Decision Making Under Conditions of Certainty and Uncertainty
Decision-making under certainty
It is a condition in which the decision-maker knows with reasonable certainty what the alternatives are and what conditions are associated with each alternative. In real life situation, such condition rarely exists.
Decision making under uncertainty
- Most of the major decision-making is done under such situation.
- It is a condition in which the decision maker does not know all the alternatives, the risks associated with each or consequences each alternative is likely to have. There is no historical data to warrant probabilities.
- Here, intuition, judgment, experience shall help a lot for the managerial decision-making.
- There are more chances of making mistakes.
Techniques for Stimulating Creativity
Expertise is the foundation for all creative work. The potential for creativity is enhanced when individuals have abilities, knowledge, proficiencies, and similar expertise in their field of endeavor. For Ex- We wouldn’t expect someone with minimal knowledge of programming to be very creative as a software engineer.
The second component is creative-thinking skills. This encompasses personality characteristics associated with creativity, the ability to use analogies, and the talent to see the familiar in a different light.
The final component in the three-component model of creativity is intrinsic task motivation. This is the desire to work on something because it’s interesting, involving, exciting, satisfying, or personally challenging. It’s what turns creativity potential into actual creative ideas. Environmental stimulants that foster creativity include a culture that encourages the flow of ideas; fair and constructive judgment of ideas; rewards and recognition for creative work; sufficient financial, material, and information resources; freedom to decide what work is to be done and how to do it; a supervisor who communicates effectively, shows confidence in others, and supports the work group; and work group members who support and trust each other.
Role of IT in Decision Making
–Provides tools to resolve complex problem
-Helps in data collection and market research
-Quick data processing
-Speedy decision
-provides timely accurate information
– Improves resource management.