DECISION MAKING AND NEGOTIATION (MM 5009)

WIDYA NOORPUTRAYUNANTO

29114413

YP 52B

MASTER OF BUSINESS AND ADMINISTRATION

SCHOOL OF BUSINESS AND MANAGEMENT

INSTITUTE OF TECHNOLOGY BANDUNG

2015

Chapter 1

Everybody has their own problem in their life and they have to solve it. We can get the solution

from everywhere and anyone who lived around us, but unfortunately not all of their solution is the right

solution for our problem. In this case, I was positioned as a manager in industrial company, but I have

become dissatisfied with the job. I still interested in the nature of work, and most of my collage have a

high regard to me, but just the company politics are getting me down because there appears to be little

prospect of promotion within the foreseeable future. Some of my friends said that I should make my

own consultant and be the boss for my consultant, but of course no one can guarantee that I can

succeed in consultant. Also there is I chance if I failed and I still might get another job, but it is unlikely

that it would be as well paid as my current post. Besides, I also have many option such as stay my job,

change job, change job and become part-time consultant, become a full-time consultant, etc.

If we look from this complexity what we can do first in do the analysis, which refers to the process

of breaking something down into its constituent parts. Decision analysis will not solve the problem, its

purpose is to produce insight and promote creativity to help decision-makers make better decision.

Chapter 2

A decision-makers also have to make intuitive decisions involving multiple objectives because

many decisions involve multiple objectives. When a decision-maker has multiple objectives, the heuristic

used will either be compensatory or non-compensatory. Heuristics itself be used to refer to the fact that

the limitation of human mind mean that people have to use ‘approximate methods’ to deal with most

decision problems, and the result, they seek to identify satisfactory, rather than optimal, courses of

action.

The minimalist strategy, this heuristic used if neither option is recognized and just simply guess

which option is the best.

Take the last, this happen when someone had experience before, they just had to recall the

attribute that enabled them to reach a decision last time they had a similar choice to make.

The lexicographic strategy, they have to identify the most important attribute and selecting the

alternative that is considered to be the best on that attribute.

The semi-lexicographic strategy, if the performance of alternatives on an attribute is similar, the

decision-maker considers them to be tied and moves on to the next attribute.

Elimination by aspects (EBA), the most important attribute is identified and a cut-off point, which

defines the boundary of acceptable performance on this attribute, is then established.