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Essay on Business Decision Paper
Businesses are decision making units. Decisions may vary in nature according to the different demands by a business entity at different situations. A business would deal with decisions regarding the policy implemented, management decisions, as well as administrative decisions. Administrators are often office staff or supervisors, and so they act according to general company policy and under the direction of management.
They are responsible or a number of tasks. It is also observed that the performance of these employees can improve if they are made part or involved in the decision making process of the organization. This is basically because this makes them feel important, further motivating them to work harder.
“Motivation refers to the drive and effort to satisfy a want or goal” (Koontz 1955). The general decisions which any ordinary business would make are concerned with production, location of premises, methods of production, prices, and wages of laborers and so on. Many day to day decisions taken by businesses are called tactical decisions. These short term decisions and are so regularly repeated.
In the business administration area often lower level decisions are to be made, such as the amount of time allocated to specific tasks or the choice of equipment.
“Strategic Decisions concern the broad objectives, policies and plans of the organization and, as such, are taken at a high level with in the organization” (Jewell 1993).
Where as when business decisions are long term they are known as strategic decisions. These would involve planning to employ extra workers in future to take changes in the economy into account. Therefore strategic decisions are likely to involve the risk factor more. For example, the decision to sell a new product in a foreign country involves great risk because there are a number of factors involved affecting the business, usually arising out of the external environment...............
