Types of Decision Making with an Example of Organization

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These are type of decisions, which if made once cannot be undone. Whatever is decided would then have its repercussions for a long time to come. It commits one irrevocably when there is no other satisfactory option to the chosen course. A manager should never use it as an all-or-nothing but instant escape from general indecision. Reversible

These are the decisions that can be changed completely, either before, during or after the agreement of taking action. Such types of decisions allows one to acknowledge a mistake early in the process rather than perpetuate it. It can be effectively used for changing circumstances where reversal is necessary. Experimental

These types of decisions are not final until the first results appear and prove themselves to be satisfactory. It requires positive feedback before one can decide on a course of action. It is useful and effective when correct move is unclear but there is a general clarity regarding the direction of action. Trial and Error

In this type of decision making, knowledge is derived out of past mistakes. A certain course of action is selected and is tried out, if the results are positive, the action is carried further, if the results appear negative, another course is adopted. And so on and so forth a trial is made and an error is encountered. Till the right combination takes place, this situation continues. It allows the manager to adopt and adjust plans continuously before the full and final commitment. It uses both, the positive and negative feedback before selecting one particular course of action. Made in stages

Here, the decisions are made in steps until the whole action is completed. It allows close monitoring of risks as one accumulates the evidences from out-comes and obstacles at every stage. It permits feedback and further discussion before the next stage of the decision is made. Cautious

It allows time for contingencies and problems that may crop up later at the time of implementation. The decision-makers hedge their best of efforts to adopt the right course. It helps to limit the risks that are inherent to decision-making. Although this may also limit the final gains, it allows one to scale down those projects which look too risky in the first instance. Conditional

Such type of decisions can be altered if certain foreseen circumstances arise. It is an ‘either / or’ kind of decision with all options kept open. It prepares one to react if the competition makes a new move or if the game plan changes radically. It enables one to react quickly to the ever changing circumstances of competitive markets. Delayed

Such decisions are put on hold till the decision–makers feels that the time is right. A go-ahead is given only when required elements are in place. It prevents one from making a decision at the wrong time or before all the facts are known. It may, at times result into forgoing of opportunities in the market that require prompt action. BEING DECISIVE

The ability to take timely, clear and firm decisions is an essential quality of leadership, but the type of decision needed, varies according to the circumstances. Learning to recognize the implications of taking each type of different decisions leads to error minimization. Being Positive

Taking decisive action does not mean making decisions on the spur of the moment. Although, it may be necessary in emergencies and as also occasionally desirable for other reasons. A true leader approaches the decisions confidently, being aware of consequences and fully in command of the entire decision–making process. Making Fast Decisions

It is important to be able to assess whether a decision needs to be made quickly or it can wait. Good decision-makers often do make instant decisions – but they then assess the long-term implications. Identifying issues

It is crucial to diagnose problems correctly. Before any decision is made identifying and defining the...
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