Operational decision characteristics: which statement below is NOT true of operational (day-to-day) decisions in organizations?

Introduction / Context:
Organizations categorize decisions by level and structure. Operational decisions are routine, repetitive, and guided by policies or standard operating procedures. They typically occur at the supervisory or front-line level and have short time horizons. Distinguishing these from tactical or strategic decisions helps assign the correct information needs and authority levels.

Given Data / Assumptions:

• Operational decisions execute day-to-day activities.
• Middle management usually handles tactical coordination, not most operational calls.
• Policies and preset standards govern many operational choices.

Concept / Approach:
Operational decisions include scheduling, dispatching, order approval within limits, and compliance checks—all typically bound by preset rules. While middle managers may set guidelines and oversee performance, front-line supervisors and staff execute most operational decisions under those guidelines. Therefore, the statement that places primary responsibility on middle management is not accurate in general.

Step-by-Step Solution:

Verification / Alternative check:
Management frameworks (e.g., Anthony’s hierarchy) distinguish operational control (lower level), management control (middle), and strategic planning (top), supporting this assignment.

Why Other Options Are Wrong:

• Execution of specific tasks: true of operational decisions.
• Preset standards/policies: common in operational contexts.
• Credit acceptance within limits: operational in many firms, governed by policy thresholds.
• None: incorrect because one statement is indeed not true.

Common Pitfalls:
Assuming all approvals are “management” decisions; many are operational but bounded by policy limits and automated rules.

Final Answer:
They are primarily made by middle management as a rule.