56213098994608901245

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School
Derby High School **We aren't endorsed by this school
Course
MATH 522
Subject
Management
Date
Nov 9, 2023
Pages
9
Uploaded by GeneralValorGorilla33 on coursehero.com
Effective Business Negotiations Coursework 1 Student ID- 4127401 Word count- 1546
Contents INTRODUCTION .................................................................................................................... 3 NORMATIVE DECISION MAKING ......................................................................................... 3 HEURISTIC DECISION MAKING ........................................................................................... 3 SIMILARITIES BETWEEN NORMATIVE AND HEURISTIC DECISION-MAKING .................. 4 DECISION MAKING AND BUSINESS NEGOTIATION ........................................................... 5 INFLUENCE OF NORMATIVE DECISION-MAKING BUSINESS NEGOTIATION .............. 5 INFLUENCE OF HEURISTIC DECISION-MAKING ON BUSINESS NEGOTIATION .......... 6 POTENTIAL BENEFITS AND LIMITATIONS OF BOTH THE APPROACHES .................... 7 CONCLUSION ....................................................................................................................... 7 REFERENCES ....................................................................................................................... 9
INTRODUCTION Decision-making is the process of deciding between choices by solving complex problems. In business and organisations, it is a complex and non-linear process and is based on cause cause-effect relationship. Negotiation is the linear process involving two parties reaching a conclusion based on a common understanding of the subject matter and parameters analysis through different decision-making approaches (Diekmann et al.,1977). Two classical approaches towards decision making Normative and Heuristic. Normative is about norms ii. what we should and in Heuristic what we are. Definitions of both approaches along with the potential benefits and limitations are also discussed. The study involves similarities and differences along with a conclusion based on an understanding of the subject. NORMATIVE DECISION MAKING Normative decision-making is defined as the decision made based on norms made in different contexts based on rational guidelines. A comparative analysis and choice of a specific decision based on a comparison of competing alternatives, which are considered as rules that social consumer ' norms (comparability, transitivity Dominance) to follow is made in normative decision-making Normative decision-making helps in maximising the potential use (von Neu ann & Morgenstern, 1947) of available resources and helps to come up with a thoughtful decision. It has evolved after consideration of several theories and the most accepted one is the Expected Utility Theory (Savage, 1954) which has its basis in rational assumption. In rational decision-making maximisation of potential is used and minimises loss as disutility is considered. With the ergative approach, the decision can be thoughtful and consistent. HEURISTIC DECISION MAKING Heuristics has been in use for ages in different contexts. One such strategy is Heuristic decision making which is a subset of strategies. Two models called target attribute assessment and reliance on effort reduction proposed by different researchers influence the comprehensive meaning of the heuristic model of decision-
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