Decision-making is a function which is very important for management. The decision taken is basically base on information receive by the management in a variety of conditions and will affect the management in taking a decision. Such conditions may include the conditions definitely (Certainty), condition uncertain (uncertainty) and the condition are at risk.
Here's some brief discussion about the conditions that affect the management in decision making.
There are different conditions in which decisions are complete. Managers sometimes have an almost perfect understanding of conditions surrounding a decision, but in other situations they may have little information about those conditions. So, the decision maker must know the conditions under which decisions are to be made. Generally, the decision maker makes decision under the condition of certainty, risk and uncertainty.
Is a definite condition (Certainty) is a condition where the management or managers have enough information to know the results of the decision before the decision is made? Managers know clearly the alternatives available as well as the conditions and consequences of the decision action. The possibility of errors in decisions in conditions of this relatively small for sure.
Techniques that can be use to complete the decision making in this condition certainly among them as linear or network analysis program of work i.e. CPM (Critical Path Method) or PERT (Project Evaluation and Review Technique)
When a Manager does not have the full information in taking a decision then risks. The Manager in question probably understand the problems occur and also have alternatives. But the Manager is not able to ascertain whether the alternatives give. That it can resolve the problems occur in accordance with the results are satisfactory. In these risk situations, managers must determine the probability associate with each alternative on the basis of the information available and also base on his experience.
The technique is often use for decision making in this Risk condition probability techniques such as decision models, probabilistic the probabilistic inventory models, probabilistic queue model.
Under Uncertain conditions, the decision taken is full of uncertainty, probability results from decision making is not know. Conditions uncertain it can arise due to the lack of information receive. Managers who make decisions in uncertain conditions. This should make certain assumptions about the situation at hand to provide a reasonable framework for decision making. Intuition, judgment and experience the Manager holds a very important role in the decision-making process in conditions of full of uncertainty.
3 Conditions in decision making
Here's some brief discussion about the conditions that affect the management in decision making.
There are different conditions in which decisions are complete. Managers sometimes have an almost perfect understanding of conditions surrounding a decision, but in other situations they may have little information about those conditions. So, the decision maker must know the conditions under which decisions are to be made. Generally, the decision maker makes decision under the condition of certainty, risk and uncertainty.
The Conditions Definitely (Certainty)
Is a definite condition (Certainty) is a condition where the management or managers have enough information to know the results of the decision before the decision is made? Managers know clearly the alternatives available as well as the conditions and consequences of the decision action. The possibility of errors in decisions in conditions of this relatively small for sure.
Techniques that can be use to complete the decision making in this condition certainly among them as linear or network analysis program of work i.e. CPM (Critical Path Method) or PERT (Project Evaluation and Review Technique)
The Conditions of Risk (Risk)
When a Manager does not have the full information in taking a decision then risks. The Manager in question probably understand the problems occur and also have alternatives. But the Manager is not able to ascertain whether the alternatives give. That it can resolve the problems occur in accordance with the results are satisfactory. In these risk situations, managers must determine the probability associate with each alternative on the basis of the information available and also base on his experience.
The technique is often use for decision making in this Risk condition probability techniques such as decision models, probabilistic the probabilistic inventory models, probabilistic queue model.
Conditions Uncertain (Uncertainty)
Under Uncertain conditions, the decision taken is full of uncertainty, probability results from decision making is not know. Conditions uncertain it can arise due to the lack of information receive. Managers who make decisions in uncertain conditions. This should make certain assumptions about the situation at hand to provide a reasonable framework for decision making. Intuition, judgment and experience the Manager holds a very important role in the decision-making process in conditions of full of uncertainty.
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