Decision making is the process of choosing one alternative from several. The basic elements of decision making include choosing a goal, considering alternative courses of action, assessing potential outcomes of the alternatives, each with its own value relative to the goal, and choosing one alternative based on evaluation of the outcomes. Information is available regarding the alternatives, outcomes, and values.

Programmed decisions are well structured, recurring decisions made according to set decision rules. Non-programmed decisions involve nonroutine, poorly structured situations with unclear sources of information; these decisions cannot be made according to existing decision rules. Decision making may also be classified according to the information available. The classifications-certainty, risk, and uncertainty-reflect the amount of information available regarding the outcomes of alternatives.

The rational approach views decision making as a completely rational process in which goals are established, a problem is identified, alternatives are generated and evaluated, a choice is made and implemented, and control is exercised. The use of procedures and rules of thumb, suboptimizing, and satisficing characterize the behavioral model. The rational and behavioral views can be combined into a practical model. The Janis-Mann conflict model recognizes the personal anxiety individuals face when they must make important decisions.

Two related behavioral aspects of decision making are escalation of commitment and ethics. Escalation of commitment to an ineffective course of action occurs in many decision situations. Psychological, social, ego, and organizational factors may cause it. Ethics also play an important role in many managerial decisions.

Group decision making involves problems as well as benefits. One possible problem is group polarization, the shift of members' attitudes and opinions to a more extreme position following group discussion. Another difficulty is groupthink, a mode of thinking in which the urge toward unanimity overrides the critical appraisal of alternatives. Yet another concern involves employee participation in decision making. The appropriate degree of participation depends on the characteristics of the situation.

Negotiation is the process through which two or more parties (people or groups) reach agreement even though they have different preferences. Research on negotiation has examined individual differences, situational characteristics, game theory, and cognitive approaches. The Win-Win approach provides a simple four-step model to successful negotiation: planning, relationships, agreement, and maintenance.