Three important situations in a decision making process are : CERTAINTY RISKY CONDITION

CONDITION UNDER UNCERTAINTY

First is certainty, which means that is manager will be able to predict what will happen in the future. Manager able to assume that all information that obtained is complete and reliable. So that, manger will know the action that must be taken to correct the mistake that will occur. Here, manager needs to find the best solution or alternative to solve the problem that will face.

Example of this situation is, manager can provide training skill to their employees. This is to ensure that their employees can manage their work smoothly without having problems. Its also can make their employees more confident and more knowledgeable about their duties when facing with customers.

Second situation are risky conditions that is condition whereby manager would only be able to roughly predict the outcomes of implementing the alternative due to limited knowledge and information. This condition can be possible to occur through subjective probability which is based on the managers experience and judgements. To get more accurate predictions, sometimes manager can refers to old data.

Example of this situation is, manager takes a risk condition to increase the price of goods that is more popular among their customer so that they will get more profit but the risk condition is when the price is increase maybe customer will change their taste to other product. So manager take a risk for loss their customer and not gain profit.

Last situation is uncertainty refers to conditions whereby decisions makers are unsure or unable to predict the outcome of an action. In this condition, manager always assume that the best alternative that is selected is based on coincidence. Manager cant predict what will happen to their business because they do not have any information on the outcome of implementing an alternative. So, they must think wisely and make own judgement based on past experiences to make evaluations.

Example of this situation is, when manager want to launch or introduce new product to customer, they dont know is that the new product will attract customer to buy it until the strategy is implemented to launch the new product by different offer or different ways to make their product more attractive in customer eyes.