What stakeholders help CEO make decisions at a tactical level?
The impact of making informed decisions in an organizational setting is critical for the survival of a business (Atrill, and McLaney, 2015). In terms of creativity, advancement and efficiency, goal setting in the present organizational settings, it is vital identifying then isolating aspects that ease decision-making process. For instance, the use of qualitative paradigm helps firms gain insight into facts and understandings of issues surrounding wrong decisions.
Management accounting is one of the ways of making effective decisions. Management accounting connects a person to its tools, which makes it possible to make informed decisions. In fact, management accounting formulates conceptual theories, which enable a person come up with an outline of how things stand at the moment (Atrill, and McLaney, 2015). For instance, accounting management can compile total expenditure then; from the figure, an administrator can calculate the remainder of the sum then come up with a budget from the same allocation.
Apart from management accounting, organizational structure shapes the outcome of the decision even before making it. Hence, it can either simplify or complicate the process of decision-making process further (Atrill, and McLaney, 2015). The usual organizational hierarchy begins with a chairman at the top, a CEO then the rest of the administrators hence once a decision-making is complete; it flows down the hierarchy ready for implementation. The provided framework also designates duties and roles to each and every one available. In other words, a decision-making has a good backbone supporting implementing. In addition, to support, organizational structure gives the decision credibility and adequate vetting as it passes through various people, capable of analyzing and coming find best ways of implementing the elements encompassed in the decision.
References
Atrill, P. and McLaney, E. (2015).Management Accounting for Decision Makers(9th Ed). Harlow: Pearson.
