Group name:

 Exquisite inc.

Members that participated in the activity:

Initial & Surname

Student number

Contribution

L Masike 

33291985

outcome 3

K Khampepe 

33229775

outcome 2

MKL Masilo 

32647379

outcome 3

LS Kambule 

30550742

outcome 2

A Hlapi 

32296398

outcome 5

GD Dube

31963196

outcome 4

P Khumbuya

32659407

outcome 5

SE Motloung

33090572

outcome 4

Z Mliqika

32254784

outcome 1

1.Decision making 

Decision making is a process  of selecting logical authentic choice from available option to achieve organisational managerial objectives or goals .Decision making influences almost every aspect of corporate life . When trying to make a decision the positive and negative outcomes must be weighed and then the best option that has the highest chance of success must be implemented .

Leadership is all about making decisions .As a manager you must decide the what?where?why?and how? for your organisation.However the manager must consider the following during the decision making process:

1.Define the problem

2.Gather information

3.List and evaluate alternatives

4.Choose the best option or solution to the problem

Involving employees in decision making is very essential since in an organisation every employee is talented differently and has a different way of thinking. Active involvement in a organisation will shape a teams decision and encourage the formulation and implementation of more innovative ideas .It also promotes company loyalty y encouraging employees to be able to voice out there opinions and ideas .By doing so the employees will feel valued and when people feel valued they usually raise their level f effort and commitment to ensure the business success.

2.Conditions of certainty and uncertainty 

Certainty:A firm conviction that something is the case.The quality of being reliably true.

A condition of certainty exists when the decision maker knows with reasonable certainty what the alternatives are what conditions are associated with each alternative and the outcome of each alternative.Under conditions of certainty accurate measurable and reliable information on which to base decisions are available.

The condition of certainty exists in cases of routine decisions such as allocation of resources for production payment of wages and salaries meeting customers contracts or regularity requirements etc. 

Risk: A situation involving exposure to danger .

Under the state of risk the decision maker has incomplete information about available alternatives but has a good idea of the probability of outcomes for each alternative. Probability is the percentage of times that a specific outcome would occur if an individual were to make a particular decision a number of times. The type amount and reliability of information influences the level of risk and the type of probability estimation.

Objective probability is the likelihood of a specific outcome based on hard facts and numbers. Subjective probability is the likelihood of a specific outcome based on personal judgement and believes.

Examples of risk in a business include financial risk strategic risk and market/reputation risk.

Uncertainty: The lack of certainty of sureness of an event .

Uncertainty exists when the future environment is unpredictable and everything is in a state of flux. The decision maker is not aware of all available alternatives the risks associated with each alternative and the consequences of each alternative or the probabilities.

An example is when a clothing store introduces a new unrelated product without research such as a new clothing line. Risk is when a company moves their processes and data the the cloud. Uncertainty is when a major outrage affects multiple servers across the nation.

3. Routine Decisions 

Strict method of solving day to day problems with a set of standard choices made in response.There is a standard and fixed methods used in approaching situations in the workplace e.g. operations are controlled and monitored and executed in a standard and fixed manner .

Adaptive decisions

This is when organisations compile other solutions to respond to challenges that they do not always face on the day to day .These type of responses rely on creativity and innovation on improving past procedures or methods taken to respond to challenging situations e.g car production when creating new cars with new features and designs new technology is put in place to execute the modified final product.

Innovative decisions 

This is when a new approach is taken to respond to challenges faced that are unusual and uncommon. Creativity and innovation skills also a rigorous understanding and knowledge is needed to be able to find alternative solutions. May come down to specialist in a particular field sitting down and discussing ways forward to respond to challenging situation e.g. pharmaceutical companies designating pharmacist that develop new medicine to challenge chronic diseases such as TB and creating treatments to cure them  

4.Explain how goals affect decision making

Goals are crucial in giving employees , managers and organisations a sense of order direction and meaning. Decisions are made in order to achieve certain things or objectives in the business. Everything that happens in an organisation happens because of the decisions that where made and all the shorts medium and long term goals that must be achieved. 

An example could be if a business has a goal to achieve a turnover of 1 million , they should decide on what to do and how to do it for example promotions , sales over time production etc. 

5.Compare and contrast the rational , bounded rationality and political models of decision making

Rational modeling

It is a multiple step process for making logically sound decisions that individuals or teens should follow to increase the likelihood of the decisions. It allows the maximum achievement of goals based on the situation that an organisation may be facing. These steps include setting goals.

Bounded rationality model 

It is when rationality is limited when they make decisions and it also explains why different individuals make different decisions when they have the exact same information. It provides a better picture for daily decisions and for making processes used by people in certain situations. It focuses on tendencies such as limited search.

A political model

It is based on the decision making process in terms of interests and goals of powerful internal and external stakeholders.It deals with factors such as definitions of the problem and the choice of the goal