What is the scope of Decision-making?

The correct answer is Administration.

Key Points

• Decision-making is a fundamental function in administration as it involves setting policies, defining objectives, and outlining strategies.
• It encompasses the process of selecting the best course of action from multiple alternatives to achieve organizational goals.
• Effective decision-making within administration requires a thorough understanding of the organization's internal and external environments.
• The scope includes strategic, tactical, and operational decisions that affect the overall functioning of the organization.
• Administrative decision-making ensures efficient resource utilization, risk management, and achievement of long-term objectives.

Additional Information

• Strategic Decisions
  • Long-term in nature and often involve significant resources and high risk.
  • Examples include mergers, acquisitions, entering new markets, and launching new products.
• Tactical Decisions
  • Short-term actions that support strategic decisions and help in achieving specific objectives.
  • Examples include marketing campaigns, pricing strategies, and resource allocation.
• Operational Decisions
  • Day-to-day decisions that ensure the smooth functioning of organizational activities.
  • Examples include scheduling, inventory management, and quality control.
• Decision-Making Models
  • Various models like Rational Model, Bounded Rationality, and Intuitive Model are used to make decisions.
  • These models help in structuring the decision-making process and improving outcomes.