ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Usually, routine decisions are taken by managers at the lower levels, while strategic decisions are taken by top level managers.

Detailed explanation-2: -In the organization, managers at all the levels in the organization take decisions for the achievement of the organizational objectives. Decision making is one of the most important functions of the managers in the organization. It is central managerial activity.

Detailed explanation-3: -Programmed and non-programmed decisions: These decisions are taken generally by lower level managers. Decisions of this type may pertain to e.g. purchase of raw material, granting leave to an employee and supply of goods and implements to the employees, etc.

Detailed explanation-4: -Decisions at lower levels of management (administration): The routine sales strategy may be decided by the sales manager and his subordinates; the organisation of labour ‘on the floor’ is decided by the production manager, and so on.

Detailed explanation-5: -First, decision-making at the lowest level means at the “appropriate” level. Second, there must be “appropriate” limits on those decisions. And third, decision making at the lowest level really means allowing people at the lowest level to have input into decision making.