Question

Identify the kind of decision-making process that the management follows in the given scenario. Lilian is a fruit grower and distributer. Lately, her produce has been lacking in the quality that the company is famous for. Lilian calls a meeting with her executive management staff. They have to make a decision on whether to improve the quality of the produce by enhancing the quality of the soil through artificial means, or rent new farms to grow their product on. Lilian and her management team are involved in decision-making.

Answer 1

Basic and Routine decisions is the kind of decision-making process that the management follows in the given scenario.

Explanation:

Basic decision are taken when some crisis arises. These decisions require the formulation of new rules with different thinking process.

Example: Location of plant, plant diversification and selection in distribution of channels.

For an organization basic decisions are of strategic aspects and routine decisions are of tactical aspects. Since routine decisions are of repetitive nature and need small consideration based on the decision made. Lilian has to make decision to improve the quality of the product and the soil and also need to rent new farms.