Because of the complexity and dynamism of organizations, what decision-making state occurs when risks, alternatives, and consequences are unknown?
A) A state of recognition
B) A state of risk
C) A state of rationality
D) A state of certainty
E) A state of uncertainty
Answer: E
Explanation: E) Most of the major decision making in contemporary organizations is done under a state of uncertainty. The decision maker does not know all the alternatives, the risks associated with each, or the likely consequences of each alternative. This uncertainty stems from the complexity and dynamism of contemporary organizations and their environments.
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