CONDITIONS OF DECISION MAKING

CERTAINY CONDITIONS
In

conditions under certainty managers will be able predict what will happen in the future. this condition,assuming that all the information obtained complete and reliable,managers should be able know the actions that must be taken and the outcomes of the actions accurately. on the list outcomes, managers will select the alternative that proceduces the best and the most beneficial outcame to the organization.

In

Based

RISKY CONDITIONS
Risky

conditions refer to conditions whereby managers would only be able to roughly predict the outcome of implementing the alternative due to limited knownledge and information. possibility of a condition occuring can be determined through objective probability whereby a mathematical model is used,or through subjective probability which is based on the managers experiences and judgements.

However,the

UNCERTAINTY CONDITIONS
Conditions

under uncertainty refer to conditions whereby decision makers are unsure or unable to predict the outcome of an action. this conditions , managers do not have any information on the outcome of implementing an alternative.

In

 Managers

must make their own judgement based on past experiences to make subjective evalutions.

THE DECISION MAKING

PROCESS

Identify the problem

Form alternative

Analyse the alternatives

Select the best alternative

Implement a decision

Evaluate thedecision

Take follow up action

DECISION

MAKING

TECHNIQUE

GROUP DECISION MAKING

Most decisions that influence organizational activities and human resources are made by teams or groups in the organization. Personal decision style refers to differences among people with respect to how they perceive problems and make decisions. Four major decision styles :Directive style Analytical style Conceptual style Behavioural style

Advantages Of Group Decision Making o Able to collect more information. o Able to form many affective alternative. o High acceptance level. o Increase in the acceptance of rights. Disadvantages Of Group Decision Making o Takes a longer time. o Minority domination. o Pressure to follow a decision. o Unclear responsibilities.

WAYS TO IMPROVE GROUP DECISION

MAKING Brainstorming. Nominal group techique. Delphi technique. Electronic meeting.