There are several types of managerial decisions including: Programmed decisions which follow set procedures and non-programmed decisions which deal with unusual problems. Major decisions involve large expenditures while minor decisions involve small routine purchases. Routine decisions are repetitive and operational, while strategic decisions are long-term policy matters that require careful analysis. Organizational decisions reflect company policy while personal decisions cannot be delegated. Individual decisions are made alone following guidelines, and group decisions are made by committees on important matters. Policy decisions set long-term direction while operational decisions manage daily operations. Long-term decisions carry more risk, departmental decisions impact a single group, and non-economic decisions consider technical and moral

1. Types of Decisions

2. • Decisions may be of different types. Some of the important types of
managerial decisions are explained as follows:-
• 1. Programmed and Non-Programmed Decisions
• 2. Major and Minor Decisions
• 3. Routine and Strategic Decisions
• 4. Organizational and Personal Decisions
• 5. Individual and Group Decisions
• 6. Policy and Operation Decisions and
• 7. Long-Term Departmental and Non-Economic Decisions.

3. Programmed and Non-Programmed Decisions:
• Programmed decisions are those made in accordance with some
habit, rule or procedure. Every organisation has written or unwritten
policies that simplify decision making in recurring situations by
limiting or excluding alternatives.
• For example, we would not usually have to worry about what to pay
to a newly hired employee; organizations generally have an
established salary scale for all positions. Routine procedures exist for
dealing with routine problems.

4. • Non-programmed decisions are those that deal with unusual or
exceptional problems. If a problem has not come up often enough to
be covered by a policy or is so important that it deserves special
treatment, it must be handled by a non-programmed decision.

5. Major and Minor Decisions:
• A Decision related to the purchase of CNC M/c costing several lakhsis
a major decision and purchase of few reams of typing paper is minor
decision

6. Routine & Strategic decisions
• Routine decisions are of repetitive nature, do not require much
analysis and evaluation, are in the context of day-to-day operations of
the enterprise and can be made quickly at middle management level.
An example is, sending samples of a food product to the Government
investigation centre.
• Strategic decisions relate to policy matter, are taken at higher levels of
management after careful analysis and evaluation of various
alternatives, involve large expenditure of funds and a slight mistake in
decision making is injurious to the enterprise. Examples of strategic
decisions are- capital expenditure decisions, decisions related to
pricing, expansion and change in product line etc.

7. Organizational and Personal Decisions:
• A manager makes organizational decisions in the capacity of a
company officer. Such decisions reflect the basic policy of the
company. They can be delegated to others. Personal decisions relate
the manager as an individual and not as a member of an organization.
Such decisions cannot be delegated.

8. Individual and Group Decisions:
Individual decisions are taken by a single individual in context of
routine decisions where guidelines are already provided. Group
decisions are taken by a committee constituted for this specific
purpose. Such decisions are very important for the organisation.

9. Policy and Operative Decisions:
Policy decisions are very important, they are taken by top
management, they have a long-term impact and mostly relate to
basic policies. Operative decisions relate to day-to-day operations
of the enterprise and are taken at lower or middle management
level. Whether to give bonus to employees is a policy decision but
calculating bonus for each employee is an operative decision.

10. Long-Term Departmental and Non-Economic Decisions:
In case of long term decisions, the time period covered is long
and the risk involved is more. Departmental decisions relate to a
particular department only and are taken by departmental head.
Non-economic decisions relate to factors such as technical values,
moral behavior etc.

11. Thank You