The summary of three(3) types of conditions which affects managerial decisions according to (Riabacke, 2006).

The three major conditions that managers in various organizations across the world take into account when making decisions include:

1. Certainty: When the manager has complete awareness of all the data required to make a decision, the decision is made with certainty. The best situation for fixing problems is this one. The difficult task is to merely research the options and select the best one. A manager may use programmed decisions, which are standardized or prepared answers, to deal with issues that frequently crop up. These answers are applicable to the current issue and are already known from prior encounters. A good illustration is the choice to automatically purchase more inventory when the current level drops below a predetermined level. Today, computers using decision-support software assist or manage an increasing number of programmed choices?(Riabacke, 2006).

2. Risk: The boss doesn't have all the facts in a risky situation. It is harder to deal with this situation. A manager may comprehend the issue and potential solutions, but there is no assurance that they will all be successful. Managers frequently use risk as a criterion for making decisions. Non-programmed decisions are specially tailored to the circumstances at hand when novel and unfamiliar problems appear. For defining and solving nonroutine problems, a lot of information is usually needed. Information handling may be aided by computers, but a human decision-maker will almost certainly be involved. Higher-level managers' problems typically require making non-programmed choices. This fact explains why a manager's conceptual abilities are put under more pressure as they advance in managerial responsibility?(Riabacke, 2006).

3. Uncertainty: Managers are making decisions in an uncertain environment when the information is so lacking that they are unable to even give probabilities to the probable outcomes of alternative scenarios. The most challenging situation for a boss is this one. Making decisions in uncertain situations is similar to being a pioneer in uncharted terrain. Managers must use a lot of creativity to solve issues when faced with uncertainty because it often necessitates completely original alternatives to current procedures. In these circumstances, groups are commonly used for problem-solving. In every situation, dealing with uncertainty relies heavily on gut instinct, educated estimates, and hunches, all of which have a large margin for error. These unstructured issues frequently arise in brand-new or unanticipated circumstances and involve ambiguities and information gaps?(Riabacke, 2006).

Reference

Riabacke, A. (2006). Managerial Decision Making Under Risk and Uncertainty.