Tuesday, February 17, 2009

Decision making in business Questions

Decision Making within organisations.
  1. Describe the types of decisions made by senior management and how they affect organisations

Senior management decisions are usually "Strategic Decisions", which are decisions that effect the long-term goals of an organisation. They often involves studying market trends, choosing new products, to manufacture or market, analysing social, legal and environmental concerns, determining site locations and adjusting management structure. It can take them years to make.

2. Discuss the types of decisions often made by operational workers and how they affect Organisations.

Operational workers make day-to-day decisions that help the efficient running of a business. They are also usually the first point of contact with the public. Their decisions may involve

  • Directing customer complaints.
  • Replacing a worker who calls in sick
  • Ordering more stock
  • Changing the placement of certain products to eye level for quicker sales

These decisions dont usually have long-lasting effects on the organisation, but do directly affect other workers and customers.

3. What is the role of Middle management in relation to decision-making.

Middle management makes tactical decisions to solve problems that affect the running of the organisation. The managers are responsible for the running and efficiency of their own department. They are also responsible for making sure that the strategic decisions of the Senior Management are carried out. These decisions could take a year or more to be completed, but most only take weeks or months.

4. Which heirachy group makes operational decisions that affect the day-to-day running of an organisation?

Operational workers are in charge of making the day-to-day decisions of the company.

5. List some examples of strategic decisions.

Some strategic decisions might be;

  • choosing new products to market
  • Analysing concerns
  • adjusting management structure.

6. Present some examples of tactical decisions.

Some tactical decisions might be;

  • Running their own department.
  • Human resources.
  • Technical communications.