Decision Making: Types of Decision to Make in the Management Level

Learn the different types of decisions a leader or a manager makes.

As a leader or manager, you are constantly making decisions that affect the success of your team.

Following our Decision Making blog series, Decision Making: Understanding the Psychology and the Key Steps to Effective Decision Making, here we will tackle the types of decision managers or leaders have to make and deal with.

Here are four types of decision making managers or leaders face on a daily basis. Each with a detailed description and the desired outcome.

1.) Process Decisions

Any management job involves directing and coordinating various tasks in order to achieve organisational goals.

This involves coming up with the processes and procedures that will guide the execution of various projects.

Process management includes defining the steps that need to be taken in order to complete a task, as well as setting timelines and milestones.

It is also responsible for ensuring that all stakeholders adhere to the defined process.

Without effective process management, it would be impossible to achieve organisation-wide objectives in an efficient and timely manner. Consequently, every manager needs to be skilled in this essential component of their job.

When you're starting a project, it's important to have a clear idea of what you want the outcome to be. What are your goals and objectives? What are your deadlines and milestones?

Once you know what you're working towards, you can start to put together a team of people who can help you achieve it.

Each team member will have their own skills and expertise, and they'll be responsible for different aspects of the project.

It's important to choose the right people for the job, and to make sure that everyone is clear on their roles and responsibilities.

By doing this, you can ensure that your project runs smoothly and that everyone is working towards the same goal.

2.) Programmed Decisions

Programmed decisions are made based on existing protocols within the organisation.

These decisions are mostly repetitive and usually deal with simple, everyday, frequently occurring issues.

For instance, salary increments, performance reviews, processing purchase orders, sanctioning different forms of leave, and more.

Because they follow set procedures, programmed decisions tend to be more efficient and require less time and effort than non-programmed decisions.

However, they can also be inflexible and may not always produce the best results.

When faced with a complex problem or a situation that falls outside of the usual parameters, a programmed decision may not be the best course of action.

In these cases, it may be necessary to rely on non-programmed decisions in order to find a more effective solution.

The primary decision-making process in programmed decisions lies in creating the procedures and policies that must be followed. Hence, the name programmed.

3.) Strategic Decisions

Strategic decisions are an important part of any business's success. These decisions relate to the output of the business.

By definition, strategic decisions are made with the long-term goal of the business in mind.

This means that businesses must carefully consider their mission, vision and values when making these decisions.

On one hand, it is also important to ensure that short-term goals are met. This is because strategic decisions often have a ripple effect and can impact other areas of the business.

For example, a decision to invest in new technology may impact the workforce, or a decision to expand into new markets may require changes to the supply chain.

Therefore, it is essential that businesses take a holistic approach when making strategic decisions. By considering both long-term and short-term goals, businesses can make informed decisions that will help them reach their full potential.

4.) Tactical Decisions

Also known as operational decisions, relate to present issues an organisation or team faces.

The desired outcome of tactical decisions is to increase efficiency within the organisation.

Factors that influence operational decisions’ efficiency include the state of working conditions, levels of supervision, use of resources, and so on.

Tactical decisions are often made with a short-term focus on improving the here and now.

For example, a decision to switch to a just-in-time inventory system might be made in order to reduce inventory costs.

While this decision may have a positive impact in the short term, it could also lead to disruptions in the supply chain if not properly implemented.

As such, it’s important to consider both the short- and long-term impacts of tactical decisions before making them.

By taking a more holistic view, organisations can make operational decisions that improve efficiency in both the short and long term.

Making decisions is one of the most important aspects of being a leader.

The wrong decision can lead to disaster, while the right decision can propel a company forward.

In order to make informed decisions, leaders need to be aware of the different types of decisions they face and what outcome each type desires.

By understanding these four types of decisions and their desired outcomes, leaders will be better equipped to make positive choices that benefit their team and organisation as a whole.

If you would like more information on how we can help you with your managerial decision making process, please do not hesitate to contact us.

We are happy to provide our expertise and assistance in order for you to make the best possible decisions for your business.