Types of decision making

• Mission statement


  a short, specific written statement of the reason a business exists and what it wants to achieve
• Strategic decision


  a long term decision made by senior managers, concerned with the overall aims and direction of the business, eg selling a new product
• Tactical decision


  a decision made by middle management, usually medium term which supports strategic decision, eg deciding which advertising agency to use to promote a new product
• Operational decision


  a decision that concerns the day-to-day activities of an organisation
• Internal constraints

  the factors that hinder decision-making but are within the control of the business, eg finance
• External constraints


  the barriers that hinder decision-making but are uncontrollable by the business, eg PESTEC factors
• Role of manager

  making decisions to achieve organisation's objectives using available resources
• Interpersonal role


  the manager's responsibility for leading and motivating others
• Informational role


  the manager's responsibility for gathering information from and disseminating information to the stakeholders of the organisation
• Decisional role


  the manager's responsibility for processing information and reaching conclusions
• Planning


  setting a plan of action for the future
• Organising


  gathering and arranging resources to meet plans
• Commanding


  ensuring duties are done properly by informing staff what to do
• Coordinating


  having staff and resources organised to achieve the plan
• Controlling


  making sure everything works according to the plan ie evaluating
• Delegating

  assigning tasks and responsibilities to subordinates
• Motivating


  influencing people to accomplish specific objectives, consisting of 4 components: leadership, group dynamics, communication, and organisational change
• POGADSCIE

  the 9 steps in a stuctured decision making process
• SWOT analysis


  a planning tool used for identifying internal strengths and weaknesses and examining external opportunities and threats
• PESTEC factors

  political, economic, social, technological, environmental and competitive influences on an organisation
• Quality decision


  depends on manager's capability of making good decisions and quality and quantity of information available
• Strengths

  internal areas or activities in which the organisation performs well
• Weaknesses

  internal areas or activities in which the organisation performs poorly
• Opportunities

  external areas or activities that the organisation could profitably be involved with in the future
• Threats

  external areas or activities that could adversely affect the organisation's objectives in the future