Types of Decisions Managerial decisions can be classified into following categories: 1.

Programmed and Non- programmed Decisions: According to Herbert Simon, programmed decisions are concerned with relatively routine and repetitive problems. Information on these problems is already available and can be processed in a preplanned manner. Such decisions have short-term impact and are relatively simple. They are therefore made at lower levels of management. Decision rules and procedures are established to save time and effort and these decisions require little thought and judgment. The decision maker identifies the problem and applies the predetermined solution. For example, if an employee is habitually late, he can be easily dealt with under established procedure. Non Programmed decisions deal with unique or unusual problems. Such non repetitive problems cannot be tackled in a predetermined manner, therefore high degree of judgement and delibration is required to solve them. Some examples of these decisions are location of plant, takeover of sick mill, opening of new branch, development of a new product etc. 2. Routine and strategic decisions : Routine or operating decisions are of repetitive nature. They involve short term commitments and have minor impact on the future of organization. These decisions relate to day to day operations of business and usually standard procedure are established to make such decisions quickly. These decisions are usually made lower level of management. For example, a supervisor can decide whether an employee is entitled to overtime pay or not. Strategic or policy decisions involve long term commitments and large investments These exercise a permanent influence on the future of organization as a whole. Much deliberation and judgement are required because such basic decisions deal with unique problems and policy issues. Therefore these decisions are made at higher level of management. For example, launch of a new product. 3. Organisational and Personal Decision: Organisational decisions are made to by managers in their official capacity to further the interest of an organization. They ar based on rationality, judgement and experience and may be delegated to lower levels. These decisions affect the functioning of an organization. Personal Decisions are made by managers as individuals and on their own behalf and they cannot be delegated. Such decisions affect personal life of managers but may affect the organization directly or indirectly, For example decision of a manager to retire early may have a direct impact on the company. 4. Individual and Group decisions: Individual decisions are taken by a single individual. These are concerned mainly with routine problems for which broad policies are available. In such decisions, analysis of various is relatively simple.

Group Discussions are taken by the group of persons specially constituted for this purpose. Decisions taken by the Board of Directors or a committee are examples of group decisions. Such decision making usually results in a more realistic and well balanced decisions and encourages participative decision making. But it is time consuming and makes it difficult to fix a responsibility for the decisions.