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1. Operational function
2. Types of decision making
3. Level of management activity
1. Operational Function- the grouping or clustering of several functional units
on the basis of related activities into a sub systems is termed as operational
function. For example, in a business enterprise, marketing is an operational
function, as it is the clustering of several functional units like market
research, advertising, sales analysis and so on. Like wise, production finance,
personnel etc. can all be considered as operational functions.
2. Types of decision making- Organizational decision can be categorized as
programmed and non-programmed ones.
Programmed decisions : Programmed decisions refer to decisions made on
problems and situations by reference to a predetermined set of precedents,
procedures, techniques and rules. These are well-structured in advance and
are time tested for their validity. As a problem or issue for decision making
emerges, the relevant pre-decided rule or procedure is applied to arrive at
the decision. For example, in many organizations, there is a set procedure for
receipt of material, payment of bills, employment of clerical personnel,
release of budgeted funds, and so on.
Non-programmed decisions : are those, which are, made on situations and
problems which are novel and non-repetitive and about which not much
knowledge and information are available. They are non programmed in the
sense that they are made not by reference to any pre determined guidelines,
standard operating procedures, precedents and rules but by application of
managerial intelligence, experience, judgement and vision to tackling
problems and situations, which arise infrequently and about which not much
is known.