Managerial At the managerial level, employees are continuously evaluating company
operations to hone the firm’s abilities to identify, adapt to, and leverage change.
A company that has a competitive advantage needs to constantly adjust and revise its
strategy to remain ahead of fast-following competitors. Managerial decisions cover short- and medium-range plans, schedules, and budgets along with policies, procedures,
and business objectives for the firm. They also allocate resources and monitor
the performance of organizational subunits, including departments, divisions, process
teams, project teams, and other work groups. These types of decisions are considered
semistructured decisions; they occur in situations in which a few established processes
help to evaluate potential solutions, but not enough to lead to a definite recommended
decision. For example, decisions about producing new products or changing employee
benefits range from unstructured to semistructured. Figure 2.5 highlights the essential
elements required for managerial decision making.