Types Of Decision Making

• Strategic

  • Long-term decisions that a business makes about its general aims and targets.
  • Takes a long time to implement fully and don't consider in detail how they will be achieved.
  • Very difficult and expensive to reverse.
  • Carry the most risk.
  • Made by Senior Managers
  • Often proactive to stay ahead of the competition.
• Tactical

  • Medium-term decisions that are based on strategic decisions.
  • Contain the details of how a strategic decision will be achieved.
  • Can be reversed but this is time-consuming and expensive.
  • Carry less risk than strategic decisions.
  • Made by middle managers.
• Operational

  • Short-term day-to-day decisions.
  • Deal with practical problems.
  • Can be reversed easily and with little or no cost.
  • Carry the least risk.
  • Made by lower-level managers or supervisors.
• Summary

  Strategic - Long Term, Made by Senior Managers, Sets out the company objectives, High risk.

  Tactical - Medium Term, Made by Middle Managers, Made to achieve the company objectives, Medium risk.

  Operational - Short Term, Made by all, Reacting to when a change occurs, Low Risk.