The different types of decisions are as follows:
Programmed and Non-programmed Decisions
The decisions which are made routine, repetitive, well-structures situations with predetermined decision rules are known as programmed decisions. Normally, these types of decision are taken by the middle and lower level managers. They are related to policy and the rules of the management. Programmed decisions have very short-term impact. Granting leave to an employee, pricing ordinary customers’ orders, recording office supplies, purchase of materials required in the daily course of action, etc. are some of the examples of programmed decisions.
Non-programmed decisions are a decision which is non-repetitive in nature is known as non-programmed decisions. These kinds of decisions are taken by top executives. Non-programmed decisions don’t have ready-made courses of actions. The decisions of these problems are situational. They have to collect data, analyze them, forecast and prepare strategic plans. The creation of a marketing strategy for a new service represents an example of a non-programmed decision.
Major and Minor Decisions
The decisions which are relatively more important are known as major. The major decisions have long term impact like replacement of men by machine, diversification of existing product line, change the basis of overhead allocation in preparing departmental profit and loss account and so many others which are rare and have no precedents as guides.
The decisions which are less important are known as minor decisions. Just opposite of major decisions, minor decisions are those decisions which do not have long range impact. For example, minor decisions are related to storing raw materials.
Routine (tactical) and Basic (strategic) Decisions
The decisions which are related to day to day operations of the organization are known as routine decisions. These types of decisions are also known as tactical decisions. They can be taken quickly and are in repetitive in nature. They don't require much analysis and evaluation. For example, parking facilities, cafeteria services, deputing employees, etc.
Basic and strategic decisions are prepared by the top level of management for the formulation of the organizational rules, regulations, programs, etc. The basic decisions are vital for the survival of the organization. It has long term impact in the management. Therefore, much analysis is needed. A small mistake in the basic decisions may be the cause of business failure.
Organizational and Personal Decisions
Decisions which are related to the policy of the business and affect the organizational functions directly is known as organizational decisions. These types of decisions are taken by the top level management by considering his official authority. It has long term impact in the management.
Personal decisions are taken by an individual for the personal benefits rather than an organizational benefit. It has short term impact. These decisions are taken n the basis of personal skills, education, experience, knowledge and capacity of the individuals. The examples of personal decisions leave the organization to reduce the work load, etc.
Individual and Group Decisions
Individual decisions are those decisions taken by a single person without consultation, advice or discussion with anyone else. Generally, individual decisions are popular in small business organizations where managers believe in autocratic leadership. The decision of sole trading concern are taken by a sole trader is an example of individual decision.
Group decisions are taken jointly by a group of the person using their joint efforts. Decisions are taken by the board of directors, shareholders, interdepartmental decisions, etc. are some of the examples of a group decision.
Policy and Operating Decisions
Policy decisions are taken by the top level management with the involvement of high-ranking officers and legal advisor. Those decisions are taken to change the organizational rules, regulation, event, and producers. Policy decisions are most important decisions.
Operating decisions are taken by the operating level of management for the purpose of executing policy decisions. This type of decisions is taken by a middle or lower level of management. It has short term impact. Therefore, much analysis is not needed.