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Conditions that Influence Decison Making

Conditions that Influence Decison Making - experiences and...

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Conditions that Influence Decison Making Managers make problem-solving decisions under three different conditions: certainty, risk, and  uncertainty. All managers make decisions under each condition, but risk and uncertainty are  common to the more complex and unstructured problems faced by top managers. Certainty Decisions are made under the condition of certainty when the manager has perfect knowledge of all  the information needed to make a decision. This condition is ideal for problem solving. The challenge  is simply to study the alternatives and choose the best solution. When problems tend to arise on a regular basis, a manager may address them through standard or  prepared responses called programmed decisions. These solutions are already available from past 
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Unformatted text preview: experiences and 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, an increasing number of programmed decisions are being assisted or handled by computers using decision-support software. Structured problems are familiar, straightforward, and clear with respect to the information needed to resolve them. A manager 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. Proactive managers can plan processes for handling these complaints effectively before they even occur....
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