Classes of Decision in An Organization

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CLASSES OF DECISION

IN AN ORGANIZATION
Classes of Decision in an Organization
1. Programmed and Non-Programmed Decisions
2. Operational and Strategic Decisions
3. Organizational and Personal Decisions
4. Major and Minor Decisions
5. Individual and Group Decisions
6. Tactical and Operational Decisions
1. Programmed and Non-Programmed
Decisions
• Programmed decisions are routine in nature and repetitive in
nature. These decisions deal with common and frequently
occurring problems in an organization.
• Non-programmed decisions are not routine or common in
nature. These are related to exceptional situations in which
guidelines or routine management is not set.
2. Operational and Strategic Decisions
• Operational decisions are just the normal functioning of the
organization. These decisions do not require much time and take
a shorter time as compared to other decisions taken.

• Strategic decisions are the decisions that are concerned with


whole environment in which the firm operates, the entire
resources and the people who form the company and the
interface between the two. Strategic decisions are taken by top-
level management.
3. Organizational and Personal Decisions
• Ifthe decision is taken collectively keeping in mind the
organizational goal, it is known as the organization decision.
• Ifthe manager takes any decision in the personal capacity
(affecting his/her life). It is known as personal decisions.
4. Major and Minor Decisions
• These are classified as the type of decision-making in
management where decision-related to purchase of new
premises is a major decision. These are taken by top
management whereas the purchase of stationery is a minor
decision. Minor decisions can be taken by the superintendent.
5. Individual and Group Decisions
• When the decision is taken by an individual, it is categorized as
an individual decision.

• Group decisions are taken by a group of individuals in the form


of a standing committee.
6. Tactical and Operational Decisions
• Decisions that are relating to various policy matters in the
organization are known as policy decisions. These are taken by top
management and do have a long-term impact on the organization.

• Operational decisions are all day-to-day decisions that need to be


taken for the proper functioning and operation of the organization.
These can be taken by middle or lower-level managers.
THANK YOU

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