Professional Documents
Culture Documents
Lingayas Vidyapeeth
Programmed Decisions:
• Programmed decisions are normally repetitive in nature.
• Easiest to make
• Usually these decisions are taken in consultation with the existing
policy, rule or procedure.
• Ex: making purchase orders, sanctioning of different types of leaves,
increments in salary etc.
NON-PROGRAMMED:
Non-programmed Decisions: unusual situations that have not been often addressed
No rules to follow since the decision is new
These decisions are made based on information, and a manger’s intuition, and
judgment
>Example: Should the firm invest in a new technology?
II. OPERATIONAL AND STRATEGIC DECISIONS
Operational Decisions:
• Operational or Tactical decisions relate to the present.
• The primary purpose is to achieve high degree of efficiency in the company’s
ongoing operations.
• Ex: Better working conditions, effective supervision, better maintenance of the
equipment etc.
• The focus in the operational decisions is on the short-run.
Strategic Decisions:
• Expanding the scale of operations, entering new markets, changing the product
mix, shifting the manufacturing place from one place to other etc. Are strategic
in nature.
• Such decisions will have far impact on the organization.
• Strategic decisions require extensive deliberations and huge resources and are
taken by top level managers.
• It is on the long-run in the case of strategic decisions.
STRATEGIC DECISIONS:
III. ORGANIZATIONAL AND PERSONAL DECISIONS
Organizational Decisions:
• Decisions taken by managers in the ordinary course of business in their
capacity as managers relating to the organizational issues are
organizational decisions.
• Ex: Decisions regarding introducing a new incentive system, transferring
an employee, reallocation etc. Are taken by managers to achieve certain
objectives.
Personal Decisions:
• Managers do take some decisions which are purely personal in nature.
However, their impact may not exactly confine to their selves and they
may affect the organization also.
• Ex: The manager’s decision to quit the organization, though personal in
nature, may impact for the organization.
PERSONAL DECISION:
IV. INDIVIDUAL AND GROUP DECISIONS
Individual Decisions:
• It is quite common that some decisions are taken by a manager
individually while some decisions are taken collectively by a group of
managers.
• Individual decisions are taken where the problem is of routine nature.
Group decisions:
• Important and strategic decisions which have a bearing on many
aspects of the organization are generally taken by a group.
• Group decision making is preferred these days.
• It contributes for better coordination among the people.
CHARACTERISTICS OF DECISION MAKING
“Listen to advice and accept instruction, and in the end you will be wise.”
THE DON'TS OF SUCCESSFUL DECISION-MAKING INCLUDE-
· Don't feel pressured to make a decision too quickly. Good decisions need to be made
once all the necessary information has been gathered and critically analyzed.
· Don't doubt your ability. Making a strong decision can be hard. It can have negative
effects on those involved, making it hard to remain confident in your ability to make the
best decision. However successful decisions .ing about beneficial change and progress, even
if in the short-term they can seem unpopular.
· Don't procrastinate. Most decisions are made with the desire to make the "right" and
"best" choice. This can lead to hesitation and procrastination. However, delaying a choice
through hesitation can often do more damage. A choice made with strength and conviction
will often result in success.
· Don't make a decision influenced purely by your emotions. Although there is definitely
a place for emotional decision-making, making a choice when one is feeling angry,
threatened or another strong form of emotion often leads to a lack of rationale and clarity.