Answer to Question #318795 in Management for Nishtha

Question

Sateesh is a project manager in an IT company. He needs to deploy some additional

developers to be based on site. He has a meeting with the HR for the same and needs to

give a plan of resource deployment to the HR with clarity on how many new members vs

how many current developers can be deployed on site. Managers have to make many

decisions. Discuss various types of decisions managers typically make based on nature

of the decisions, level of the management or capacity.

Answer 1

1. Programmed And Non-Programmed Decision

Programmed decisions are routine and repetitive in nature. They involve common and frequently occurring problems in an organization such as buying behaviour of consumers, sanctioning of different types of leave to employees, purchasing decisions, salary increment.

Non-programmed decisions are not routine or common in nature. These are related to exceptional situations in which guidelines or routine management is not set.

2) Operational and Strategic Decisions

Operational decisions are just the normal functioning of the organization. These decisions do not require much time and take a shorter time as compared to other decisions taken. Ample of responsibilities are delegated to subordinates.  

Strategic decisions include all present issues and problems. The main idea is to achieve better working conditions, better equipment, and efficient use of existing equipment, etc. These all fall under this category. Usually, strategic decisions are taken by top-level management.

3) Organizational and Personal Decisions

If the decision is taken collectively keeping in mind the organizational goal, it is known as the organization goal, and if the manager takes any decision in the personal capacity (affecting his/her life). It is known as personal decisions. These decisions may sometimes affect the functioning of the organization as well. For example, if the employee has decided to leave the organization, it may affect the organization.

4. Major and Minor Decisions

These are classified as the type of decision-making in management where decision-related to purchase of new premises is a major decision. These are taken by top management whereas the purchase of stationery is a minor decision. Minor decisions can be taken by the superintendent.

5) Tactical and Operational Decisions

Decisions that are pertaining to various policy matters in the organization are known as policy decisions. These are taken by top management and do have a long-term impact on the organization. For example, decisions regarding the location of the plant or volume of production. These are tactical decisions. Operational decisions are all day-to-day decisions that need to be taken for the proper functioning and operation of the organization. These can be taken by middle or lower-level managers. For example, the Calculation of bonuses given to each individual is an operational decision and is performed by middle or lower-level managers.