Needs of Decision Making Flashcards
(13 cards)
What is the concept of Asymmetries of Information?
How incomplete and inaccurate data leads to poor decisions and wrong choices.
Which makes more prompt decisions - individuals or groups?
Individuals.
What is the main issue with group decisions?
It is resource-heavy, and accountability is difficult to assign.
What is Top-Down Decision Making?
Decisions made at the top of the hierarchy of an organisation, and passed down the corporate ladder.
What is Bottom-Up Decision Making?
Giving autonomy to middle and first-line managers to make decisions based on current circumstances.
What is a Programmed Decision?
Standard decisions that always follow the same routine.
What is a Non-Programmed Decision?
Non-standard decisions with no previous method for handling.
What is a Strategic Decision?
Decisions affecting the long-term direction of the business.
What is a Tactical Decision?
Medium-term decisions on how to implement strategy, typically made by managers.
What is an Administrative Decision?
Short-term decisions on how to implement the tactics employed by the business, typically made by managers and some employees.
What is a Short-Term Operational Decision?
Frequently made decisions relating to the management and supervision of activities.
What is a Periodic Control Decision?
Decisions made to keep the organisation on track - such as action taken for budget variances or falling behind schedule.
What is a Strategic Decision?
Long-term plans of an organisation, taken by senior management but possibly with input from lower levels.
