Importance of Decision Making in Business Administration

BUSINESS
ADMINISTRATION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Importance of defining the scope, objective and success criteria of decisions to be taken. .1
1.2 Importance of analysing potential impact of decision making.............................................1
1.3 Explain the value of obtaining valid information to enable effective decision making........2
1.4 Importance of aligning decisions with business policies, objectives and values..................2
1.5 Validating information used in decision making process.....................................................3
1.6 Issues which hampers achievement of quality standards and targets...................................3
TASK 2............................................................................................................................................3
2.1 Differentiate between influence of leader and manager on their team.................................3
2.2 Measure the sustainability and impact of various leadership styles in different contexts....4
2.3 Different theories and model of motivation along with their application.............................4
TASK 3............................................................................................................................................5
3.1 Responsibilities of a manager for planning, coordinating and controlling work..................5
3.2 Ways in which manager ensures about objective achievements...........................................5
3.3 Manager role contributing in achieving vision, mission and objective of an organisation...6
3.4 Evaluate models and theories of management......................................................................6
3.5 Evaluate how applications associated with management theories guides action of manager
.....................................................................................................................................................6
3.6 Analyse operational constraints imposed by budgets...........................................................7
TASK 4 ...........................................................................................................................................7
4.1 Relationship between performance measures and business objectives.................................7
4.2 Describe the features of performance management systems................................................7
4.3 Describe how to set key performance indicators..................................................................8
4.4 Tools, processes and timetable for monitoring and reporting business performance...........8

4.5 Use of management accounts and management information system in performance
management................................................................................................................................9
4.6 Distinctions between outcomes and outputs.........................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business administration is a broad field which incorporates several management
positions. To run and manage a company appropriately, an efficient and skilled business
administrator is required which can perform business operations in a desirable way. It involves
different aspects which are related to overseeing and supervision of business operations
(Almansour, 2012). This assignment is written in the context of TESCO which is a Britain based
multinational merchandise and groceries retailer, situated in England, UK. In terms of gross
revenue, company is third largest retailer in the world. This report involves different concepts
related with leadership and management along with objective, scope, impact and success criteria
of decision-making. Beside this, other aspects related with decision making are mentioned.
Influence of leader and manager within organisation and their impact is discussed. At last,
performance management and performance indicators are also specified.
TASK 1
1.1 Importance of defining the scope, objective and success criteria of decisions to be taken
In order to achieve expected outcomes and objectives, it is important for manager of a
company to formulate an effective decision making process. Business owner of company needs
to specify goals and objectives in a clear and appropriate manner so that employees can receives
required guidance. Scope is defined as the set of process which ensures that every business
activity is defined and mapped systematically. Efficient tools and techniques assists an
organisation in gaining competitive advantage over rival companies. To achieve high success, it
is vital for TESCO to have clear motive regarding their business operations. This will helps the
company in attaining the desirable success within expected time. A good decision taken by
leader or manager of company will not be effective, unless its scope, objective behind that
decisions and success rate is not evaluated before.
1.2 Importance of analysing potential impact of decision making
Decision making is an essential aspect within business. Without taking decisions it is not
possible for any company to perform its business operations and activities desirably. Every
organisation requires a uniform decision making process so that appropriate outcomes can be
attained. However, decisions taken by a leader and manager can have either positive or negative
impact on the operations of TESCO. To achieve effective results, it is essential for manager to
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