Decision-Making Models

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Decision-Making Models

Negotiations and decisions are a part of everyday business. In order to make a successful decision, it is necessary to understand how to make rational and sound decisions. Decisions that are rash, made on snap judgments, and past experiences can prove detrimental to a business. A deficit in basic thinking and decision making is felt at all levels of an organization (Gary, 1997). Decisions can have long term and short term impacts on organizations and their world in which they exist (Turner & Dean, 2008). In order to understand the process of making a sound and good decision, it is necessary to define and understand several decision-making models. These models help to make clear the issues to be addressed and the goals that need to be obtained before a final decision is made. This paper will discuss the zero sum game, win-win, satisfying solutions, and the fixed pie models.

Zero-sum game can play an important role wherein one entity wants or needs to dominate the other. Of the several decision-making models that can be implemented, the zero sum game is one decision model used in negotiations. In this instance, there is a winner and a loser. There is no give and take or compromise. The zero-sum can be seen in chess – only one player can win. However, in Monopoly, if it is not played with the intention of having one winner, but several players to place, is a non-zero-sum game, also known as a win-win (US department of state, n.d.).

The second model is the non-zero, also known as the win-win model. This is used in compromises so that each of the “players” feels like a winner. The total amount gained is variable; therefore, both players win and lose objectives (Heylighen, 1993). In this model, eac...

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Heylighen, F. (2000). Principia Cybernetica Web, in: Heylighen, F., Joslyn, C. and Turchin, V. (eds): Principia Cybernetica Web. Retrieved November 15, 2010, from http://pcp.lanl.gov/ZESUGAM.html

Spangler, B. (2003). Distributive bargaining: Beyond Intractability. Guy Burgess & Heidi Burgess (eds.). Conflict Research Consortium, University of Colorado, Boulder. Retrieved November 16, 2010, from http://www.beyondintractability.org/essay/distributive_bargaining.

Turner & Dean (2008). Testing the effects of prior performance on decision regret: Doubling-down, or all bets are off? Journal of Global Business Issues; 2, 1 13.

U.S. Department of State (n.d.). Consulate General of the

United States: Zero sum game between russia and the U.S. is gone with the cold war.

Retrieved November 15, 2010, from http://www.vladivostok.usconsulate.gov/zerosum.html

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