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
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.