Financial Terms By: m. Managerial decisions. Decisions
concerning the operation of the firm
, such as the choice of firm size, firm growth rates, and employee compensation.
What is an example of managerial decision making?
These decisions typically involve making choices to achieve desired outcomes. For example, a
franchiser may decide between two overseas locations for its first overseas expansion
, or a company president may decide how to respond to a sales slowdown.
What are examples of management decisions?
For example, decisions regarding
location of plant, volume of production and channels of distribution (Tactical) policies
, etc. are policy decisions. Operating decisions relate to day-to-day functioning or operations of business. Middle and lower level managers take these decisions.
What are the three managerial decisions?
- Investment Decision.
- Financing Decision and.
- Dividend Decision.
What are the types of managerial decisions?
- Individual and Group Decisions. …
- Routine (Tactical) and Basic (Strategic) Decisions. …
- Programmed and Non-programmed Decisions. …
- Major and Minor Decisions. …
- Organizational and Personal Decisions. …
- Policy and Operating Decisions.
What are the 7 types of decisions?
- Programmed Decisions: They are otherwise called routine decisions or structured decisions. …
- Non-Programmed Decision: …
- Major Decision: …
- Minor Decision: …
- Operative Decision: …
- Organisational Decision: …
- Personal Decision: …
- Individual Decision:
What are 3 types of decision making?
Decision making can also be classified into three categories based on the level at which they occur.
Strategic decisions set the
course of organization. Tactical decisions are decisions about how things will get done. Finally, operational decisions are decisions that employees make each day to run the organization.
What are the characteristics of managerial decision-making?
- Mental and Intellectual Process. …
- It is a Process. …
- It is an Indicator of Commitment. …
- It is a Best Selected Alternative. …
- Decision-Making Might be Positive or Negative. …
- It is the Last Process. …
- Decision Making is a Pervasive Function. …
- Continuous and Dynamic Process.
What are the steps in managerial decision-making?
- Step 1: Identify the decision. You realize that you need to make a decision. …
- Step 2: Gather relevant information. …
- Step 3: Identify the alternatives. …
- Step 4: Weigh the evidence. …
- Step 5: Choose among alternatives. …
- Step 6: Take action. …
- Step 7: Review your decision & its consequences.
What are the factors that affect managerial decision-making?
Managers want to make the best decision in the interests of the company that evaluates the alternatives. The managerial decision-making process is affected by four factors:
the decision-making approach, the type of problem, decision-making conditions, and their decision-making style.
What are the 2 types of decisions?
- Strategic Decisions and Routine Decisions. …
- Programmed Decisions and Non-Programmed Decisions. …
- Policy Decisions and Operating Decisions. …
- Organizational Decisions and Personal Decisions. …
- Individual Decisions and Group Decisions.
What are the 4 types of decisions?
- 1] Making routine choices and judgments. When you go shopping in a supermarket or a department store, you typically pick from the products before you. …
- 2] Influencing outcomes. …
- 3] Placing competitive bets. …
- 4] Making strategic decisions. …
- The constraint of decision making research.
What are the 10 OM decisions?
- Design of Goods and Services. …
- Quality Management. …
- Process and Capacity Design. …
- Location Strategy. …
- Layout Design and Strategy. …
- Human Resources and Job Design. …
- Supply Chain Management. …
- Inventory Management.
What are the 3 major areas of financial management?
There are three broad areas of financial decision making –
capital budgeting, capital structure and working capital management
.
What are basic financial decisions?
There are four main financial decisions- Capital Budgeting or Long term Investment decision (Application of funds),
Capital Structure or Financing decision (Procurement of funds)
, Dividend decision (Distribution of funds) and Working Capital Management Decision in order to accomplish goal of the firm viz., to maximize …
What is a Nonprogrammed decision?
In contrast, nonprogrammed decisions are
novel, unstructured decisions that are generally based on criteria that are not well-defined
. … These are also sometimes referred to as nonroutine decisions or as high-involvement decisions because they require greater involvement and thought on the part of the decision maker.
