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CMA Foundation · Fundamentals of Business Economics and Management · Decision-making - Types and Process

Match each decision to the most appropriate level of management: (i) approving a merger with a rival firm, (ii) allocating the quarterly departmental budget among sections, (iii) assigning daily tasks to machine operators. Which option gives the correct order of top, middle and lower level respectively?

The correct order is merger approval at top level, departmental budget allocation at middle level, and daily task assignment at lower level. These correspond to strategic, administrative or tactical, and operational decisions respectively, reflecting scope, time horizon and resource commitment at each management level.

  1. A(ii), (i), (iii)
  2. B(iii), (ii), (i)
  3. C(i), (ii), (iii)Correct
  4. D(i), (iii), (ii)

Explanation

A merger is a strategic decision for top management. Allocating a departmental budget is an administrative or tactical decision for middle management. Assigning daily tasks is an operational decision for lower management. So the order is (i), (ii), (iii).

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