Decisions

Question 1

3 approaches

Answer 1

1. Classifying decisions by categories
2. Descriptive approach
3. Normative approach

Question 2

1. Classifying by category

Answer 2

• Top management (political)
• General management ( strategic)
• Managers (tactical)
• Directors ( operational)

Question 3

Political decisions

Answer 3

Means consensus 
Predictable 
Semipermanent decisions
Long term decisions
Managers hace 2 roles: managers and strategists 
Taken as reference for other decisions

Question 4

Strategic decisions

Answer 4

Evaluate all the resources that an organization has available
Value if its possible to use those resources efficiently
No last minute decision
Instructions are broad
Own objectives may be stablished

Question 5

Tactical decisions

Answer 5

Specify strategic decision
Means to achieve objectives set by strategic decisions
Specific actions to implement strategy:
-objectives must be specified
-tactical and strategic might be confused
- decisions are faster

Question 6

Operational decisions

Answer 6

They maje sure rapid routine tasks are implemented
Tasks are previously stablished
Short term decisions:
-consequences are inmediate
-errors can be easily corrected 
- no high investment

Question 7

2. Descriptive approach

Answer 7

Describes the real process of decision making
Gives better knowledge about how the organization works
Objective: identify the problem,its causes and implement the most convenient solution
When theres a problem:
- unsatisfactory situation
- plans and actions are modified
- objectives are reviewed

Question 8

Kinds of problems

Answer 8

• Objectives arent met in the short term
• A trend is predicted and it will bring changes
• A change in sector modifies objectives
• objectives change in the short term

Question 9

Implications for managers

Answer 9

• objectives must be defined
• all relevant information must be there
• variables and criteria must be identified
• procedure must be identified

Question 10

3. Normative approach

Answer 10

It studies and prescribes different methods of decision making to solve problems.

The final result will depend on some factors that can be:
• Endogenous: under the decision maker control (ACTIONS)
• Exogenous: variables that arent under the decision makers control(STATES OF NATURE)