What is the scope of Decision-making?

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Bihar CET B.Ed Official Paper (Held On: 25 Jun, 2024)
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  1. Organization
  2. Management
  3. Inspection
  4. Administration

Answer (Detailed Solution Below)

Option 4 : Administration
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Detailed Solution

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The correct answer is Administration.

Key Points

  • Decision-making is a fundamental function in administration as it involves setting policies, defining objectives, and outlining strategies.
  • It encompasses the process of selecting the best course of action from multiple alternatives to achieve organizational goals.
  • Effective decision-making within administration requires a thorough understanding of the organization's internal and external environments.
  • The scope includes strategic, tactical, and operational decisions that affect the overall functioning of the organization.
  • Administrative decision-making ensures efficient resource utilization, risk management, and achievement of long-term objectives.

Additional Information

  • Strategic Decisions
    • Long-term in nature and often involve significant resources and high risk.
    • Examples include mergers, acquisitions, entering new markets, and launching new products.
  • Tactical Decisions
    • Short-term actions that support strategic decisions and help in achieving specific objectives.
    • Examples include marketing campaigns, pricing strategies, and resource allocation.
  • Operational Decisions
    • Day-to-day decisions that ensure the smooth functioning of organizational activities.
    • Examples include scheduling, inventory management, and quality control.
  • Decision-Making Models
    • Various models like Rational Model, Bounded Rationality, and Intuitive Model are used to make decisions.
    • These models help in structuring the decision-making process and improving outcomes.
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