Podcast
Questions and Answers
Which level of decision making involves long-term, complex decisions made by directors and senior management?
Which level of decision making involves long-term, complex decisions made by directors and senior management?
What type of decisions involve putting the strategic plan into action and are of medium term?
What type of decisions involve putting the strategic plan into action and are of medium term?
Who is tasked with providing high quality information to support the successful operation of a business?
Who is tasked with providing high quality information to support the successful operation of a business?
What are some of the benefits of enhanced information for an organization?
What are some of the benefits of enhanced information for an organization?
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At which level of decision making are day-to-day decisions made at junior levels of management?
At which level of decision making are day-to-day decisions made at junior levels of management?
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Study Notes
The Importance of Information to Decision Makers
- Decision making occurs at three levels in an organization: strategic, tactical, and operational.
- Strategic decisions are long-term and complex, made by directors and senior management, impacting the overall strategic direction of the organization.
- Tactical decisions are medium-term, involving putting the strategic plan into action, such as product selection and branch openings.
- Operational decisions are day-to-day and concern the practical running of the business at junior management levels.
- Accountants and the finance function are responsible for providing high-quality information to support business operations.
- Enhanced information provides benefits such as greater customer insight.
- The more insight information can provide, the more valuable it is to an organization.
- Enhanced information also leads to better decision making at all levels of the organization.
- High-quality information allows for effective planning and resource allocation.
- It is essential for information to be accurate, timely, relevant, and reliable to be valuable for decision making.
- Information supports the successful operation of a business by guiding decision makers.
- Information is crucial for aligning day-to-day operations with higher-level strategic plans.
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Description
Test your knowledge of decision-making levels within an organization with this quiz. Explore the importance of information for strategic, tactical, and operational decisions, and understand how they impact the overall direction of the business.
