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Definition
Types of decisions
Programmed Non-Programmed Strategic Tactical
Decision
A decision represents a judgment; a final
resolution of a conflict of needs, means or goals; and a commitment to action made in face of uncertainty, complexity and even irrationally.
In the final analysis, managers are paid for doing only one thing-making decisions. In fact the job of managing is the job of making decisions.
Decision making is a process of identifying a set of feasible alternatives, and from these selecting the best course of action.
James stoner defines DM The process of identifying & selecting a course of action to solve a specific problem.
Programmed Decisions
Programmed decisions are comparatively easy to make as these relate to the problems which are solved by considering internal organisational factor.
Strategic Decisions
Strategic decisions is a major choice of actions concerning allocation of resources & contribution to the achievement of organisational objectives. Affects the whole or major part of the organisation The strategic decision has 3 elements: Course of action A desired result A commitment which directs some part of organization to undertake the course of action, makes the personnel involved responsible for attaining the objective & allocates resources to them, commitment element.
Tactical Decisions
Derived out of strategic decision Relates to day to day operations of the organisation & has to be taken frequently. E.g. purchase of raw materials, assigning duties to employees etc.. Tactical decision is mostly a programmed one. The out-come of tactical decision is of short-term nature E.g. purchase of raw materials in routine manner will affect production deptt for a short period because raw materials are purchased very frequently in the context of well set policies.
Follow-up
Implementation
"It is not enough to have a good mind. The main thing is to use it well."
References:
1. Principle & practices of management LM Prasad