Decision Making in Certain, Uncertain and Risky Conditions

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INTRODUCTION Today, in modern management, decision making plays a critical role in determining functioning, survival and competitiveness of an organization. Everyday, regardless of minor or major, countless decisions are made subconsciously or consciously at every level of management to solve the conflicts and problems faced and implementation of every decision made surely will give certain level of influence or changes to operational activities in the organization. According to managementstudyguide.com, decision making process is always continuous and dynamic for managing any organization or business activities since new problems will keep evolving, where another problem usually will arise after one is solved. The word 'decision' is derived from the Latin word 'decisio' that means “to cut from” (Akrani, G., 2011). According to Trewartha and Newport, decision making “involves the selection of a course of action from among two or more possible alternatives in order to arrive at a solution for a given problem”. It is one of the major cognitive processes of human beings. As defined by businessdictionary.com, good decision making requires one to evaluate all alternatives by determining strengths and weaknesses of each option as well as predicting and forecasting the outcome of each alternative in order to get the best solution for a particular situation, problem or conflict. There are three types of decision making environments, which are, decision making in certain, uncertain and risky conditions respectively. Under certain condition, we are sure about our objectives and have complete, reliable and accurate knowledge of all we need to know to make that particular decision including the outcome of each alternative we are considering (Rao, S.R., 2008). For decisions made under uncertain conditions, as stated in Making Decision under

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