Professional Documents
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On the basis of the purpose of decision-making activities, the organizational decisions are
divided into 3 categories:
i. Strategic Decisions
ii. Tactical Decisions
iii. Operational Decisions
Strategic
(Senior
management)
Tactical (middle
management)
Operational ( Junior
management)
Strategic:
- Policy decisions
- Long term
- Complex
- Non-routine
Tactical:
- How to achieve policy
- Medium term
- Less complex
Operational:
- Day to day decisions
- Simple
- Routine
1. Strategic Decisions:
Strategic decisions are long term, complex decisions made by senior management.
They decide upon the courses of action a company should pursue to achieve those
goals.
Example:
- what new products to be made
2. Tactical Decisions:
Tactical decisions are taken by management control level (middle level) managers
and deal with the utilization of resources in the organization to achieve strategic
objectives.
Tactical decisions are medium term, less complex decisions made by middle
managers.
They follow strategic decisions and aim to meet the objectives stated in any
strategic decision.
These decisions related to the implementation of strategic decisions.
Example:
- What resources will be required to implement the strategic decisions?
- What would be the annual production level to meet the future demand?
- In order to become the market leader, a firm may have to launch new products/ services
or open new branches
3. Operational Decisions:
Operational decisions deal with the day-to-day problems that affect the operation
of the organization.
These decisions are taken by the managers at operational level (bottom level) of
the organization.
Operational decisions are day to day decisions made by junior managers that are
simple and routine.
These decisions are based on facts regarding the events and do not require much
of business judgment.
Example:
- Day to day scheduling of works
- Who will be assigned what tasks
- Who will be in the next shift
- Which job will be on which machine
- Ordering of supplies
- To determine how many operative staff will be required to compute a task.