9 important classifications of decisions



9 important classifications of decisions

1. Environmental Decisions:

This type of decisions has its primary objective, as the integration of internal, intermediate and external environment into a cohesive whole, which is total environment. The achievement of this objective enables an organisation to serve its membership better, most economically and efficiently.

The framework that is provided for the development of this type of decisions has its basis 'desired' results, rather 'actual' results. These decisions have a great impact on decisions regarding the organization's manifold objectives.

2. Objective Design Decisions:

Designing and formulation of objectives that permeate throughout the entire organisation is the job of general service level managers whose main function and responsibility is to direct the overall efforts of the organisation.

The general service level manager concentrates on the designing and formulation of their overall decisions for their organisation and takes action to see that in implementation of these decisions, as applicable at all levels and act accordingly.

It is emphasized that decisions made and applied at each service level in the organisation should be helpful in avoiding errors rather than correcting them later, subject to competency and the authority to take necessary action to bring back the desired accomplishment.

3. Output Evaluation Decisions:

Organization's environmental net-work matters considerably in decisions made as the result of output evaluation. Such decisions need to be made thoughtfully keeping in view they do not bring any difficulty and harm to anybody.

4. Objective Decisions:

Decisions as a result of due deliberations and careful consideration of factors and forces pertinent to the issue or the problem to be solved are termed as objective decisions.

5. Subjective Decisions:

Those decisions made in an organisation without conscious mental effort are called subjective decisions.

6. Programmed or Routine Decisions:

Programmed or routine decisions are those which do not require much deliberation on the problem which are repetitive in nature. In the event of the occurrence of a particular problem, routine procedure is usually followed for solving it. Traditionally this type of decisions has been handled through established rules, policies and standard operating procedures.

7. Non - Programmed Decisions:

In this category of non-programmed decisions lie those decisions which are of novel - with much uncertainty regarding outcome, and unstructured nature in that there are no-set rules, policies and procedures in handling the problem and also that they have arisen in a situation and in the manner never witnessed before.

Non-programmed decisions traditionally have been handled primarily through general problem - solving processes judgment, Institution and hunch methods and creativity.

8. Organisational and Personal Decisions:

Personal decisions are those which an executive makes in his individual capacity and not as a member of the organisation. There may be occasions when he makes choices, involving his own actions.

No delegation is possible in case of personal decisions unlike in the matter of organisation or the part thereof he manages to make decisions effectively. In this decision-making process, it is the activity of his subordinates that counts but not the less, is the responsibility of the executive.

9. Strategic Decisions (Financial, Production, Sales and Personnel):

The most important type of decisions is the strategic ones, which are of paramount importance to the enterprise. These are of long - range in character.