Group name:

THEE MARULA

Members that participated in the activity:

Initial & Surname	Student number	Contribution
P BAKHE	30445418	L.O 1 E.G’S
M.A INAMA	28454413	L.O 1 EXPLAINATION
N.SHABANGU	27759113	L.O3
R.MAKHALEMELE	31173012	L.O3 E.G’S
A.MATHUOE	31426646	L.O 4 AND 5
P.N MAFIKA	31939007	L.O 4
E MAGODA	32313438	L.O 2
B.T CHIWENGA	30192145	L.O 5

L.O 1 DECISION MAKING

Is the process of deciding which solution will best resolve the problem after you have considered and evaluated other possible ideas

Example: Good decision makers;

Opt for a “problem-solving” attitude, as opposed to a “that's not my job” approach.

ROLE OF DECISION MAKING

Is to explain problems, generate ideas and choosing the best idea which will be used to solve the problem.

Example:

Polling staff to gauge the impact of extending retail hours. Conducting a comparative analysis of proposals from three advertising agencies and selecting the best firm to lead a campaign. Soliciting input from staff members on an issue important to the company's future. How goals affect decision-making

Decision making is coupled with the achievement of goals. And goals which are also known as ends, objectives or targets are results to be attained and they also indicate the direction in which decisions and actions should be aimed.

L.O 2 CONDITIONS UNDER CERTAINTY

The conditions under certainly are which the decision-maker has full and needed information to make a decision and each individual is informed about the problems and their solution. For example, when a company puts aside funds to cover for the renovation of executive offices. 

CONDITIONS UNDER RISK

These provide possibilities regarding expected results for decision-making alternatives, it is due to the nature of future conditions that are not always known in advance. For example, when the credit policy of the banking industry is being applied more stringently than in the past.

CONDITIONS UNDER UNCERTAINTY

These provide incomplete information or at times it provides no information at all regarding problems. The manager cannot predict problems like factors that may affect a decision such as price, production cots, volume or future interest rates that are difficult to analyze or predict.

 

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

Innovative decisions

Innovative decisions are choices based on the recognition of rare and debatable problems or the creation of other unique and creative solutions. These solutions include decisions, which collaborate and they are completed over centuries or months. This entails that innovative decisions take time to mature secondly these decisions are based on the information that changes all the time. For example, Toyota’s future depends on its ability to offer new innovative and compatibly products that meet customers demand on a timely basis. Introduction of robots to hurry the process of car building and manufacturing facilities in 18 countries to facilitate the demand. 

Adaptive decisions

Adaptive decisions are well defined as an effective reaction to a change in a solution or rather problem-solving which includes improving and altering past routine choices. Adaptive decisions involve strategizing and prioritizing, the decisions are made over time, which result in a great number of gradual progresses. For example, Toyota reduced the board of directors and decision-making layers, changing the management process from the ground-up, facilitating rapid management decision making. 

Routine decisions

Routine is decision-making that does not need much time to evaluate and examine. The decision can be taken immediately. Routine uses a clear procedure, decisions are completed on a regular day-to-day basis and it has a minor scale in nature. For example, with bus tickets, there must be someone who uses a computer to process your personal details and to point out your individual ticket. Management should come up with ideas to improve the processing of the tickets.

L.O 4.There is two ways in which Decision making in organisations under the condition of risk and uncertainty is coupled directly with goals, namely:

1. When the decision-making process is triggered by a search for better ways to achieve established goals
2. When the decision-making process is triggered by an effort to discover new goals, revive current goals or drop outdated goals.
3. Goals are results to be accomplished therefore they direct the course in which decisions and actions should be aimed. For example, if my goal is to obtain 8 distinctions at the end of the year then I have to make decisions that are in alignment with my goals, like increasing my study time, reducing the number of times I go out and maybe investing in a good tutor for the modules I am struggling with.
4. The decision-making process is activated by a search for better ways to attain established goals
5. The decision-making process is triggered by an effort to realize new goals, revise current goals or drop outdated goal    

L.O 5 Rational Model 

It prescribes a series of steps that individuals or teams should follow to increase the likelihood that their decisions will be logical and sound. It also permits the maximum achievement of goals within the limitations of the situation

Rational decision making is a multi-step process for making choices between alternatives. The process of rational decision making favors logic, objectivity, and analysis over subjectivity and insight. 

Bounded rationality – This model partially explains why different individuals make different decisions when they have exactly the same information, this model is important because it emphasis the limitations of rationality and thus provides a better picture of the day-to-day decision-making process used by many people.

Bounded rationality is the idea that rationality is limited when individuals make decisions: by the tractability of the decision problem, the cognitive limitations of the mind, and the time available to make the decision. 

Political model – This model describes the decision making process in terms of the particular interests and goals of powerful external and internal stakeholders

The political approach to decision making takes what the rational and practical models left out and posits that any organizational activity is a political and ideological activity. ... In other words, the political approach to decision making extends our vision in terms of understanding agency and social factors.