2. Decision making
• A business organisation is a decision-making unit that sets out to produce a
product in the form of goods or services.
• Key decisions need to be made about an organisations plant, its products, and its
people.
• Plant
e.g. whether to invest in a new factory, or in updating present facilities
• Products
e.g. whether to introduce new lines
• People
e.g. through investment in training and development.
3. Programmed And Non-programmed
Decisions
• Programmed decisions are straightforward,
repetitive and routine, so that they can be dealt
with by a formal patterns,
• Non-programmed decisions are novel, unstructured
and consequential. There is no cut-and-dried
method for handling situations which have not
arisen before.
4. Levels Of Decision-making Within
The Organisation
Short-term operating control decisions.
Periodic control decisions
Strategic decisions
5. • Short-term operating control decisions. These have to be made frequently
involving short-term, predictable operations.
• .Strategic decisions. These are major decisions about overall strategy. They will
often require a considerable use of judgment by the person or group responsible
for making the decisions. This is because although such decisions will require a
considerable amount of analysis, important pieces of information will frequently
be missing and so risk will be involved.
• Periodic control decisions. These are made less frequently and are concerned
with monitoring how effectively an organisation is managing its resources.
