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MANAGEMENT DECISION MAKING

MANAGEMENT DECISION MAKING. press to end show. Management Decision Making.

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MANAGEMENT DECISION MAKING

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  1. MANAGEMENT DECISION MAKING press to end show

  2. Management Decision Making “Whatever a manager does, he does through making decisions. These decisions may be made as a matter of routine. Indeed he may not even realise that he is making them. Or they may affect the future existence of the enterprise and requires years of systematic analysis. But management is always a decision-making process.” The Practice of Management Peter F Ducker

  3. Management Decision Making Businesses are faced a variety of decisions in the: Long term Medium term Short term

  4. Management Decision Making Long term Strategic Medium term Tactical Short term Operational back to questions

  5. Management Decision Making Long term High Risk Strategic Medium term Medium Risk Tactical Low Risk Short term Operational

  6. are made by the most senior members of the organisation. sets the aims and objectives of the organisation. gives the organisation its overall direction, purpose and competitive edge. Strategic Decisions: back to questions

  7. Strategic Decisions are taken by: Board of Directors Chief Executives Heads of Department back to questions

  8. Strategic Decisions will affect the operation of the organisation over a number of years. They are high-risk decisions. They are not concerned with the details of how such policies are put into action

  9. Examples of Strategic Decisions • whether to take over a rival. • whether to stop producing cars in the UK. • whether to expand the market for a product in the Far East. • whether to install a computer network. back to questions

  10. are made by the middle managers of the organisation. are concerned with putting strategic decisions into action. brings together the resources to achieve the strategic decisions. Tactical Decisions: back to questions

  11. Tactical Decisions are taken by: Middle (Senior Staff, Factory Managers) back to questions

  12. Tactical Decisions will affect the operation of the organisation over a period of 6 months to one year. will take some time to put right if the wrong decision has been taken. They are medium-risk decisions.

  13. Examples of Tactical Decisions • whether to introduce new working practices in the factory. • whether to change staffing levels in a department. • whether to set out the office on an open- plan basis. • whether to extend flexi-time for office staff. back to questions

  14. are made by the junior management and supervisors of the organisation. are concerned with the detail of tactical decisions. are concerned with the day-to-day decisions to ensure standards and targets are met. Operational Decisions: back to questions

  15. Operational Decisions are taken by: Junior management and supervisors back to questions

  16. Operational Decisions will affect the operation of the organisation over a period from a few days to a few months. If the wrong decision has been taken it can be rectified quickly. They are low-risk decisions.

  17. Examples of Operational Decisions • whether to reorganise part of the filing system • whether to up-date computer passwords • how much stationery to hold in the office. • when to organise a meeting of the sales staff back to questions

  18. Revision Questions Try to answer the questions on the next few slides To the questions If you need help to answer them then click on the action button next to each question.

  19. Revision Questions 1 & 2 Name the 3 types of decisions made by organisations. Which of these decisions are: Long term Medium term Short term To the next questions

  20. Revision Questions 3, 4 & 5 What are strategic decisions? Who makes these decisions? Give 3 examples of strategic decisions. To the next questions

  21. Revision Questions 6, 7 & 8 What are tactical decisions? Who makes these decisions? Give 3 examples of tactical decisions. To the next questions

  22. Revision Questions 9, 10 & 11 What are operational decisions? Who makes these decisions? Give 3 examples of operational decisions. To the next questions

  23. THE END

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