Decision Making in Three Different Conditions

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FACULTY OF BUSINESS AND MANAGEMENT 1 - INTRODUCTION In managerial functions of planning, organising, leading and controlling decision making is an important and essential aspect throughout the movement of an organisation. In assuring the corporate objective is pursued in right destination, all the management stages such as top level management, middle level management and lower level management are entitled to make effective decisions on specific occasions. According to web page VirtualSought.com, decision making is defined as below:- (a) Decision making is the study of identifying and implementing alternatives based on the values and preferences of the decision maker. Here it is described that the decision maker chooses the alternative with highest probabilities of accuracy and persistence. This also concluded as deciding on the solution that best fits the organisational goals, desire, values, and ethics and so on. (b) The second definition states that decision making is also the process of effectively minimizing any uncertainty or conflict on available solutions to ensure an appropriate choice had been made among all the alternatives. The description highlights the first and foremost element to be given priority before making a decision is information gathering. Retrieval of sufficient information related to the environment directly reduces the uncertainty rather than eliminate it. An effective corporate decision maker must analyse the adequacy and validity of information obtained in particular situations. There are 3 situations of availabilities of information that will influence the decision maker hence lead to 3 different decision making environment. These 3 environments are identified as:- (i) Certain condition (ii) Uncertain condition (iii) Risky condition 1.1-CERTAIN CONDITION The most favourable condition

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