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Flashcards in Decisions Deck (10)
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1
Q

3 approaches

A
  1. Classifying decisions by categories
  2. Descriptive approach
  3. Normative approach
2
Q
  1. Classifying by category
A
  • Top management (political)
  • General management ( strategic)
  • Managers (tactical)
  • Directors ( operational)
3
Q

Political decisions

A
Means consensus 
Predictable 
Semipermanent decisions
Long term decisions
Managers hace 2 roles: managers and strategists 
Taken as reference for other decisions
4
Q

Strategic decisions

A

Evaluate all the resources that an organization has available
Value if its possible to use those resources efficiently
No last minute decision
Instructions are broad
Own objectives may be stablished

5
Q

Tactical decisions

A

Specify strategic decision
Means to achieve objectives set by strategic decisions
Specific actions to implement strategy:
-objectives must be specified
-tactical and strategic might be confused
- decisions are faster

6
Q

Operational decisions

A
They maje sure rapid routine tasks are implemented
Tasks are previously stablished
Short term decisions:
-consequences are inmediate
-errors can be easily corrected 
- no high investment
7
Q
  1. Descriptive approach
A

Describes the real process of decision making
Gives better knowledge about how the organization works
Objective: identify the problem,its causes and implement the most convenient solution
When theres a problem:
- unsatisfactory situation
- plans and actions are modified
- objectives are reviewed

8
Q

Kinds of problems

A
  • Objectives arent met in the short term
  • A trend is predicted and it will bring changes
  • A change in sector modifies objectives
  • objectives change in the short term
9
Q

Implications for managers

A
  • objectives must be defined
  • all relevant information must be there
  • variables and criteria must be identified
  • procedure must be identified
10
Q
  1. Normative approach
A

It studies and prescribes different methods of decision making to solve problems.

The final result will depend on some factors that can be:
• Endogenous: under the decision maker control (ACTIONS)
• Exogenous: variables that arent under the decision makers control(STATES OF NATURE)