What is information based strategic decision-making?
Information based decision making is about using, presenting and communicating data that supports your decision-making process. This month, we’re focusing on how managers and leaders must be able to undertake critical analysis and evaluation to support decision making and use effective problem-solving techniques.
What is involved in making strategic decisions?
The process of strategic decision-making combines the five basic steps of the decision-making process with the concepts of opportunity, threat, countervailing factors, and risk. The process of strategic decision-making is the lifeblood of your organization.
What are the five steps in strategic decision-making?
The strategic decision-making process requires you to work through five stages:
- Define the problem. It is crucially important to determine whether this is the real root of the problem, or simply a symptom of another issue.
- Gather information.
- Develop options.
- Evaluate options.
- Choose and take action.
How information is used to make decisions?
Information is a key ingredient in the generation of alternatives for decision-making. One has to have information about possible solutions to generate alternatives. Based on the information about the suitability of the alternatives, a choice is made to select the best alternative.
Who makes strategic decisions in an organization?
Strategic decisions are made by the top level management and by the strategists whereas the operational decisions are made by the managers at lower levels. Strategic decisions are related to the contribution to the organizational objectives and goals significantly.
What are the types of strategic decisions?
There are four types of strategic decisions you can begin to apply straightaway, whether you are dealing with a familiar situation or a novel one.
- Analytical Decision Making.
- Heuristic Decision Making.
- Expertise Decision Making.
- Random Choice Decision Making.
How do you make effective strategic decision in an organization?
Making Strategic Decisions — 5 Steps for Success
- Define the Problem — Consider these questions:
- Gather Information — Seek information on how and why the problem occurred:
- Develop and Evaluate Options — Generate a wide range of options:
- Choose the Best Action — Select the option that best meets the decision objective:
What are the characteristics of information typically required for strategic decision making?
Characteristics of Strategic Decisions
- Concerned with Scope of an Organization’s activity.
- Matching of activities with environment.
- Matching of activities with resource capability.
- Matching of activities with resource base.
- Affects operational decisions.
- Affects nature and magnitude of strategies.
How do managers use information to make decisions?
Management information systems can help you make valid decisions by providing accurate and up-to-date information and performing analytic functions. You have to make sure the management information system you choose can work with the information formats available in your company and has the features you need.
