Members that participated in the activity:

1.Define decision making and explain the roles of decision making for managers and
employees.
Decision making is a process of making choices by defining problems, gathering information,
generating alternatives and choosing a course of action. Using a step-by-step decision making
process can help you make more deliberate, thoughtful decisions by organising relevant
information and defining alternatives.
Roles;
1. Identification and structuring of a problem or opportunity- one needs information to
identify a problem and put it in a structured manner. Without information about a problem
or opportunity, the decision making process does not even start.
2. Gathering information- without information about the context in which the problem has
occurred, one cannot take any decision on it. In a way, the information about the context
defines the problem.
3. Generation of alternatives- information is a key ingredient in the generation of alternatives
for decision making. One has to have information about possible solutions to generate
alternatives.
4. Choosing the course of action- based on the information about the suitability of the
alternatives, a choice is made to select the best alternative.

2.Discuss the conditions of certainty, risk, and uncertainty under which decisions are made

 Certainty defined:
 Refers to the conditions under which individual are fully informed about a problem,
alternative solutions are obvious and the likely result of each solution are clear.
 Decision-making under the condition of certainty is the exception for most middle managers,
top managers and various professionals.
 However first-line managers make most day to day decisions under conditions of certainty
or near certainty.
Risk defined:
 Refers to the condition under which individuals can define a problem, specify the probability
of certain events, identify alternative solutions and state the probability of each solution
leading to the desired results.
 The amount and quality of information available to an individual about the relevant
decision-making condition can vary widely, as can the individuals estimates of risk.
Uncertainty defined:
 Refers to the condition under which an individual does not have the necessary information
to assign probabilities to the outcomes of alternative solutions.
 Managers face uncertainty every day.
 Many problems have no clear-cut solution, but managers rely on creativity, judgement,
intuition and experience to craft a response.

3.Differentiate between the rational, bounded rationality, and political models of decision-making

Routine Decisions
Routine decisions are choices that made in response to relatively well-defined
and common problems with alternative solutions. These are decisions which
need an introduction and identification then it becomes your regular activity.
Routine decisions are the decisions made when problems are relatively well
defined and common and when established rules, policies and procedures can be
used to solve them. Examples of tasks requiring routine decisions include the
skills required in filling certain jobs, processing payroll vouchers, packing and
shipping customers orders. Routine decisions are related to the general
functioning of the organisation. They do not require much evaluation and
analysis and can be taken quickly. Routine decisions are a series of steps that
individuals or teams should follow to increase the likelihood that their decisions
will be logical and well founded. It permits maximum achievement of goals
within limitations of the situation.
-Standard choices made in response to relatively well-defined and common
problems and alternative solutions
-Typically made under certainty and objective probability
-Standards often used to set the framework for making routine decisions
Adaptive Decisions
Adaptive decisions are choices made in response to a combination of unusual
and uncommon problems with alternative solutions. They include modifying
and improving upon past routine decisions and practices, e.g change working
time pattern or methods of assignment.
Convergence—a business shift in which two connections with the customer that
were previously viewed as competing or separate (e.g., brick-and-mortar
bookstores and Internet bookstores) come to be seen as complementary
Continuous improvement—a management philosophy that approaches the
challenge of product and process enhancements as an ongoing effort to increase
the levels of quality and excellence
Innovative Decisions

Innovative decisions are choices based on the discovery, identification and
diagnosis of unusual and ambiguous problems, and the development of unique
or creative alternative solutions. It is the decision made when problems are
unclear and unusual and creative solutions are necessary, for example, increase
the inflation rate to 50% among surgical patients. Three forms of innovation for
economic progress:
-Institutional innovation: includes the legal and institutional framework for
business, such as deregulation
-Technological innovation: creates the possibility of new products, services, and
production methods
-Management innovation: major changes in the way organizations are structured
and how managers perform their functions.

4.Explain how goals affect decision-making

Goals trigger the decision making process, this is because goals are results that an organisation hopes to achieve and managers have to make decisions on how to attain the specified goal. Whenever a goal is changed or an individual deliberately chooses to modify it, that individual often engages in a conscious, full-blown decision making process. Goals indicate the direction in which decisions should be aimed since managers have to brainstorm ideas on how to achieve that goal, root out undesirable ways so that the best alternative can be chosen and also have a back up plan in case the chosen alternative does not work. Goals basically affect decision making by giving them a platform to exist.

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5.Differentiate between the rational, bounded rationality, and political models of decision-making

Rational model  
Prescribes a series of steps
that individuals of team should
follow to increase the
likelihood that their decisions
will be logical and sound.
Rational decision permits the
maximum achievement of
goals within the limitations of
the situation.

Bounded rationality model

Refers to an individual’s
tendencies to do the
following:
 Select less than the
best goal or
alternative solution.
 Engage in a limited
search for alternative
solutions.
 Have inadequate
information and
control over external
and internal
environmental forces
influencing the
outcomes of decisions.

Political model

Describes the decision-making
process in terms of the
particular interest and goals of
powerful external and internal
stakeholders.
To have power is to be able to
influence or control the
following factors:
 The choice of the goal
 The definition of the
problem.