Operational Decision Making Style
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Operational Decisions refers to the decisions made in any organization at the grass-root level involving matters of daily activities, mostly taken by managers at junior levels. It entails concerns like ways to serve the client, how to spend the money judiciously for the current month, the procedures of delivering an order, the decisions regarding quality control. As these decisions play a significant role in the smooth functioning of any Company or Organization, each of them adopts certain style for making any operational decision. |
For a well-managed daily functioning of the various processes in an organization, managers cannot afford to take decisions randomly and hence they take recourse to operational decision making style. Operational Decision making should involve asset-based considerations such as discounts, the best offers available, claims etc. The fundamental style of such decisions encompasses real time decisions so as to be able to make adjustments whenever required. Operational Decision making style also embraces an in-depth analysis of a recurring problem, assessing and evaluating the various effects - positive and negative, going through the alternatives and finally taking the apt decision. Since such decisions are immediate and short termed, the essential style of operational decision making involves low cost incurrence. Consequently, this leads to minimum adverse effects. However, if a series of operational decisions are taken haphazardly, the very basis of the organizational functioning tends to get haywire. Operational Decision making style has been found out to affect profitability of a company in a great way, going up to about 90 per cent. To gain a successful style, it is essential that one possesses enough knowledge about the problem, taking into account whatever information can be obtained from various sources. The myriad options should be delved deep into before taking any decision. Lastly, the alternative considered best for the company's profits such as acquiring raw materials at low cost or hiring employees or scheduling their shifts so as to optimize resources should be made diligently.
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