TYPES OF DECISION MAKING
There are many ways of classifying decision in an organization but the following types of decisions are of essence:
1. Tactical and Strategic Decisions
Tactical decisions are those which a manager makes repetitively by adhering to certain established rules, policies and procedures. They are usually delegated to lower levels in the organization. Strategic decisions influence the future of the business and involve the entire organization.
2. Programmed and Non-programmed Decisions
These decisions are of a routine and repetitive nature. The programmed decisions are basically of a routine type for which systematic procedures have been devised so that the problem may not be treated as a unique case each time it crops up. The non-programmed decisions are complex and deserve a specific treatment.
3. Basic and Routine Decisions
Basic decision are those which require a good deal of deliberation and are of crucial importance. These decisions require the formulation of new norms through deliberate and provoking process. Routine decisions are of repetitive nature and hence, require relatively little consideration.
4. Organizational and Personal Decisions
Organizational decisions are those which an executive takes in his official capacity and which can be delegated to others. On the other hand, personal decisions are those which an executive takes in his individual capacity but not as a member of organization.
5. Off-the-Cuff and Planned Decisions
Off-the-cuff decisions can be taken easily and may be directed towards the purposes of the enterprise, while planned decisions are linked to the objectives of organization. They are based on facts and involve the scientific process in problem solving.