CLASSIFYING THE DECISION SITUATIONS

CLASSIFYING THE DECISION SITUATIONS

ABSTRACTDecision making is a crucial and important factor at any point in a business or organization. Decision making refers to the process of choosing the best alternative from a list of options available. The choice of a given decision is always focused at reaching the objectives of the company or business at hand. Decision making situations vary and fall into a number of categories. This paper explores the decision making classes, with a focus on a case scenario to elaborate on the decision making classes.

TABLE OF CONTENTS TOC o “1-1” h z u ABSTRACT PAGEREF _Toc453167303 h 1TABLE OF CONTENTS PAGEREF _Toc453167304 h 1INTRODUCTION PAGEREF _Toc453167305 h 1CASE SCENARIO PAGEREF _Toc453167306 h 2CONCLUSION PAGEREF _Toc453167307 h 3REFERENCES PAGEREF _Toc453167308 h 3

INTRODUCTIONDecision making situations are classified into three namely: situation of perfect certainty, situation of complete uncertainty and finally, a situation of risk. Decision making has to be made under than one of these classes of situations.

The situation of perfect certainty is one in which the decision maker knows with certainty, what alternatives exist, and the impact of each of the alternatives. When this situation is involved, there the decisions to be made do not have great impact on the state of the organization or business.

The situation of incomplete certainty on the other hand, is one in which the decision maker do not know the alternatives to choose from, the risk involved with each alternative or the consequences of choosing any the alternatives.

The risk condition is one in which there are more than one possible events that can take place. Fortunately enough, the decision maker has adequate information to assign possibility to the happening or not happening of each event based on the past experience.

CASE SCENARIOA case scenario of experience is the decision making that was made by the soap making company back in the year 2010. The case involved a decision to come up with a new brand of soap to replace the former brand. The new brand was to have different qualities, shape and size. The decision making belonged in the strategic level. It was a long term decision that was to have long term effects, whether positive or negative and was to shape the direction of the soap producing company in its business.

The decision making involved a risk environment. The alternatives of the decisions that were to be made were clear to the management However; there was uncertainty on the direction the business would take on its sales and on maintaining its customers. Risks had to be involved therefore in producing substituent brand of soap. The type of decision made was a group decision. The whole management was involved with all departments participating. The approach taken involved research on customer view; in which questionnaires were administered in addition to interview of the customers.

The decision making was challenging because it was to determine the next direction of the company. The decision chosen meant success or failure of the company. Out of this, I learnt the critical nature of decision making and its cost. Finances had to be exploited in research before arriving at the final decision.

A choice of scholarly of choice here is the article by Cindy Dietric (“Decision Making,” 2010). The article has a direct reference to the complexity of decision making and the processes involved in order for success to be achieved. This is in agreement with this case scenario procedure and experiences obtained.

CONCLUSIONIn conclusion, decision making is a critical process which is costly and demands diligence in its approach. All appropriate protocols have to be adhered to in order to come up with the right decision.

REFERENCESRetrieved from http://Retrieved from http://businesscasestudies.co.uk/cima/improving-strategic-decision-making/levels-of-decisionmaking.html

Retrieved from http://www.inquiriesjournal.com/articles/180/decision-making-factors-that-influence-decision-making-heuristics-used-and-decision-outcomes

Retrieved from http://Retrieved from http://www.yourarticlelibrary.com/decision-making/decisions-making-environments-certainty-uncertainty-and-risk/10269/