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Risk is 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 result.

Describes the decision making process in terms of the particular interest and goals of powerful external and internal stakeholders

Decision Making is the process of defining a problem, gathering information, finding solutions and alternatives and then choosing a course of action.

The political model. In contrast to the rational, individuals in political model do not focus in a single issue but in many organisational problems that reflect their personal gaols. In contrast to the bounded rationality model, the political mode does not assume that decisions result from applying existing standard operating procedures, programs and routines.

Divergence in goals-A divergence in goals is defined as a conflict between two main goals and there wouldn’t be a clear winner in most cases.

Routine decision making is a system or process used to make decisions that are consistent or lacking in involvement. Routine decisions are standard choices made in response to well-defined and common problems. In a business, decisions to purchase new inventory when supplies run low is routine decisions since it is something the company does often and is necessary for operations. Decisions that people make on a daily basis and that require little research or time investment are considered routine.

Example of a Political model for Divergence in goals: Cadbury and Oreo have combined their products in order to get Cadbury Oreo flavoured chocolate as well as Cadbury-coated Oreos. That wat they are able to popularise their brands between both of their customer bases and that leads to an increase in profit.

Consistent with the bounded rationality model, individuals often fall prey to information processing biases when they engage in bounded rationality decision making.

Implementing the solution might not always achieve the goal. The solution implemented must be controlled and follow ups must be done to make sure that is it is working. This is like an evaluation process.

Subjective probability- is the certainty that a specific outcome will happen based on personal judgements and beliefs of people.

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.

The rational model prescribes a series of steps that individuals or teams should follow to increase the likelihood that their decisions will be logical and sound. A rational decision permits the maximum achievement of goals within the limitations of the situation. The definition addresses means- how best to achieve goals not ends(the goals themselves)

Setting goals can have several benefits which are the same whether the goals apply to the entire organisation or some of it.

Implementing the preferred solution will automatically achieve the desired goal. Individuals or teams must control implementation activities and follow up by evaluating results. If implementation does not produce satisfactory results, corrective action will be needed.

2. The condition of risk happens when the decision maker does not have enough information about the available alternatives but has a good idea of probability of the outcomes of the available information.

Uncertainty- Condition under which an individual does not have the necessary information to assign probabilities to the outcomes of alternative solutions. Example, deciding to do a particular course without having the knowledge or information of whether your qualification(s) will help you get a job after you graduate.

1.PROBLEM DEFINITION- External and internal stakeholders try to define problems for their own advantage.One or more individuals may be singled out as the cause of problem when things go wrong in a politically biased or oriented organization.

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 .

Goals affect decision-making greatly because before making a decision you have to consider the fact that whatever decision is taken, it will determine whether or not is it going to help achieve the goals that have already been set out.

A decision is a course of action taken from a set of alternatives to achieve organizational and managerial goals or objectives. Decision-making is a continuous process of making choices by identifying a decision, gathering information and assessing alternative resolutions. It is also an indispensable component of managing any organization or business activities.

Exist when probability of various results are not known, the manager feels unable to assign estimates to any of the alternatives. While the situation may seem hopeless mathematical technologies have been created to help the decision makers. An example is when there are heavy quantitative in nature and are outside the scope of our present consideration.

Although choosing among alternative solutions might appear to be straightforward, it may prove to be difficult when the problem is complex and ambiguous, and involves high degrees of risk or uncertainty.

Uncertainty is when an individual does not have the necessary information to assign probabilities to the outcomes of alternative solutions. One may not be able or define the problem, much less identify alternative solutions and possible outcomes for instance in the case of an accidents e.g.; fire or natural course, we wouldn’t be able to deal with the situation as we see ill-equipped and did not plan for it.

Problem definition and diagnosis involves three skills that are part of a manager’s planning and administration competency.

Prescribes a series of steps that individuals of a team should follow to increases the likelihood that their decisions will be logical and sound. A rational decision making permits the maximum achievements of a goal within limitation of a situation .Its has seven steps process .1- its begins with the diagnosing the problem and moves through successive steps to follow up and control. It has the low risks when they can assign objectives probabilities to outcome.These steps can be summarized in the following way 1-define and diagnose the problem, 2- sets goals, 3-search for alternatives solutions,4-compare and evaluate the solutions ,5-choose the alternative solutions,6-impliments the selected.7-follow up and control.

Innovative decisions are choices that are based on the discovery and identification of unusual problems and the development of unique or creative alternative solutions. Innovative decisions do not normally happen in a logical, orderly sequence because they usually represent a sharp break with the past. Innovative decisions are often based on incomplete and rapidly changing information they may even be made before the problems are fully defined and understood.

Refers to the condition in which individuals can define the problem, specify the probability, identify alternative solutions and state the probability of each solution leading to the desired results. E.g When trying to decide which business venture to pursue after considering all the possibilities.

uncertain it is the condition under which an individual does not have the necessary information to a sign probability to the outcome of the alternative solution

The broad functions of the business are broken into smaller specialised units that are allocated to certain departments and persons.

Choices made in response to a combination of fairly unusual and uncommon problems with alternative solutions. Often involve modifying or improving upon past routine decisions and practises. Necessary for continuous improvement.

A person who has power must have the ability to lead and compose conceptual skills in order to define problems and choose methods and actions that will lead to the success of the organisation.

Problem definition and diagnosis involves three skills that are part of managers planning and administration which are noticing, interpreting, and incorporating. Noticing involves identifying and monitoring numerous external and internal forces and deciding which ones are contributing the problem. Interpreting involves assessing the force noticed and determining which are causes of the real problem lastly incorporating involves relating those interpretations to the desired goal, if they

- The condition of certainty allows anticipation of events and their outcomes. This means that both the problem and alternative solution are known and well defined.

These unorganized problems involve ambiguities and information deficiencies and often occur as new or unexpected situations. These problems are most often unexpected and are addressed reactively as the occur. Unexpected problems require novel solutions. Proactive managers are sometimes able to get a jump on unexpected problems by realizing that a situation is vulnerable to problems and then making contingency plans. For example, at the Vanguard Group, executives are tireless in their preparations for a variety of events that could disrupt their mutual fund business. Their biggest fear is an investor panic that overloads their customer service system during a major plunge in the bond or stock markets. In anticipation of this occurrence, the firm has trained accountants, lawyers and fund managers to staff the telephones if needed.

Middle managers, executives and different professionals are not involved in decision-making under this condition. However, first-line managers make decisions on a daily basis under conditions certainty or near certainty.

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.

Emphasises the limitations of rationality and explains why different individuals make different decisions when they have exactly the same information

Innovative decisions: The choices based on the discovery, identification and diagnosis of unusual and ambiguous problems and the development of unique and creative solutions. The solutions involve a series of small, interrelated decisions made over a period of months or even years.

Certainty is the condition under which individuals are fully informed about a problem, alternative solutions are obvious and the likely result of each solution are clear. This condition allows control of events and their outcomes. In this case a decision is made in terms of planning an intimate outdoor wedding and as Regal Events Coordinators we are certain that only 50 people have been invited to the Adams wedding.

The Rational model prescribes a series of steps that individuals should follow to ensure their decisions are sound and logical. It addresses how best to achieve the required goals such as the steps towards there and not the end goal itself.

Are choices based on the discovery, identification and diagnosis of unusual and ambiguous problems and the development of unique or creative alternative solution. The solution involves a series of small, interrelated decision made over a period of months or even a year. It may take years to develop and involve numerus professional specialists and teams.

Decision making it is a process that include, defining the problem, gathering information, generating alternatives and choosing the course of an action.

Factors that may affect a decision such as price, production costs, volume or future interest rates are difficult to analyse and predict. Managers may have to make assumptions from which to forge the decision even though it will be wrong if the assumptions are incorrect.

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Goals affect decision-making both negatively and positively, they either add the pressure that keeps a business to its toes or give a business a bad image.

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

These consist of decisions that often derived from the improvement of past routine decisions that are set out to combat fairly unusual and not common problems with alternative solutions. These decisions are vital for continuous improvement.

Subjective probability: The likehood that a specific outcome will occur based on personal judgment and beliefs is known as subjective probability

-Operational goals states the achievement results in quantitative terms , for example, an organisation's goal an be increase the sales turnover by the end of 2019.

The condition where thorough research has been done about a problem under which individuals know all the necessary information about how the problem should be solved, and are certain about all the outcomes of all the solutions they have made to solve the problem.

This can be done by researching, thinking out of the box and attaining additional information. If you cannot find feasible solutions, then you might need to consider changing your goal. For example: when someone sets an impossible goal, they end up working extra hard and taking on a lot od stress which could lead to mental health problems. Thus, achievable goals are important so that extra time isn’t wasted.

The matrix shows the list of options and how they interact with the various factors in play. By scoring the different possibilities, you come out with the best choice.

3. The concrete information bias means that vivid, direct experience usually prevails over abstract information. A single personal experience can outweigh statistical evidence. For example, an initial bad experience in the classroom can lead a student to conclude that lectures and teachers are not to be trusted and are simply out to exploit students.

The idea that we make decisions that are rational but within the limits of the information that is available to us and our mental capabilities

•Political processes are most likely to occur when decisions involve powerful stakeholders, disagreement over choice of goals and people who are not searching for alternative solutions.

Adaptive decision: Modern problems need alternative solutions adaptive decisions often involve modifying past routine decisions. In order to have an effective decision, continuous improvement is key. Improvement such as increased responsiveness to customer changes and expectations.

Decision-making is the thought process of selecting a logical choice from the available options. It includes defining the problems, gathering information, generating alternatives and choosing course of action.

The manager is responsible as a leader in decision making depending on the different types of decision according to the certain character of the problem encountered. Employees involvement in decision making grants an opportunity for employee to share their opinion and knowledge which gives them a less role to play as they only provide their perspective.both parties managers and employees consider a means of solving a problem and the level of danger involved when making a decision.

-The condition under which an individual doesn’t have the necessary information to assign probabilities to the outcome of alternative solutions. An individual may not even be able to define the problem much less identify alternative solutions and possible outcomes. Factors that may affect a decision such as price, production costs, volume or future interest rates are difficult to analyze and predict. Managers may have to make assumptions from which to forge the decision even though it’ll be wrong if the assumptions are incorrect. Managers rely on creativity, judgement, intuition and

After individuals or teams have defined a problem they now can set specific goals for eliminating their problem. Setting goals can be extremely difficult under the conditions of uncertainty they have to identify alternative goals compare and evaluate them and choose among them as best they can if the goal is stratospheric to achieve.

Often uncertainty suggests that both the problem and the alternative solutions are ambiguous and highly unusual. Managers face uncertainty in day to day basis as factors that may affect a decision like price, production cost, volume or future interest rates are difficult to predict and analyse.

Bounded Rationality Model: This model partially explains why different individuals make different decisions when they have exactly the same information. It consists of the following factors:

Objective probability; The likehood that a specific outcome will occurs based on hard facts and numbers, is known as objective probability.

Risk is the condition under which individuals can define a problem, specify the problem of certain events, identify alternative solutions and state the probability of its solution leading to the desired result

Conditions of uncertainty exist when the future environment is unpredictable and everything is in a state of flux. This is the condition under which an individual does not have the necessary information to assign probabilities to the outcomes of alternative solutions, the individual may not even be able to define the problem, identify alternative solutions and the possible outcomes. In this state, the decision maker must depend upon his/her judgement and experience to make decisions. There are techniques/ approaches to decision making under uncertainty namely; risk analysis, decision trees and preference theory.

Decision Making Decision making is the process of making choices by firstly defining the problem, followed by identifying a decision, gathering information, and assessing alternative resolutions. Usually there are decision-making steps to follow to help make deliberate and considerate decisions.

● Goals are results to be attained, and thus indicate the direction in which decisions and actions should be aimed. The goals you set now either short, medium or long term will always affect the decision you make today or tomorrow. For example If a business decides to employ more people it will cause productivity to increase hence causing profits to also increase.

Risk It is the condition where individuals can identify the problem and chances of the solution happening to achieve their goal.

Decision making is the process of choosing the best option or making choices by identifying a decision that best suits the situation or for any other reason, gathering information about the disadvantage and advantages of the decision and assessing alternative resolutions. Decision making includes defining the problem, gathering information, generating alternatives and choosing the course of an action. Decision making also has three different types of conditions which are certainty, risk and uncertainty.

UNCERTAINTY- condition under which an individual does not have the necessary information to assign probabilities to the outcomes of a alternative solution.Managers take this condition everyday. Its difficult to analyse factors that affect a decision.

Decision- making is the act or process of deciding something especially with a group of people. Decision- making in management is an essential skill required for the organisation to succeed.

3.INFORMATION-PROCESSING BIASES- Individuals tend to be victims of information-processing biases when they engage in this model of decision making.There are five biases namely:

- these conditions reflect the environmental forces that individuals cannot control but may in future influence the outcomes of their decisions

Goals that are set within an organisation is also seen as striving objectives that need to be achieved through deciding on definite and discreet objectives (goal).

This mode was introduced by management scholar, Herbert Simon in the mid-50s, this model contributed significantly to the decision of the Swedish academy at science to award him in 1978 Nobel prize for economics for his pioneering research into the decision making process within economics organisation

Conditions of uncertainty exist 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 consequence of each alternative of their probabilities. Managers need to make certain assumptions about the situation in order to provide a reasonable framework for decision making, they have to depend upon their judgement and experience for making decisions.

The rational model focuses on different steps that need to be followed to increase the likelihood that their decisions will be logical and sound. The rational model of decision making focusses on how best to achieve goals.

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.

Giving employees the platform to make decisions in the workplace gives them good communication skills. This enables them to voice out their opinions and also share their knowledge with other employees, this also improves the relationship workers have with each other. The business will be stronger as employees can supply the managers with new ideas.

Firstly, information is imperfect and individuals make decisions based on that information. Secondly, not all possible alternatives are evaluated by the individual before a decision is made.

Innovative Decisions - Choices made on the discovery, identification and diagnosis of unusual and unclear problems as well as development of innovative solutions which involves a series of bits of interrelated decisions made over a period of time.

Bounded rationality model The bounded rationality is the idea that we make decisions that are rational,but within the limits of the information available to us and our mental capabilities. It explains why individuals make different decisions even when they have the exact same information. It emphasizes the limitations of rationality and provides a better picture of our day-to-day decisions made by most people

Political decision-making process is associated with factors such as stakeholders, choice of goals and alternative solutions.

Setting goals is important in innovative and adaptive decision-making. Goals give employees, managers and organisations a sense of order, direction and meaning. They play part in the division of work where work specified according to the employee’s abilities and talents. They help benefit in areas like planning, motivation and attainment of rapid results. The result of specific goals lead to less wasted time; employees already know what their duties are and know their deadline, goals also lead to the organisation knowing its targets, purpose standards and quotas.

As soon as you decide to put extra effort on something, a lot will be at stake. This includes a rise in unethical behaviour, over-focus on one area while neglecting other parts just so that the goal can be accomplished

• This condition exists in case of routine decisions such as allocation of resources for production, payment of salaries etc.

