual
chooses one alternative from several to achieve
a desired objective. (Manmohan Prasad, 2003)
Definition
The process of examining your possibilities
options, comparing them, and choosing a
course of action.
Decision making can be defined as a process ofDecision making can be defined as a process of
choosing between alternatives to achieve a
goal. It is the process by which an individual
chooses one alternative from several to achieve
a desired objective. (Manmohan Prasad, 2003)

3. Factors controlling Decision making
Perception.
 Priority.
Acceptability.Acceptability.
 Risk.
Resources.
Factors
Factors controlling Decision making
Goals.
Values.
 Demands. Demands.
Style.
Judgement

4. 6 C’s of
Decision
Construct.
Compile.
Collect.
Compare.
Decision
Making. Compare.
Consider.
Commit.
Construct.
Compile.
Collect.
Compare.Compare.
Consider.
Commit.

5. Steps of
DecisionDecision
Making
Step 1: Identify
the decision.
Step 2: Gather
relevant
information.
Step 3: Identify
the
alternatives.
Step 4: Weigh
the evidence.
Step 5: Choose
among
alternatives.
Step 6: Take
action.
Step 7: Review
your decision &
its
consequences.

6. Steps of
Decision
Making
Step
Clearly define the nature of the decision after
identifying need for decision making.
Step
Collect relevant information from internal and
external source
StepMaking Step
List possible and desirable alternatives.
Step
Find the alternatives which can satisfy the need
identified in Step
Step 1: Identify the decision.
Clearly define the nature of the decision after
identifying need for decision making.
Step 2: Gather relevant information.
Collect relevant information from internal and
external source.
Step 3: Identify the alternatives.Step 3: Identify the alternatives.
List possible and desirable alternatives.
Step 4: Weigh the evidence.
Find the alternatives which can satisfy the need
identified in Step-1 and prioritize the alternatives

7. Steps of
DecisionDecision
Making
Step 5: Choose among alternatives.
Select the best alternative, it can be a
combination of two or more alternatives
Step 6: Take action.
Implement the alternative chosen fromImplement the alternative chosen from
Step-5
Step 7: Review your decision & its
consequences.
Evaluate the result of the decision taken.
Correct it if necessary.

8. Decision making
Techniques
Decision making
Group Discussions.
Brainstorming.
Delphi technique.
Marginal Analysis.
Cost-Benefit Analysis.Cost-Benefit Analysis.
Ratio Analysis.
Financial Analysis.
Break-even Analysis.

9. Decision
making
Techniques
• Group Discussions
Storming
techniques. Participants are open
minded to accept other ideas.
• Delphi Technique
from a group of experts and arriving at a
consensus.
• Marginal Analysis &
Analysis
cost to be incurred for the decision
planned
making
Techniques
planned
• Ratio Analysis, Break Even Analysis
and Financial analysis
techniques to find out the financial
benefit to be accrued because of a
particular decision.
Group Discussions and Brain
Storming are popular decision-making
techniques. Participants are open
minded to accept other ideas.
Delphi Technique is collecting ideas
from a group of experts and arriving at a
consensus.
Marginal Analysis & Cost-Benefit
Analysis are done to find out the extra
cost to be incurred for the decision
planned.planned.
Ratio Analysis, Break Even Analysis
and Financial analysis are quantitative
techniques to find out the financial
benefit to be accrued because of a
particular decision.

10. Negotiation A negotiation is a strategic
discussion that resolves an
issue in a way that both
parties find acceptable. In
a negotiation, each party
tries to persuade the other
to agree with his or herto agree with his or her
point of view.
By negotiating, all involve
parties try to avoid arguing
but agree to reach some
form of compromise.

11. Stages of Negotiation. 1.Preparation
2.Discussion
3.Clarification of
goals
4.Negotiate towards
a Win-Win outcomea Win-Win outcome
5.Agreement
6.Implementation of a
course of action

12. Fundamentals of
Negotiation
Fundamentals of Preparation
Thorough knowledge of the
product
Ability to communicate
effectively
Ability to persuade
Ability to think clearly underAbility to think clearly under
pressure
Good listening skills
Integrity
Judgement and general
intelligence.

13. Negotiation
StylesStyles
Competing
Accommodating
Avoiding
Compromising
Collaborative

14. Negotiation Styles
Competing
Negotiators that exhibit this style are assertive, self
confident, and focused on the deal and results.
Accommodating
Negotiators that exhibit this style focus on
maintaining relationships by minimizing the
differences.
Avoiding
Negotiators that exhibit this style are generally less
assertive and apprehensive. They prefer tension free
environment by staying neutral, objective.
Negotiation Styles
Competing
Negotiators that exhibit this style are assertive, self-
confident, and focused on the deal and results.
Accommodating
Negotiators that exhibit this style focus on
maintaining relationships by minimizing the
differences.
Avoiding
Negotiators that exhibit this style are generally less
assertive and apprehensive. They prefer tension free
environment by staying neutral, objective.

15. Negotiation
StylesStyles
Compromising
Negotiators that exhibit this style
often split the difference and seek
a quick middle-ground solution.
Focused on coming to an
agreement.
CollaborativeCollaborative
Negotiators that exhibit this style
are often honest and
communicative. They focus on
finding novel and creative
solutions that fully satisfy the
concerns of all the parties.

16. Negotiation
Concepts
Four Key Concepts of
Negotiation
BATNA
Negotiation
Concepts
BATNA
ZOPA
Reservation Price
Value Creation through trade
Four Key Concepts of
Negotiation
BATNABATNA
ZOPA
Reservation Price
Value Creation through trade.

17. BATNA BATNA is an acronym that
stands for Best Alternative To
a Negotiated Agreement.
The term was first used by
Roger Fisher and William Ury
Before any negotiation BATN
should be undertakenshould be undertaken
Provides alternatives if
negotiation fails.
It predetermines the limit for
the negotiator.

18. ZOPA
ZOPA stands for “Zone O
Potential Agreement.”
It is the overlap between
the seller’s and buyer’s
settlement range.settlement range.
A ZOPA can only exist
when there is some overl
between each party's
expectations regarding a
agreement.
Buyer’s/Seller’s worst ca
is the reservation point of
the respective parties.

19. Reservation
Price
The
in negotiation
highest
someone is willing to buy an
item is established, and thePrice item is established, and the
lowest
seller will sell the item is
The reservation Price
negotiation is when the
highest price at which
someone is willing to buy an
item is established, and theitem is established, and the
lowest price at which a
seller will sell the item is
confirmed.

20. Value Creation through trade.
Value creation through trades,
the idea that negotiating parties
can improve their positions
by trading
disposal.
Value creation is to tradeValue creation is to trade
something else at your disposal
for what you want from the other
side. For example, offering to
buy a larger quantity from the
supplier at a price which
seller want
on the purchase process, like
credit facility
Value Creation through trade.
alue creation through trades,
the idea that negotiating parties
can improve their positions
trading the values at their
disposal.
alue creation is to tradealue creation is to trade
something else at your disposal
for what you want from the other
side. For example, offering to
buy a larger quantity from the
supplier at a price which the
seller want but putting condition
on the purchase process, like
credit facility.