MBA Programme

GraduateSchool of Business

http://www.mba.itb.ac.id
INSTITUT TEKNOLOGI BANDUNG

MM5009
Decision Making and Negotiation
Prof. Utomo Sarjono Putro
&
Manahan Siallagan, Ph.D

MM5009 Decision Making and Negotiation YE50

Young Professional CLASS 54B

AUGUST 2016

MASTER OF BUSINESS ADMINISTRATION

SCHOOL OF BUSINESS AND MANAGEMENT
INSTITUT TEKNOLOGI BANDUNG
http://www.sbm.itb.ac.id/mba

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Contents
1.

Vision and Mission of MBA-ITB........................................................... 2Error! Bookmark not defined.

2.

Learning Goals of MBA-ITB .................................................................. 2Error! Bookmark not defined.

3.

Learning Goals of This Course .............................................................. 3Error! Bookmark not defined.

4.

Learning Outcomes of This Course ...................................................... 3Error! Bookmark not defined.

5.

The Course Structure ........................................................................... 4Error! Bookmark not defined.

6.

The Course Plan ................................................................................... 5Error! Bookmark not defined.

7.

Lecturer Profile .................................................................................... 9Error! Bookmark not defined.

8.

Grading .............................................................................................. 10Error! Bookmark not defined.

9.

Students Guidance ............................................................................. 10Error! Bookmark not defined.

10. References ......................................................................................... 10Error! Bookmark not defined.

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Vision and Mission of MBA-ITB

Vision:
To be A World Class Program of Master and Business Administration that Creates Ethical
and Entrepreneurial Leaders
Mission:
To educate and develop future leaders in business
To develop sustainable education program for building human resource capacity
needed for enhancing industry competitiveness in Indonesia

1. Learning Goals of MBA-ITB

In General, The MBA-ITBs learning goal is to develop students to have the following
characteristics:
A Strongcompetence in business and technology-based management as well as
decisionmakingcapabilities as demonstrated by business leaders in the world.
An ethical leadership and professionalmindset
An entrepreneurial spirit both as professionals and as entrepreneurs.
Ability to makedecisionsbased on human values in a systemic and integrated manner
so as to meet the needs of the community.
There are three programs atMBA ITB Bandung campus with specific learning goals as
follows:
A. Young Professional
The learning goal of this program is to build business sensitivity and business administration
knowledge and skillsrequired to startcareeratmanageriallevel.
B. Creative and Cultural Entrepreneurship (CCE)
The learning goal of this program is to teachstudents about doing business in creative and
culture sectors and how to manage their new business in these areas.
C. Young Executive
The learning goal of this program to improve studentsagility in decisionmaking and to
develop a holisticview of business whichenablesthem to lead a business project on a higher
level effectively in todays business environment.

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2. Learning Goals of This Course

The essential focus of this course is to build an understanding of decision-making and
negotiation processes. The course provides guidances for effective decision making that
avoid common mistakes and hidden traps, allowingstudents to develop insights and
understanding about the nature of decision-making and negotiation, through
anintroduction to a range of relevant ideas, issues and frameworks.
This course is for Young Professional students. It aims at teaching and developing the
following competences:
1. Understanding and applying knowledge and tools in:
a. Ethical foundation
i.
Identifying values (fundamental objective) of a business process
b. Technical foundation in business management
i. Ability to understand decision making process;
ii. Ability to use basic statistical tools (Probability*)
iii. Ability to identify and analyzeroot causes of complex business problem;
iv. Ability to analyze decisions involving multiple objectives;
v. Ability to analyze decisions involving multiple criteria with paired
comparisons;
vi. Ability to analyze decisions involving uncertainties.
c. Strategic design
i.
Solving decision problems involving large number of factors
ii.
Applying simulation to the problems;
d. Leadership
i. Making decisions involving groups of individuals.
2. Having mindset of an entrepreneurial leader in
a. Complex Problem solving
i.
Identifying and analyzing aconflict situation in business
b. Interactive Decision Making
i.
Implementing negotiation with perspective of claiming value (win lose)
ii.
Implementing negotiation with perspective of creating value (win win)

3. Learning Outcomes of This Course

After completing this course, students will be able to analyze decisionwhich involves
problem identification, criteria selection, generating alternatives, and proposed
solutions to a complex business situation.

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4. The Course Structure

Please draw a structure of competence building in this course.

