Influences on Decision Making
- AS, A-Level
- AQA, Edexcel, OCR, IB, Eduqas, WJEC
Last updated 15 Apr 2017
The approach taken to making business decisions is influenced by a variety of factors, the key ones of which are outlined below:
Business Objectives / Budgets
- Set the scene for how decisions are made
- A culture of strong budgetary control should encourage more data & evidence-driven decisions
Organisational Structure - Who Makes the Decisions?
- Who has authority to take decisions?
- Are employees to empowered to take decisions to deliver more responsive customer service
- Is decision-making centralised or decentralised?
Attitude to Risk
- Close link to business culture
- Is risk-taking encouraged?
- What are the penalties for poor decisions?
Availability & Reliability of Data
- Is the data available to support a scientific approach?
- Are management comfortable with using scientific methods? Do they have the right skills and experience?
The External Environment
- How fast is the external environment changing?
- Do the uncertainties in the external environment make scientific approaches less reliable?