Decisions can be classified in the following ways: 1. Major and Minor Decisions 2. Routine and Strategic Decisions 3. Policy and Operating Decisions 4. Programmed and Un-Programmed Decisions. 5. Departmental and Non-Economic Decisions 6. Organisational and Personal Decisions.
Type # 1. Major and Minor Decisions:
These can be categorised on the basis of their intensity. For example, purchase of a new precision machine of worth Rs. 25 lacs is categorised as major decision, while purchases of stationary (pencils, papers, pens etc.) for office use will be the minor decisions.
Type # 2. Routine and Strategic Decisions:
The decisions which arise during the course of production and are settled on the basis of past practice termed as “Routine decisions”. For example, deputing a worker in a particular shift is routine decision while “Lock out” of the factory or stopping the production of one item in the factory are “strategic decisions”.
Type # 3. Policy and Operating Decisions:
Whether the piece rate system or time rate system is to be followed in the factory for calculating the wages of the workers is the “policy decision” and is required to be taken at high level. While the calculation of the wages is the example of “operating decision”.
Type # 4. Programmed and Un-Programmed Decisions:
These are classified on the basis of procedure adopted. Programmed decisions are those which are repetitive and of routine nature for which definite procedure worked out in the past i.e., grant of earned leave to the workers, allowing overtime work to a certain worker, allowing annual increment to workers etc.
Un-programmed decisions are those, which are taken at any time whenever they arise because this or similar problems have not arisen earlier. Example of such decision is whether to stop or to start manufacturing any particular product.
Type # 5. Departmental and Non-Economic Decisions:
These are taken by the departmental heads and relate to the individual departments only. Decisions relating to the non-economic factors such as technical values, normal behaviour etc. may be known as non-economic decisions.
Type # 6. Organisational and Personal Decisions:
When the managers take decisions in their official capacity, it is termed that they have taken an organisational decision. On the other hand, personal decisions relate to the manager as an individual and not as member of the organisation.