Decision-making increasingly happens at all levels of a business. The Board of Directors may make the grand strategic decisions about investment and direction of future growth, and managers may make the more tactical decisions about how their own department may contribute most effectively to the overall business objectives. But quite ordinary employees are increasingly expected to make decisions about the conduct of their own tasks, responses to customers and improvements to business practice. This needs careful recruitment and selection, good training, and enlightened management.
Figure 1: Levels of Decision-Making
Strategic Decisions. These affect the long-term direction of the business e.g. whether to take over Company A or Company B
Tactical Decisions. These are medium-term decisions about how to implement strategy e.g. what kind of marketing to have, or how many extra staff to recruit
Operational Decisions. These are short-term decisions (also called administrative decisions) about how to implement the tactics e.g. which firm to use to make deliveries.
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