Significantly based on the concept of continuous improvement, e.g reviewing solutions and to a problem and tracking the progress in the future

Individual or team members must look for alternative ways to achieve the goal, this might include seeking for additional information, thinking creatively, consulting experts and doing research. if there’s no feasible solution the for reaching the goal they might need to modify the goal

Goals describe what a company expects or hopes to accomplish over a specific period of time, it is actually an idea of a desirable or future result that people envision, plan and commit to achieving. Goals are also called objectives, they can be long term and short term goals. Decision making is the process of providing appropriate solutions to some challenges or obstacles in life. Goals affect decision making both negatively and positively but in most cases it affects it negatively because the more you set relatively high goals it usually comes with riskier decisions.

Routine decisions are normal, typically not above options chosen in response to common issues by finding more than one way of dealing with it. Covered by ground rules and standard operating procedures.

Is the condition under which individuals can define a problem, specify the probability of certain events and alternate solutions and state the probability of each solution leading to the desired results.

General goals affect decisions based on the direction that the business will take in achieving the business objectives, while Operational goals affects the decisions on how the productivity will be conducted.

Decision-making in organisations under the conditions of risk and uncertainty is coupled directly with goals in one of two ways: The decision-making process is triggered by a search for better ways to achieve established goals or the decision-making process is triggered by an effort to discover new goals, revise current goals and drop outdated goals.

This occurs when the organization is faced with a new challenge that they have never come across before and need to adapt quickly by coming up with new solutions because the ones they have cannot be applied to this new and uncommon problem. Adaptive decisions are all about improving and adjusting your solutions in order to solve the uncommon problem being faced. Continuous improvements on solutions are crucial for total quality management in the organization. Continuous improvements require commitment throughout in order for it to be effective and efficient.

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.

When trying to make a good decision, a person must weigh the positives and negatives of each option, and consider all the alternatives. For effective decision making, a person must be able to forecast the outcome of each option as well, and based on all these items, determine which option is the best for that particular situation.

- This model of decision making is a 7 step prescriptive model that tells how the decisiom should be made when making routine decisions in situations involving conditions of near certainty or low risk.

Decision-making as political process highlights the goals, interests and values of external and internal stakeholders that are powerful. Powerful in the sense that they have the ability to influence or control individual, departmental, team or organisational decisions and goals. It describes the decision-making process in terms of a particular interest and goals of powerful external and internal stakeholders. This model mainly uses Power, as it is the ability to influence or control individuals, departments and teams making situations.

This model lays down a sequence of steps that an individual or teams should follow in order to increase the likelihood that their decisions will be logical and sound.

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.

2.DIVERGENCE IN GOALS- The political model recognizes the chances of conflicting goals among stakeholders and the choice of goals will be influenced strongly by the relative power of stakeholders.

Example: the credit policy of the banking industry is being applied more stringently than in the past. Previously banks issued home loans at high interest rates, but many transactions ended in bad debt.

Regal Events Coordinators has been hired by The Adams Family to plan the wedding of their son Richard and his wife-to-be Mellissa. The couple want an intimate outdoor summer wedding for only 50 invited guests.

Risk is the condition under which individuals can define events, identify alternative solutions and state the probability of solution leading to the desired results. Risk exists when the individual has some information regarding the outcomes of the decision but does not know everything when making decision. Under the condition of risk, the manage may find it helpful to use probabilities.

 Take the time to reflect on previous decision-making processes and jot down how one can improve the process the next time one faces a similar decision, thus making an improvement on the stuff by also providing feedback.

It describes the decision-making process in terms of the particular interests and goals of powerful external and internal stakeholders.

Problem definition-When a specific problem blows up a single person might be finger pointed and would be expected to take the fall, this is called scapegoating. Most leaders in power use this to keep their names out of the mud for example, in the case of there not being proper sanitation in a particular place, the person who was awarded with the tender and didn’t carry out his responsibility could blame the minister of health for it)

-Emphasizes the limitations of rationality and explains why individuals make different decisions when the Same information is served

- routine decisions are standard choices made in response to relatively well-defined and common problems with alternative solutions

It refers to the interpersonal relation between people in business are not confined to those prescribed by formal organisation chart.

Goals are crucial in giving one a sense of order meaning, and direction. Without goals, one will unlikely have a sense of direction and purpose in many things that they do. Goals affect decision-making in a way that the decision-making process is triggered by an effort to discover new goals, revise current goals and drop outdated goals. It is also triggered by a search for better ways to achieve established goals.

The rational model is used mainly for making routine low risk decisions. This gives a better perspective of the day to day decision making processes used by most people. Political processes are most likely to occur when decisions involving powerful stakeholders, disagreements over choice of goals and people who are not searching for alternative solutions

 Generate and evaluate alternatives together. Generating and evaluating any alternatives is easy when based on knowledge, experience, and creativity.

Example: An effective manager relies on all six managerial competencies to make a decision. Conversely, decision-making processes are basic to all managerial competencies. The ability of Mr Akio Toyoda, CEO of Toyota, to envision transforming the company into the “world’s largest car manufacturer” demonstrates his strategic action competency. He then had to rely on his planning and administration competency to form a management team that would choose and implement a strategy through which to achieve this vision.

Rational model: It consists of a 7-step prescriptive model that entails the process of routine decision making involving low risk situations

Goals are the outcomes that we want at the end of the activity, therefore they show the way in which decisions and action's should be made. for example when a person wants to pass an exam (goal) they will decide to study and prepare thoroughly for the exam

● Goals are crucial in giving employees, managers and organisations a sense of order, direction and meaning. Setting goals is especially important in adaptive and innovative decision making.

The bounded rationality model mostly highlights the limitations of rationality and the decision-making process that occurs daily.

1.decision making can be defined as the process that includes the ability to define the problems, gather information, generate alternatives and choose a course of action

STEP 7: Follow-up and control. (The effectiveness of the solution implemented is then checked, if the solution wasn’t effective another solution should be considered)

Risk, the decision-maker has incomplete information about the alternative, but has a vision or calculated viewpoint of how the alternative will turn out in the future.

Goals are crucial in giving employees and managers a source of order, direction and meaning. Goals are results to be attained thus indicate the directions in which decisions and actions should be aimed.

some meaning to the vision at hand, and in actual fact the absence of such would cause the inefficiency of the managerial competencies. And like stated above the incorporation of the two will help innovative decision-making with the aid of goal setting.

• 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.

- includes defining problems and gathering of information that will result in greater outcomes for the company's objectives. Both managers & employees take part in such important decision making for more possible solutions to be found. An effective manager relies on all six managerial competencies to make decisions. Decision making processes are basic to all managerial competencies.

This model highlights the limitations of the rational model and showcases the day-to-day decisions made by people. The reason why different decisions are made by different people is also explained. The bounded rationality model is a practical process used and it is also more realistic, because human and environmental realities are considered. There are a lot of limitations when it comes to the bounded rationality model, such as the difficulty to recognize alternatives that can be followed, because of human cognitive constraints, and decisions must always be made for the future and the future involves a lot of uncertainties. It refers to the human tendency to satisfice, conduct limited searches for alternatives and having misinterpreted or inadequate information regarding external and internal environmental forces. Individuals often experience availability bias, selective perception bias, concrete information bias, law of small numbers bias and gambler’s fallacy bias. An example may involve a consumer only visiting 10 shoe shops near him/her to find a pair of shoes instead of all of them in the country, stopping the search once an acceptable pair has been found.

Firstly, goals are important because they give employees, managers, and organizations a sense of order direction and meaning, as well as playing a role in adaptive and innovative decision making.

The conditions that influence an organisation (managers and employees) into making decisions reflect the environmental forces (developments and events) that individuals cannot control, but in the long run influence the outcomes of their decisions.

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.

Have inadequate information and control over external and internal environmental forces influencing outcomes of decisions.

For managers: An effective manager relies on all six managerial competencies to make a decision. (Example: The manager of Toyota has the ability to envision transforming the company into the world’s largest car manufacturer . This illustrates his strategic action competency.

Adaptive decisions can be defined as an effective reaction to a change in a solution or rather problem solving which involves improving and altering past routine decisions. Adaptive decisions involve strategizing and prioritising and the decisions are made over time which result in a large number of gradual improvements.

1. Noticing: The identifying and monitoring numerous external and internal environment forces, and deciding which ones are contributing to the problem/problems. 2. Interpreting: Assessing the forces noticed and determining which are causes, not merely symptoms of the real problem/problems. 3. Incorporating: Involves relating those interpretations to the current or desired goals (the second step) of the department or organization.

The condition of certainty exists in case of routine decisions such as allocation of resources for production, payment of wages and salary etc. When the certainty conditions are present, it can be reasonably expected by managers what is going to happen when a decision has been taken by them. When outcomes are known and their consequences are certain, the problem of decision is to compute the optimum outcome. Certainty condition under which the manager is well informed about possible alternatives and their outcomes. Similarly, if there are more than one alternative, they are evaluated by conducting cost studies of each alternative and then choosing the one which optimizes the utility of the resources. There is a little ambiguity and relatively low chance of making and impractical decision. In these situations, managers use a deterministic model, and it is assumed that all factors are exact and there is no role for chance. There is only one outcome for each choice.

Explains why make different choices although they have the same information. Involves the following individual tendencies:

-Probability is the percentage of time that a specific outcome would occur if an individual were to make a particular decision a large number of times. A good example is the tossing of a coin.

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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.

This model emphasises the limitations of rationality and thus provides a better picture of the day to day decision making process used by people. It basically explains why people react differently towards the same problem.

* Uncertainty is present even when organizations do considerable research and planning before committing resources to certain projects that have to be done.

3.Inadequate or misinterpreted information (Individuals do not have adequate information about the problems at hand and go about it the wrong way in solving it ,for example if a specific hair product has increased their selling price a hairstylist would opt for a cheaper one which could badly affect his or her customers because of the quality of this cheap product.)

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.

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.

C. Uncertainty. The conditions where the problem is not clearly defined, and no information is found for the solution and as a result the outcome is not known.

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When you want to make a decision that means you have other alternatives, how will you make a decision? For example, you want to be an entrepreneur who decorates muffins, you are unsure whether you should sell them at the university or at the mall. You have to choose one of the locations that will be better. To formulate your answer you have to consider the alternative path to achieve your general goal, which will be making a profit. University students don't have a lot of money, because they are unemployed. People who visit the mall oftenly will most probably have money and they will be able to afford your product. If you want to reach your goal, which is profit, you will rather sell your muffins at the mall.

The rational model is made up of a set of steps that can be used to achieve routine goals. Individuals can easily follow these steps when making routine decisions. Routine decisions under conditions that approximate certainty obviously do not require use of all the steps in this model. For example, if a particular problem tends to recur, decisions may be written as standard operating procedure/rules. These seven steps are rarely followed by individuals or teams when making adaptive or innovative decisions.

3.Have inadequate information and control over internal and external environment forces influencing the outcomes of decisions

Individuals and organisation set goals because they serve to focus on their efforts and the decisions. For the organisation, they provide a set of stated expectation that everyone involved can understand and work towards achieving that goal. They help in the the planning process, motivate and encourage individuals to improve their performance. Specific goals help improve the orgarnisation's productivity and the quality work. Goals also assist in controlling business operations and evaluating performance within a business- among employees.

Innovative decision: Choices base on new arising problems the solution can usually be found through a series of small interrelated decisions made over a period of time. To be effective, decision-makers, therefore, must be especially careful to define the right problem and recognize that earlier actions can significantly affect later decisions.

Decision making is the process of deciding about something important in a group of people or in an organization, it also involves the selection of a course of action from two or more possible alternatives in order to arrive at a solution for to a problem.

Adaptive decisions are choices made in response to a combination of moderately unusual and fairly uncommon problems with alternative decisions. Adaptive solutions often involve modifying and improving upon post routine decisions and practices. Continous improvement involves streams of an adaptive organizational solutions made over time resulting in a large number of small, incremental achievements/ improvements year after year.

- goals need to be attained and thus indicate the direction in which decisions and actions should be aimed and they are set so that they can yield benefits

Ons neem almal daagliks besluite, alhoewel ons nou nie elke dag besluite neem rakend besighede nie, neem ons tog persoonlike besluite. Dit doen jy wanneer jy besluit watter t-hemp, broek en skoene jy vandag gaan aantrek of selfs wat jy vir ontbyt sal eet.

Roetine besluite kan gemaak word onder gevestigde reëls of standaard prosedures. Bv, wanneer iemand 'n recording kan maak en daar is nie 'n kamera of 'n toestel beskikbaar om dit te doen nie, is daar n prosedure wat jy kan gebruik om hierdie probleem op te los. Die standaard oplossing kan dan wees dat jy net 'n presentation lewer met die gehoor wat daar sit.

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.

Certainty It is the condition where individuals know about the challenges or problems they have because they have the information. Individuals know which steps to take to overcome the problem and they do not feel pressure because the problem will be solved. Both problem and solution are recognised and well understood. It is easy for individuals to identify solutions to the problems. Mostly middle management, top managers and professionals are the ones who set decisions.

The role that decision-making plays for managers is to assist in achieving objectives, increase efficiency in the workplace, to facilitate innovation, ensure that there is growth within the business, to also ensure that the business utilizes its resources properly and to help deal with problems and challenges that may arise, and lastly to keep the employees motivated.

STEP 5: Choose from among alternative solutions. (Thereafter, the best solution which would be appropriate and would display effectiveness is the chosen.)

It entails the creation of organisational selection that is stipulating the persons from whom subordinates receive instructions to whom they report and whom for what they are responsible.

8. learning and growth perspective requires that organisations make continual improvements to their existing products and processes, and have the ability to introduce entirely new products with expanded capabilities.

Certainty is the condition under which individuals are fully informed about a problem, alternative solutions are known and the possible outcomes of those solutions are clear. Decision-making under condition of certainty is the exception for most middle managers, top managers and various professionals.

Uncertainty is the condition in which individuals have no knowledge on upcoming or currently faced problems within the organisation, making it difficult for them to come up with solutions to deal with the problem. Managers therefore have to make their own assumptions on the decision-making process.

Uncertainty is the condition under which an individual is not sure about the decision that he or she has to make or is about to make. This person does not have the necessary information to assign probabilities to the outcomes of alternative solutions.

Bounded rationality is a type of decision making where the idea of rationality is limited when individuals make decisions. It further explains why different individuals make different decisions when they have exactly the same information. Bounded rationality also assumes you that individuals settle for much less than the best goal and also engage in limited search for alternative solutions.

● Describes the decision-making process in terms of the particular interest and goals of powerful external and internal stakeholders.

Bounded Rationality also recognizes that individuals frequently have inadequate information about problems and that events that they cannot control will influence the results of their decisions. Faced with increasing customer resistance to high motor car prices, Honda and Toyota believd that the only way to produce a less expensive car was to skimp on features. In the US, Honda replaced the rear disc brakes on the Civic with lower cost drum brakes, and used cheaper fabric for the back seat, hoping that customers would not notice. Toyota tried to sell a version of its best selling Corolla in Japan with unpainted bumpers and cheaper seats. Management at both Honda and Toyota made these decisions without adequate information. As soon as customers rebelled, they quickly reversed their decision.

