Question

What are the different types of decisions, and how does the decision-making process work?

Answer 1

There are 5 major Types of decision :

1. Programmed and non-programmed decisions:

Programmed are concerned for the repeated nature problems whereas non-programmed related to difficult situations which is not easy to solve

2. Routine and strategic decisions:

Routine decision are types are taken on daily basis by the Manager for smoothly functioning

Strategic Decision : are related to strategic plan of future of any company .

3. Policy Decisions and Operating Decisions

Policy decision are the decisions regarding to the policy and planning of the organization

Operating Decisions are used to put policy decision into action

4. Organizational Decisions and Personal Decisions

When in official capacity any individual take any decision then it is called as Organizational Decisions

whereas when in personal capacity decision is taken then it is called as Personal decision

5. Individual Decisions and Group Decisions

These are the Type of decisions

Now lets discuss How decision-making process work?

There are basically 7 steps for making a decision

1. Identify the decision.
2. Gather relevant info
3. Identify the alternatives.
4. Weigh the evidence.
5. Choose among the alternatives.
6. Take action.
7. Review your decision.

Now lets learn about each step

Identify The decision : Before making any decision we need to decide what is the problem and what are effects of the problem .and how the decision will make a difference to affected parties

Gather relevant info. Decision are made based on facts and data of the problem so we need to collect as much information as possible . You need to think what type of data you might need in decision building and then  do an internal assessment, to collect the data

Identify the alternatives.Once you have all the information needed now it's time for identify the solution for the problem .It is better if more than one solution can be identified and then you can choose best one

Weigh the evidence.: In this step we need to “evaluate for feasibility, acceptability and desirability” to know which alternative is best . We need to decide pros and cons of each alternative then managers which has high probability of success

Choose among the alternatives : Now you are fully aware of each alternative and decided the path you will take so Now choose the correct decision

Take action: Now once you have decided the decision so now you took time to develop a plan to make your decision tangible and achievable. So now deploy the team to identify what resources are required for implementation and make your self prepared for any questions or problem that may arise

Review your decision: All the required steps to make a new decision are done so now just go back and answer whether the Problem is solved , did we meet the goals , was the decision effective and problems that were faced during the process so that it can prevented in future

So this was the Whole process of decision making

In this answer we learn about various types of decision making and discussed the decision making process

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