There are many types of decisions which would be required to make as a manager. Three most widely recognised classifications are:
1. Personal and Organisational Decisions
2. Basic and Routine Decisions
3. Programmed and Non-programmed Decisions
1. Personal and Organisational Decisions
the basic difference between Personal and Organisational decisions is that "personal decisions cannot ordinarily be delegated to others, whereas organisational decisions can often if not always be delegated" .
Thus, the manager makes organisational decisions that attempt to achieve organisational goals and personal decisions that attempt to achieve personal goals. The personal decisions can affect the organisation, as in the case of a senior manager deciding to resign. However, if we analyse a decision, we may find that the distinctions between personal and organisational decisions are a matter of degree. We are, to some extent, personally involved in any organisational decision that we make and we need to resolve the conflicts that might arise between organisational and personal goals.
2. Basic and Routine Decisions
Another common way of classifying types of decisions is according to whether they are basic or routine. Basic decisions are those which are unique, one-time decisions involving long-range commitments of relative permanence or duration, or those involving large investments. Examples of basic decisions in a business firm include plant location, organisation structure, wage negotiations, product line, etc. In other words, most top management policy decisions can be considered as basic decisions.
Routine decisions are at the opposite extreme from basic decisions. They are the everyday, highly repetitive, management decisions which by themselves have little impact on the overall organisation. However, taken together, routine decisions play a tremendously important role in the success of an organisation.
Examples of, routine' decisions are an accountant's decision on a new entry, a production supervisor’s decision to appoint a new worker, and a salesperson's decision on what territory to cover. Obviously, a very large proportion of the decisions made in an organisation are of the routine variety. However, the exact proportion of basic to routine types depends on the level of the organisation which the decisions are made.
3. Programmed and Non-programmed Decisions
The difference between Programmed (routine, repetitive) decisions and Non-programmed (unique, one-shot) decisions. While programmed decisions are typically handled through structured or bureaucratic techniques (standard operating procedures), non-programmed decisions must be made by managers using available information and their own judgement. As is often the case with managers, however, decisions are made under the pressure of time.
An important principle of organisation design that relates to managerial decision making is Gresham's Law of Planning. This law states that there is a general tendency for programmed activities to overshadow non-programmed activities. Hence, if we have a series of decisions to make, those that are more routine and repetitive will tend to be made before the ones that are unique and require considerable thought. This happens presumably because you attempt to clear our desk so that we can get down to the really serious decisions.
1. Personal and Organisational Decisions
2. Basic and Routine Decisions
3. Programmed and Non-programmed Decisions
1. Personal and Organisational Decisions
the basic difference between Personal and Organisational decisions is that "personal decisions cannot ordinarily be delegated to others, whereas organisational decisions can often if not always be delegated" .
Thus, the manager makes organisational decisions that attempt to achieve organisational goals and personal decisions that attempt to achieve personal goals. The personal decisions can affect the organisation, as in the case of a senior manager deciding to resign. However, if we analyse a decision, we may find that the distinctions between personal and organisational decisions are a matter of degree. We are, to some extent, personally involved in any organisational decision that we make and we need to resolve the conflicts that might arise between organisational and personal goals.
2. Basic and Routine Decisions
Another common way of classifying types of decisions is according to whether they are basic or routine. Basic decisions are those which are unique, one-time decisions involving long-range commitments of relative permanence or duration, or those involving large investments. Examples of basic decisions in a business firm include plant location, organisation structure, wage negotiations, product line, etc. In other words, most top management policy decisions can be considered as basic decisions.
Routine decisions are at the opposite extreme from basic decisions. They are the everyday, highly repetitive, management decisions which by themselves have little impact on the overall organisation. However, taken together, routine decisions play a tremendously important role in the success of an organisation.
Examples of, routine' decisions are an accountant's decision on a new entry, a production supervisor’s decision to appoint a new worker, and a salesperson's decision on what territory to cover. Obviously, a very large proportion of the decisions made in an organisation are of the routine variety. However, the exact proportion of basic to routine types depends on the level of the organisation which the decisions are made.
3. Programmed and Non-programmed Decisions
The difference between Programmed (routine, repetitive) decisions and Non-programmed (unique, one-shot) decisions. While programmed decisions are typically handled through structured or bureaucratic techniques (standard operating procedures), non-programmed decisions must be made by managers using available information and their own judgement. As is often the case with managers, however, decisions are made under the pressure of time.
An important principle of organisation design that relates to managerial decision making is Gresham's Law of Planning. This law states that there is a general tendency for programmed activities to overshadow non-programmed activities. Hence, if we have a series of decisions to make, those that are more routine and repetitive will tend to be made before the ones that are unique and require considerable thought. This happens presumably because you attempt to clear our desk so that we can get down to the really serious decisions.