Needs of Decision Making Flashcards
What is the concept of Asymmetries of Information?
How incomplete and inaccurate data leads to poor decisions and wrong choices.
Which makes more prompt decisions - individuals or groups?
Individuals.
What is the main issue with group decisions?
It is resource-heavy, and accountability is difficult to assign.
What is Top-Down Decision Making?
Decisions made at the top of the hierarchy of an organisation, and passed down the corporate ladder.
What is Bottom-Up Decision Making?
Giving autonomy to middle and first-line managers to make decisions based on current circumstances.
What is a Programmed Decision?
Standard decisions that always follow the same routine.
What is a Non-Programmed Decision?
Non-standard decisions with no previous method for handling.
What is a Strategic Decision?
Decisions affecting the long-term direction of the business.
What is a Tactical Decision?
Medium-term decisions on how to implement strategy, typically made by managers.
What is an Administrative Decision?
Short-term decisions on how to implement the tactics employed by the business, typically made by managers and some employees.
What is a Short-Term Operational Decision?
Frequently made decisions relating to the management and supervision of activities.
What is a Periodic Control Decision?
Decisions made to keep the organisation on track - such as action taken for budget variances or falling behind schedule.
What is a Strategic Decision?
Long-term plans of an organisation, taken by senior management but possibly with input from lower levels.