STEP 4: Compare and evaluate alternative solutions. (After coming up with possible solutions, they need to be compared according to which would be the most effective.)

Managers and employees need to be aware of the true problems and the possible the causes of the problems for effective decision making to occur.

STEP 3: SEARCH FOR ALTERNATIVE SOLUTONS Individuals or team s must search for alternative solutions to achieve goals. this step might include actions such as seeking additional information thinking creatively, consulting experts and undertaking research. however, when there seems to be no feasibility solutions for reaching a goal there may be a need to modify a goal.

Example of a Rational model: A chicken fast food restaurant comes across the same problem multiple times, in this case overstocking of their perishable products, such as chicken and vegetables. Each time they had followed the same series of steps and realised that there is a trend in the way the customers purchase their products – there are more customers at the beginning of the month, however that number decreases as the month goes on. The solution to the problem, which is ordering more stock at the beginning of the month and then less throughout the month, may be written as a standard operating procedure.

A goal is an observable and measurable end result having one or more objectives to be achieved within or more or less fixed time frame. Goals affect decision making both negatively and positively, setting goals too high may affect the entity negatively as they may not reach their goals.

1.Decision- making has a brought meaning but basically meaning the process of choosing the most relevant choice out a variety of options.

Political model The decision making process is described by the political model in terms of particular interests and goals of powerful external and internal stakeholders. The political model views decisions making as a process of conflict revolutions and consensus building and deciding as products of compromise. The political process mostly occur when decisions involve powerful stakeholders,disagreement over choice of goals and people who aren't searching for alternative solutions.

3.Uncertainty Uncertainty is the condition under which an individual does not have the necessary information to assign probabilities to outcomes of alternative solutions. It sometimes suggest that the problem and the alternative solution are highly unusual. Uncertainty is present even when organizations do considerable research and planning before committing resources to projects.

There is a close relationship between the strategy and structure seeing that one cannot exist without the other , hence why the implication is that the strategy provides direct input to the organisational structure.

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When new and unfamiliar problems come up, non- programmed decisions are specifically customized to the situations at hand. The information needs for defining and resolving nonroutine problems are typically high. Even though computer support may assist in information processing, the decisions will most likely involve human judgement. Most problems that high-level managers face, demand non-programmed decisions. This fact explains why the demands on a manager's conceptual skills increase as he or she moves into higher levels of managerial responsibility.

Exist when the individual has some information regarding the outcome of the decisions but they do not know everything when it comes too making decisions under conditions of risks, managers may find it helpful to use probability.

Effective managers and employees can systematically base various types of decisions on the nature of the problem to be solved, the possible solutions available and the degree of risk involved. They can do this by relying on all six managerial competencies to make a decision, which include communication, planning and administration, teamwork, strategic action, global awareness, emotional intelligence and self-management.

Uncertainty – condition under which an individual does the necessary information to assign probabilities to the outcomes of alternative solutions. It suggests that the problem and alternative solutions are both ambiguous and highly unusual.

This divides up decision-making roles between the Driver who gathers information; the approver who makes the final call; the Contributors who weigh in but don't vote; and Informing everyone who needs to know the outcome.

Most people might think that this is a final step in decision-making however, it when dealing with complex problems, the solution is never just straightforward. It involves a lot of risk and uncertainty; thus, it is but one of the decision-making steps.

It is the condition under which individuals are fully informed about a problem. Solutions are obvious and the results of each solution are clear. Certainty allows anticipation of events and the outcomes of the events, this means that the problem and the solutions are well known and defined

Setting goals is especially important in adaptive and innovative decision making. Goals are crucial in giving employees, managers and organizations a sense of order, direction and meaning.

Satisficing is the practice of selecting an acceptable goal or alternative solution. An acceptable goal might be easier to identify and achieve, less controversial and safer than the best available goal. The factors that that result in a satisficing decision are often a limited search, inadequate information and information processing bias. Here are some examples of how satisficing actually works for the average person: Finding the Lowest Price. Bargain shopping is smart, but overdoing it is not. For example, it makes sense to save money on gasoline, but not if you drive all around town to find the optimal price.

Choices are based on the discovery, identification and analysis of unusual and ambiguous troubles and the improvement of special innovative solutions. Solutions involves a series of small interrelated selections made over a duration of months or even years. An example, is when a subscription song carrier approves paying users to stream unlimited music on their computer systems and phones. Launched at a time when piracy used to be at a high level, and human beings have been reluctant to pay above the odds to download music, the provider addressed a clear market, and supplied humans an affordable and revolutionary way to enjoy high quantities of music, without having to resort to illegal downloads.

- bounded rationality model emphasizes the limitations of rationality and thus provides a better picture of the day-to-day decision making process used by most people

Adaptive decisions, are decisions that are made in response to unusual problems or a combination of various problems. Usually involve modifying a past Routine decision and improving on it.

Decision making is a process of choosing an action plan or solution you are going to take in turn incurring opportunity costs.

1.DEFINE AND DIAGNOSE THE PROBLEM- At this stage managers, teams or individual employees should notice the internal and external environmental forces that may be contributing to the problem.They should also be able to interpret the forces that were noticed and determine which are causes of the problems. Lastly they should be able to incorporate which involves relating the interpretations to the desired goals.

Prescribes a series of steps that individual/team should follow to increase the likelihood that their decision will be logical.

Firstly information is imperfect and individuals make decisions based on that information. Secondly not all possible alternatives are evaluated by the individual before a decision is made.

Decision-making in organisations under the conditions of risk and uncertainty is coupled directly with goals in one of two ways:

Eg, in a game of chess, if you opponent has won several times, on your next game you are likely convinced that he/she is going to win again.

STEP 3: Search for alternative solutions. Regal Events Coordinators should research which venue will be best for the wedding. The alternative would be an outdoor and indoor wedding.

Rational Model = Seven-Step Process increases the likelihood of logical and optimal decision making permits the maximum achievement of goals within the limitations of the situation

Rational Model: Prescribes a series of steps that Regal Events Coordinators should follow to increase the likelihood that their decision regarding wedding planning will be logical and sound.

the political approach to decision making takes what the rational and practical models left out and posts 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.

An example of this could be having a stomach ache. You need to find out if this is merely a symptom of something bigger or it is the problem itself. By finding this out, you can form solutions.

-These are decision based on discovery, identification and diagnosis of unusual problem sand the development of unique and creative ways to solve them.

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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:

Goals are results to be attained and this indicates the direction in which decisions and directions should be aimed. Goals focus to serve individuals and organizational decisions and efforts. They provide a set of stated expectations that can be understood they also aid the planning process. When goals are set they give a clear direction of how to achieve. This becomes clear when having to make decisions.

The political model basically explains the decision-making process in the context of specific goals and interest of both powerful internal and external stakeholders.

Some goals are perceived as win or lose situation. In such a situation stakeholders often distort and withhold information selectively to further their own interest. Stakeholder within an organisation view information as a major source of power and use it accordingly. The rational decision making model ask all employees to present all relevant information openly, however employees who are operating under the political model view free disclosure as naïve, making achievement of their personal, team or departmental goal more difficult to achieve. Information has the folloeing characteristicts.

Uncertainty: In a uncertain environment, information is so poor that managers can not even assign probabilities to the likely outcomes of alternatives. This is the most difficult condition for managers. Decision making under conditions of uncertainty is like being a pioneer in a explored territory. Uncertainty pressurize managers to rely heavily on creativity in solving problems. It requires unique and often totally innovative alternatives to existing processes. Groups are frequently used for problem solving in such situations. In all cases, the responses to uncertainty depend greatly on intuition, educated guesses and hunches-all of which leave considerable room for error.

2. Risk is the condition under which individuals can define problems, specify the probability of certain events, identify alternative solutions and state the probability of each solution leading to the desired results. Probability is then the percentage of times that a specific outcome would occur if any individual were to make a particular decision a large number of times.

The decision-making operation is provoked by endeavouring the discovering new goals, altering current set goals or with drawing outdated goals.

Vertrekpunt word bepaal deur mate waarin die onderneming se algehele taak in meer kleiner en gespesialiseerde take opgedeel word

-The internal process perspective, what goals do we need in order to meet our customers goals that will impact our financial standing.

-This where the management is aware that there is a problem in an organisation and try by all means to know the reason behind the problem .

Step 4: compare and evaluate alternative solutions After individuals have identified alternative solutions, they must compare and evaluate them this step emphasises expected results and determining the relative cost of each alternative.

4. The selection of alternative to be implemented: Have a venue that is both indoors and outdoors. Example: A lapa with a garden

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.

This model was created by Herbert Simon in the mid-1950s,it basically explains why individuals make different decisions even though they have the same information. It has 4 tendencies which are:

Eg, when you have a blocked nose you prefer using a snuif which is very harmful to your health as it contains cancer causing chemicals than nasal pray

Are decisions made on well-defined and common problems with alternative solutions. It is often covered by establish rules and standard operating procedures and are taken on by lower level management. For example, ways of dealing with grievances is dealt with routinely, the employees with the problem have to go to their supervisor and formally explain their grievance and after that the supervisor takes it to the manager to be dealt with. Or the self-service kiosk at the cinema breaks or glitches the employees either fix the machines or customers have to wait in line at a concession stand.

Stakeholders play a crucial role in shaping the demands, constraints and choices of alternatives that managers and employees face when setting goals. Demands refers to the desires expressed by powerful stakeholders that an organisational make certain decisions and achieve particular goals. Constraints refers to the limit.

The kind of probability which is influenced by an individual's personal judgment and opinion or their own experience about whether or not a specific outcome is likely to occur.

Decision-making: For a business to identify the most superlative way to reach a certain set out goal it is essential that goals and decision-making are amalgamated in such a way that it decision- making is a prerequisite for newly created goals, as looking for better ways to achieve goals and/or to improve already established goals is the catalyst for decision-making.

A lot of benefits can result from setting goals, goals focus on both individual and organisational decisions and efforts

This model insists on explaining why different decisions are made by different individuals in the same context. The limitations of of rationality are also greatly highlighted in this model. The model highlights the following actions often taken up by individuals:

Companies experience problems and find solutions that managers and workers have to deal with from a wide range of common and well defined to unusual and ambiguous. In general managers must develop a solution t relevant problems.

Probability is a percentage of times that a specific outcome occurs, if someone was to make a certain decision many times

• this model consists of seven prospective step. Day and guide us on how the decision should be made when making decisions in situations involving conditions of near certainty or low risk.

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.

STEP 2: SET GOALS Setting precise goals can ba extremely difficult under the condition of uncertainty. Individuals or team may have to identify alternative goals, compare and evaluate them and chose among them as best they can.

E.g Most people want to purchase day-to-day products at the lowest prices, as a result, judge the benefits of a certain product based on how useful/attractive it is. Greater reward at the lowest price.

● The bounded rationality model is particularly helpful on the grounds that it emphasizes the restrictions of rationality and in this way gives a superior image of the everyday decision-making process utilized by a great number of people.

Managers face the problem of having to forecast and plan in order to identify events and their impact. Regardless that the impact may occur later rather sooner. Or vice versa.

LIMITED SEARCH: - Regal Events Coordinators has provided The Adams with alternative solutions, so instead of them having a limited venue they could just pick and do more research on the alternative solutions provided.

 Use a decision journal and capture the issue, the expectations, the assumptions, and the time-frame for evaluating results based on your goals, this will help people get more innovated and get better at their given tasks.

Decision making-is the process of deciding about something important especial in a group of people or in an organisation.Decision making include defining the problem,gathering information,Generating alternative and choosing the course of an action.

Routine is a decision-making that does not need much time to evaluate and analyse. The decision can be taken immediately. Routine uses a clear procedure, decisions are made on a regular day-to-day basis and it has a small scale in nature.

There are three different types of decision-making models, namely the Rational model, the Bounded rationality model and the Political model.

Goals are results to be attained and hence show the direction in which decisions and reactions should be aimed. Goals provide a broad direction for decision-making in qualitative terms. The decision making process is usually triggered by an effort to discover new goals,review current goals or drop outdated goals. The search for better ways to achieve established goals will ultimately trigger the decision-making process.

E.g. If a stake holder has information that could work in his favour he will not tell anyone until the moment he sees that revealing the information will work in his favour.

Adaptive Decisions - Are choices made for unusual and unknown problems with alternative solutions. Mostly includes changing or improvement on past routine decisions and is important for continuous improvement which is driven by goals of providing good quality, improving efficiency and having contact with consumers.

• Decision making under the certainty condition is the exception for most middle managers, top managers and various professionals.

The individual can define a problem, specify the probability of certain events, identify alternative solutions and state the probability of each solutions leading to the desired result. The problem and alternative solutions fall somewhere between the extremes of being relatively common and well defined,and being unusual and ambiguous.

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.

This model describes the decision making process in terms of the particular interests and goals with the powerful external and internal stakeholders.Before considering this model we must define power.To have power we must be able to influence or control the following factors, the definition of the problem , choice of goals and consideration of alternatives solution.The action and success of the organization and its structures.

Probability is the percentage of times that a specific outcome would occur if an individual were to make a particular decision menu times. The type, amount and reliability of information affects the level of risk and whether decision makers can use objective or subjective probabilities in evaluating results.

The idea that we make decisions that are rational but within the limits of the information that is available to us and our mental capabilities

STEP 6: IMPLEMENT THE SOLUTION SELECTED A well-chosen solution is not always successful. a technically correct decision has to be accepted and supported by those responsible for implementing it if it is to be acted on effectively. if selected solution cannot be implemented for some reason another one should be considered.

4. The law of small numbers bias means that people may view a few incidents or cases as representative of a larger population, ie a few cases ‘prove the rule’. The fact that apartheid occurred when a “white” president was in power, has led many people into believing preconceived notions of how apartheid will be brought back to South Africa should a white government be put into power.

The thought process of making a logical choice by identifying a decision, gathering information, and assessing alternative resolutions from the available options.

Innovative decisions are choices based on the discovery of identification and diagnosis of unusual and ambiguous problems or the development of unique or creative alternative solutions. The solutions frequently involves small interrelated decisions made over a period of months or years.

These are decisions made on a daily basis, they don't require a lot of time to think about nor effort. These are solutions that one uses when they face a usual or similar problem to the previous one (already know what to do because it is already programmed in their minds). An example of this is process in payroll vouchers or what to eat for breakfast.

Adaptive decisions are the choices made in response to a combination of moderately unusual and fairly uncommon problems with alternative solutions.

Risk- The condition under which individuals can define a problem, specify the probability of certain events, identity alternative solutions and state the probability of each solution leading to the desired result.

Individuals usually make only a limited search for possible goals or alternative solutions to problems, considering options until they find one that seems adequate. For example, when trying to choose the ‘best’; career field, students cannot evaluate every career field in the labour market. In the bounded rationality model, individuals stop searching for alternatives as soon as they hit on an acceptable one. Even the rational decision-making model recognises that identifying and assessing alternative solutions costs time, energy and money.

