Decision Making

Startegic

Operational

Tactical

This is a long term decision

This type of decision is made by senior managers

This is to try and help achieve the overall purpose and direction of the organisation

Middle Managers

This is done to help achieve the strategic decision

This is a medium term decision

This is done by supervisors and all other members of staff

This is to deal with a situation if one arises like a customer complaint.

This is a short term day to day decision.

Facts on Decision Making

Not only managers and the owner/shareholders make the decisions

It is an essential part of running a business

There are three different types of decision making

Reasons why a decision needs to be made

To help achieve the Mission statement

If a situation arises

Mission Statement

This is a written statement outlining the overall aims and objectives of the organisation.

What to spend a surplus on

What to do in a time of deficiet

It lets customers know of the overall aims and objectives of the business.

To attract quality staff, if they agree with the aims.

Inform potential investors about strategic goals of the business

To promote CSR (Corporate Social Responsibility) aims