Published by: Zaya
Published date: 13 Jun 2021
Managers need to take different decisions on the basis of time and requirements. The managerial decision may be divided into different types on a different basis which is discussed below:
Programmed decisions are routine and repetitive in nature. Managers can solve problems easily an in-depth without deep study by considering the past decision for similar problems. generally, such decisions are taken by first-line managers on the basis of the framework of policies, rules, regulations, and standard operating procedures of the organization.
Non-programmed decisions are known as unique or creative nature decision. They are novel and consequential in nature. In case of such a decision, there are no existing policies or standard operating procedures available to guide the decision-maker. Thus, non-programmed decisions deal with unusual and exceptional problems.
Routine decisions are related to the day-to-day operation of the organization. Such a decision is taken promptly and also implemented in a similar way. In regular activities of the organization, many repetitive problems may arise. The management has to solve such problems in proper time, by remaining within the rules and procedures of the organization. Such types of decisions are given by lower-level management to continue organizational activities.
Basic decisions are also known as a strategic decision. Such decisions are necessary for long-run survival and growth of business activities of the organization. Generally, top-level management is responsible for taking such types of decisions. For such decisions, creativity, through a study of future impacts, judgment, and intuition of management are necessary.
Organizational decisions are also known as formal or official decisions. In such decisions, the decision-maker has to consider his official authority before he comes to any decision. Besides, he has to fulfill all the official procedures, system and formalities for taking any decision. According to the requirement and situation, such authority can be delegated to other officials.
Personal decisions are known as an informal or individual decision. Such a decision is taken on the basis of personal skill, knowledge, and capacity of the individual. Such a decision does not affect the regular performance of the organization because they are made on the basis of personal interest, desire, and necessity of the decision-maker.
In individual decisions, a single person is involved in the decision making process like the general manager, departmental manager, etc. Here, the decision-maker has to consider organizational objectives and the working environment while taking decisions. For this, he has to use his personal knowledge, skill, idea, and experience to decide any matter.
In group decision, a group of persons is involved in the decision-making process like the board of directors, management committee, partners, etc. Such decisions are taken in a large organization like in joint-stock companies, partnership firms, co-operative organizations, etc. Generally, group decisions are made for a unique or creative nature of subject matters.
The policy decision is taken by the top-level management and has a long-term impact on organizational performance. These decisions involve the introduction of new rules, regulations, and programs, the amendment of existing rules, the introduction of new products or services, etc.
The operational decision is taken by lower-level management and is concerned with the day-to-day works of the organization. Such decisions are taken for the implementation of plans and policies formulated by top-level management.