Routine decision are choices made in response to the problems defined clearly and have alternative solutions. This type of decision is usually covered by following policies, procedures and regulations implemented and they are also made by computer systems.

Risk generally means that the solutions to the problem are not promised but individuals are willing to lose some things with the purpose of being successful on their solutions. Individuals can investigate on where they can fail or succeed.

The role of decision making for managers is to be able to plan and administrate goal they want to set as well as come up with a strategic action for the specific goal setting

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.

Subjective probability – provides a quantitative way to express one’s beliefs and conviction about each outcome. So, in the real situation the business may assess the probability of the event happening or a combination of approaches depending upon the availability of historical data and decision maker’s personal judgement.

The possibility that a specific result will occur, based on personal judgement and beliefs is known as subjective probability. These judgements are never the same due to individual's different intuition, past experiences, expertise and personal traits such as preference for risk taking. Changes in decision making can change expectations and practice. These changes change the basis for assessing the probability of an outcome from objective to subjective probability, even uncertainty.

If noticing, interpreting and incorporating are done haphazardly or incorrectly, the individual or team is eventually likely to choose a poor solution.

Objective Probability Objective probability are the results of an outcome based on hard facts and numbers. For example, checking past records.

Managers and employees can effectively come up with different types of decisions looking closely at the nature of the problem to be solved, possible solutions available and the magnitude of the risk involved.

Dividing up the total task of the business into smaller units to take advantages of specialisation and achieve the goals of the business as productively as possible.

stakeholders, disagreement over choice of goals and no search for alternative solutions. Individuals with power influence the definition of the problem at hand, activities of the firm, consideration of the goal and choice of alternatives with the implementation thereof. This model relays the self-interests of individuals and their pursuit of short-term goals, often leading to unethical behavior. Along with divergence in goals and solutions, co- optation is a common political strategy in this model, whereby, for example, a banker is elected as a member on a firm’s board of directors when it needs to borrow money.

-The learning and growth perspective, skills and culture and capabilities needed to execute the process to please our customers and impact finances.

An example would be with an insurance company. What they do is they usually set goals regarding to increasing their profits and their goals will determine the direction they have to take and decisions they have to make in achieving the goal set.

*Formal reporting relationship including the authoritative structural and hierarchy, basically the who in the question series and lastly.

Role of decision-making for employees Involving employees when making decisions about the company's future helps strengthen your relationship with each employee. Participation in the decision- making process gives each employee the opportunity to voice their opinions, and to share their knowledge with others. While this improves the relationship between manager and employee, it also encourages a strong sense of teamwork among workers.

Decision-making is the act or process of deciding something especially with a group of people. Decision-making in management is an essential skill required for the organisation to succeed.

Political process is likely to occur when decisions involve powerful stakeholders, disagreement over choice of goals and people who are not searching for alternative solutions, These factors are highly interrelated from alternative solutions to stakeholders and choice of goals-which also depicts political decision making. Rationality and thus provides a better picture of day-to-day decision making processes used by most people. This model partially explains why different individuals make different decisions when they have exactly the same information.

Divergence in solutions - some goals or the ways used to achieve them may be perceived as a win-lose situation. In such a situation stakeholders ofte distor and withhold information selectively to further their own interests.

Divergence in solution-The same as divergence in goals, divergence in solutions is basically a clash in finding the appropriate solution because workers might have different opinions on how to tackle a particular thing .One strategy which is often used is Co-optation which involves bringing new stakeholder representatives into the decision making process.

-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 result. This means the problem and alternative solutions fall somewhere between the extremes of being relatively common and well defined and being unusual and ambiguous.

Managing director of a company puts aside a funding of R500 000 to cover the renovation of all executive offices. The money is kept in a savings account at a bank that pays 8% interest. Half of the money will be drawn out next month and the rest of the money when the job is completed in three months. The manager is certain how much is being invested, the length of investment time and the interest rate.

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 .

For example, if there is an increase in heat waves, an SPF containing lotion brand selling company may advertise the use of their lotion even in days where it's not as hot as expected. Only to find out in the future that their idea was correct because more people had ended up getting skin disorders for too much sun exposure without using the lotion as the sun has become harsher.

5.CHOOSE FROM AMONG ALTERNATIVE SOLUTIONS- Choose the best suited solution that will not cost the business more than it will make it gain meaning the solution should be cost effective.

Secondly, the planning process is crucial in identifying and revising new goals and finding more efficient ways to accomplish current goals.

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.

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.

Firstly, information is imperfect and individuals make decisions based on that information. Secondly, not all possible alternatives are evaluated by the individual before a decision is made.

It is where the decision-maker has full and needed information to make a decision. The manager knows exactly what the outcome will be, as she/he has enough clarity about the situation and knows the resources and time available for decision-making, the nature of the problem itself, possible alternatives to resolve the problem and be certain with the result of alternatives. Decision-making under certainty is the exception for most top managers, middle managers and various professionals. Day-to-day decisions are mostly done by first line managers which then make decisions under conditions of certainty.

Rational Model is a type of decision making where individuals use analysis facts and a step to step process to come to a decision making. It also permits the maximum achievement of goals within the limitations of the situation. Rational model consists of 7 steps where you firstly define and diagnose the problem, set goals, search for alternative solutions, compare and evaluate alternative solutions, choose from among alternative solutions, implement the selected solutions and lastly follow up and control

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.

Political model – describes the decision-making process in terms of the particular interests and goals of powerful extend and internal stakeholders.

*Regret criterion – it focuses upon the regret that the decision maker might have from selecting a particular course of action ( E,G) it measures the magnitude of the loss incurred by not selecting the best alternative .

Employees- The KFC manager recommends using one-on-one sessions to help make employees just a little comfortable sharing their advice and opinions.

Under the condition of certainty managers have perfect knowledge of the information needed to make a decision. Managers know what the outcome of a particular decision will be. This condition is ideal for problem solving – outcomes are known and their consequences are certain. Under the condition of certainty there is low ambiguity and complexity. A good example of the condition of certainty would be when a company invests money at a bank, it is certain that it will yield interests on the amount of money invested.

-They are often based on incomplete and rapidly changing information and may be made before problems are fully defined and understood Explain the conditions of certainty, risk and uncertainty under which decisions are made .

A good manager follows the four fundamental tasks of a manager (planning, leading, organizing, control) this enables them to make the right decisions even when the situation is crucial. Decision making is important to achieve the organizational goals and objectives, managers set and keep the operations of the business hence its their responsibility to ensure the organizations productivity is at the highest level at all times. Managers also keep the organization in equilibrium with its environment. Based on the managers skills and training, some decisions take little effort as only good leaders make successful managers. Managers are faced with choices on a day to day basis in which good decisions will result to high productivity and profit and bad decisions will lead to making a loss.

Is a condition under which individuals are fully informed about a problem, alternative solutions are obvious and the likely results of each are clear. Conditions of certainty allows anticipation of events and their outcomes it means that both problem and solution are known and well defined. Once an individual identifies an alternative solutions and their expected results making decision is relatively easy , decision maker simply chooses the best outcome .Decision making is under the condition of certainty is the exception for the most middle mangers .

Uncertainty, the complexity of today’s workplace makes it hard for decision-makers to be sure or certain of their decisions. Here the decision-maker is not aware of the possible alternatives that they can use. In order to make their decision, they have to rely on their experiences and judgements.

In conclusion towards these goals that need to be decided on. They can progressively give employees, manager and organisation a sense of perception, directive guidance and expressive meaning within the organisation.

 Get an informed opinion. getting a personal opinion will improve your decision- making skills giving you self-confidence and reassurance that what you are doing is right.

In a nutshell, managers and employees base various types of decisions on the nature of the problem to be solved, possible solutions available and the degree of risk involved.

Employees need to pay attention to guard against the tendency to make routine decisions when a problem call for an adaptive or innovative solutions.

Leverages objective data, logic and analysis instead of subjectivity and intuition to help solve a problem or achieve a goal.

- decision making in organizations is coupled with goals in one of two ways: 1. the decision making process is triggered by a search for better ways to achieve established goals, and 2. the decision making process is triggered by an effort to discover new goals, revise current goals or drop outdated goals

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Individuals or teams must look for alternative ways to achieve a goal. This includes actions such as seeking additional information, thinking creatively, consulting experts and undertaking research.

Uncertainty is the condition under which an individual does not have the necessary information to assign probabilities the outcomes of alternating solutions. Infect the individual may not even be able to define the problem much less identify alternative solution.

To make effective decision in uncertain conditions, managers must acquire as much relevant information as possible and approach the situation from a logical and rational perspective. However, there are certain techniques that can be used by the managers for making a better decision under uncertainty conditions. In case of uncertainty conditions, very little information is available to the managers and the managers are not sure regarding the reliability of such information. For example, they may use decision trees, risk analysis and preference theory for making the right decisions in uncertainty conditions. However, decision under uncertainty is the most ambiguous for managers and there is more possibility of error. The condition of uncertainty arises when the organization introduces a new or innovative product or service, adopts new technology, selects new advertising program etc. Managers have limited information to calculate the degree of risk, so statistical analysis is not possible. Hence, In conclusion, we can say that greater the amount of reliable information, the more likely the manager will make a good decision.

Routine decisions: are standards choices made in response to relating well defined and common problems with other solutions, Routine decisions are often established rules which are carried out by computers, Include the skills required in certain jobs processing payroll and re-ordering point.

LO4. Goals affect decision-making by process by causing the decisions to be triggered to search for efficient ways to establish or achieve those goals.

Objective probability refers to the possibility that a specific result will occur, based on hard facts and numbers. Historical data is used to estimate future outcomes of a decision .

Goals are essential in instilling order, direction and also giving managers and employees an incentive to work harder towards achieving the goals of the business.

• 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

The rational model consists of a process of seven steps to be followed by people or teams to ensure the maximum achievement of the goals among the present limitations. It’s a traditional, logical approach to decision making and it is a process which is followed step by step. Firstly, the problem is diagnosed and then goals and objectives are set. During this model alternatives by which goals can be achieved must be identified and understood. The actors must be able to evaluate alternatives, while keeping the goal in mind. After evaluating, the best possible alternative must be chosen then implemented so that the goal can be reached. Alternatives and outcomes must first be weighted before making the final decision. Lastly, the solution should be controlled and feedback on the outcome should be obtained. An example when this model is used is where customers want to purchase a product that is the most useful at the cheapest price.

Is the condition under which individuals do not have the necessary information to assign probabilities to the outcome of the alternatives solutions.

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

•Prescribes a series of steps that individuals or teams should follow to increase the likelihood that their decisions will be logical and sound.

For example, individuals/managers will select the first alternative that is good enough due to the fact that costs in time and effort to look further are too great or demanding. Bounded rationality includes satisficing, limited search and information-processing biases.

The decision making process is triggered by two things: A search for better ways to establish goals and an effort to discover new goals, revise current goals or drop old goals. This affects which decision you are going to choose and that means, your goals affect which decision you are going to make.

Selective Probability Possible results of an outcome based on personal judgement and beliefs. Judgement differ from individuals depending on their intuition, previous experience and situations, for example preference for risk taking

Routine decision: Basic decisions made in order to fix common problems. These decisions are often made by computer software, for example, online hotel bookings.

Step 5: choose among alternatives solutions Decision making is commonly associated with having made a final choice, choosing a solution however is only one step in the rational decision making process. although choosing among alternatives solutions might appear to be straight forward, it may prove to be difficult when the problem is complex and ambiguous, and involves high degrees of risk or uncertainty.

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.

3. Risk condition-Risk: is 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 result.

STEP 1: DEFINE AND DIAGNOSE THE PROBLEM Problem definition and diagnosis involves three skills that are part of a manager s planning and administration competency ,which include noticing ,in which it involves identifying and monitoring numerous external and internal environment forces and deciding which ones are contributing to the problems and also include interpreting which assesses the forces noticed and determining which are courses not merely symptoms of the real problems or problems and finally it also include incorporating involves relating those interpretations to the current desired goals of the department or organisation .If noticing interpreting and incorporating are haphazardly or incorrectly the individual or team is eventually likely to choose a poor solution .

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 .

Standard choices are made in response, to regularly taken and answers are obvious to you and also require no or little consideration of an alternative. An example from the world of business would be to restock on office material when components are low another example is when you can determine to wear garments when you go backyard of your house.

3. This improves the relationship between manager and employee, it also encourages a strong sense of teamwork among workers.

Example of a Bound rationality model for Satisficing: When a business chooses its supplier, it must consider the prices of the products, the quality, and overall try to get the best products, in order to be able to make a profit and at the same time to be able to keep their prices low for the customers (in particular, lower than the competitor).

Improving upon previous persuits choices and practices. Options are made in response to a mixture of pretty unusual and uncommon issues with alternative solutions, e.g. sheltered investors unfold dangers with a balanced portfolio of stocks, bonds and cash. If an instant decision is not integral and there is time to advance choices.

SATISFICING: -The goal that The Adams have is to have their intimate outdoor wedding. Their acceptance goal would be to have their wedding at a venue that is both indoors and outdoors which would be safer in terms of weather purposes.

Power is the ability to influence individual, departmental, and organizational decisions and goals. Power has the following factors:

UNCERTAINITY – It is a condition under which an individual does not have the necessary information to assign probabilities to the outcomes of alternatives.

Structured problems are familiar, straightforward and clear with respect to the information needed to resolve them. Managers can often anticipate these problems and plan to prevent or solve them. For example, personnel problems are common in regard to pay raises, promotions, vacation requests and committee assignments, as examples. Managers can plan processes for handling these complaints effectively before they even occur.

These decisions usually focus on creating new, innovative and creative solutions in order to solve problems that might arise. To make a final decision small amounts of ideas a collected for years and are continuously adjusted over that period of time. To come to a final solution takes time.

After individual have found alternative solutions they must compare and evaluate them by looking at the relative costs and effectiveness of each solution

7. internal process perspective stipulates that customer-based measures are translated into measures of what the organisation must do internally to meet its customers` expectations

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

Implement the solution a solution must be accepted and supported by al responsible for implementing it, if the solution cannot be implemented another one should be considered element the solution selected

People usually set goals to center people’s attention, decisions and efforts, and in terms of the organization it demonstrations what is expected so that everyone can understand what to do and how to do it, and work to achieve such.

Choices based on the discovery, identification and diagnosis of unusual and ambiguous problems and the development of unique and creative solutions. Solutions involve a series of small, interrelated decisions made over a period of months or even years.

Decision making is the thought process of selecting a logical choice from available options, for example when trying to make a good decision a person must weigh the positive and negative consequences of each.

Rational Model- This model lays down a sequence of steps that an individual or teams should follow in order to increase the likelihood that their decisions will be logical and sound.

STEP 3: Search for alternative solutions. (Getting more experts involved and do more research for example seek help from other organizations who might have had the same problem and managed to tackle the problem.)

STEP 2: Coordinators should set specific goals, such as booking a good venue that will accommodate all the guests as well as be fine for any weather.

