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Making a decision is the process of deciding amongst numerous options, which can include inaction. While decision-making is a crucial aspect of management, 50% of managers’ decisions in organisations fail. As a result, improving your decision-making efficacy is a critical component of increasing workplace productivity.
Categories of Decision Making
1. Routine and Basic Decision Making
2. Personal and Organizational Decision Making
3. Individual and Group Decision Making
4.Policy and Operating Decision Making
5.Programmed and Non-Programmed Decision Making
6.Planned and Unplanned Decision Making
7.Tactical and Strategic Decision Making
8.Organizational, Departmental and Interdepartmental Decisions Making
Routine and Basic Decision Making
Routine decision making refers to decisions made in the course of an organization’s day-to-day operations that require little thought and counsel. These are monotonous in nature.
Basic decision making refers to decisions that are crucial to the organization’s survival and require extensive research, analysis, power, and critical thinking.
Personal and Organizational Decision Making
Personal decisions are those made by an individual in his or her personal capacity rather than as a member of the organisation, such as leave, dress, resigning from the organisation, accepting or rejecting promotions, and so on.
Organizational or institutional choices are made by executives or officers in their official capacity and may be delegated to other people.
These decisions have a direct impact on organisational behaviour.
Individual and Group Decision Making
When the size of the business unit is modest and the judgments to be made do not require extensive, detailed, or technical knowledge, the manager is usually the one to make the decisions.
Individual decision-making approaches are used to make such decisions.
Group decision-making approaches refer to decisions made by a group rather than a single person.
Participating decisions are also referred to as individual decision making.
Policy and Operating Decision Making
Top management or the board of directors make policy decisions that affect the organization’s basic policies.These kind of decisions are also known as management or fundamental decisions.
Operating decision making is mechanical in nature and pertains to decisions relating to the overall affairs of the organisation or enterprise.Because they aid in the execution of policy choices, such decision-making is also known as executive or current decision-making.
Programmed and Non-Programmed Decision Making
Nonprogrammed decisions are unique and lack clear parameters for achieving a solution, whereas programmed decisions are based on well-defined criteria. Managers can create rules and guidelines for automated judgments based on existing facts, allowing them to make speedy decisions.
Planned and Unplanned Decision Making
Planned decision making refers to decisions that have been prepared in advance and are based on the collection of facts, analysis, and scientific procedures.
Unplanned decision-making entails Such judgments are made without a plan, but are required due to the circumstances, difficulties, and opportunities.
Tactical and Strategic Decision Making
Tactical Decisions: These are the decisions that affect the day-to-day operations of a company. Day-to-day operations decisions that result from strategic decisions. It’s mainly pre-programmed. Policies, regulations, and procedures are used to programme it.
Example:
(a) The acquisition of raw resources.
(a) Determining overtime eligibility.
Strategic Decisions: A major decision of action involving resource allocation and contribution to the fulfilment of an organization’s goal. It is a huge decision that affects the entire organisation or a portion of it. Contributes directly to the achievement of the organization’s goal. It is a non-programmed judgement made in unknown circumstances.
Examples:
(a) Launch of a new product
(b) The new plant’s location.
Organizational, Departmental and Interdepartmental Decisions Making
Decisions affecting the operation of an enterprise’s entire department and its personnel are made at the departmental level. Department managers, the chairman, or management make such decisions.
The process through which one or more organisational units make decisions on behalf of the organisation is known as organisational decision making. The decision-making unit might be as small as a single person, such as a manager, or as large as the entire membership of the organisation.
Inter-departmental decision-making refers to conclusions reached following mutual consideration by higher authorities/chairpersons/representatives of two or more departments of an organisation.
Conclusion
The most important component of a manager’s job is making decisions. It’s the most important part of the planning process. Managers plan for a range of things, such as what goals their company will pursue, what resources they will use, and who will perform each critical task.
It is critical that the decisions made are successful in order for the organisation to function effectively. The quality and variety of decisions made over time are what make an organisation grow. An organization’s success is enhanced through high-quality and quick decision-making.
