Assessment 5: Assignment

Submission Date: 27 May 2022

Initials & Surnames Student Numbers

N Makhubele 221116001 50%
LG Lephoto 218588356
P Netshilindi 218518951
Q Ralebala 221655808
NA Tsotetsi 220172846

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 Table of Content

Introduction Page 2
Question 1 Page 3
Question 2 Page 3 – 4
Question 3 Page 4 – 5
Question 4 Page 5 – 6
Conclusion Page 6
References Page 7
Rubric Page 8

Introduction

What is decision making in management?

Decision-making is a soft skill that involves choosing between possible solutions to a
problem. It is a highly valued skill that many recruiters and hiring managers look for
when seeking new talents. Typically, the person making a decision follows a step-by-
step process, including collecting information, weighing pros and cons and reviewing
alternative solutions.
The seven(7) steps of decision making process includes identifying the problem,
collecting or gathering information, Identifying the alternatives, weighing the
evidence, choosing from the alternatives, implementing action and evaluating the
results.
The decision-making process is a reasoning process based on assumptions of
values, preferences and beliefs of the decision-maker. Every decision-making
process produces a final choice, which may or may not prompt action.

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1. The decision type made by the ARC Investments to start is an adaptive decision
because Adaptive management involves making decisions about how to use
resources based on data that are often incomplete or uncertain. Adaptive
management focuses on learning from previously performed activities and applying
what you have learned to new projects and on using active and passive adaptive
management strategies in order to make effective decisions. Adaptive
management incorporates elements of quality management and other
methodologies to help you establish policies and procedures that work. Which lies
under the condition of Representativeness When the similarity of objects or events
confuses people's thinking about the likelihood of an outcome, this is referred to as
heuristic bias. People frequently make the error of assuming that two similar things
or events are more closely related than they are.

Biased Information Search This type of confirmation bias explains people's one-
sided search for evidence to support their hypotheses or theories.
Before taking action, analytical decision-makers examine a large amount of
information. Analytic leaders, for example, base their decisions on direct
observation, data, and facts. Analytic decision-makers, unlike directive decision-
makers, will seek information and advice from others to confirm or deny their own
knowledge. These decision-makers are adaptable and have a high tolerance for
ambiguity, but they prefer to control the majority of the decision-making process.
This decision-making style is well-rounded, but it can be time-consuming.

2. Choosing between different courses of action—which may include inaction—is

referred to as decision-making. While it is true that management is about making
decisions, half of the decisions made by managers in organizations fail. As a result,
improving your decision-making effectiveness is a key aspect of enhancing your
productivity at work. This chapter will teach you how to make decisions on your
alone or in a group while avoiding typical pitfalls.
The rational decision-making model outlines a sequence of processes that decision-
makers should think about if they want to improve the quality of their results. In other
words, going through the formal phases of the rational decision-making model may
make sense if you want to ensure you make the best decision.

Steps in decision-making

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3. The investment, which is one of the largest foreign investments any fintech
company has secured in South Africa, will be deployed to bolster TymeBank’s
growth and secure its path to commercial success. The investment represents a
strong endorsement for both TymeBank as one of the world’s fastest-growing digital
banks and for South Africa’s banking sector overall. Like all banks in South Africa,
TymeBank is regulated by the Prudential Authority of the SA Reserve Bank.
TymeBank is the first bank in South Africa to be operated fully off a cloud-based
infrastructure network. It was also the first bank to be granted a commercial banking
license since 1999.

TymeBank on boards an average of 110,000 new customers per month, making it

globally recognized for digital banking in emerging markets. The onset of the Covid-
19 pandemic has led to increased demand across all customer income groups in
South Africa for digital banking options. This supports TymeBank’s goal to grow its
customer base to 4 million by 2022. (https://www.tymebank.co.za/about/ )

The new investment will allow TymeBank to further expand its range of banking
products and grow its lending portfolio. The bank will also seek to enhance its
propositions in insurance, credit cards, and other value-added services to customers.

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This will support the bank’s ethos of broadening access to financial services to
individual clients, entrepreneurs, and small and medium business owners in the
banking ecosystem.

Decision-making refers to making choices among alternative courses of action—

which may also include inaction. While it can be argued that management is
decision-making, half of the decisions made by managers within organizations fail.
Therefore, increasing effectiveness in decision-making is an important part of
maximizing your effectiveness at work. This chapter will help you understand how to
make decisions alone or in a group while avoiding common decision-making traps.

The rational decision-making model describes a series of steps that decision-makers

should consider if their goal is to maximize the quality of their outcomes. In other
words, if you want to make sure you make the best choice, going through the formal
steps of the rational decision-making model may make sense.

Steps in decision-making:

 Identify the problem

 Establish decision criteria
 Weigh decision criteria
 Generate alternative
 Evaluate the alternative
 Choose the best alternative
 Implement the decision
 Evaluate the decision

4. The consumer decision making process is a process that evaluates consumer

behaviour preceding a purchase and includes the following 5 steps:

 Need Recognition: Recognises the need for a service or a product.

 Information Search: Gathers information.

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  Alternative Evaluation: Weighs choices against comparable alternatives.

 Purchase Decision: makes actual purchase.

 Post-Purchase Behaviour: reflects on the purchase they made.

The best possible for the consumer is the Capitec Bank. Capitec aspires to be the
global leader in the application of machine learning to retail banking and consumer
finance. Capitec is presently utilizing machine learning in three areas:

 Understanding the client as an individual - this is primarily concerned with

segmenting clients, categorizing their transactions, and other information
flows.

 Improving current models that are already in use in business, such as credit
scoring models.

 Procedure automation. This does not imply that humans will be replaced by
automated processes, but rather augmenting humans. They will continue to
use machine learning as the market evolves, their techniques evolve, and the
quality and quantity of their data increases.

They will achieve significantly better results as a result of this, and their outcomes
will always be centred on their clients, decreasing the cost and frictions in their
clients' financial lives, and providing them with all of the services they require.

Conclusion

When it comes to making decisions, one should always weigh the positive and
negative business consequences and should favour the positive outcomes. This
avoids the possible losses to the organization and keeps the company running with a
sustained growth. Strong decision-making helps solve problems promptly and
creates a leadership position for the decision-makers. Strong decisions should be
impartial and devoid of any emotional influences that might make us overlook
shortcomings. Such decision-making should also be transparent and logical.

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References:

https://the-happy-manager.com/article/rational-decision-making-model/

https://www.mbaknol.com/management-concepts/steps-in-rational-decision-
making/?amp

https://harappa.education/harappa-diaries/rational-decision-making/

Consumer Decision Making Process [5 Step Full Length Guide]

(animasmarketing.com)

https://mybroadband.co.za/news/banking/305616-how-south-african-banks-are-
using-tech-to-improve-their-products.html

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