Most business decisions are made under conditions of either risk or uncertainty. Is it easier to make a decision under risk or uncertainty conditions? Why?
Consider the following list of business decisions. What decision would be handled most
effectively by a group or team decision making? Which would be handled more effectively
by individual decision making? Explain why?
? Switching pencil suppliers
? Hiring a new CEO
? Firing an employee for stealing
? Calling 911 to report a fire in the warehouse
? Introduction of a brand new product
Decision making is the cognitive process of selecting a course of action from among multiple alternatives. Common examples include shopping, deciding what to eat, and deciding who or what to vote for in an election or referendum.
Decision making is said to be a psychological construct. This means that although we can never "see" a decision, we can infer from observable behaviour that a decision has been made. Therefore we conclude that a psychological event that we call "decision making" has occurred. It is a construction that imputes commitment to action. That is, based on observable actions, we assume that people have made a commitment to effect the action.
Making effective decisions in this environment is challenging to say the least, and the consequences of a miscalculation or a lost opportunity are substantial.
Decision making under uncertianty
is a challenging and difficult job because we cannot predict the actions. With the passage of time, business operations around the world have become complex because of the dynamic nature of the industries in which the firms operate. The main reason for that is the increase in the level of uncertainty of the factors that play an important role in the business processes. For almost any decision to be taken, the management committee or the individual in any firm ...
This explains the steps of Business decisions making skills.