Management Notes

Reference Notes for Management

Decisions which are concerned with policy matters and exercise fundamental influence on the objectives of the organization are called as ______________.

Decisions which are concerned with policy matters and exercise fundamental influence on the objectives of the organization are called as ______________.


A. Organizational decisions.
B. Personal decisions.
C. Routine decisions.
D. Strategic decisions.

The Correct Answer Is:

D. Strategic decisions.

Strategic decisions are the correct answer in this context.

Correct Answer Explanation: d. Strategic Decision

Strategic decisions are those that play a pivotal role in shaping the long-term goals and objectives of an organization. These decisions have a profound impact on the overall direction and success of the organization. They involve choosing a course of action from various alternatives. Which will ultimately determine the organization’s competitive position in the market and its ability to achieve its mission and vision.

Strategic decisions are typically made by top-level executives and are characterized by their comprehensive scope, long-term focus, and significant resource allocation.

One key characteristic of strategic decisions is their long-lasting impact. When an organization makes a strategic decision, it sets the stage for future activities, investments, and initiatives. For instance, deciding to enter a new market, adopt a new technology, or restructure the organization’s core operations are all examples of strategic decisions.

These choices have far-reaching implications and can shape the organization’s trajectory for years to come.

Now, let’s examine why the other options are not correct:

A. Organizational Decisions:

Organizational decisions are critical for the day-to-day functioning of an organization. They involve choices related to the internal operations, structure, and processes that ensure the smooth running of the organization. These decisions may include things like resource allocation within departments, workflow management, and establishing protocols for various tasks.

However, while organizational decisions are vital for maintaining efficiency and productivity, they are not necessarily the decisions that fundamentally shape the overall direction and long-term objectives of the organization. They are more focused on the immediate needs and processes within the organization. Strategic decisions, on the other hand, set the strategic vision and course for the organization over an extended period.

B. Personal Decisions:

Personal decisions are those made by individuals in their personal lives, such as choices about education, career, relationships, and lifestyle. These decisions are entirely separate from organizational decisions, which pertain to the collective choices made by an organization to achieve its goals and objectives.

Personal decisions do not have a direct bearing on organizational objectives or the overall direction of the organization. They are about individual preferences, goals, and circumstances. In the context of the question, which specifically asks about decisions concerning policy matters and their influence on the organization’s objectives, personal decisions are not relevant.

C. Routine Decisions:

Routine decisions involve the day-to-day choices and actions taken to ensure the smooth operation of an organization. These decisions are often repetitive and involve established processes and procedures. They cover tasks like scheduling, inventory management, and employee assignments.

While routine decisions are crucial for maintaining the regular functioning of an organization, they do not carry the same weight or long-term impact as strategic decisions. Routine decisions are focused on the short-term and operational aspects of the organization. They do not address the larger questions of defining the organization’s mission, vision, and competitive positioning in the market.

In summary, while all types of decisions have their place in the functioning of an organization, it is the strategic decisions that hold the utmost importance in influencing the organization’s long-term success and objectives. They set the direction and course for the organization, and their consequences are felt over an extended period. Therefore, in the given context, the correct answer is D. Strategic Decisions. 

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