Example: is placing the head of department of security services on an enterprise board of directors when they want to discuss the safety of the organisation or tighten the safety in the organisation

- innovative decisions are choices made based on the discovery, identification and diagnosis of unusual and ambiguous problems and/or the development of unique or creative alternative solutions

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.

The natural of the goals is also a important part of goals, as goals are things that want to reached or a direction one wants to go, and the nature of the goal can determine the quality and the quantity of the anticipated result.

Innovative decisions are choices based on discovery, identifies and diagnosed if unusual and ambiguous problems and and/or the development of unique or creative alternative solutions.

Political process are most to occur when decisions involves powerful stakeholder, disagreement in the choice of goal and people who are not searching for alternative solutions

The rational model prescribes a series of steps that individuals or teams should follow to increase the likelihood that their decisions will be logical and sound whereas the bounded rationality, which emphasises on the limitations of rationality and explains why different individuals make different decision when they have exactly the same information. The political model describes the decision making process in terms of the particular interest and goals of powerful external and internal stakeholders.

The decision-making process is triggered by a search for better ways to achieve established goals and also by an effort to discover new goals, revise current goals or drop outdated goals.

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

Bounded rationality model- The idea that we make decisions that are rational, but within the limits of the information that is available to us and our mental capabilities.

However, in most cases there is limited information. Therefore, the amount of information available, accuracy of it, not forgetting depth of individuals' managerial competencies are important to efficient decision-making.

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.

Individuals usually make only a limited search for possible goals or alternative solutions to a problem, considering options until they find one that seems adequate. Even the rational decision making model recognises that identifying and assessing alternative solutions costs time, energy and money.

It is a 7 step prescriptive model that tells how the decision should be made when making routine decisions in situations involving conditions of near certainty or low risk

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Certainty refers to a condition whereby individuals are fully informed about a problem, alternative solutions are obvious and there’s clarity concerning results of each solution. Both the problem and alternative solutions and well-explained and understood. Alternative solutions and their expected outcomes are identified, then the best solution Is chosen. Sometimes a problem has many possible solutions and it’s extremely expensive and time-consuming to calculate the expected results for all of them.

Decision making is a course of action taken from a set of alternatives to reach achievements set by the organisation and mangers these are the goals and objectives. Decision making is an ongoing process of making choices by identifying a decision, gathering information and looking at alternative solutions. Effective managers and employees can systematically base various types of decisions on the nature of the problem to be solved. Managers rely on all six managerial competencies to make a decision, which include communication, planning, administration, teamwork, strategic action, global awareness, emotional intelligence and self management. Conversely, decision making process is basic to all managerial competencies.

CERTAINTY- condition when individuals are fully informed about a problem, alternative solution are obvious and the likely results to each solution are clear. Decision-making is easy after the certainty condition. Decision-making for this condition is the exception for most middle, top managers and various professionals.

This model lays down a sequence of steps that an individual or teams should follow in order to increase the likelihood that their decisions will be logical and sound.

Identifying alternative solutions and specifying the probability of events that all fall under a condition called risk. If one is aware of a problem then there is less risks liable to the risk taker because one must have already set up a plan to solve the problem, that is what makes it less risky. Probability is the likelihood of an event taking place.

When managers have perfect knowledge of all the information they need, to make a decision, then decisions are made under the condition of certainty. This condition is ideal for problem solving. The challenge is to study the alternatives and choose the best solution.

Decisions are made based on the forces varying from new technologies, new competitors into the market, new laws or political turmoil’s. Besides attempting to measure the depth of these forces; managers must their potential impact.

Uncertainty Uncertainty is the condition where individuals do not have full information to apply probabilities to the outcome of the solution. Individuals may not even be able to identify the problem nor the solution. It suggests that both problem and solution are unusual. Causes of problems are hard to be investigated and predicted.

How much will the different alternatives cost to carry out? How much will choosing them boost your bottom line afterward?

A process of making important decisions in a business which includes, defining problems, gather information, generating alternatives and choosing a course of action.

Even if you don't want to pick the winning decision by majority vote, you can weed out some of the options by asking your team members for a vote.

1.Demands are the desired expressed by powerful stakeholders that an organisation make certain decisions and achieve particular goals.To achieve its goals, it realises its commitment to achieving this by implementing a multi-million-rand strategy that is underpinned by four key initiatives

A person’s perception of the likelihood of an event subjective probability differs from objective probability. In that the judgements vary among individuals depending on their intuition, previous experience with similar situations, expertise and personality traits. eg.( Preference for risk taking or Avoidance thereof )

Certainty can be defined as the condition under which individuals are fully informed about a problem, alternative solutions are obvious and the likely results of each solution are clear. Risk can be defined as 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 result. Uncertainty can be defined as the condition under which an individual does not have the necessary information to assign probabilities to the outcomes of alternative solutions.

Process: define and diagnose the problem, set goals, search for alternative solutions, compare and evaluate alternative solutions, choose from among alternative solutions, implement the solution selected and follow up and control.

An effective manager relies on all 6 managerial competencies to make a decision. The Manager of Regal Events coordinators needs to envision the goal of the event and demonstrate Strategic action in executing the goal. The manager has to communicate well with all stakeholders which include the Adams family, the couple, suppliers and her staff when making decisions and planning the proceedings of the day. Regal employees have to portray great teamwork and self-management in terms of executing the decisions taken by all stakeholders.

For example, if a manager needs to make a decision regarding a pitch that has to be presented to a client, he/she can see how creative his/her employees are.

Ontwikkel duidelike en presiese rapporteringslyne(chain of demand) - - Dit is belangrik sodat almal weet wie is in beheer van watter aktiwiteite. Dit het 2 komponente:

In a nutshell, managers and employees base various types of decisions on the nature of the problem to be solved, possible solutions available and the degree of risk involved.

After the problem is defined, goals need to be set to eliminate the problem. A hierarchy of goals can be created to solve the problem or identify the real problem and set the goals in hierarchy to solve it. The goals must include the desired results for example, what needs to be achieved and what is the deadline. Thereafter resources can be allocated. Setting goals can be difficult and time consuming but it vital in success as it can help you what path is the correct one to take.

Certainty is a condition under which individuals are fully informed about the problem, alternative solutions are obvious, and the likely results of each solutions are clear

Application: Regal events coordinators are planning an outdoor wedding for the Adams’ family. The manager as well as the employees of the “REGAL EVENT’’ need to do a checklist in order to avoid having problems on the day of the wedding. It is the manager’s responsibility to make sure that all the things in the wedding that needs to be covered are on track, things like having an alternative venue if the outdoor theme fails due to weather conditions. It is also the manager’s responsibility to follow up on whether the family is satisfied with the work being done, are they comfortable with what is given to them and if not then a different arrangement can be done in time to solve the issues encountered.

Risk is the condition where the individuals can identify and define problems, create alternatives solutions on how to solve the problem and stating the probability of each solution leading to achieving the desired results even though there's no guarantee if each solution will work to attain the desired results.

The condition where individuals can be define a problem, specify the probability of certain events, identify solutions and state the probability( the amount of times a specific outcome can occur). There are two types of probability namely subjective probability and objective probability.

Departementalisering is wanner n onderneming n sekere grootte bereik, raak dit nodig om al die take van bestuur op te deel in kleiner eenhede

External and internal try to define problems for their own advantage. when things go wrong within a politically based or orientated organisation. one or more individual may be blamed or singled out as a cause of the problem. This finger pointing is called scapegoating: casting blames or problems on an innocent or partially responsible individual, team or department. scapegoating may be used to preserve a position of power or maintain a positive image

Sometimes the solution might not always be successful. However, if it is then it must be implemented. If it cannot be implemented, a new solution must be considered.

Means that what people expect to see often is what they do see. People seek information that is consistent with their own views and downplay conflicting information.

They help guide in such a way that a solution picked for a certain problem does not outline the main aim of establishing the objective for the business.

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

These decisions go under circumstance of assimilating between risk and uncertainty. The circumstance that now associates with the goals can affect the organisation in one of two ways.

Uncertainty is the condition in which an individual does not have the necessary information to allocate probabilities of the outcomes of alternative solutions. For that matter an individual may even not be able to:

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. Under conditions of certainty accurate, measurable and reliable information of which base decisions is available.

- the rational model prescribes a series of steps that an individual or teams should follow to increase the likelihood that their decisions will be logical and sound

Certainty- The condition under which individuals are fully informed about a problem, alternative solutions are obvious, and the likely results of each solution are clear.

Three factors affect the political decision-making process, namely: stakeholders, choice of goals and alternative solutions. Power is the ability to be superior and have authority over people. When you have power you should be able to influence the definition of the problem, choice of the goal, consideration of alternative solutions, selection of the alternative solution to be applied and the actions and success of the business.

Routine decisions are standard choices made in response to relatively well defined and common problems with alternative solutions. The ways in which various decisions are made into making various routine decisions is often covered by established rules or standard operating procedures.

Example of a Bound rationality model for Inadequate or misinterpreted information: A business owner may decide to make a decision on how to save money on cost of their product by lowering the overall quality or quantity of said product. Coca-cola decided to reduce the size of their cans, thereby reducing the quantity of their product while keeping the price the same. That way customers will not complain about the price increase, but the company still gets to save money on the product.

- there are three decision making models and they are the rational model, the bounded rationality model and the political model and these were created to describe various decision making processes

3. Uncertainty – is the condition under which an individual does not have the necessary information to assign probability to the outcomes of the alternative solution. Individual may not be able to define the problem, identify solutions and outcomes .

Is an indirect and supplementary authority. Their source of authority is usually their specialised knowledge of a particular field.

Application: Regal Events Coordinators used this decision making by developing some possible ways in which they can use in future in case they face problems when doing their work. They managed to get transparent water repellent marquees in case it rains on the day but also keep consistency with the outdoor wedding theme.

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:

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.

Routine decisions, these are standard decisions made in response to well-defined problems, with alternative solutions. They are governed by established standard procedures

After individuals or teams have identified alternative solutions, they must compare and evaluate them. This step emphasizes expected results and determining the relative cost of each alternative. Several aids for comparing and evaluating alternative solutions rationally can be found in chapter nine.

Goals help to guide your decision-making, for example if you have a lot of work to do and want to complete it in three days, then you will decide on when exactly will your deadline be for the specific task. Goals are results to be attained, therefore, giving direction to decisions and actions. When a goal is changed or modified, the individual is engaging in the decision making process.

The types of problems and solutions that managers and other employees deal with differ from common and properly defined to complicated and unusual. Certain occupations require a procedural way of solving problems, some managers and professionals often need to develop solutions that are out of the box.

Step 4- Compare and evaluate alternative solutions: After the team or individual have identified alternative solutions, they then need to compare and evaluate them. This emphasises on expected results and determining

5. The gambler’s fallacy bias means that seeing an unexpected number of similar events can lead people to the conviction that an event not seen will occur. For example, 5 successive dice rolls sum up to 8, a player might incorrectly believe that the chances of a 8 on the next roll are greater than 50/50, which is false.

1.LIMITED SEARCH- Individuals usually make only a limited search for possible goals or alternative solutions to a problem,considering options until they find one that seems adequate.

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.

The reason goals are set also affects decision-making due to the benefits that one will get when the goal is reached. This also builds the passion put into the achievement of that goal and high expectations helps reach better results.

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, organisational decisions or goals.

Measurable – you must have measurable targets along the way that you can aim for, you should be able to measure your successes and failures.

They are 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. The examples of these types of decisions usually take place when working with a certain type of computer software

Rational- A model that has 7 steps that individuals should follow so that their decisions will likely increase in logic and sound. This model allows the maximum achievements of goals within the limitations of the situation. The 7 steps associated with Rational model are

When you allow employees to make decisions it creates a strong relationship because it shows how much you trust them, they will then value your business and work with passion. This will also give the manager a different perspective and possibly make the right decisions. Things like suggestion boxes and employee surveys are good for the business.

Role of decision making for managers Decision-making is regarded as one of the important functions of management. Decision making process is continuous and indispensable component of managing any organisation or business activities. An effective manager relies on all six managerial competencies to make decisions, theses competencies are communication, teamwork, planning and administration, strategic action, Global awareness and lastly emotional intelligence and self-management.

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.

Eg, if a police officer is involved in an unethical behaviour like bribery, you going to perceive all police officers as corrupt.

Beplanning is die beigheid se rigting aanwyser. Dit help om veranderinge in die besigheidsongewing te idenifiseer en so toekoms gedrewe as moontlik die onderneming te bedry.

A lot of benefits can result from setting goals, goals focus on both individual and organisational decisions and efforts

Adaptive decisions: The choices made in response to a combination of fairly unusual and uncommon problems with alternative solutions, often involves modifying or improving upon past routine decisions and practises. It is necessary for continuous improvement.

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.

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.

Under the condition of uncertainty mangers do not know what is going to happen after a particular decision has been taken. Managers have very little information at their disposal and they are uncertain about the reliability of the information. Therefore, they are not well informed possible alternatives and their outcomes. Uncertainty arises from complex and ambiguous problems and alternative solutions. Under uncertainty managers make use of intuition, judgement and experience to make decisions. This means that there is more possibility of incorrect decisions or assumptions. Examples of situations in which uncertainty may arise is when a business introduces a new product in their product range, also when a business adopts new technology.

and employees. The role of decision-making is to help managers and employees to define problems, gather information about the problem such as what caused it and what can be implemented, generating alternatives this include finding various solutions to the problem e.g. having plan A, B AND C. The final step is choosing a course of action which best alternatives generated either plan A, B or c that will be efficient for the business.

Eg, if you buy a specific takeaway at a specific restaurant and find that their food is not well cooked or stale you constantly think that their food is always like that.

Is a decision making strategy that aims for a satisfactory or adequate result, rather than the optimal solution. It entails searching through available alternatives until an acceptability threshold is met. An acceptable goal might be easier to identify and achieve, less controversial and safer than the best available goal. However, the achievement of quality improvement goals is often as a results of a series of satisficing decisions.

*formal tasks and assignments to individuals and departments, basically the what tasks to be done referring to the question series.

Are decisions made in response to a combination of both moderately unusual and fairly uncommon problems with alternative solutions. It often involves modifying and improving past routine decisions, it in fact deals with continuous improvement, the key concept of TQM. Adaptive decisions are driven by better quality, improving efficiency and being responsive to customers. An example could be steers and MacDonald’s getting customers complaints about having long lines. They then came up with an adaptive solution of having self-service systems.

Certainty, when the decision-maker is certain about what the alternatives are, what outcomes and conditions are associated with those alternatives. The decision-maker has measurable and reliable information to use for decision making.

Keuses gebaseer op die ontdekking, identifisering en diagnosering van ongewone en onduidelike probleme en die ontwikkeling van unieke of kreatiewe alternatiewe oplossings.

Time period – you must make sure you identify a specific period for reaching the goal for example wanting to reach the goal in 10 years’ time.

