What are the conditions under which decisions are made?
3 years ago
Principle of Management
Decisions are normally made under certainty, risk, uncertainty and turbulence situations.
- Under certainty, the future outcome is known and all the information is available and thus decisions are based on fairly predictable situations.
- Under conditions of risk, the estimated position can be determined by multiplying the probability of occurrence by the expected outcomes. This technique is called value analysis.
- Managers operating under this condition face unpredictable external conditions or lack of information needed to establish the probability of certain events.
- This is the condition under which decisions are made when decision objectives are unclear and the business environment is changing rapidly.
Susmita Sah
Jan 13, 2022