Ability to analyze decision which involves problem

identification, criteria selection, generating

alternatives, and proposed solutions to a
complex business situation.

Ability to analyze decision and explain

the variety of ways in which decisions
are and can be made;

Ability to identify
and analyze root
causes of complex
business problem

Ability to analyze
decisions involving
multiple objectives

Ability to solve decision problems

involving large number of factors and
apply simulation to the problems

Ability to use negotiation framework

based on distributive and integrative
approaches.

Ability to analyze
decisions involving
multiple criteria with
paired comparisons

Ability to analyze
decisions involving
uncertainties

Ability to use
negotiation
framework based
on distributive
and integrative
approaches

Ability to make decisions involving

groups of individuals.

Explain and improvethe competence in structuring

problems by using decision making and negotiation skills;

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5. The Course Plan

Please fill in the table below which describes how students are going to attain specific
competence as mentioned in the course structure above and how youre going to evaluate
it.
Week

Outcome(s)

Activity(ies)

#1:
Friday,Aug
ust 26 ,
2016

- Understanding ways of
making decisions, their
uses considering the
situation by using
heuristics and intuition
(system 1), and awareness
to potential biases and
traps

Session 1
Introduction to Decision
Making

- Ability to recognize
situations that require
action, to break apart
overlapping and confusing
issues and analyse the
problem

#2: Friday
,September2
, 2016

- Ability to understand
decision making process
to analyze situation and
analyze problem by
using KT.

Interactive Games
Lesson learn : intuition
and heuristics (Decision
making under limited
time and condition)

Preparation
Individual Reading

Facilitator

MS

Assignment (submit before

class): Resume of
- Chapter 9,Decision
Analysis for
Management Judgment
(Goodwin, 2004, 3rd
Edition), Biasses in
probability assessment

Break
Session 2
Introduction to
decision making
process: Situation
appraisal and
exercise
Short Case: Exxon
Valdes
Short Case: Ragin
Cajun Chicken
Session 1
Case: Can You
Analyze This
Problem?
Short Case: New
Supplier
Introduction to
decision making
process: Problem
Analysis and
Decision Analysis
(Must and Wants
Criteria)

Individual Reading

MS

Assignment (submit before

class): Resume of
Chapter 1 in Kepner, C. &
Tregoe, B. (1997). The New
Rational Manager.
Princeton

Reading:
- Chapter 1 in Kepner, C.
&Tregoe, B. (1997). The
New Rational Manager.
Princeton Research
Press: Princeton

MS

Break
Session 2
Exercise of problem
Analysis and
Decision Analysis
(Must and wants)

Reading:
- Chapter 1 in Kepner, C.
&Tregoe, B. (1997). The
New Rational Manager.
Princeton Research
Press: Princeton

MS

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Week

Outcome(s)

#3: Friday
,September9
, 2016

- Understanding how to
choose the best
alternative from one step
of decision point
- Ability to evaluate
alternative from the issues
using must and wants (DA)
- Ability to choose the best
alternative from the issues
using AHP

Activity(ies)
Session 1
Decision Making
with multi criteria:
AHP (Analytic
Hierarchy Process
(AHP))with simple
exercise

Preparation

Facilitator

Individual Reading
Assignment (submit before
class): Resume from book:
Chapter 16,Decision
Analysis for Management
Judgment (Goodwin, 2004,
3rd Edition), The analytical
Hierarchy Process.

MS

Break
Session 2
Exercise of AHP

#4: Friday
,September1
6 , 2016

Understanding the best

alternative from complex
multistage decision point
- Understanding the role of
uncertainty in decision
making and incorporating
uncertainty in a decision
analysis
- Ability to use DT in case
-

Session 1
Decision Making
under Uncertainty:
Decision Tree
Short Case:
Westward
Publishing

MS
Individual Reading

Break
Session 2
Exercise: Decision
Tree
Announcement for
next week
practicum to bring
laptop and install
the software (add in
excel)

#5: Friday
,September
23 , 2016

Ability to apply software

tree plan into case and
real problem
Ability to make simulation
by using Monte Carlo

MS

Assignment (submit before

class): Chapter 6, 8, 9,
Decision Analysis for
Management Judgment
(Goodwin, 2004),

Session 1
Exercise: Monte
Carlo for Business
Decision making
problems involving
large number of
factors: Monte Carlo
Simulation

