Question

What are different types of decisions and explain their administrational implications

Answer 1

Answer:

Decision making may be classified under various categories based on the scope, importance and the impact. Decisions have been classified by various authorities in various ways.

Some of the types of decision making are:-

1. Programmed Decisions 2. Non-Programmed Decisions 3. Operational Decisions 4. Organizational Decisions 5. Personal Decisions 6. Routine Decisions 7. Strategic Decisions

Types and Classification of Decision Making: Programmed, Organizational, Decision Handling, Policy, Individual and Others..

Types of Decision Making – 4 Types of Decisions that are Usually Taken by Managers in the Organization: Programmed, Non-Programmed, Operational, Strategic and a Few Others

Decision may be classified under various categories based on the scope, importance and the impact.

Answer 2

Decision may be classified under various categories based on the scope, importance and the impact. The 4 types of decisions that are generally taken by Managers in the Organization are explained below:

Explanation for the answer:

• 1. Programmed and Non-Programmed Decisions:
• Programmed Decisions: Programmed decisions are the decisions which are repetitive in nature. For example: making purchase orders, sanctioning different types of leave, increments in salary, etc. all can be done on a repetitive basis.
• Non-Programmed Decisions: Non-programmed decisions are not routine in nature. For example- Issues relating to declining market share, increasing competition, etc. are not done on a repetitive basis.
• 2. Operational and Strategic Decisions:
• Operational or tactical decisions are related to the present issues or problems. The main purpose of these decisions is to achieve a high degree of efficiency.
• Strategic Decisions involve expanding the scale of operations, entering new markets, changing the product mix, shifting the manufacturing facility, striking alliances with other companies, etc.
• 3. Organizational and Personal Decisions:
• Organizational decisions are the decisions which are taken by managers in the ordinary course of business in their capacity as managers.
• Personal decisions are the decisions which the managers do take as they are purely personal in nature.
• 4. Individual and Group Decisions:
• Individual decisions are taken where the problem is of regular or routine nature.
• Group Decisions are important and strategic decisions which have a bearing on many aspects of the organization are generally taken in a group.

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