Routine and strategic decisions: Tactical or routine decisions are made repetitively following certain established rules, procedures and policies. They neither, need the gathering of recent information nor conferring with individuals. Thus they can be taken without much deliberation. They might be complicated but are always one dimensional. They do not require any special effort by the manager. Such decisions are generally taken by the managers at the middle and lower management level. Strategic or basic decisions, on the other hand, are more important and so they are taken generally by the top management and middle management. The higher the level of a manager, the more strategic decisions he is required to take. The strategic decisions related to policy matters and so require a thorough fact-finding and analysis of the possible alternatives. Finding the correct problem in such decisions assumes great importance. The managers are more serious about such decisions as they influence the decision making at the lower levels.
Programmed and non-programmed decisions: The programmed decisions are of routine and repetitive natures which are to be dealt with according to a specific procedure. But the non-programmed decisions arise because of unstructured problems. There is no definitive Procedure for handling such troubles. For example, if an employee absents himself from his work for a long time without any intimation the supervisor need not refer this matter to the chief executive. He can deal with such an employee according to the standard procedure which may include charge sheet, suspension, etc. But if a large number of employees absent themselves from work without any information such a problem cannot be dealt with in a routine manner. It has to be dealt with as an unstructured problem and the decision should be taken by the chief executive. Non-programmed decisions require a thorough study of the problem and scientific analysis of the situational factors. There has to be an adequate probing analysis of various alternatives before taking such decisions.
Policy and operational decisions: Policy decisions have significant importance and are taken by the highest management. They affect the entire enterprise. But operating decisions are taken by the lower management in order to put into action the policy decisions. For example, a bonus issue is a policy matter which is decided by the top management, but the calculations of bonus is an operating decision which is taken at the lower levels to execute the policy decisions.
Organizational and private selections: Organizational decisions are those which a manager takes in his official capability. Such decisions can be delegated. But, personal decisions, which relate to the manager as an individual and not as a member of the organization, cannot be delegated.
Individual and cluster decisions: once a choice is taken by an individual within the organization, it’s called an individual decision. Such decisions are generally taken in small organizations and in those organizations where the autocratic style of management prevails. Groups or collective decisions refer to the decisions which are taken by a group of organizational members, say Board of Directors or Committee.