What are the five major types of decision-making?

After in-depth work on 1,021 of the responses, study authors Dan Lovallo and Olivier Sibony identified five decision-making styles. They are: Visionary, Guardian, Motivator, Flexible, and Catalyst.

What are the 5 key characteristics of a strategic decision?

Strategic decision making (SOM) is of great and growing importance because of five characteristics of strategic decisions (SOs): (a) they are usually big, risky, and hard-to- reverse, with significant long-term effects, (b) they are the bridge between deliberate and emergent strategy, (c) they can be a major source of ...

What are the 5 steps of the decision model?

The decision-making process includes the following steps: define, identify, assess, consider, implement, and evaluate . Today we're going to think together a little bit about the decision-making process.

What are the 5 P's of decision-making?

The Five Ps: It is a framework that can be applied at a number of different levels, from the individual through to an organisation. The Five Ps stand for: Profit, Proof, People, Place and Promise and highlight the full range of factors that impact on natural resources management decision making.

What are 5 examples of decision-making?

Most of these decisions dictate routine business operations. Examples include designing and manufacturing products; delivering services; marketing and sales; finance; procurement; logistics; and staffing and training . Workers at all levels of a business make these types of tactical operational decisions regularly.

What is the rule of 5 decision-making?

The five-second rule, in the context of productivity, refers to the principle of making decisions quickly and taking immediate action .

What are the 5 factors of decision-making?

The empirical results reveal that strategic decision-making abilities are affected by five factors: attention, memory, thinking, emotion, and sentiment , and whose influence mechanisms and degrees are varied.

What are the five strategic choices?

In our terms, a strategy is a coordinated and integrated set of five choices: a winning aspiration, where to play, how to win, core capabilities, and management systems. …

What are the five major process decisions?

They are process decisions, quality decisions, capacity decisions, inventory decisions, and supply chain deisions .

What are the five major decision areas?

Five Decision Areas However, one can analyze the operations function using 5 major decision responsibilities: process, capacity, inventory, work force, and quality . Process -- Make decisions about the physical production process, technology, and layout.

What are the 5 main strategic processes in management?

When everyone in the company understands the strategy, the strategic management process works best. The five stages of the process are goal-setting, analysis, strategy formation, strategy implementation and strategy monitoring .

What are the five key areas of strategy?

These five elements of strategy include Arenas, Differentiators, Vehicles, Staging, and Economic Logic . This model was developed by strategy researchers Donald Hambrick and James Fredrickson.

5 Types of Decisions You Should Know: Strategic, Group, and More (2024)

Decision Making

Decision-making is one of the core functions of management. And it is actually a very scientific function with a well-defined decision-making process. There are various types of decisions the managers have to take in the day to day functioning of the firm. Let us take a look at some of the types of decisions.

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Types of Decisions

Strategic Decisions and Routine Decisions

As the name suggests, routine decisions are those that the manager makes in the daily functioning of the organization, i.e. they are routine.

Such decisions do not require a lot of evaluation, analysis or in-depth study. In fact, high-level managers usually delegate these decisions to their subordinates.

On the other hand, strategic decisions are the important decisions of the firm. These are usually taken by upper and middle-level management. They usually relate to the policies of the firm or the strategic plan for the future.

Programmed Decisions and Non-Programmed Decisions

Programmed decisions relate to those functions that are repetitive in nature. These decisions are dealt with by following a specific standard procedure. These decisions are usually taken by lower management.

For example, granting leave to employees, purchasing spare parts etc are programmed decisions where a specific procedure is followed.

Non-programmed decisions arise out of unstructured problems, i.e. these are not routine or daily occurrences. So there is no standard procedure or process to deal with such issues.

Usually, these decisions are important to the organization. Such decisions are left to upper management. For example, opening a new branch office will be a non-programmed decision.

Learn more about Quantitative Techniques of Decision Making here in detail

Policy Decisions and Operating Decisions

Tactical decisions pertaining to the policy and planning of the firm are known as policy decisions. Such decisions are usually reserved for the firm’s top management officials. They have a long term impact on the firm and require a great deal of analysis.

Operating decisions are the decisions necessary to put the policy decisions into action. These decisions help implement the plans and policies taken by the high-level managers.

Such decisions are usually taken by middle and lower management. Say the company announces a bonus issue. This is a policy decision. However, the calculation and implementation of such bonus issue is an operating decision.

Organizational Decisions and Personal Decisions

When an executive takes a decision in an official capacity, on behalf of the organization, this is an organizational decision. Such decisions can be delegated to subordinates.

However, if the executive takes a decision in a personal capacity, that does not relate to the organization in any way this is a personal decision. Obviously, these decisions cannot be delegated.

Individual Decisions and Group Decisions

When talking about types of decisions, let us see individual and group decisions. Any decision taken by an individual in an official capacity it is an individual decision. Organizations that are smaller and have an autocratic style of management rely on such decisions.

Group decisions are taken by a group or a collective of the firm’s employees and management. For example, decisions taken by the board of directors are a group decision.

Solved Question onTypes of Decisions

Q: Strategic decisions need analysis and in-depth study. True or False?

Ans: This statement is True. A strategic decision is taken by top-level managers after a lot of analysis, study, and fact-finding. This is because such decisions will affect the entire functioning of the organization and are very crucial and significant in nature.

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