MS

Reading:
Ch. 8: Applying
simulation to decision
problems. Goodwin, P.,
& Wright, G. (2009, 4th
ed.). Decision Analysis
for Management
Judgment, pp 183-207

MS

Break
Session 2
Exercise of Monte
Carlo Simulation

MS

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Week

Outcome(s)

#6: Friday
,September3
0 , 2016

#7: Friday ,
October 7
, 2016
#8: Friday ,
October 14
, 2016

#9: Friday ,
October 21
, 2016

Activity(ies)

Preparation

Facilitator

Session 1
Decision making by
involving Group: The
Delphi Method

Individual Reading
Assignment (submit before
class):

MS

Chapter. 13: Decisions

involving groups of
individuals. Goodwin, P.,
& Wright, G. (2009, 4th
ed.). Decision Analysis
for Management
Judgment, pp 301-321
Break

Session 2
Case of Delphi
Method

MS

Session 1
Case 1: Negotiation
Dilemma

USP

Mid Term

Ability to understand
basic of game theory
Ability to understand
how to transform
problem into games
and its strategy

Ability to have a
critical thinking and
how to think in a real
complex problem.

Break
Session 2
Interactive Decision
Making: Game
Theory
Film: Beautiful Mind
Session 1
The application of
game theory on
business

Avinash Dixit, Skeath and

Heiley Jr.. Games of
Strategy, 2005

USP

USP

Break

#10: Friday
, October 28
, 2016

Explain how to used

confrontation analysis
software and how to
analyze the results of
experiment.
Apply and analyze a
conflict problem from
real world.

Session 2
Case 2: Game theory
application
Session 1
Confrontation
Analysis (Dilemma
of Collaboration)
Case 3: Film

Session 2
Practicing
Confrontation
Manager (Software
of Drama Theory)

USP
Reading:
Ch. 6 The Six Dilemmas,
pp 135-173, The Six
Dilemmas of
Collaboration: Interorganisational
Relationships as Drama,
Bryant, J., (2003).
Break

USP

USP

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Week

#11: Friday
, November
4 , 2016

#12: Friday
, November
11 , 2016

Outcome(s)
-

Understanding on key
concepts and elements of
negotiation

Ability to apply
distributive negotiation to
case Buying house

Ability to apply
distributive negotiation
strategies

Activity(ies)

Preparation

Facilitator

Session 1
Rational Framework
for Negotiation
Case 4: Claiming and
creating value

Reading:
Judgment in Managerial
Decision Making, Max H.
Bazerman and Don
Moore, 7th edition, 2009
Break

USP

Session 2
Distributive
Negotiation
Case 5: Distributive
negotiation

Reading:
Judgment in Managerial
Decision Making, Max H.
Bazerman and Don
Moore, 7th edition, 2009

USP

Session 1
Tips for Distributive
Negotiation
Case 6: Tips

Reading:

USP

Dispute Resolution
Research Center
Break

#13: Friday
, November
18 , 2016

#14: Friday
, November
25 , 2016

Ability to create value

and foster a win-win
situation
Ability to apply
integrative negotiation to
case working moms
Understanding on
dilemma of negotiation.

Session 2
Integrative
Negotiation
Case 6: Integrative
negotiation
Session 1
Case 7: Creating and
Claiming

Reading:

USP

Getting to Yes, Roger Fisher

and William Ury, 2011

Reading:

USP

Dispute Resolution
Research Center
Break

Session 2
Group assignment:
Lessons learned

USP

Final Test

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6. Lecturer Profile
Prof. Dr. UtomoSarjonoPutro
E-mail: utomo@sbm-itb.ac.id
Prof.Dr. UtomoSarjonoPutroreceived bachelor degree from undergraduate study program,
Industrial Engineering Department of Engineering ITB on1992, then on 1995 to 2001, he
continued to Master and Doctoral program at Department of Value and Decision Science, Tokyo
Institute of Technology, Japan.
He published papers in several international journals, such as IEEE Transaction on Systems, Man,
and Cybernetics, System Analysis Modeling Simulation, and Systems Research and Behavioral
Science, and also several chapters in Books published by Springers.
His research interests include decision science, system modelling for policy development,
confrontation analysis, negotiation, service science and agent based modelling and simulation.
Currently, he was active as an expert in Presidents Delivery Unit for Development Monitoring and
Oversight (UKP4), Secretary of Indonesian National Member Organization in IIASA (International
Institute of Applied System Analysis), and Secretary of INCASA (Indonesian National Committee of
Applied System Analysis). He has been serving as reviewer in several international journals: System
Research and Behavioural Science, and Asian Journal of Management Science and Applications
(AJMSA).

