DECISION

MAKING

Submitted by:
Ankita Suri (IT & Telecommunication
Mgmt.)
Decision making refers to
making choices among
alternative courses of action
—which may also include
inaction. 

A process of identifying
problems and opportunities
and resolving them
CLASSIFICATION OF DECISIONS
Decisions

Nature Scope

Structured Unstructured
Strategic Operatopnal

Semi Tactical
-Structured
 STRUCTURED DECISIONS
• made under the established situations
• programmable decisions and they are
preplanned
• situations which are fully understood
• generally made for routine tasks, specified
processes like specialized manufacturing
processes
 SEMI-STRUCTURED DECISIONS
• A system of Structured and Unstructured sub-processes

• SUBWAY® chain adapts its menu to allow for religious and

cultural needs in international markets
• For instance, in India, where the population is either Hindu and
does not eat beef or Muslim and does not eat pork, these
ingredients are appropriately substituted with chicken, lamb or
turkey.
 UNSTRUCTURED DECISIONS
• made under the emergent situation
• creative and they are not preplanned
• situations are uncertain and unclear
• Made for a sudden one-shot kind of
situations, general processes
For example, in 2005 McDonald’s Corporation became aware
of the need to respond to growing customer concerns
regarding the unhealthy aspects (high in fat and calories) of
the food they sell. This is an unstructured decision, because
for several decades, customers of fast-food restaurants were
more concerned with the taste and price of the food, rather
than its healthiness. In response to this problem, McDonald’s
decided to offer healthier alternatives such as the choice to
substitute French fries in Happy Meals with apple slices and
in 2007 they banned the use of trans fat at their restaurants.
 STRATEGIC DECISIONS

Are usually infrequent e.g. annually but can have a

huge impact on the organisation.
For example
• Select a Market
• Acquire a Company
• Recruit additional staff

The data used to drive these types of decision is

usually found external to the organisation.
e.g. market research reports, press releases 
 TACTICAL DECISIONS
Are more frequent e.g. weekly, monthly.
Examples would be:
• Change product pricing
• Reschedule work
• Re-organise a department

The impact of these types of decision is of a medium nature in

terms of risk to the organisation and impact on profitability.

The data used to drive this type of decision is usually found in

summaries of routine transactions e.g. sales orders from the
next level or classification.
 OPERATIONAL
OR ROUTINE DECISIONS
Are usually very frequent e.g. hourly, daily but can
have a lesser impact on the organisation.
For example
• How to answer a sales enquiry
• Approve a quotation
• Approve an Invoice

The data used to drive this decision type is usually

prescribed or defined in the procedures and rules of
the organisation. 
 Structured Semi-Structured Unstructured

Strategic

Tactical

Operational
CERTAINTY, RISK, UNCERTAINTY, AMBIGUITY
● Certainty
● all the information the decision maker needs is fully available
● Risk
● decision has clear-cut goals
● good information is available
● future outcomes associated with each alternative are subject to chance
● Uncertainty
● managers know which goals they wish to achieve
● information about alternatives and future events is incomplete
● managers may have to come up with creative approaches to alternatives
● Ambiguity
● by far the most difficult decision situation
● goals to be achieved or the problem to be solved is unclear
● alternatives are difficult to define
● information about outcomes is unavailable
POSSIBILITY OF DECISION FAILURE
Rational Decision-Making Model
 TELECOMMUNICATIONS CONSULTANTS
INDIA LTD (TCIL)

•A Premier telecommunication
consultancy and engineering
company 

•The decision making process

in the company involves the
following channel: