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 Medium term Short term Strategic Tactical Operational back to questions

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

6. Strategic Decisions: 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. back to questions

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

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

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. Tactical Decisions: 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. back to questions

11. are taken by: Tactical Decisions 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. They are medium-risk decisions. will take some time to put right if the wrong decision has been taken.

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

14. Operational Decisions: 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. back to questions

15. are taken by: Operational Decisions 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. They are low-risk decisions. If the wrong decision has been taken it can be rectified quickly.

17. Examples of Operational Decisions whether to reorganise part of the filing system how much stationery to hold in the office. whether to up-date computer passwords 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 If you need help to answer them then click on the action button next to each question. To the questions

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