DEFINING DECISION MAKING AND THE ROLE OF DECISION MAKING FOR MANAGERS AND EMPLOYEES 

Decision making - is the process of individuals and organisations to decide what they want, includes taking risks, eliminating factors in oder to reach certain goals and objectives. 

ROLE OF DECISION MAKING 

• the decision making process has a fundamental components which guide the management and employees which are
• decision making models 
• types of problems 
• goals and decision making 
• type of decision 
• decision making conditions
• managerial competencies 

EXPLAIN THE CONDITIONS OF CERTAINTY, RISK AND UNCENTAINTY UNDER WHICH DECISION ARE MADE

CERTAINTY is the conditions under individuals are fully informed about a problem, alternative solution are obvious and the likely results of each solutions are clear.

RISK is the condition under which individual can define a problem, specify events, identify alternative solutions and state the probability of each of each solution leading to desired results 

• PROBABILITY is the percentage of times that that a specific outcome would occur if an individual was to make a particular decision.

UNCERTAINTY- is the condition under which an individual does not have the necessary information to assign probabilities to the outcome of alternative decision.

DESCRIBE THE CHARACTERISTICS OF ROUTINE, ADAPTIVE AND INNOVATIVE DECISION

ROUTINE DECISION are standard choice made in response to relatively well-defined and common problems with alternative solutions, are made by computer software. Task requiring includes processing.

ADAPTIVE DECISIONS are choices made in response to a combination of moderately unusual and fairly uncommon problems with alternative solutions. Involves modifying and improving upon past routine.

INNOVATIVE DECISIONS are choices based on discovery, identification and diagnosis of unusual and ambiguous or developments of unique or creative alternative solution.

EXPALIN HOW GOALS AFFECT DECISION-MAKING 

Goals help one make crucial decisions as goals give a sense of oder, direction and meaning. They serve to control decisions and effort of the organisation and they provide broad directions for the decision that an organisation might want to take. Goals clearly explain the quality and quality of desired results and they help state the performance evaluation and control. 

DIFFERENTIATE BETWEEN THE RATIONAL MODEL, BOUNDED RATIONALITY AND POLITICAL MODEL

RATIONAL MODEL analysis a series of steps that individuals or teams must follow to increase the likelihood that their decisions will be logical and sound 

BOUNDED RATIONALITY emphasises the limitations of rationality and provide a better picture of day-to-day decision making processes used by people as you can have different individuals making different decisions while they have the same information.

POLITICAL MODEL has a particular interest and goals of powerful external and internal stakeholders. This are powerful individuals who are involved in a disagreement over a choice and they are not looking for alternative solutions.