But personal decisions, which relate to the manager as an individual and not as a member of the organisation, cannot be delegated. Organisational decisions are those which a manager takes in his official capacity. For instance, the bonus issue is a policy matter which is to be decided by the top management, and calculation of bonus is an operating decision which is taken at the lower levels to execute the policy decision. But operating decisions are taken by the lower management in order to put into action the policy decisions. Policy decisions are of vital importance and are taken by the top management. The managers are more serious about such decisions as they influence decision-making at the lower levels. Finding the correct problem in such decisions assumes great importance. The strategic decisions relate to policy matters and so require a thorough fact finding and analysis of the possible alternatives. The higher the level of a manager, the more strategic decisions he is required to take. Strategic or basic decisions, on the other hand, are more important and so they are taken generally by the top management and middle management. Such decisions are generally taken by the managers at the middle and lower management level. They do not require any special effort by the manager. They may be complicated but are always one-dimensional. ![]() Thus, they can be taken without much deliberation. They neither require collection of new data nor conferring with people. Tactical or routine decisions are made repetitively following certain established rules, procedures and policies. Types of Decision Making – Routine, Strategic, Policy, Operating, Organisational, Personal, Programmed, Non-Programmed, Individual and Group Decisionsĭecisions may be classified according to different bases which are discussed below: Type # 1. Group decision making is preferred these days because it contributes for better coordination among the people concerned with the implementation the decision. Individual decisions are taken where the problem is of routine nature, whereas important and strategic decisions which have a bearing on many aspects of the organization are generally taken by a group. For example: the manager’s decision to quit the organization, though personal in nature, may create some problems for the organization. However, their impact may affect the organization also. On the other hand, managers do take some decisions which are purely personal in nature. Better working conditions, effective supervision, prudent use of existing resources, better maintenance of the equipment, etc. The main purpose is to achieve high degree of efficiency. ![]() Operational or tactical decisions relate to the present issues or problems. ![]() Many of the decisions that managers at top levels make are non-programmed decisions. ![]() These problems have to be handled in a different way. For example- Issues relating to declining market share, increasing competition, etc. They are related to exceptional situations for which there are no established procedure. Non-programmed decisions are not routine in nature. Managers in dealing with such issues of routine nature, follow the established procedures. For example: making purchase orders, sanctioning of different types of leave, increments in salary, etc. These decisions are taken based on the existing policy, rule or procedure of the organization. Such decisions deal with simple, common, frequently occurring problems that have established procedures. Programmed decisions are repetitive in nature.
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