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T SNELL
COLLABRAINS BLOG.
4 Sep 2019, 20:21
Chapter 14 Blog
Learning outcomes:
Members who participated:
| INITIAL & SURNAME | STUDENT NUMBER | CONTRIBUTION |
| T. Snell | 32672659 | Learning Outcome 4 |
| T. Mc Cloen | 31683010 | Learning Outcome 2 |
| A. Van Der Westhuizen | 31557473 | Learning Outcome 3 |
| E. Luther | 32483740 | Learning Outcome 2 |
| A. Uys | 32179529 | Learning Outcome 5 |
| F. Herbst | 31905366 | Learning Outcome 2 |
| S. Landman | 31634680 | Learning Outcome 5 |
| C. Van Zyl | 32246366 | Learning Outcome 5 |
| A. Oostendurp | 32041012 | Learning Outcome 3 |
| H. De Jager | 33435642 | Learning Outcome 3 |
| F. Graham | 33582319 | Learning Outcome 1 |
1. Define decision-making.
Decision Making is the process of defining a problem, gathering information, finding solutions and alternatives and then choosing a course of action.
Explain the role of decision-making for managers and employees.
Decision making helps managers distribute tasks among employees. Decision making Increases productivity and team work. Decision making enables managers to plan and set goals and it enables employees to achieve those goals.
2. Discuss the conditions of certainty, risk, and uncertainty under which decisions are made.
Certainty: The condition where individuals are well informed about a problem. Solutions are obvious and results of each solution is clear. Certainty allows anticipation of events and its outcomes. This means that the problem and the solutions are well known and defined.
Risk: The condition where individuals can define a problem, specify the probability of certain events, identify solutions and state the probability: amount of times a specific outcome can occur. Objective Probability: likelihood that a specific outcome would occur (facts). Subjective Probability: likelihood that a specific outcome will occur (personal judgements).
Uncertainty: The condition where individuals do not have the necessary information to assign probabilities to outcomes of solutions. they may not be able to define problems and find alternative solutions.
3. Describe the characteristics of the types of decisions: routine, adaptive, and innovative decisions.
Routine decisions: Customary decisions taken up to combat non-ambiguous problems that have alternative solutions. These decisions are generally made according to a set of standard procedures. Examples of these types of decisions usually occur when using computerised software .
Adaptive decisions: Consist of decisions often derived frim the improvement of past routine decisions that are set out to combat fairly unusual and uncommon problems with alternative solutions. These decisions are vital for continuous improvement.
Innovative decisions: Unusual and ambiguous problems first have to be discovered and thereafter a decision will be taken based on the identification and diagnosis of the problem through the development of unique and innovative solutions. These types of decisions generally require a series of small, interrelated decisions made over a period of months or a year.
4. Explain how goals affect decision-making.
Decision making under risk and uncertainty conditions are couples with goals in the following ways: Decision making process is triggered by an effort to discover new gaols, revise current goals or drop outdated goals. Decision making process is triggered by a search for etter ways to achieve established goals. Goals are crucial in giving employees and managers a sense of order, direction and meaning.
5. Differentiate between the rational, bounded rationality, and political models of decision-making.
Rational model: It consists of a 7-step prescriptive model that entails the process of routine decision making involving low risk situations
Bounded rationality model: This model insists on explaining why different decisions are made by different individuals in the same context. The limitations of rationality are also greatly highlighted in this model.
The model highlights the following actions often taken up by individuals:
• Engaging in limited searches for alternative solutions
• The influence that incomplete information and the level of control that they have over external and internal environmental forces have on the outcomes of a decision And finally
• Satisficing- The selection of an alternative solution or a less acceptable goal than the best
Political model: A description of the decision making process with regard to the goals and interest of external and internal individuals with POWER. Power being the key word is the level of influence that is had over individuals, departments, teams or organisational decisions or goals.