Decision speed requirements: Which level of managerial decision-making most heavily depends on real-time information for effective action?

Difficulty: Easy

Correct Answer: operational

Explanation:


Introduction / Context:
Different decision levels in organizations require different latency and detail in information. Real-time or near-real-time data feeds are especially valuable where timing and immediate corrective actions matter. This question asks which level relies most on such up-to-the-minute information.


Given Data / Assumptions:

  • Operational decisions concern day-to-day control of activities (scheduling, dispatching, reorders).
  • Tactical decisions operate on weekly or monthly horizons.
  • Strategic decisions are long-range and less frequent.
  • “Nonprogrammable” denotes unstructured problems not easily codified.


Concept / Approach:
Operational managers need current status: machine downtime alerts, stock levels, order queues, website traffic spikes, and fraud flags. Delayed information reduces effectiveness. Strategic and many tactical choices can tolerate aggregation and lag because they involve analysis of trends rather than minute-by-minute states.


Step-by-Step Solution:
Classify each level by time horizon and structure.Match real-time needs to short-horizon, structured control tasks.Select “operational” as the level most dependent on real-time data.


Verification / Alternative check:
Common systems—SCADA dashboards, point-of-sale alerts, warehouse management systems, and network operations centers—feed operational staff with immediate data to trigger actions.


Why Other Options Are Wrong:

  • Strategic: Focuses on long-term direction; real-time is helpful but not essential.
  • Tactical: Often uses weekly/monthly summaries rather than millisecond data.
  • Nonprogrammable: By definition not driven by routine real-time metrics.


Common Pitfalls:
Assuming “faster is always better.” For strategic planning, too-frequent data can cause noise chasing rather than insight.


Final Answer:
operational

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