Behels dikwels die aanpassing of verbetering van vorige roetine besluite en gebruike. Bv, die maatskappy gaan voorsorg tref dat so situasie nie weer opduik nie, en wanneer dit doen, weet al die mense wat om te doen en wie hulle kan bel.

4.balanced scorecard keeps track of the key elements of an organisation strategy implementation by considering both internal and external stakeholder perspective. It does this by looking at the organisation`s strategic approach from four perspectives:

The types of problems and solutions that managers and employees deal with range from relatively common and well defined to unusual and ambiguous. There are three types of decisions, which include: Routine decisions

Example: A business manager will often employ a series of analytical steps to review relevant facts, observations and possible outcomes before choosing a particular course of action.

Routine decisions: These are standard choices made in response to well-defined problems with alternative solutions. The way in which to make routine decisions is covered by established rules or standard procedures.

Are choice based on the discovery, identification and diagnosis of unusual and ambiguous problems and/or development of unique or creative alternative solutions. They do not happen in a logically sequence but take a number of years and involve numerous professional specialists and teams. For example, Netflix was just a streaming service to watch award winning movies, now it makes its own original movies and is making cinemas run for their money because you can watch movies that are in cinemas at the comfort of your home. Netflix is an example of an innovation business model.

Rational model The rational model consists of steps that individuals,teams and groups should follow to increase the likelihood that their decisions will be logical.The rational model make use of facts and information,analysis and step-by-step procedure to come to a decision. The rational model is used to maximize your outcome it consist of seven steps and starts with defining and diagnosing the problem then it moves through steps to follow and controlling

Die primere rede vir dit is omdat departmente en groepe binne n onderneming interafhanklik is en mekaar nodig het om hulle aktiwiteite te verrig.

2.SET GOALS- After defining the problem teams or individuals can set goals for eliminating it e.g: A certain company sales are dropping after identifying that the sales drop is the problem they have to set goals that will help eliminate the problem and rise the sales such as setting a target increase percentage they would like to achieve.

The political model describes the decision making process in terms of the particular interest and goals of powerful external and internal stakeholders. Before considering this model, however, we need to define power. Power is the ability to influence or control of the following factors:

in general risk means that the problem and alternative solutions fall in between the extremes of being relatively common and well defined, not being usual and ambiguous. E.g, the banking industry's credit policy is used in more strictly manner than in the past. Before,banks used to issue more hoe loans at high interest rates but that made more transactions to end up in bad debts. Because of high risks and ambiguous conditions now banks are more cautious irrespective of the interest rates. The measure of risk captures the possibility that future events will render the alternative unsuccessful. Probability is the percentage of times that specific events would occur if an individual were to make a decision more times.

Emphasises the limitations of rationality and describe why various individuals make different decisions or choices when they have exactly the same information.

The decision-making process is triggered by an effort to discover new goals, revise current goals or drop outdated goals.

Continuous Improvements involves streams of adaptive organisational decisions made over time it requires a commitment to constant diagnose organisational processes, This process resembles the wheel each turn improves and existing product, Decisions about continuous improvements are driven by the goals of providing quality.

● Political processes are the most likely to occur when decisions include incredible stakeholders, contradiction over selection of objectives and individuals who are not looking for alternative solutions.

The rational model consists of various steps which help people to increase the likelihood of their decisions being logical. There are 7 steps in this specific model which makes it a whole.

bounded rationality also recognise that individuals frequently have inadequate information about problems and that they cannot control

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.

This condition means that both the problem and alternative solution are known and well defined. Decision making under the certainty is the exception for most middle managers, top managers and various professionals.

Herbert Simon, a management scholar, introduced this model in the mid-1950s. It contributed significantly to the decision of the Swedish Academy of Sciences to award him the 1978 Nobel Prize for economics for his ‘pioneering research into the decision-making process within economic organisations’. The bounded rationality is particularly useful because it emphasises the limitations of. The selection of alternative solutions to be implemented

Divergence in goals- the political model recognizes the likelihood of conflicting goals among stakeholders and that the choice of goals will be influenced strongly by the relative power of stakeholders.

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

Formele gesag is aanvaar deur subordinates Hulle comply in n organisasie want hulle glo dat bestuurders a reg het om orders te issue.

Goals serve to focus individual and organisational decisions and efforts. Setting goals also provide a set of stated expectations that everyone can understand and work to achieve. Also goals aid the planning process. Goals motivates people and stimulate better performance. Goals assist in performance evaluation and control.

Decisions may be classified as routine, adaptive or innovative, these categories reflect the types of problems faced and types of solutions considered.

Risk refers to a condition whereby individuals define a problem, specify the probability of certain events, identify alternative solutions and state the probability of each solution leading to the desires result. Risk, as a rule, means that the problem and the alternative solution are between extremes, are relatively common and understandable, unusual and ambiguous.

it is the true conditions under which the individuals involved have complete information about the problem and other possible solutions are known, and they are likely to achieve the same outcome from each solution clearly. Example is the decision to reorder inventory automatically when stock falls below determined level.

● Individuals are bound to use this procedure in circumstances including states of close to assurance or low risk, the is, the point at which they can appoint target probabilities to result.

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.

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.

The ability of Roger Eaton, CEO of KFC, to be leading integrated food services group in ASEAN region delivering consistent quality products and excellent customer focuses. He has to rely on planning and administration competency to form a management team that would choose and implement a strategy through which to achieve this vision.

- It is particularly useful because it emphasizes the limitations of rationality and thus provides a better picture of the day-to-day decision-making process used by most people.

Goals are results to be attained and thus indicate the direction in which decisions and actions should be aimed, while decision-making is the process of providing appropriate solutions to most situations in life. the importance of decision-making is that it helps on goal setting whilst the importance of goal setting is that it provides a guide for decision making.goals can affect the decision-making process negatively or positively, for example politicians tend to specialize in decisions, so basically if you set relatively high goals it usually comes with riskier decisions based on avoiding negative consequences.

Decision-making includes defining problems, gathering information, generating alternatives and choosing a course of action. There are various types of decision-making on the nature of the problem to be solved, the possible solutions available and the degree of risk involved. An effective manager relies on all six managerial competencies to make a decision.

• Under this condition the decision maker is fully informed about the problem itself, alternative solutions to the problems and the outcomes of all the possible solutions.

Decision making is the condition under which individuals in an organisation make decisions reflect the environmental forces that individuals cannot control, but that may in the future influence the outcomes of the decisions. Decision making includes: Defining, gathering information, generating alternatives and choosing the course of an action.

The rational model prescribers a series of step that individuals or team should follow to increase the likelihood that their decisions will be logically and sound. A rational decision permits the maximum achievement of goal within limitations of the situations. This definition addresses means not ends.

B. Risk. The conditions where the problem is clear but the solution is not, therefore different solutions will be available and every solution will have different outcome and the solution with the closest result that is desired will be chosen.

2.INADEQUATE OR MISINTERPRETED INFORMATION- Individuals do not always have adequate information about problems they encounter and events that cannot be controlled by them will influence the results of their decisions.

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

4.Information-processing biases (Consists of 5 biases namely: The availability bias, selective perception bias, concrete information bias, law of small numbers bias and gambler’s fallacy bias)

• Have inadequate information and control over external and internal environmental forces influencing the outcomes of decisions.

The percentage of time that a specific outcome would occur if an individual were to make a particular decision a large number of times Objective Probability : When more accurate information is used to determine the probability of a given outcome. For example, using past data and statistics. Subjective probability :

Is a 7 steps prescriptive model that tells how the decision should be made when making a routine decision in situations involving conditions of near certainty or low risk. It involves a series of steps that individuals or teams should follow to increase the likelihood that their decisions will be logical and sound.

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.

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.

In such a condition, managers have knowledge about alternative course of actions, but outcomes are associated with probability estimates. It is more difficult to predict future conditions without full information, so the outcome of an alternative cannot be accurately determined. Therefore, managers can guess the probable outcome based on their experience, research and other available information. For this purpose, several tools are available to the managers that can help in taking decisions under risk conditions. Decision making under conditions of risk is accompanied by moderate ambiguity and chances of an impractical decision. On the other hand, the managers may also use subjective probability that is based on their experience and judgment. However, such decisions are largely subjective as no decision criteria are fully reliable. Mostly the managers must take business decisions under risk situations.

Under a 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 likelihood or chance of an event occurring.

- adaptive decisions are choices made in response to a combination of moderately unusual and fairly uncommon problems with alternative solutions

For example if a manager took the right decision on whether to host motivational talks on entrepreneurship, this can motivate employees to work even harder.

The aim is to find a long lasting solution, usually done by top level management, e.g CEO deciding how to keep increasing profits for the next 5 years .

Risk generally means that the problem and alternative solutions fall somewhere between the extremes of being relatively common and well defined, and bribge unusual and ambiguous

- political model describes the decision making process in terms of the particular interests and goals of powerful external and internal stakeholders

Risk usually means that the problem and alternative solutions fall somewhere between the extremes of being relatively common and ambiguous.

These are solutions that result from unique and “out of the box “thinking .These solutions are new and result from creative thinking in order to solve existing problems. Innovative ideas take a long time to generate and might even take years. These decisions are generated by groups of specialised professionals. Innovative ideas entail them being the most cost efficient and use up less factors of production.

Bounded rationality also recognises that individual regularly have inadequate information about problems and that the events that are out of their control influence results of their decisions.

Crucial goals provide broad direction for decision making in qualitive terms. Operational goals state what is to be achieved in quantitive terms, for whom within the period.

For example :Spur can analyze potential customer demographics, supply logistics and the local competition and come up with reasonable forecasts of how a successful restaurant would be in each possible location.

Decision making is a process of choosing a solution to an identified problem with the information gathered. Managers of firms face a lot of problems and use decision making in everyday life to run there company, employees also use decision making skills to finish a task set by the manager.

General goals provide broad direction for decision-making in qualitative terms. Operational goals state what is to be achieved in quantitative terms, for whom and within what time period.

Risk refers to the unforeseen condition under which individuals can define as a problem, where we can specify the probability of certain events or risks occurring, where we can identify alternative solution and state the probability of each solution leading to the desired result. Risks generally means that the problem and alternative solutions fall somewhere between the extremes of being relatively common and well defined. With planning an outdoor wedding, it is not out of the normal to anticipate bad weather. This means there should be provision in terms of indoor settings or a marquee that can withstand bad weather conditions and still maintain the appeal of the atmosphere. With small weddings, one of the biggest problems would be a larger amount of people showing up and not being catered for.

RISK- condition under which individual can define a problem, specify the probability of certain events, identify alternative solutions and state probability of each solution lending to desired results.Its associated with probability and there are two different types of probability which are objective and subjective probability. Subjective probability is based on opinions while objective probability is based on hard facts.

Decision making is a process of making a choice between several options and committing to a feature of course of action.

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

1. The condition of certainty exists if the person making the decision is reasonably sure what are the alternatives and their outcomes.

Routine decisions are the type of decisions that the managers make on a daily basis in order to keep the organization functions and such decisions do not require a lot of evaluation, analysis or in depth study. These decisions are made in order to solve common problems or to provide alternative solutions to problems.

3. The consideration of alternative solutions: Having the wedding in spring when there is no rain or having the wedding indoors.

•Describes the decision-making process in terms of the particular interests and goals of powerful external and internal stakeholders.

•Emphasizes the limitations of the rationality and thus provides a better picture of the day-to-day decision-making processes used by most people.

1. Certainty is the condition under which individuals are fully informed about a problem. Alternative solutions are obvious and the likely of each solution are clear. The condition of certainty at least allows anticipation of events as well as its outcomes.

Stakeholders consists of customers, suppliers, shareholders and government agencies and these stakeholders have a huge impact on the organization. Stakeholders have an influence in the formation of goals and adjustment of goals in the organization.

1) Decision making is the process of selecting from a set of alternatives. All decision making processes produce consequence that may be an action, recommendation, or opinion. Decision making consists of four parts namely; Defining the problem, gathering information, generating alternatives or options, choosing a direction or course of action.

A crisis problem is an unexpected problem that can lead to disaster if it is not resolved quickly and appropriately. Crises can not be avoided by organizations and the public is well aware of the immensity of corporate crises in the modern world. The Chernobyl nuclear plant explosion in tge former Soviet Union and the Exxon Valdez spill of years past are a couple of sensational examples. Managers in more progressive organizations do anticipate that crisis, unfortunately, will occur. These managers have started installing early-warning crisis information systems and have also developed crisis management plans to deal with these situations in the best ways possible.

-There are two types of probability. The first is the objective probability which is the likelihood that a specific outcome will occur based on hard facts and numbers. Sometimes an individual can determine the likely outcome of a decision by examining past records.

To have decision making skills you must be able to follow simple steps called the decision-making process. As a manager or an employee of a firm you must consider the fundamental components of the decision-making process, such as types of problems, types of decisions, managerial competencies, decision making conditions, goals and decision making and decision making models. There are three types of decision making models namely: Rational model, bounded rationality model and the Political model.

When problems arise on a regular basis, a manager may address them through standard or prepared responses, which are named, programmed decisions. The solutions are already available from past experiences and they are appropriate for the problem at hand. A good example is the decision to reorder inventory automatically when stock falls below a determined level. Today, a lot of programmed decisions are being assisted or handled by computers using decision-support software.

This type of model describes the decision-making process in terms of the particular interests and goals of powerful external (e.g. customers) and internal (e.g. employees) stakeholders.

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

E.g. When a coin is tossed, and head appears twice you will assume that the chance of it appearing for a third time is 50/50.

Managers- The CEO of Food Lovers Market tries to make major decisions by trying to come to a consensus among the top minds in the company. When disagreements get expressed through the decision-making process, it helps make better decisions. It may take longer to make the decision, but once it is implemented it goes a lot faster because there isn't any resistance and sabotage that works its way through the organization.

initials and surnamestudent number contribution N.S NENE30763770COMPILING A.M MATTHEWS27205649LEARNING OUTCOME 2O.H SEKGALO31557732LEARNING OUTCOME 2D.M MOKOENA 27334465LEARNING OUTCOME 3M.G MPURU31198023LEARNING OUTCOME 3T.C MMOTLANA31800564LEARNING OUTCOME 1A.L ESTRICE32795297LEARNING OUTCOME 4T.B MORAKE27830357LEARNING OUTCOME 5S.K MOSIKILI30058678LEARNING OUTCOME 5

There are three types of innovative decisions which are: 1. Optional innovation-decision 2. Collective innovation-decision 3. Authority innovation-decision

Decision making in organizations under the conditions of risk and uncertainty is coupled directly with goals in one of two ways:

choose a solution to the problem, although choosing among alternative solutions might appear to be straightforward it may prove to be difficult if the problem is complex, ambiguous, and has high degree of risk or uncertainty

Decision-making is based on the fundamentals which include; defining problems, gathering information, generating alternatives and choosing a course of action.

2. Constraints limit the types of goals set, the decisions made and actions taken. Two important constraints are laws and ethics

Risk conditions include individuals defining a problem, specifying the probability of certain events, identifying alternative solutions and stating the probability of each solution which can lead to a desired result. Measuring of risks captures the possibility that future events will render the alternative unsuccessful.

