Types Of Decisions

By: Ganesh Raman

 Organizations must make several types of
decisions related to the :
a. production of new products
b. purchase of machinery
c. investment in new projects and hiring
Individual or group of individual decisions makers
are responsible in making a decision based on the
available alternative.
Managers must make several types of decisions
under different conditions.
The types and quantity of information obtained
will influence the decisions made by managers
and the approach must be depends on current
situation.
 Are made based on the
a. policies
b. rules
c. Procedures
Every Organization has written and unwritten rules
that can be followed by managers and other
employees to make decisions on a routine basis.
The approach is useful for lower-level managers in
solving normal or routine problems related to rules,
policies or existing plans.
However, this approach limits the managers freedom
in making decisions.
For example, managers must refer established
organizational policies before making decisions and it
would incur a lot of time and costs.
 Are used to solve unique and extraordinary problems
and it suitable for solving problems that cant be
solved based on organizational policies.
This approach is used by top-line managers to solve
complicated and complex problems and managers
should have high conceptual skills in order to solve
such problems.
Examples of problems are
a. how to allocate resources efficiently
b.What needs to be done to products that fail in the
market.
a.How to increase the efficiency of the customer
service department.
 Once an individual moves to a higher level in the
management hierarchy, ability to make non
programmed decisions becomes important as most
decisions that are made are non programmed
decisions.
Due to this, most of the management training
programmes that are conducted by organizations aim
to increase the managers ability to make non
programmed decisions.