Saturday, May 17, 2008

Strategic Decisions:

  • These are those decisions that determine the goals of the entire business organization, its purpose and direction.
  • These decisions are made by the Top management, because these decisions affect the entire organization.
  • These decisions are not very specific, in other words they are much generalized decisions as they are applicable to all the levels and departments in the company.
  • They are generally non-programmed in nature.
  • The general decision to enter into a new market is a strategic decision.


 

Administrative Decisions:

  • These are those decisions that are made on a lower level than strategic decisions.
  • They are usually made by middle level management such as divisional or departmental managers.
  • They are concerned with developing the tactics to achieve the strategic goals defined by top management.
  • They express corporate goals in a specific departmental manner. They are therefore more specific and concrete than the strategic decisions and more action oriented.
  • To enter into the software solutions market is an administrative decision.


 

Operational Decisions:

  • These are made at the lowest level or the supervisory level.
  • They are concerned with the day-to-day operations of an organization.
  • They are concerned with deciding the most efficient and effective way to achieve the goals stated in the administrative decisions.
  • Determining the appropriate level of skills-set required for the programmers who will work in the software solution providing organization, is an Operational Decision.


 

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