decision making models

Question 1

what are the three types of decision?

Answer 1

strategic, tactical and operational

Question 2

what is a strategic decision?

Answer 2

long term and will affect the direction the business takes. affect the entire business and will be made by the owners or senior management. Strategic decisions are often complex and may result in major organisational change.

Question 3

what is a tactical decision?

Answer 3

not as far reaching as strategic decisions; = medium term. Tactical decisions are less complex than strategic decisions and are usually carried out by middle management. also more flexible.

Question 4

what is an operational decision?

Answer 4

day to day decisions. These are lower level decisions that tend to be short term and have little risk. They tend to be made by junior managers, supervisors and employees. often routine and happen quickly.

Question 5

2 types of decision making?

Answer 5

scientific vs intuitive

Question 6

what is scientific decision making?

Answer 6

systematic use of facts and data to arrive at a logical and evidence-based decision.

Question 7

what is the process of scientific decision making?

Answer 7

1. clearly identifying the objective/objectives or problem to solve
2. collecting all relevant information needed to make the decision – this can include primary or secondary data and could take some time to gather
3. analysis of the information to identify possible ways forward
4. making and implementing the decision
5. monitoring and reviewing the decision and change, if needed.

Question 8

what is intuitive decision making?

Answer 8

uses experience and intuition (gut feeling) to make a decision. This has proved successful for many entrepreneurs and managers who use their experiences and emotions to make decisions.

Question 9

what are reasons for using intuitive decision making?

Answer 9

Intuitive decisions can be made quickly and are often useful for operational decisions.