Group name:

PHONIEX ESTATE

 

 

Members that participated in the activity:

Initial & Surname	Student number	Contribution
K Mohlabeng	30254272	Outcome 5
P Mangena	30916623	Outcome 4
S T Sithole	32116047	Outcome 3
LLV Ramokoka	27652335	Outcome 2
JM Moekamela	31900984	Outcome 1

 

Study outcomes and answers:

1. Define decision-making and explain the role of decision-making for managers and employees.

Decision making is the thought process of selecting a logical choice from available options, for example when trying to make a good decision a person must weigh the positive and negative consequences of each.

• Managers are responsible for ensuring that effective decision making happens
• Decision making helps improve workplace relationships by giving employees the opportunity to voice their opinions and share their knowledge
•  It also improves employee participation

 

2. Discuss the conditions of certainty, risk, and uncertainty under which decisions are made.

• Conditions of certainty risk are for example, the credit policy in the banking industry being applied more strictly than in the past. Previously banks issued home loans at a high interest rate but now banks are more cautious, irrespective of the interest rate.
• Managers force uncertainty every day, they may not have clear-cut solutions, but they rely on creativity, judgement and experience to craft a response. Dealing with uncertainty is a ‘face in the jobs’ of many mangers and various developers, engineers, market researchers and strategic planers.

 

3. Describe the characteristics of routine, adaptive, and innovative decisions.

Routine decisions

• Rules and standards are considered/established
• Made with computer software (computerised airline)
• Skills required for certain jobs to be filling vouchers processing payroll, packing and shipping customer orders

Adaptive decisions

• The combination of moderately unusual and unusual problems with alternative solutions
• Involves modifying and improving upon the routine decisions and practice organisation decisions being made overtime then the results in large number of small that is the continuous improvement working hand in hand with the adaptive decisions, goals of providing better quality, improving efficiency are included

Innovative decisions

• Based on discovery, identification and diagnosis of unusual ambiguous problems
• Decisions are made in a frequent series of small decisions made over a period of months/even years
• Sharp break is represented with the past
• Rapid changing information

 

4. Explain how goals affect decision-making.

• Goals are crucial in giving employees, managers and organisations a sense of order, direction and meaning. Goals affect decision making by evaluating the success and happiness in life.
• Since goals are also called objectives, purposes, standards, deadlines, targets and quotes this means that they help organisations reach their long term and short goals by making the best decisions for the organisation.

 

5. Differentiate between the rational, bounded rationality, and political models of decision-making.

Rational model	Bounded rationality model	Political model
A rational decision permits the maximum achievement of goals within the limitations of the situation.	This model emphasises the limitations of rationality and thus provides a better picture of the day to day decision making process used by people. It basically explains why people react differently towards the same problem.	It describes the decision-making process in terms of the particular interests and goals of powerful external and internal stakeholders.
Process: define and diagnose the problem, set goals, search for alternative solutions, compare and evaluate alternative solutions, choose from among alternative solutions, implement the solution selected and follow up and control.	Factors influencing a satisficing decision: limited research, inadequate information and information-processing bias.	Factors affecting the political decision-making process: Stakeholders, choice of goals and alternative solutions.
E.g. This model can be used to write up standard procedures to be followed when faced with a low risk condition.	E.g. When a coin is tossed, and head appears twice you will assume that the chance of it appearing for a third time is 50/50.	E.g. If a stake holder has information that could work in his favour he will not tell anyone until the moment he sees that revealing the information will work in his favour.