Using IS for Decision Making – Types of Decisions

8 Feb

In my previous post – https://eternalsunshineoftheismind.wordpress.com/2013/02/06/using-is-for-decision-making-7/ – I discussed the stages of decision making. In this post I will talk about the types of decisions.

There are three types of decisions:

  • Structured Decisions
  • Semistructured Decisions
  • Unstructured Decisions

Image

Structured decisions serve operational management, who are the individual employees, as well as teams. These are repetitive and involve a routine, with definitive procedures for solving. As a result, they do not need to be treated as new each time. Examples: Restocking inventory, determining special offers etc.

Semistructured decisions serve middle management. These are structured but some elements are unstructured. Only part of the problem has a clear answer provided by accepted procedure. Examples: Designing a marketing plan, a new website etc.

The final type of decision is an unstructured decision, which serve senior management and do not have clear answers. These deicions require judgement, evaluation and insight to solve the problem. There is no set procedure for answering them. Examples: Entering a new market, obtaining a long-term loan etc.

References:

http://www.cathaldoyle.com

3 Responses to “Using IS for Decision Making – Types of Decisions”

  1. sad112759089 February 8, 2013 at 9:44 pm #

    Good use of examples!

  2. sad111420992 February 18, 2013 at 1:05 pm #

    Loved the diagram, the whole blog was really well laid out

  3. sad111419882 March 10, 2013 at 9:55 pm #

    its interesting to see how all individuals in an organization are involved in decision making of some sort

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