Business Analytics for Managerial Decision-Making
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Managerial Decision-Making and Business Analytics
Types of Managerial Decisions
To effectively plan, coordinate, and lead, managers make several types of decisions:
- Strategic Decisions: Address high-level issues and the overall direction of the organization. They define future goals and are long-term and complex.
- Tactical Decisions: Focus on how to achieve the goals and objectives set by the strategy. These are typically made by mid-level management for the medium term.
- Operational Decisions: Pertain to day-to-day operations. They are made by operations managers and are often simple and routine.
The Decision-Making Process (DMP)
A structured approach to decision-making involves several key steps:
- Identify and define the problem.
- Determine the criteria