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What Are the Different Types of Decision and How It Works?

by Aug 12, 2017Accounting

Decision making is the important part of every organization whether it is small scale or large scale. Every organization takes the decision at every point of time for the purpose of the managerial process. Decisions are made for the best improvement and success of the organization.
The main purpose of decision making in the organization is to lighten the future way. Whether it is strategic, HR or business activities the process of decision making must be complex and decision making must involve professionals of the different genre. With manuals as decision-making homework answers, you can get a better idea of this whole process.
Decision making in the small scale organization involves all the managerial levels, but in the large scale organization, the decision-making purely depends on the professionally trained team for decision making.
This blog clearly explains about the types of decision making homework answers. This blog is very useful for the students who are in search of clear-cut details about the decision making and types of decision making.
What is decision making?
As an integral part of modern day management, every manager has to take certain important decisions to save his or her company. Also, there are certain decisions that have to be taken for long term future prospects of the company.
The manager of the organization takes thousands of decision consciously or subconsciously, and decision making is the key component of every manager role. Decision making plays the vital role in determining the both managerial and organizational activities.
Decision making is choosing one of the best alternatives in the group of decisions to achieve the best results of an organization. The manuals as decision making homework answers will help you get a better idea of this whole process.
Decisions are made by the managerial levels for the smooth functioning of all business or organizational activities.  In every level of management, the decisions are made to achieve best results. The decision making is one of the important functional values that every business or organization adopts and executes to achieve the goals in terms of services or products that are offered by the business.
By following the above definitions by experts, the decision making is the process carried out by the committee of well-trained professionals to ensure the better function and achieve the preferred goals of the organization.
Other facets of this subject:
Decision making is the continuous activity done by the professionals to pervade all the other activities related to the organization. The decision maker of the organization must have the intellectual mind with scientific knowledge, skilled and have the good experience and mental maturity.
In another way, the decision making process keeps the growth of the organization balanced in both vertical and horizontal directions.  It is very well known that the goals, mission, and vision of every organization are the pre-set one.
To achieve the goals the company must face lots of challenges in operational, administrative and marketing levels. Therefore these types of problems are solved through effective decision making.
Decision making is the eternal process of every organization because if one problem is sorted there starts another problem. Finally, decision making is the continuous and important process of every organization. Decision making takes enough time to decide the best among the better one. In the management level decisions cannot be taken very easily or recklessly.
The decision maker must follow the steps to pick the better solution through his decision:

  • Defining or analyzing the problem
  • Collecting the information
  • Developing and comparing available choices
  • Sticking with the best option
  • Planning and executing the idea
  • Take the action

As discussed above decision making is not an easy process, decision making involves all the above steps to decide the best option, so it involves a lot of time to complete the process. This will; happen in every case whether it is the small business or large. These are very important steps to solve the managerial or administrative problems of the organization. Though the decision-making process is lengthy, the results will fruitful and lead to the success of the organization.
Types of decision making homework answers
The decision making of every organization involves six types they are:

  • Programmed decision and non-programmed decision

The programmed decisions are taken for the repetitive or routine problems. These type of decisions are generally taken by the lower level managers or supervisors. For example granting leaves to the employees or purchasing the raw materials etc. non-programmed decisions are taken for solving the difficult problems.
These decisions are very important for the smooth functioning of the organization. For example opening a new branch or launching a new product etc.

  • Routine and the strategic decisions

Routine decisions are taken for the general functioning of the organization. These type of decisions are taken quickly because they don’t need more time and analysis. While the strategic decisions are very important part of the organization and it highly affects the goals of the organization.
These types of decisions involve big investments. These types of decisions are non-repetitive once taken it must be implemented. Therefore the strategic decisions must be taken very carefully.

  • Tactical or operational decisions

These types of decisions are taken by top-level management, and these decisions have long-term impact on the organization. For example volume of production or deciding the location for the new plant etc. Operational decisions are related to the day to day functions and activities of the organization. Lower or the middle-level manager involve in decision making.

  • Organizational or personal decisions

When an individual person takes the decision at the executive level, it is known as the organizational decision. If an executive takes a decision in his personal capacity which affects his personal life, it is called as personal decision.

  • Major and the minor decision

Major decisions are taken at the top level management, for example, purchasing if new factory etc. minor decisions are taken by lower level staffs for example purchase of stationary etc.

  • Individual or group decisions

When a decision is taken by the single person, it is called as the individual decision. Whereas if the decision is taken by a group, it is known as the group decision.
In this article, the types of decision making homework answers are explained clearly. This will be very useful for the people who search for perfect details of the decision-making process and types of decision.