Decision types in business
|Decision types in business|
|Methods and techniques|
There are various typologies of decision in business. One typology of decisions is related to the functions carried out by individual supervisors. One can speak of decisions concerning: salaries, supplies, marketing or accounting. An important feature of this division is to emphasize the importance of decisions made by the individual managers.
Overall typology of management decision
- Programmed - based on custom, procedure, routine
- Non-programmed: too rare to form the appropriate procedure
- Strategic, tactical, operational decision
- Individual decision - based on collective diagnosis, group thinking
Based on management functions typology by Henri Fayol there are following:
It is clear that the division of the decision depends on the particular typology of management functions.
Following table presents two-dimensional typology of decisions.
|Strategic decisions||Tactical decisions||Operating decisions|
|Type of problem||Directions of development for the company||Providing conditions for effective implementation of corporate objectives||Optimizing the use of company resources|
|The essence of the problem||The allocation of global resources, depending on the options provided by the environment||Acquisition, organization and resource development||The use of resources, supervision and control|
|Major decisions||Establishing goals and objectives in the strategy development, change the production profile, new investments, etc.||Determining the structure of authority and responsibility, defining principles of material management, changes in production and marketing, etc.||Determination of current tasks, the allocation of resources for their implementation, inventory optimization, etc.|
|The main objectives||Aims and objectives, strategy of diversification, strategies in the field of finance and administration, selecting methods of development||The organization and structure of information, accountability, resourcing and development, cash, tools and work objects, people||Operational objectives and tasks, organization of production and marketing, process control|
|General characteristics of the decision||Decisions centralized, unique, made from time to time||Decision made for solving conflicts between strategy and execution, to address conflicts between individual goals and objectives of the company||Decentralized decisions, repeatable, large number, varied, often taken|
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Author: Krzysztof Wozniak