Decision-Making Levels in Organizations Quiz

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.