Decision making levels and stages

Decision making is the process of choosing the best course of action from the alternatives to achieve an objective.

Levels of decision making

1. Strategic (top level): long-term, large decisions by the board or top management, for example entering the hydropower sector, buying a fleet of equipment, bidding for a big project. Information is uncertain and the impact is large.
2. Tactical (middle level): medium-term decisions by departmental or project managers to carry out strategy, e.g. project schedule, resource allocation, selection of subcontractors, budget.
3. Operational (lower level): daily decisions by site engineers and supervisors, for example work assignment, material issue, solving quality problems. Usually programmed and routine.

Stages (steps) of decision making

1. Identify and define the problem (e.g. delay in foundation work).
2. Collect and analyse information (facts, causes, constraints).
3. Develop alternatives (more labour, overtime, change method).
4. Evaluate the alternatives by cost, time, risk and feasibility.
5. Select the best alternative.
6. Implement the decision (assign tasks, resources and time).
7. Monitor and follow up the result and take corrective action; feedback.