FUNDAMENTALS OF MANAGEMENT (MGT 162)

TUTORIAL 3

1.Define decision making

 The process through which managers identify and resolve problems and

capitalize on opportunities.

 The process by which a course of action is selected as the way to deal with a

specific problem.

2.Differentiate between program decision and non-program decision

Program Non-program

 It is stuctured. Decisions that have been  It is unstructured and requires higher level

made so many times in the past that management. Deals with unique, unusual or

managers have developed rules or exceptional problem.

guideline to be applied when certain

situation are expected to occur.

 A repetitive decision that can be handled by  Non-routine decision making that occurs in

a routine approach. response to unusual, unpredictable

opportunities and treat.

 Example : Rules & regulations.  Example : Government’s decision to prevent

H1N1 by stopped all the travelling outside

country.
3.Briefly explain the difference between decision making under certainty,

risk ,uncertainty and ambiguity.

i. Certainty

 The manager has enough information to know the outcome of the decision

before it is made and able to predict it precisely.

ii. Risk

 Decision maker is able to estimate the likelihood of certain outcome based on

personal experience or secondary information.

iii. Uncertainty

 A condition which there is not full knowlegde of the problem and reasonable

probabilities for alternative outcomes cannot be determined.

iv. Ambiguity

 Means the goal to be achieved or problem to be solved is unclear, alternatives

are difficult to define and information about outcomes is not available.

4.List any three (3) types of group decision making.

 Identifying & diagnosing problems

 Identifying objectives

 Generating alternatives
 5.List three (3) advantages and disadvantages of group decision making.

Advantages Disadvantages

 More information and knowledge are  The process takes longer than individual

available decision making, so it is costlier.

 More alternatives are likely to be  Compromise decisions resulting from

generated. indecisiveness may emerge.

 More acceptance of the final decision is  One person may dominate the group.

likely.