What are the types of Decision?

Various types of decisions are taken by managements. Some of these are given below:-

1. Programmed Decisions
a. Very structured in the nature.
b. Are for short term
c. Work according to some of the norms that have been laid down.
d. The various situations of such a scenario are known.
e. Such Decisions are taken at the operating or the lower levels of an organization.
f. Are generally routine decisions.
g. Can be repetitive in the nature.
h. Certain particular procedure is needed to be followed.
i. The programmed Decisions can be taken with the help of the following techniques –
A. Habit
B. Computers
C. Operational research
D. Organizational Hierarchy or structure
E. Standard operating procedure

2. Non Programmed Decisions
a. New situations
b. Novel not cut
c. Dried
d. Very innovative in the nature
e. Long term
f. Strategic
g. Important and critical
h. Complex situations
i. The different techniques for taking the non programmed Decisions can be summarized as the follows –
A. Judgment
B. Intuition
C. Creativity
D. Business acumen
E. Training executives
F. Complex / specially designed computer programs.

The process of the Decision – Making
The whole process of the Decision – making needs to be very much accurate in the nature as only then the correct Decisions can be taken and ultimately then only the company or any department of the company can work properly and in an efficient manner. The process of the Decision – Making mainly involves the following set of the steps that are very much essential and need to be followed with great concentration.

The various steps are –
1. Determining the existence of the various problems.
2. Following this step with the generation of the alternative courses of the action.
3. Then one needs to analyze a particular course of the action.
4. After this, a particular course of the action is to be selected.
5. After this the implementation of that course of the action is to be done.
6. Following this step by the step, involving the monitoring and the following up.
7. Then at last, the course corrective action is initiated.

According to Griffin, the Decision – Making process consists of the following steps –
1. Recognizing and Defining the situation – An indication is provided by the stimulus suggesting to make a decision but a very critical point to be kept in mind here is that the stimulus can be either positive or negative in the nature.

2. Identification of the alternatives – It is very desirable that both the obvious alternatives and the creative alternatives become a part of the Decision – making.

3. Evaluation of the alternatives – It is very much necessary to evaluate each of the alternatives as with the help of this evaluation, one is able to get a complete knowledge about the feasibility, satisfactoriness of the various alternatives.

4. Selection of the best suited alternative – The best suited alternative is needed to be selected and this has to be done very carefully by keeping in mind the various situational factors.

5. Implementation of the chosen alternative – Once the suitable alternative is selected; it is then implemented in the system of the organization.

6. Following up and the evaluation – This step involves a great participation of the manager as he needs to work out and calculate the degree to which the alternative chosen in the above steps has worked.

What are the Styles of the Decision Making?
A decision can be taken at the various stages whenever it is required and the Decision can be made by the various functional executives of an organization. So it can be said that the Decisions can be –

1. Taken by the individual manager responsible for that particular department and work.
2. Can be consultative in the nature: – can further be either formal or informal in the nature.
3. The various group decisions can be taken with the help of the –
a. Co actions
b. Task groups
c. The interacting groups
d. Brainstorming
e. Delphi techniques
f. Nominal grouping technique
g. Consensus mapping