ACCA Performance Management (F5) Certification Practice Exam

What is a tactical decision in an organization typically focused on?

1. Defining the overall mission

2. Allocating resources to support objectives

3. Setting short-term goals

4. Evaluating strategic outcomes

The correct answer is: Setting short-term goals

A tactical decision in an organization is typically focused on setting short-term goals. This kind of decision-making is concerned with the implementation of strategies, which often involves determining the specific actions needed to achieve broader organizational objectives. By concentrating on short-term goals, tactical decisions allow an organization to address immediate operational needs and create actionable plans. These goals are usually more specific, measurable, and time-bound compared to strategic decisions, which focus on long-term plans and overarching aims. Tactical decisions are crucial for ensuring that the day-to-day operations align with and support the strategic direction of the organization. Understanding the distinction between tactical and strategic decisions is important. While strategic decisions define the overarching mission and long-term vision, tactical decisions bridge the gap by outlining the steps necessary to make those long-term aspirations a reality. Therefore, the emphasis on short-term goals is what makes tactical decisions pivotal in the operational context of an organization.