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Communication Cooperation and Coordination is crucial between people ,departments and operating sections as well as a cohesive organisational structure should be in place. An organisational structure defines how tasks are divided and Resources allocated, you can further defined it as include:

It is the condition under which individuals are fully informed about a problem, alternative solutions are obvious and the likely result of each solution is clear. It allows anticipation of events and their outcomes if it does not allow control. Problems and solutions are defined and known. Decision-makers choose the solution that has the best potential outcome. It is mostly for middle and top-level managers. Only a few decisions are certain in the real world.

STEP 7: FOLLOW UP AND CONTROL Implementing the preferred solution will not automatically achieve the desired goals. Individuals or teams must control implementation activities and follow up by evaluating results .if the implantation does not produce satisfactory results if implementation does not produce satisfactory results , corrective action will be needed .

Risk is the condition under which managers have factual, but inadequate information. Managers have the knowledge of an alternative course of action, but without complete information they cannot accurately determine the outcome. Decision making under risk condition is accompanied by moderate ambiguity and complexity. Managers may use subjective probability which is based on their personal judgement and experience. They may also use objective probability which is based on hard facts and numbers. A good example of risky condition would be when making decisions about restaurant locations, Wimpy can analyse potential customer demographics, traffic patterns, supply logistics and the local completion and come up with good forecasts of how successful a restaurant would be in each possible location.

Risk is 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 desired results.

-The model describes the decision making process in terms of the particular interest and goals of powerful external and internal stakeholders.

The role of decision making for managers and employees it is base various types of decisions on the nature of the problem to be solved, possible solutions available and the degree of risk involved.

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.

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Die standaard keuses wat gemaak word in 'n reaksie op relatief goed gedefinieerde en algemene probleme met alternatiewe oplossings. Bv, Jy kies om 'n recording van jou presentation te maak. Die probleem wat jy ondervind wanneer jy hierdie recording te maak, is dat jou kamera weg is. Jy het nie tyd om die kamera te soek nie, en dit is te duur om te vervang met 'n nuwe een. Die oplossing vir hierdie probleem is om die gehoor van die presentation in kennis te stel dat jy 'n skype meeting gaan hê, dmv jou rekenaar en sodoende jou presentation gaan lewer.

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.

Beide die bestuurder en werknemer baseer verskillende soorte besluite op die aard van die probleem wat hulle moet op los, moontlike oplossings en die graad van die risiko betrokke.

It is the condition under which an individual does not have the necessary information to assign probabilities to the outcome of alternative solutions.

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:

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 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.

Planning is the first fundamental function of the management process involving the setting of business goals in the development of an action plan to achieve such goals management makes decisions on where to go and how to get there however a plan is only a plan and once the plan has been selected resources must be combined and used effectively towards achieving the selected close this is where organising comes into play defined as the process of delegating and coordinating the activities and resources in order to achieve the organisations objective. It details what activities need to be done ,who will carry out these various activities ,where and what are the necessary resources that needed to be employed, to answer how the organisation will achieve its vision mission and objectives.

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.

The manager lacks complete information in a risk environment. This condition is more difficult. The problem and alternatives may be understood, but the manager has no guarantee how each solution will work. Risk is a fairly common decision condition for managers.

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Rational decision making model it's a seven-step process: STEP 1: Regal Events Coordinators define and diagnose the problem, utilizing 3 skills which are noticing which involves identifying external and internal wedding. Interpreting and incorporating skills.

This is 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 result. This condition means that the problem and alternative solutions are either relatively common and known or they are unusual and ambiguous. Under the conditions of risk, the decision maker has incomplete information about alternatives but has a good idea of the probability of outcomes of each alternative.

The role of decision making for managers and employees - It is possible to demonstrate how managers and employees can systematically base various types of decisions on the nature of the problem to be solved, the possible solutions available and the degree of risk involved. A good manager depends on the 6 managerial competencies to make decisions. Conversely, decision making processes are basic to all managerial competencies. The ability of Elon Musk to envision humans landing on Mars shows his strategic action competency. He then had to rely on his planning and administration competency to form a management team that would choose and implement a strategy through which to achieve his vision.

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.

Eg, people who have been highly intoxicated on alcohol and did bad/awkward things often think they might experience the same situation if they drink alcohol again.

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

- Die omgewing van die onderneming , organiseering moet aangepas word by die omgewing waardin die besigheid gelee is bv. Stabiele omgewing , turbulente omgewing of n tegnologiese omgewing

The main reason for origin of a goal must be clear as its nature will be a guide to the decisions that follow. Being specific about the goals will serve purpose for example: if a business creates a goal of making profit for foreseeable future, the decision based on this goal is to ensure that productivity must be carried out at a high level.

It is very useful because it emphasis the limitation of rationality and provides a better picture of the day-to-day decision making process used by most people. It explain why different individuals make different decisions when they have exactly the same information. It refers to the individual tendency to do the following. Select less than than the best alternative solution. Engage in limited search for alternatives solution. Have inadequate information and control over external and internal environment forces influencing the decision outcomes.

Our goal as Regal events coordinators is to cater an elegant and classy outdoor wedding for 50 people and hope for it to be a success, and the challenge we are facing we wanted to add 2 more tables with 20 chairs meaning we are planning to cater for 20 more uninvited guests which might require more space or a bigger tent and they might have to cook more food than planned to avoid any inconvenience. We charged the bride and groom the amount we charge when catering for 60 people and the remaining 10 will be covered from our own pocket which will be more like a discount to them. Our goal helped us improve our decision making process. Since we are catering for an outdoor wedding we should have an alternative solution to be able to achieve our goal and make the wedding a success, therefore we have organized a transparent wedding marquee just in case it rains and the wedding will not be ruined or disrupted.

Political Model: The political model describes the decision making process in terms of the particular interests and goals of powerful external and internal stakeholders.

Application: Regal Events Coordinators used the experienced based techniques for solving problems (weather changing and uninvited quests) that they faced during the wedding by deciding that only those who are invited to the wedding can enter the venue first then the rest shall enter afterwards and with regards to the weather they decided to make the marquee more closed so that any type of weather patterns don’t affect the setting and the proceedings during the course of the day.

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.

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.

Adaptive decisions are choices that are made to problems that are uncommon or unusual and have alternative solutions. This type of decision also includes the continuous improvement as a key element. It also involves improving past routines and adapting to the trends in the markets. Decisions regarding the continuous improvements are driven by goals such as providing better quality as well as improving efficiency.

-The condition under which individuals are fully informed about a problem, alternative solutions are obvious and the likely results of each solution are clear. This makes both the problem and alternative solutions and it’s expected results, making the decision is relatively easy. This is the perfect condition for the middle managers, top managers and various professionals, however, first-line managers make most day-day decisions under conditions of certainty or near certainty.

• Have inadequate information and control over external and internal environment forces influencing the outcomes of decisions.

Decision-making is the process of making important decisions and making choices by identifying a decision, gathering information and accessing alternative solutions.

- the political model describes the decision making process in terms of particular interests and goals of powerful external and internal stakeholders.

The political model recognises the likelihood of conflicting goals among stakeholders and the choice of goals will be influenced strongly by relative power of stakeholders. In contrast the balance pf power among several stakeholders leads to negotiation and compromise in the decision making process. It is characterised by the push and pull of stakeholders who have both power and conflicting goals. Although the balance of power may lead to compromise, it may also lead to stalemate. A common political strategy is to form coalition when no person, group or organisation has power to select or implement it preferred goal.

Political models of decision-making closely resemble the real environment in which most managers and decision-makers operate. This is usually useful in making non programmed decisions. Making decisions is just complex.

3.DIVERGENCE IN SOLUTIONS- This factor discusses the win-lose situation and further explains that stakeholders often keep to themselves information in order to further their own interests.

Information not provided or incomplete , many unknowns and possibilities to predict expected results for decision-making alternatives. The manager cannot even assign subjective probabilities to the likely outcomes of alternatives. Each of the possible states of nature of the problems causes the manager himself not be able to predict with confidence what the outcomes of his actions will be. An assumption is often made; the manager has no information or intuitive judgement to use as a basis of assigning the probabilities to each state of nature. Managers may have to come up with creative approaches and alternatives to solve the problem. Dealing with uncertainty is an important facet of the jobs of many managers and various professionals such as research and development engineers, market researchers and strategic planners.

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

Objective probability – refers to estimating the likelihood that something will happen by observations that have been recorded. We base objective probability on experiments, mathematical measurement and statistics rather than personal experiences.

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).

Consistent with the bounded rationality model, individuals often fall prey to information processing biases when they engage in bounded rationality decision-making. The following are 5 of these biases:

The Political model describes the particular goals of powerful internal and external stakeholders in the decision making processes.

Chess is a board game that involves strategy building and analyzing the opponents next move in order to take the decision of your next move.

Decision making in the business is grouped in one of the two ways when conditions of risk and uncertainty are taken into consideration:

LO1. Decision-making is the action or process of defining problems, gathering information, generating alternatives and choosing a course of action.

---> the informal communication takes place more rapidly than formal communication and therefore decision-making could be expected.

3. SEARCH FOR ALTERNATIVE SOLUTIONS- At this step teams or individuals have to be creative to find solutions to the problem,consult expects or even conduct a research e.g they could choose to try attracting more customers with incentives or move their business to a new place or introduce a new product together with the old one to attract more customers.

Problem solving decisions are made under three different conditions such as certainty, risk and uncertainty. All companies make decisions under each of these conditions, but risk and uncertainty are common to the more complex and unstructured problems faced by top managers.

-select less than the best goal or alternative solution, this is called satisficing. Satisficing decision includes these factors: Limited search, inadequate information, information processing bias.

It consists of seven(7) prescriptive model that entails the process of routine decision-making, involving low risk situations.

This model describes the decision making process in term of particular terms and goals of powerful internal and external goals. Power is the ability to influence and control individual, departmental, team, organisational, decisions and goals. Power is the ability to influence and control the following factors:

Certainty – condition under which individuals are notified about a problem, alternative solutions are obvious and likely results of each solution are known and defined. It is the most middle managers, top managers and various professionals.

Risk- condition under which individuals can define a problem, specify the probability of certain events, identify alternative solutions leading to desired result.

Routine Decisions - These are standard choices for common problems with alternative solutions and is achieved through routine rules or standard operating made up of computer software,

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.

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.

-Stakeholders role is to make demands. Demands are the desires expressed by powerful stakeholders that an organisation make certain decisions and achieve particular goals.

The bounded rationality model is useful because it focusses on the limitations of rationality and provides better answers to the day-to-day decision-making process. This model shows the different answers people give when they have the same information.

The political strategy to achieve a goal used by stakeholders is co-optation, this involves bringing new stakeholder representatives into the strategic decision making process as a way to avert threats to an organisation’s stability.

The role of decision-making with employees is that it improves the morale of the employees, creates teamwork among employees and ensures that employees are responsible when doing their work and can account for their work.

Probability: Is the percentage of fines that a specific outcome would occur is an individual were to make a particular decision a large number of times

Keuses gemaak in reaksie op 'n kombinasie van redelike ongewone en onbekende probleme met alternatiewe oplossings. Bv, Die bemarkings maatskappy se kantoor vloed, hulle ervaar dan 'n ongewone krisis en moet hulle vinnig reageer om hierdie probleem op te los.

It is the condition under which individuals are fully informed about a problem, alternative solutions are obvious, and the likely results of each solution are clear. The future is highly predictable under conditions of certainty and such conditions exist in case of routine and repetitive decisions concerning day-to-day operations of a business. This condition means that both the problem and alternative solutions are well known and defined.

Balanced scorecard - keep tabs on the key elements on the organisations implementation by considering both internal and external stakeholders points of views. It does this by looking at the organisational from strategic approach from four perspectives:

THE NATURE OF GOALS Goals are results to be attained, and thus indicate the direction in which decisions and actions should be aimed. Clear goals specify the quality or quantity of the desired results. Goals are also called objectives, ends, purposes, standards, deadlines, targets and quotas. Goals can cover the long term or the short term. Long term refers to survival, growth and profitability in which remains stable. Short term goals requires constant managerial and employee attention.

It is the condition under which an individual does not have necessary information to assign probabilities to the outcomes or alternatives solutions. It suggests that the problem and the alternative solutions are both highly unusual. It can be affected by certain factors such as price, volume, production cost or future interest rates. Managers may have to make assumptions from which to forge the distinction, even though the decision will be wrong if the assumption is correct. Managers face uncertainty every day because many problems don’t have clear-cut solutions. This forces managers to rely on judgment, intuition, and creativity to make a decision. Market researchers, strategic planners and development engineers usually face this problem

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. Examples of Bounded Rationality can be found in game strategy, management science, administration decision-making, economics, etc. For example, ‘Bounded Rationality and Chess’.

A decision is an action taken by management to set out alternatives and achieve goals and objectives. Decision making is the process of making important decisions, these decisions are usually set by top management.

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.

It is useful because it emphasises the limitations of rationality and thus provides a better picture of the day to day decision making processes used must people

This is the final factor which is vitally important to the organisation. If management does not analysis this factor , they will never know why employees do or do not do certain things

Adaptive decisions are choices made in response to a combination of moderately unusual and fairly uncommon problems with alternative solutions. It involves the continuous improvement and modification of past routine decisions and processes. Continuous improvement is an important factor contributing to total quality management. Continuous improvement involves a flow of organizational decisions made over time that may result in a large number of small, incremental improvements one year after the other.

 The decision- making process is triggered by an effort to discover new goals, revise current goals, or drop outdated goals. Goals are crucial in giving employees, managers, and organisations a sense of order, direction, and meaning.

Decision-making in organisations under the conditions of risk and uncertainty is coupled directly with goals in one of two ways:

4. COMPARE AND EVALUATE ALTERNATIVE SOLUTIONS- After identifying possible solutions they must compare and evaluate them to be able to see which one is more cost effective.

A manager in a supplier department decides to spend R1 000 on a magazine advert believing there are three possible outcomes for the advertisement to have influence in their sales. A 25% chance the advertisement will have only a small effect on sales, a 55% chance of a moderate effect and a 20% chance of a very large effect. The decision is made under risk because the manager can list each potential outcome and determine the probability of each outcome occurring.

The model uses objective data, logic, and analysis instead of a subjective approach to solving a problem. It’s a step-by-step model that helps identify the problem and get the suitable solution to the problem.

2)The decision-making process is triggered by an effort to discover new goals, revise current goals or drop outdated goals.

● Prescribes a series of steps that individuals or teams should follow to increase the likelihood that their decisions will be logical and sound.

There is also a close relationship between the organisational structure and the competence and role of safe ,whether this competencies a result of training or experience

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.

Individuals usually make only a limited search fo possible goals or alternative solutions to a problem considering option until they find one that seems adequate

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.

