Decision Making In Business
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Good Decision Making is critical to business success. In business, Decision Making occurs on all levels and for a variety of purposes. The Board of Directors and CEOs of business make decisions that affect the entire company and its direction, Managers make decisions on how best to run their area of the business on a day to day basis and individual employees make decisions on how to get the best results out of their individual tasks. All of these decisions have an impact on the overall success of the business. |
Business decisions can be categorized into a number of different types
- Strategic Decisions: Usually made by those at the top of the company, such as the CEO or Board or Directors, these are decisions that influence the company’s direction
- Tactical Decisions: Usually made by the company’s various managers, these tactical decisions are made regarding strategy and the actual running of the company such as staffing decisions
- Administrative or Operational Decisions: Decisions usually made by the company’s employees with regards to the day to day operations of the company.
There are also
- Programmed or Standard Decisions: Decisions that will follow the same steps no matter what.
- Non-Standard or Non-Programmed Decisions: Decisions that differ from any previous decisions.
It is important for a business to recognise the role of Decision Making within the day to day running of the company, and what kind of decisions need to be made by whom. It would be pointless, for example, for the CEO of a large organisation to make decisions on which water cooler company to use just as it would be inappropriate for the mail room clerk to be the ultimate decision maker for company merger. The ability to recognise the different levels of business decisions and administer responsibility accordingly, coupled with strong and effective Decision Making will provide a positive influence towards the overall success of the company.
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