U1- Decision Making

Question 1

Describe a strategic decision

Answer 1

Long term decisions
Shape the objectives of an organisation
Usually made by very senior managers
Carry a large financial risk

Question 2

Describe a tactical decision

Answer 2

Medium- term decisions
Made by middle managers
Taken to achieve strategic decisions

Question 3

Describe an operational decision

Answer 3

Day to day decisions
Made by all staff including lower level managers
Carry a low financial risk

Question 4

Give 2 examples of strategic decisions

Answer 4

What products the firm will produce in the future

To increase market share by 10% within 5 years

Question 5

Give 2 examples of tactical decisions

Answer 5

To increase the number of staff employed

To change the name of the business

Question 6

Give 2 examples of operational decisions

Answer 6

Arranging work rotas

Ordering materials from suppliers

Question 7

Give 4 advantages of quality decisions

Answer 7

Helps to ensure the objectives of the organisation are met

Motivate staff

Leads to better reputation with consumers

Helps to retain and attract investment

Question 8

Give 4 disadvantages of quality decisions

Answer 8

Can be difficult to chose from many alternative solutions

Creative opportunities may be lost

Time consuming to follow the process meaning there may be delays in decision making

The business may be too slow to respond to any changes in the market

Question 9

What are quality decisions based around?

Answer 9

Finance
Staffing
Technology
Quality of information available from functional areas

Question 10

What are SWOT analysis’ used for?

Answer 10

To evaluate where the organisation is now and where it should be in the future

Helps with planning, deciding the way forward for the organisation and looking at strategies which could be used

Question 11

Give 3 facts about SWOT analysis

Answer 11

Should be part of the continuing process of evaluating how the organisation is doing

By doing a SWOT the business can avoid making rash decisions because the information is already there for them

It gives more/ better information which should lead to better decisions

Question 12

What are the 5 key areas of in the role of manager? And what are the 3 more which we can add?

Answer 12

Plan
Organise 
Control
Command 
Co-ordinate 

We can also add:

Communicate
Delegate
Motivate

Question 13

How can managers plan?

Answer 13

Look ahead
See potential opportunities or problems
They devise solutions and set targets

Question 14

How can managers organise?

Answer 14

They ensure the resources of the organisation are there when people need them and acquire additional resources if required

Question 15

How can managers command?

Answer 15

Issue instructions

Display leadership

Question 16

How can managers communicate?

Answer 16

Ensure all staff are informed of decisions and the reasons behind them

Question 17

How can managers co- ordinate

Answer 17

Make sure everyone is working towards the same goals

Make sure the work being done fits together

Question 18

How can managers control?

Answer 18

Look at what is being done and check against what was expected

This is the monitoring and evaluating role of management

Question 19

How can managers delegate?

Answer 19

Give subordinated the authority to carry out tasks

The overall responsibility will still lie with the manager who delegated the authority

Question 20

How can managers motivate?

Answer 20

Encourage workers to enjoy their tasks through:

Team work
Participation in decision making
Giving them some responsibility