Uncertainty adversely affects most real-world decisions. The uncertain situation is where a decision-maker has many unknowns and no possibility of understanding what could happen in the future to change the result of a decision. Thus, an uncertain situation results in a lack of information to support the decision-making process. It derails a decision-maker’s confidence resulting in poor outcomes in the decision process (Ballesteros & Kunreuther, 2018). That said, the decision-making process is difficult in a large corporation compared to a small family-owned start-up business. In this paper, I will discuss the impacts of uncertainty in business and the nature of decision-making in business organizations.
Uncertainty will affect decision-making negatively. In most cases, uncertainty results in stress and emotional state that can affect the outcome of decisions. Under stress, a decision-maker is more likely to make absurd decisions. Uncertainty causes tension in an individual hence reducing their ability to make informed decisions. Besides, uncertainty could also mean a lack of proper information regarding an important issue for decision-making. In an uncertain state, an individual is unable to predict with complete confidence in decisions (Morgado, Sousa & Cerqueira, 2015). Apart from that, large business experience a slow decision-making process because the process is long because of consultations. On the contrary, small family start-up businesses experience a faster decision-making process because of small-chain of consultation.
Decision-making is an important aspect of the real world. The business organization depends on decision-making to run its operations. Large business corporations have a complex system that affects the decision-making process, whereas a small business has a simple system that makes the process fast. In part, uncertainty affects the quality of decision-making in various ways. First, it results in tension, which impedes an individual in making informed decisions. In addition, uncertainty occurs when an individual is unaware of important aspects of the future, which affects the quality of decision.