---
title: "Decision making levels and stages"
subject: "Construction Management"
chapter: 10
key: "semester_8/construction_management:decision-making-levels"
source: https://www.bctengineer.com/q/semester_8/construction_management/decision-making-levels
site: BCT Engineering
---

# Decision making levels and stages

Construction Management · Chapter 10: Personnel Management

- Asked in: 2064 Poush (old course)
- Video: [Decision Making, Types of Decision Making, Decision making Techniques #decisionmaking](https://www.youtube.com/watch?v=VFjkqmUP84w) — Educationleaves
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_8/construction_management/decision-making-levels
- Whole chapter: https://www.bctengineer.com/md/semester_8/construction_management/chapter-10

## Question

Explain decision making levels and stages.

## Short answer

Decision making has three levels: strategic, tactical and operational, from long-term top-management choices to daily site decisions. The stages are identify the problem, collect information, develop alternatives, evaluate them, select the best, implement, and monitor with feedback.

## Answer

**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.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. Which decision belongs to the strategic (top) level?
   A. Entering the hydropower sector
   B. Material issue
   C. Solving a quality problem
   D. Daily work assignment
   Answer: A. Long-term big decisions by top management are strategic. (Key point: Strategic level)

2. Operational decisions are usually:
   A. Daily, routine and programmed, made by site engineers and supervisors
   B. Uncertain with large impact
   C. Long-term by the board
   D. Made only by clients
   Answer: A. Operational decisions are daily and routine. (Key point: Operational level)

3. What is the first stage of decision making?
   A. Monitor results
   B. Select the best alternative
   C. Implement the decision
   D. Identify and define the problem
   Answer: D. The first step is to identify and define the problem. (Key point: First stage)

4. Alternatives are evaluated by:
   A. Random choice
   B. Seniority
   C. Cost, time, risk and feasibility
   D. Colour
   Answer: C. Evaluate by cost, time, risk and feasibility. (Key point: Evaluation)

## Related in other subjects

- [Principles of engineering economics and decision making](https://www.bctengineer.com/question.md?key=semester_6%2Fengineering_economics%3Aprinciples-ee-help-decision) — Engineering Economics, chapter 1
- [IS supports managers in decision making](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Ais-supports-decision-making-quality) — Information System, chapter 1
- [Switch statement in decision making](https://www.bctengineer.com/question.md?key=semester_1%2Fcomputer_programming%3Aswitch-decision-making) — Computer Programming, chapter 5
- [Types of information systems; decision support](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Amis-types-decision-making) — Organization and Management, chapter 9