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Managerial Decision Making

The textbook used for this course is: Judgement in Managerial Decision Making; 6th Edition, Max H. Bazerman.

Apply decision analysis to the truck drivers' negotiation problem (file attached) and advise the participants on their decision problem. Your analysis should be more than a number crunching exercise. You will also want to include a discussion of how negotiator cognition colors (or could color) this issue.

1. Clearly state any assumptions you have made.

2. Discuss in detail the strengths and limitation of your analysis in the context of the truck drivers' dispute.

The purpose of this assignment is to write a memo with any supporting details (such as a model of the negotiation problem) as an attachment.


Solution Preview

The numbers that have been given can be reduced to a common denominator for the purpose of calculation.
For the government it is assumed that if imposing the fuel tax is as important as 60%, the reduction of the number of driving hours is as important as 100%.

We take 100 to be 1.0.


For the government imposing the fuel tax is 60% important that is 0.6. In addition avoiding reduction of charges is important to the extent of 40%. That is 0.4. In case serious charges are made the number will be 1.00 and if that is multiplied by 0.4 we get the value 0.4. In addition, if there are minor charges made the value to the government is 0.9 if we multiply it by 0.4 we get. 0.36.

For the truck drivers avoiding fuel tax is 10% of the value of avoiding reduction of working hours. The avoiding of reduction of working hours is taken to be 1. Then allowing 11 hours of work will be 100 that is 1.0 X 1.0 = 1.0. ...

Solution Summary

Managerial Decision Making is discussed very comprehensively in this explanation..