Organizational Decision making
Personal decisions are those, which a person takes in his individual capacity but not as a member of his organization. This affects his personal life. These personal decisions are not delegated, A manager who decides to resign his job and leaves the organizational making a personal decision.
Organizational decisions, on the other hand, are taken by an executive in his/her official capacity and can be delegated to others. Such decisions affect the organisational behavior directly.
In case of long-term decisions the period covered is long and the risk involved is more. Departmental decisions art- taken by the departmental heads and relate to the department only. Decisions relating to non-economic factors may be termed as non-economic decisions.
While taking decisions on these factors, care should be taken to see that justice is done to all and as a result of this decision; no new problem is created for the organization.
Another method of classifying decisions is on the basis whether one single individual or a group is involved in making decisions. Most decisions in organizational life are made by individuals. It is for the authority. There are individuals whose authority is supervisory; they make decisions with respect to people. If their authority is operational, they make decisions with respect to things or ideas.
Some decisions are made by groups. Group decision-making is variously known as participate or plural management. If formally authorized, it takes the form of formal committee that is authorized to make specific decisions. Formal committees are becoming increasingly popular in large organizations.
Programmed decisions are those, which are routing and repetitive, and have procedures setup to deal with them, and are taken within the board policy structure.
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