Decision making
Introduction
Every organization needs to have appropriate decision making under different times. For instance, under certainty, uncertainty and under different risks, these are conditions which cannot be avoided by a business. Risks are common threats to these organizations, certain times and uncertain times. For a business therefore to overcome these scenarios, they’ll have to consider accurate decision models to maintain their survival. Therefore this essay will consider different decision making under certain, uncertain and during risks scenarios.
Decision making under certainty
Certainty in a business is when the outcomes are known. Furthermore, it implies when the results of not complying with an issue is acknowledged. For example failing to meet customers’ needs has certain corollary to the business, also failing to comply with the terms of the government has certain upshot (negative upshots indeed) (Merigo, 2015).For this decision making, compliance is the main ideology. The manager is to make decisions which comply to the requirements.
Decision making under risk. Risks can be termed as the identified unknowns. Here, the outcomes are not known specifically rather their range can be identified. For decision making in this case, the management strives to control the outcomes with the aid of statistical data. The managers hence establish possibilities that relates to each one of the options depending on their skills (Merigo, 2015).
Decision making under uncertainty .Condition of uncertainty is when no apparent information is recognized by the management, instability condition. No outcomes of the alternatives are known to the decision maker. To deal with this condition, the managers pose assumptions which may be related to the uncertainties (Merigo, 2015). Choices will thus depend on the skills and knowledge of the managers.
In conclusion, these conditions control the decisions which the business makes. Under certain decision making, the outcomes and the requirements are fully identified and the decision makers are to comply. Risk is identifying the possible outcomes while uncertainty requires close guessing on the solutions.
References
Merigo, J. M. (2015). Decision-making under risk and uncertainty and its application in strategic management. Journal of Business Economics and Management, 16(1), 93-116.