What level of decision-making is concerned with short-term actions in a business?

Prepare for the SQA Higher Business Management Exam. Enhance your skills with dynamic flashcards and practice questions. Explore hints and explanations to ace your exam!

The correct answer is the level of decision-making that focuses on short-term actions in a business. Operational decision-making involves the day-to-day decisions that are necessary for the smooth functioning of an organization. These decisions are typically routine and relate to the specific processes and activities that keep the business running efficiently.

Operational decision-making includes tasks like managing inventory, scheduling employees, and setting specific production goals. Since these decisions are made frequently and require immediate attention, they are essential for achieving short-term objectives and ensuring that the business operates effectively on a daily basis.

In contrast, strategic decision-making deals with long-term goals and the overall direction of the business, while tactical decision-making focuses on implementing strategies through medium-term plans. Financial decision-making specifically relates to managing an organization's finances, investments, and budget planning but does not encompass the broader operational procedures. Thus, operational decision-making is the most appropriate answer regarding short-term actions.

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