The decision making process can be stressful because people view it differently, but decisions are an important part of the group life. Top level management is required to pay attention to problems that are existing and that may crop up in future. Decision making is an intellectual process of selecting optimal and best option among many alternative choices. Strategic decisions generally involve lengthy deliberations and also may have much impact on the functioning of the business concern. Policy decisions are those which relate to the basic policies of the organization and these are taken by the top management or board of directors. Such decisions are known as individual decision-making techniques. He implements this decision in his home and sets right his personal life. <>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 595.32 842.04] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>>
Board of Directors, which represent the highest decision-making body, is an example for group decision making. (a) Organizational and Personal Decisions: Organizational decisions are made by the business executive in the interest of the organization to fulfill its goals and objectives. On the other hand, if the enterprise receives unusually very large orders for its products in any particular year, it would constitute a problem involving non-programmed decision. This decision does not reflect the functioning of an organisation. Non-programmed decision are non-repetitive in nature and are made by top level management as they require commitment of organizational resources and the effect will be seen in long period. Basic (Strategic and Routine) Operational Decisions: 3. The decision-maker takes a decision and implements it for effective functioning of organisation and it is called organisational decision. There is no possibility and time for the decision-maker for getting through investigation while taking a crisis decision. For handling such large orders, the sales department may take the guidance of board of directors, since it has to deal with the problem which is non-repetitive and for which no definite procedure has been laid down. Decisions made by a single individual are called individual decisions. Capital formation, new methods or techniques of production, new production line, closing any unit, rules, methodology of working etc. Routine and Basic Decision Making. Many a time these decisions have long-term consequences; as such the higher level management team makes them. Such decisions are generally taken in small organisations and in those organisations where autocratic style of management prevails. These decisions are known as unstructured or un-programmed decisions. A decision which relates to day-to-day operation of an organisation is known as operative decision. Welcome to EconomicsDiscussion.net! Non-programmed decisions are not routine in nature. Naturally strategic decisions are taken by the group. The Non-programmed decisions include problems like change of product line, opening of branch of the organization etc. 6,�]d���=�*R"-�ݙ3mY$�U��UտG?E�G%�k�&굊��������_}V�/����_�/?E�2o��mQWѧߢ�ߨBE*���f�p�>�;�����آk��P�G���O��QE�N&�|�5�G�oQ�Ct��~w��wz�~�>�@��P�d�TE���M��F�fGꢚ�l�dy�6%~9���L�������;�h��#y����/+�*Ŭ������t Crisis and Intuitive and Research Decision: 7. But in joint stock Company’s group decisions are common. THERE ARE SEVERAL TYPES OF GROUP DECISIONS: 0000002725 00000 n
Privacy Policy3. %PDF-1.5
When a decision is taken by an individual in the organisation, it is known as individual decision. Some of the types of decision making are:-, 1. $#نP^)��V�h�*-æ�?� ���#�iVݒHS�5�Ӽ�m�X[����m��*K��%�������u��/�K�SE�a6Z�6'yZVaۼ����~�|���UZW'� �*��U��Xa�$X�P�v�d�K�|�m)���(�{������d��9�m����^��+�R%�/��i�3��$U�'�l�&a��"Kň�2ڶH���q%Kʼn;�KP��-A���lg��E�m��|��>��봒��'�}�/�p���Z��E?o�6�6��¯��jArq���>!��f�E��R�A?���p�����>~��_��6����BjP^��?��Ǐ���>O�F,���0�o��7O괖����K0�E� In case decisions are made to meet the current period demand/requirement, whose effect is felt during some future period are known as strategic decisions. It denotes the decisions relating to day to day operations of business. For instance, if an employee absents himself from his work for a long time without any intimation, the supervisor need not refer this matter to the chief executive. group?“, and will then be assigned a working group. Lower level managers have to face situations arising during the course of working. They influence the functioning of an organization. 3 0 obj
The decisions made to meet the day-to-day operations of an organization, which are well structured and repetitive in nature, are known as routine decisions. Strategic or basic decisions, on the other hand, are more important and so they are taken generally by the top management and middle management. It is programmed through policies, rules and procedures. Organisational Decisions 11. This type of decision is taken by middle level management people normally. For example, deciding to grant leave encashment benefit to employees is a policy decision whereas calculating the amount due to each employee because of the leave encashment benefit is an operating decision. Enterprise decisions are those which are taken at a higher level, i.e., Managing Director or Board of Directors. Inter-departmental decision making is for those decisions which are taken by the higher authorities/chairpersons/representatives of two or more departments of the organizations, after mutual deliberations. Preferences and Decision Making 4. The decision-maker is a member of an organisation while taking an individual decision. Requires high degree of executive judgement and recalibration. endobj
Usually, routine decisions do not require lengthy deliberations and such decisions are taken in a routine way. For these decisions, the situation is not well structured with ambiguous information and vogue goals. Tactical decision making is of routine nature, related to the normal day to day activities and is of relatively lesser significance.