Explain various types of managerial decisions.

Explain various types of managerial decisions. Discuss the models being used in decision making process in your organization or any organization you are acquainted with which of these models in your opinion hamper the efficiency of the organization?

INTRODUCTION:-
Decision making is the heart of modern administration. According to M.T. Copeland, administration essentially is a decision making process. Whatever, an administrator does he does through decision making. An administrators life is filled with a constant series of decisions. Everyday hundreds of decisions are made by the administrator consciously or unconsciously. Decisions which are relatively minor are taken almost subconsciously following rules and patterns of behavior established over many previous encounters with the problem. All major decisions however are taken very carefully and consciously. Such decisions usually involve the application of considerable human judgment and experience before a solution is obtained.

Types of Managerial Decisions:-

1. ORGANISATIONAL AND PERSONAL DECISIONS:-
Organizational decisions are made to advance the interest of the organization. When an executive acts formally in his expected role in an organization he makes
organizational decisions making become organizations official decisions making power is delegated to others also and calls for decisions at subordinate levels supporting it.





They thus touch off chain of behavior throughout the organization. Personal decisions are made by an executive as an individual and not as a part of an organization. An executive who charges jobs or organization is making a personal decision. Decisions to many to buy a house, to purchase a car are examples of personal decisions. Such decisions life of an executive but may affect the personal life of an executive but may affect the organization sometimes directly or indirectly.

2. INDIVIDUAL AND GROUP DECISIONS:-
When a decision is taken by an individual in the organization, it is known as individual decision. These are concerned mainly with routine problems for which broad policies are available. Such decisions are generally taken in small organizations and in those organizations where autocratic style of management prevails. Group decisions are those taken by a group of persons constituted for the purpose. Decisions taken by the board of directors or a committee are, examples of group decisions. Group decision making generally results in more realistic and well balanced decisions and encourages participative decision making.

3. ROUTINE AND STRATEGIC DECISIONS:-
Routine decisions are made repetitively following certain established rules, procedures and policies. They do not require collection of new data and can be taken without much deliberations. Such decisions are taken generally by the executives at the middle and lower management levels. Strategic or basic.
decisions, on the other hand, are more important and are generally taken by the top management of organizations.
They relate to policy matters and so require a thorough fact finding and analysis of the possible alternatives. Launching a new programme, location of a new plant, installation of a computer system are examples of strategic decisions.

4. PROGRAMME AND NON-PROGRAMME DECISIONS:-
Programmed decisions are concerned with relatively routine and repetitive problems. Information on these problems is already available and can be processed in a pre-planned manner. Such decisions have short-term impact and are relatively simply. They are, made at lower levels of management. These decisions require little thought and judgment. The decision maker identifies
the problem and applies the predetermined solution. For example, if an employee is habitually late comer he can easily be dealt with under the established procedure. Non-programmed decisions deal with unique or unusual problems. Such novel or non-repetitive problems cannot be tackled in a predetermined manner. There are no cut-and-dried of executive judgment and deliberation is required to solve them. To order firing on a rioting mob, to impose curfew in the city, opening of a new branch are examples of such decisions. The ability to make good non-programmed decisions help to distinguish effective executives from non effective executives.

5. POLICY AND CREATIVE DECISIONS:-
Policy decisions are of vital importance and are taken by the top management.

They effect the entire organization. But operating decisions are taken by the lower management in order to put into action the policy decisions. For instance, the bonus issue is a policy matter which is to be decided by the top management and calculation of bonus is an operating decision which is taken at the lower levels.

INITRODUCTION:- NIKE
The Nike organization grew out of an idea Philip knight expressed in a graduate school paper he wrote in 1962 while he was getting his M.B.A. at Stanford. In 1964, he and bill Boverman, Knights former track coach from the University of Oregon, started and athletic shoe company called Blue Ribbon Sports, to evoke the image of a winner. That year they sold 1,300 pairs of running shoes at local track meets from the trunk of a car. In the meantime, Knight also worked as a C.P.A. and an accounting professor until 1969, when he decided to devote himself full time to Blue Ribbon sports. Then, in 1972, Blue Ribbon sports become Nike, named after the mythological goddess of victory.
To keep up with the changing marketplace, Nike managers have already started diversifying. In 1992, Nike opened retail outlets in which apparel, shoes, and Nike paraphernalia are sold. Nike managers attribute a $ 100 million increase in gross profits in 1992 to its retail sales division, which operates 30 Nike owned outlets for factory seconds and the two Nike Town stores, A far cry from the company’s humble. beginnings with shoes being sold from the trunk of a car. The stores
promote the growth of the Nike apparel business, which is experiencing much faster growth than the athletic shoe business. It used rationality model of division making Some important models that are used in NIKE are:-

1. Simons bounded Rationality Model:-
Simon analysed comprehensively with the rationality aspect of decision making . Simon viewed rationality as the selection of preferred behavior alternatives in terms of values where by the consequences of behavior can be evaluated, Simon believed that total rationality is impossible in administrative behaviors.

2. Etzioni’s Mixed Scanning Model:-
Etzioni in his famous article “Mixed Scanning, A third Approach to Decision Making” (1967) has advocated an intermediate model that combines the elements of both rational model and increment model. Hence, it is called a mixed scanning model.
Some common problems faced in making decisions and implementing them in a rational model are:-
1. Incomplete information
2. Unsupporting environment
3. Non-acceptance by subordinates.
4. Ineffective timing,
5. Incorrect timing
It hampers the efficiency of organization.