Name: Dr. Manahan Siallagan, S.Si, MT, M.Sc.,

E-mail: manahan@sbm-itb.ac.idManahan Siallagan graduated from Mathematic, InstitutTeknologi
Bandung in 1998. He got master degree from electrical engineering, InstitutTeknologi Bandung in 2003.
He continued his study at Tokyo Institute of Technology and got both of Master and Doctoral degree in
computational intelligent and systems science in 2013. Joined the School of Business and Management
(SBM) ITB as a full-time tutor in 2007 and as a full time lecturer after he received M.Scand PhD in
Computational Intelligence and Systems Science from Tokyo Institute of Technology, Japan in 2011 and
2013. His experiences are as a lecturer in private university since 2000, as a research assistant and full
time tutor at decision making and strategic negotiation of research interest group since 2005.
He has several International publications, such as Systems Research and Behavioral Science,
Evolutionary and Institutional Economics Review, and Frontiers in Psychological and Behavioral Science
also some books chapters in Springer edition. His research interest social simulation, decision science
and negotiation, system thinking and agent based modeling.

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7. Grading
Please mention how grading is determined within this course. It should be based on the
evaluation you specified in the course plan above.
Example:
Item

Weight

Case Assignment and Lecture Process for

Decision Making Session

25%

Case Assignment and Lecture Process for

Negotiation (Pre, process and Result)

25%

Mid Test (Individual/Decision Making)

25%

Final Test (Individual/Negotiation)

25%

TOTAL

100%

Note:
You may also write something about how youre going to add students attitude or special
role in the class (e.g. class coordinator) into the final grade. However, its not easy to do
that and you have to be very clear about it in order to avoid complaints from students.

8. Students Guidance
In order to succeed, students are advised to do the followings:
1. Allocate sufficient time for self-preparation
2. Discuss concepts and cases with their syndicate
3. Elaborate practical cases apart from cases given
4. Have a proper notes of all lecture
5. Contribute actively in the class

9. References
Please mention main references that you use in this course. Make sure that they are
available for students at MBA ITB library. If not sufficient, please ask the librarian to
order it for you.

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Main text book:

Bazerman, M.H. (1994, 3thed.). Judgment In Managerial Decision Making. New York: Wiley
Hastie, R. & Dawes, R. (2010, 2nd ed.). Rational Choice in an Uncertain World. The Psychology of
Judgment and Decision Making.California: SAGE Publications, Inc.
Bazerman, M.H. ,& Neale, M.A. (1992). Negotiating Rationally. New York: Free Press
Bryant, J., (2003). The Six Dilemmas of Collaboration: Inter-organisational Relationships as Drama,
John Wiley & Sons Ltd., England.
Gano, D.L. (2007, 3rd ed.). Apollo Root Cause Analysis A New Way of Thinking. USA, Apollonian
Publications, LLC.
Lewicki, R. J., Barry, B, Saunders, D.M. (2007). Essentials of Negotiation. 4th ed. Boston, MA:
McGraw-Hill, 2007.
Thompson, L. (2005) The Mind and Heart of the Negotiator. 3rd edition. Upper Saddle River, New
Jersey: Pearson Education Inc.
Fisher, R., W. Ury, and B. Patton (1991). Getting to Yes. 2nd ed. New York: Penguin Books, 1991.W.
Ury. Getting Past No. New York: Bantam Books.
Goodwin, P., & Wright, G. (2009, 4th ed.). Decision Analysis for Management Judgment. Chichester,
UK: Wiley
Lax, D.A. & Sebenius, J.K. (2006). 3D Negotiation. Boston, Massachusetts: HBS Press.
Malhotra, D. & Bazerman, M.H. (2008). Negotiation Genius. New York: HBS-Bantam Books.
Howard, N., Confrontation Analysis: How to Win Operations Other than War, CCRP Publication
Series, 1999.
Bryant, J.W., The Six Dilemmas of Collaboration: Inter-organizational Relationships as Drama, John
Wiley & Sons, 2003.
Avinash Dixit and Barry Nalebuff : Thinking Strategically, Norton, 1991
Avinash Dixit, Skeath and Heiley Jr.. Games of Strategy, 2005

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