Members that participated in the activity:

Learning outcome 1

• The process consists of these steps: You define the problem, come up with appropriate solutions to the problem and finally chose the best solution to solve the problem.

• An effective manager is well aware of what is happening in the local and international sphere. He/she values teamwork and they value their employees input, continues communicating with his team.
  • Example: When there is a crisis in the company, the manager will tell her employees of such problem and let them pitch in the possible solutions.
• A good manager has high emotional intelligence
  • The manager will not make decisions based on some gut feeling
• An employee will also be able to take the responsibility to make routine decisions around the company.
  • If it happens that the is faulty service rendered to a client, employee might try alternative ways to keep the client without involving the management

Study outcome 2: Conditions of certainty, risk and uncertainty under which decisions are made

CERTAINTY

The condition in which individuals are well informed about the problem, the possible or alternative solutions are obvious and are the results of each are very clear. The condition specifies that both the problem and the possible solutions are well defined and known.

RISK

The condition in which individuals can define a problem, specify the probability of certain events, identify alternative solutions leading to the desired results. It generally entails that the problem and alternative solutions fall somewhere between the extreme of being relatively common and well defined, or being unusual and ambiguous.

UNCERTAINTY

The condition under which the individual does not have enough necessary or required information to assign probabilities to the outcomes of the alternative solutions. The individual may not even be able to define a problem, identify the alternative solutions and possible outcomes. Uncertainty means that the problem and the alternative solutions are both highly unusual. Many problems have no clear-cut solutions, but they rely on creativity judgement and experience.

  DESCRIBE THE CHARACTERISTICS OF ROUTINE, ADAPTIVE AND INNOVATIVE DECISIONS

ROUTINE DECISIONS:

-Are decisions that are made on a daily basis or daily functioning of the organization.

-These decisions do not involve much thought.

-It is also referred as standard choices made in response to well-defined and common problems with alternative solutions.

-The characteristics of routine decisions:

-Examples of routine decisions made on a business:

-Examples of tasks requiring routine decisions:

ADAPTIVE DECISIONS:

-Are choices made in response to a combination of moderately unusual and fairly uncommon problems with alternative solutions.

-When utilising the adaptive decisions they should have improvements that will occur often or countless times.

-The characteristics of adaptive decisions:

-These improvements are influenced by the contribution of strategies towards the business and goals set by the manager mostly.

INNOVATIVE DECISIONS:

-Are choices based on the discovery, identification and diagnosis pf unusual and ambiguous and/or the development.

-The characteristics of innovative decisions:

-Examples of innovative decisions on a business:

Proposing a business plan/proposal which will benefit the business as a whole by bringing growth in it.

Study outcome 4: Explain how goals affect decision-making

with goals in one of two ways.

 Goals and decision –making Why is it important???

Goals are important in giving employees, managers and organisations a sense of order and direction.  Goals are results to be attained, and thus indicate the direction in which decision and actions should be aimed. Goals are guidelines for any business its gives the business meaning.

Nature of Goals

Goals should be clear enough in order to specify the quality and quantity of the desired results. There is a lot of definitions for goals which include them being objectives, deadlines. Whichever name given to describe goals is acceptable as long as it outcomes or results are results are achievable in a certain time phase. Goals can be either short or long term goals

Examples: Long-term goal: Profitability of the organisation.

                   Short term goal; Daily goals which needs close supervision of middle      management

Why do we set Goals???

Goals serve to focus individual and organisational decisions and efforts. Setting goals has benefits which does not only benefit managers or Top management level and employees in organisation the ones who set these goals but everyone benefits from evaluating process action that is needed.

Rational model

Example: Ezweni as a company is not well marketed as the employees do not full information as to how to market because of that the business is not making profit as it is the business goal to make profit and letting the customers know about the business. As solutions to this problem the marketing team chooses the best option that they will market with an and that bring more customers to the business. Also they should research information about which advertising / marketing techniques that customers are most likely to get information on. The implemented solution was found to do research and marketing team was able to follow and control it.

Bounded rationality model

Political model