A decision is a choice made between 2 or more available alternatives.

Decision Making is the process of choosing the best alternative for reaching objectives.

Managers make decisions affecting the organization daily and communicate those decisions to other organizational members.

Some decisions affect a large number of organization members, cost a great deal of  money to Carry out, or have a long term effect on the organization. Such significant decisions can have a major impact, not only on the management systems itself, but on the career of the manager who makes them.

Other decisions are fairly insignificant, affecting only a small member of organization members, costing little to carry out, and producing only a short term effect on the organization.

TYPES OF DECISIONS:

PROGRAMMED DECISIONS

Programmed decisions are routine and repetitive, and the organization typically develops specific ways to handle them. A programmed decision might involve determining how products will be arranged on the shelves of a supermarket. For this kind of routine, repetitive problem, standard arrangement decisions are typically made according to established management guidelines.

NON PROGRAMMED DECISIONS:

Non programmed decisions are typically one shot decisions that are usually less structured than programmed decision.

5 ELEMENTS  OF THE DECISION SITUATION:

  1. The Decision Makers
  2. Goals to be served
  3. Relevant Alternatives
  4. Ordering of Alternatives
  5. Choice of Alternatives

DECISION MAKING PROCESS:

Decision making steps this model depicts are as follows:

  1. Identify an existing problem                                                                      
  2. List possible alternatives for solving the problem                       
  3. Select the most beneficial of these alternatives.                           
  4. Implement the selected alternative.                                                        
  5. Gather feedback to find out if the implemented alternative is solving the identified problem.

69 thoughts on “TYPES OF DECISIONS & DECISION MAKING PROCESS

  1. 1.effective communication is the live wire of all organization. Justify this statement. 2. There is no one way to manage. Explain

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  2. types of decisions are:
    Stuctured, unstructured and third one is semi structured decisions.
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  3. this article was very helpful to me, and it will also help others, i commend the writer he did a very nice job and i thank him/her. good write up.

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  4. Hello i am kavin, its my first time to commenting anyplace,
    when i read this article i thought i could also create comment due
    to this brilliant piece of writing.

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  5. I am Ebenezer Quayson,student of Fiaseman Senior High School.I suggest that,decision making is the Process of making a chioce from alternative actions in order to solve a stated problem or objective of a business.

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  6. Its good help me but someone teaches types of decision making are thee. Those includes personal and organisational,basic and routine,programmed and non programmed

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  7. other types of decision making can be Routine and strategic decisions,policy and operating decisions,Organisational and personal decisions.any one can prove me right or wrong.

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