John runs a small company that manufactures low-cost ergonomic stool and he sold via the internet. His company has several popular models, each with annual sales of R100 000 to R150 000. He has an opportunity to invest in a new technology of manufacturing stool. John knows that a new technology will cost R220 000 and is unsure whether there will be sufficient demand for the stool to cover this large investment. If the market is good, he thinks he can sell 4 000 chairs at a profit of R100 each, generating a cash flow with present value of R400 000. On the other hand, if the market is poor, he thinks he might sell only 1 000 chairs, generating a cash flow with present value of R100 000 in this situation, John does not have any information to help him decide and it is hard for him to make a decision from each probability that he made. Therefore he must use his rational and his business experience to make a best choice in order not to make his company loss in profit. John needs some skills and methods to make decisions under uncertainty. He needs techniques that match the limited time and money budgets of his small company. Therefore this situation on decision-making, he will try to have higher propensity and more practical level for the small business.

follow up and control implementing the solution will not only achieve the desired goal. They must be a control implementations of activities and follow ups evaluating the results

Define and explain the role of decision-making for managers and employees: Definition: Decision-making is the process of determining something that is important. It includes choosing an action plan from possible solutions. Role of decision-making for managers and employees: Managers and employees base the decisions they make on the nature of the problem at hand. A good and reliable manager will make decisions based on the six managerial competencies. The decisions a manager makes can either solve or create a problem. When employees are involved in the decision making process, they are given an opportunity to give out their opinions. Explain the conditions of certainty, risk and uncertainty under which decisions are made Certainty It occurs when individuals are fully aware of what the outcome will be, as they have enough information about the problem, possible time available for decision making, alternative solutions are clear, and the likely results (possibly already available from past experiences or incidents are appropriate for the problem at hand) of each solutions are clear. It allows anticipation of events and their outcomes that an organization is likely to face in near future. The decision to restock food supply, for example, when the goods in stock fall below a determined level is a decision making under circumstances of certainty. Certainty simply means that both the problem and alternative solutions are known and well defined. Risk Is the condition under which individuals can define problems. Specify the probability of certain events, identify alternative solutions leading to desired results. Probability is the percentage of firms that a specific outcome would or the likelihood of something happen or being the care if an individual were to make a particular decision a large number of times. For example if the two probability of possible States of Nature are Rain and No rain, then the farmer can determine that there is a 30% chance of rain, the farmer would have added some important information that aids in decision-making. Objective probability is the likelihood that a specific outcome would occur, based on hard facts and numbers. For example, the probability that a coin will land ’’heads’’ up by flipping it 100 times, this would yield an observation that the coin landed on ‘’heads’’ approximately 50% of the time. Subjective probability is the likelihood that a specific outcome will occur, based on personal judgements and beliefs (no calculations involved). For example, you can’t think there is a 80% chance of rain today and also think there is 80% chance of no rain; probabilities must add up to 100% Uncertainty Is the condition under which an individual does not have the necessary information to assign probabilities to the outcome of alternative solutions. The decision maker is not aware of all available alternative s, the risks associated with each, and the consequences of each alternative or their probabilities. Flood, for example, may cause panic and environmental of uncertainty among the victims, those who live at higher ground, may wait and observe if the flood worsen then decide the next approach. Characteristics of routine and innovative decisions: Routine: These are standard choices made in response to relating well-defined and common problems with alternative solutions. The way in which various routine decisions is given. Covered by established rules a standard operating procedure. The routine decision making is characterized by the following: Also known as operative decisions Related to day to day operations They follow a standard procedure Adaptive: These are choices made in response to a combination of moderately unusual and fairly uncommon problems with alternative solutions. Adaptive decision making is characterized by the following: Development Organizational justice Character Innovative: Innovative decisions are based on discovering, identification and diagnosis of unusual and ambiguous problems/ development of unique and creative alternative solutions. Innovation theory identifies the following characteristics: Relative advantages- potential audience needs to see how your innovation improves from previous situations to current situations. Trialability- The easier it gets to approve your innovative ideas, the more users will want to use it. Explain how goals affect decision-making: Theoretical approaches on goal setting imply that explicit goals may improve decision making performance by giving development and application of goal oriented decision-making strategies and increasing cognitive and behavioral effort. In contrast, relatively high goals may increase risk taking by inducing risky decision making strategies. Two theories about goals can explain these effects of goals on decision making. The first theory is the action identification theory (Vallacher &Wegner, 1987). It suggests that control of action is guided by a goal hierarchy. The highest level of the hierarchy is reserved for the general purposes of action, such as acting in line with one’s values or ones’ own personality concept. With decreasing levels in the hierarchy, the goals allow more concrete identification of actions required to reach goals. For example, the goal of being a finance manager would require actions as making good investments, which implies subgoals9e.g., comparing and monitoring the outcomes and risks of investments). This in turn requires even lower-level sub-goals. The second theory about goals is the theory of goal setting by Locke and Latham (2002). It describes and explains how goals can improve performance. Following this theory, the core attributes of goals are their specificity (that the goal is explicitly known to the person and clearly measurable) and their difficulty (how challenging it is to reach the goal). Goals should have stronger positive effects, the specific and the more difficulty they are. A specific and difficult goal is suggested to improve performance because it can trigger four so-called goal mechanisms. These realize that the goal-idea guides action towards external object or condition. The first goal mechanism is “choice and direction,” which causes attention to be directed towards the goal-relevant information within the task. Furthermore, this mechanism causes the choice of subtasks and action that are Important to reach the goal. The second mechanism is ‘’effort’’. i.e, increased cognitive and/or bodily effoer. The third mechanism is ‘’persistence’’ denoting maintenance of behavioral strategies or exhausting and/ or unpleasant actions, which lead to the goal. Finally the fourth goal mechanism is named ‘’strategies’’ which means that in the presence of goals, goal-oriented strategies instead of unclear arbitrary cognitive and behavioral strategies are developed. Additionally to the goal mechanisms, the theory suggests that moderators can affect the goal performance relationship. Among these moderators, feedback about success or progress, commitment to the goal and knowledge but the tasks are considered relevant.

• Under this condition the decision maker might not even be able to define the problem at hand or even come up with alternative solutions and expected outcomes.

- Top and middle manager are in exception to this decision making condition, however the lower manager make day-to-day decisions of certain. E.g knowing how many staff is needed during weekly sales trends, for particular events such as the Easter.

For example, you are a CEO of Standard Bank and your goal is to make a profit of R1 million in 2019. How are you going to reach your goal? Firstly you have to be realistic, in order to make a profit R1 million, which means that you have to make a profit of about R840 000 per month. In the first month you have to make R500 000. This feedback should serve as a powerful incentive to asses your efforts so far and determine how to avoid the same results in the next month. In order to reach your goal, you will have to search for better ways to achieve your goals and make a decision. Which one will be easier for you? The result will also motivate you and make you plan better and make better decisions.

6. customer perspective of the balanced scorecard requires that the managers translate their general mission statement into specific measures that reflect the factors that affect customers the most

Certainty is the condition under which individuals are fully informed about the problem, alternative solutions are obvious and they like likely results of each solution are clear.

5. Financial perspective measures indicate whether an organisation`s strategy, implementing and execution are contributing to that organisation`s improvement in market value.

Constraints-limits the type of goals set, the decision made and actions taken. Two crucial constraints are laws and ethics.

Rational decision-making is a multi-step process for making choices between alternatives. The process of rational decision-making favors logic objectivity, analysis over subjectivity and insight. The word 'rational' in this context does not mean sane or clear-headed as it does in the colloquial sense.

Refers to the condition in which decision making is without risk (fully informed about a problem) and know the exact outcome of the decision before making that decision. E.g investing a certain amount knowing for certain the return % and how much to expect when the investment matures.

Political model- The decision-making process in terms of the particular interests and goals of powerful external and internal stakeholders.

These are decisions that are made in uncommon circumstances. These decisions involve having to improve in order to ensure sustainability of a business. Adaptive decision making is basically continuous improvement to the environment or changes in the environment. This requires a constant strive to improve, by identifying the technical, organisational and managerial processes in search of improvement. This type of decision making entails the need to be better.

Relevant – your goal should be something that is meaningful and important to you. It should be something that can be currently used by your target market for example using a landline is outdated so no one will want to buy that product from you so you must keep up with the latest trends for your goal to be relevant.

The political model focuses on the decision making process in terms of specific interests of powerful external and internal stakeholders. In the political model. Stakeholders define goals to their own advantage.

-Political processes are most likely to occur when decisions involve powerful stakeholders, disagreements over choice of goals and people who are not searching for alternative solutions

These are standardised decisions made on a daily basis. Without much thought involved. These are standardised choices which are clearly identified and well defined on how to deal with specific problems. The establishment of these decisions are created and governed by set rules, which dictate the manner in which a problem should be solved. The way problems are solved or decisions are made, is in a standardised manner and are sometimes a skills needed for certain jobs. Routine decision making basically entails doing things in a certain manner, without breaking the norm.

its an integral part of modern management based on the mental process on selecting course of action from a set of alternatives.

INADEQUATE OR MISINTERPRETED INFORMATION:-If Regal Events Coordinators provide the The Adams with inadequate or misinterpreted information about alternative solutions then the reputation of the company will no longer be good and customers will not us our services.

Innovative decisions are choices based on discovering something new that nobody has discovered before and the development of unique, alternative creative ideas. Innovative decisions are usually based on incomplete and frequently changing information and are made before the problem has been clearly and fully defined.

Certainty is the condition in which a problem is shared among individuals of certain organisations. Each individual is required to come up with solutions to fix the problem, the solutions will then be collected by the decision-maker and finally the decision-maker will go through the potential ideas and choose the best one that will be able to fix the problem.

To arrive at the correct answer, you must weigh out all the alternative paths to achieve your goal, sometimes without even having all the information.

STEP 2: Set goals. (Goals are set to eliminate a specific problem for example, with having an increase in the number of people getting injured at work a manager can plan to establish a program that warns people about the dangers of working without a safety gear and have everyone in the organization get involved in order to decrease the number of injuries at work)

2. The selective perception bias means that what people expect to see is often what they do see. People seek information that is consistent with their own views and downplay conflicting information. For example, some people are willing to swim with sharks, with nothing but a ski suit and mask as protection, yet these same people may not be willing to swim in a public swimming pool, which poses no threat to their lives.

A well-chosen solution is not always successful. A technically correct decision has to be accepted and supported by those responsible for implementing it if it is to be acted on effectively. Another solution should be considered if the one selected cannot be implemented for some reason.

Comparing and evaluating needs to be done with the alternative solutions in order to narrow it down to the best solution. This can be done by weighing out the pros and cons of a solution.

Is the condition under which individuals are fully informed about a problem, alternative solutions are obvious and likely results of the solutions are clear.

6.IMPLEMENT THE SOLUTION SELECTED- Put the selected solution into action it does not mean that the selected solution will work if it does not work another solution can be selected. 7.FOLLOW-UP AND CONTROL- After the implementation of the solution a follow-up will have to take place to evaluate the results of the strategy.

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.

This is based on the study of human behavior. It includes steps that individuals need to follow to increase the likelihood that their decisions will be logical and sound. A rational decision permits the maximum achievement of goals within limits of the situation. The heart of successful administration is efficiency, which is making good decisions with rationality. The rational model is all about the rationality in individuals’ decisions.

Objective probability refers to the possibility that a specific result will occur, based on hard facts and numbers. Historical data is used to estimate future outcomes of a decision .

An acceptable gaol might be easier to identify and achieve, less controvertible and safer than the best available goal. factors that results in a satisficing decision sure often a limited search inadequate information

The bounded rationality is the idea that rationally is limited when individuals make decision, the human mind has only limited capacity to evaluate and process the information that is available. Therefor the individual making bounded decisions are bound to make satisficing choices in complex situations.

- the conditions under which decisions(routine, adaptive or innovative) are made provide a foundation for a comprehensive framework for decision-making

The bounded rationality is the idea that we make decisions that are rational, but within the limits if the information available to us and our mental capabilities. It emphasises the limitations of rationality and this provide a clear picture of the daily decision making processes.

Political approach to decision making extends our vision in terms of understanding agency and social factors. Takes what the rational and practical models left out and posits that any organizational activity.

• Such a condition often arises when an organization introduces a new innovative product or service, adopts new technology etc.

When dealing with some type of problems, people do not even attempt to follow the rational model’s seven steps. Instead, they may apply the bounded rationality or political models.

Operational goals are known as short term goals whose achievements brings an organization closer to its goals. There are also operational plans which are carried out by first line up managers. The purpose of it is to achieve the above mentioned operational goal.

Means that vivid direct experience usually prevails over abstract information. A person experience can outweigh statistical evidence.

-Goals are results to be obtained, they indicate the direction in which decisions and actions should be aimed. Clear and unambiguous goals specify the quantity of the desire results.

-The second is the subjective probability which is the likelihood that a specific outcome will occur, based on personal judgement and beliefs. Such judgement vary among individuals, depending on their intuition, previous experience with similar situations, expertise and personality trait. A change in the conditions under which decisions are made can alter expectations and practices. Such a change may shift the basis for judging the likelihood of an outcome from objective to subjective probability or even to uncertainty.

After individuals or teams have defined a problem, they can set specific goals for eliminating it. Management could set a hierarchy of goals for the various levels in the organization, from the division manager to the operator, to solve the seeming problem or could identify the real problem, and then set a hierarchy of goals to correct it. Setting precise goals can be extremely difficult under the condition of uncertainty. Individuals or teams may have to identify alternative goals, compare and evaluate them, and choose among them as best they can. For example, a business career might be your overall goal, but you could be uncertain about which specific path to follow, to arrive at an answer, you will have to consider the alternative paths for achieving your general goal.

General goals are big learning goals. Setting general goals stimulates the students self-regulatory learning and identifies areas for improvement, for example a student thinks about where she wants to be at the end of a school term/year.

- these stakeholders have the power to create demand and constraints, which will in turn have an influence on the choice among organizational alternatives and goals

- It is a model that prescribes a series of steps that individuals follow to increase the likelihood that their decision will be logical and sound. It favours objectivity and analysis as compared to subjectivity and insight.

For a simple decision, like where the team goes for lunch, a quick show of hands may be all you need, but decisions with bigger potential impact require a better decision-making process. If you're not sure how to weigh the options, there are several ways you might consider. Decision tree. List each option as one branch of the tree, have the options branch out into the possible outcomes, then analyze them.

Emphasises the limitations pf rationality and explains why different individuals make different decisions when they have exactly the same information. The bounded rationality model refers to an individual’s tendencies to do the following:

2.Bepaal hoeveel mense aan een bestuurder moet rapporteer (span of management) .It can be narrow(with few subordinates per manager) or wide(with many subordinates per manager)

1. The availability bias means that people who easily recall specific instances of an event may overestimate how frequently the event occurs. People who have been in serious plane crashes often overestimate how often such accidents occur.

Innovative decisions, are decisions based on the discover, identification and diagnosis of a unique, ambiguous problems and the use of creative solutions to solve them. The solutions involve a range of interrelated decisions that are implemented over a period of time (months/years).

For example, the aim of politicians is to win office, so they may support issues not for the sake of the issue itself but in order to win votes.