Tactical and Operational Decisions

Tactical Decisions focus on how things will be done to achieve strategic goals. They are short-term and usually involve specific actions that help meet the broader objectives set by higher management. For example, a company deciding on a marketing campaign to boost sales in the next quarter is making a tactical decision. These decisions are usually made by middle managers and are meant to ensure that day-to-day operations align with the overall strategy.

On the other hand, operational decisions deal with the routine activities necessary for running an organization. They are very short-term, often made on a daily or weekly basis, and involve specific processes and procedures. For example, a manager deciding on the daily work schedule for employees or handling customer complaints is making operational decisions. These decisions are typically made by lower-level managers or supervisors who ensure that everything runs smoothly and efficiently on a daily basis.

Types of Decision-making

Decision-making is the process of selecting the best course of action from a set of alternative options to achieve a desired goal or objective. It involves four interrelated phases: explorative (searching for potential alternatives), speculative (identifying the factors that influence the decision problem), evaluative (analyzing and comparing the alternative courses of action), and selective (making the final choice of the best course of action).

The ultimate aim of decision-making is to find the option that is believed to fulfil the objective of the decision problem most satisfactorily compared to other alternatives.

Table of Content

  • Types of Decision-making
  • 1. Programmed and Non-programmed Decisions
  • 2. Routine and Strategic Decisions
  • 3. Organisational and Personal Decisions
  • 4. Individual and Group Decisions
  • 5. Tactical and Operational Decisions
  • 6. Major and Minor Decisions:
  • Types of Decision-making – FAQs

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Types of Decision-making

Managerial decisions may be classified into the following categories:...

1. Programmed and Non-programmed Decisions

According to Herbert Simon, programmed decisions are related to routine and repetitive problems. Information about these problems is readily available and can be processed using pre-established methods. These decisions have a short-term impact and are relatively simple, typically made at lower management levels. Decision rules and procedures are in place to streamline the decision-making process and save time. Little thought and judgment are required, as the decision-maker follows predetermined solutions. For instance, dealing with a consistently late employee can be addressed through established procedures....

2. Routine and Strategic Decisions

There are two types of decisions in an organization: routine (or operating) decisions and strategic (or policy) decisions. Routine Decisions are repetitive in nature and have a short-term impact, mainly concerning day-to-day operations. They are typically made at lower levels of management, using established procedures to ensure quick and efficient handling. For example, a supervisor may make routine decisions regarding employee overtime pay....

3. Organisational and Personal Decisions

Organisational Decisions are made by officials in their capacity as resource allocators for the organisation. These decisions rely on sound judgment and experience and can be delegated to other individuals within the organisation. Organisational decisions have a direct impact on the functioning of the organisation and its outcomes....

4. Individual and Group Decisions

Individual Decisions are made by an individual based on the information available to them. These decisions may involve analyzing various variables, but they are often straightforward. However, in certain situations, significant decisions may be made collectively by a group....

5. Tactical and Operational Decisions

Tactical Decisions focus on how things will be done to achieve strategic goals. They are short-term and usually involve specific actions that help meet the broader objectives set by higher management. For example, a company deciding on a marketing campaign to boost sales in the next quarter is making a tactical decision. These decisions are usually made by middle managers and are meant to ensure that day-to-day operations align with the overall strategy....

6. Major and Minor Decisions:

Major Decisions are significant choices that can have a long-lasting impact on our lives. For example, deciding on a career path, choosing a life partner, or buying a house are major decisions. These decisions often require careful thought, research, and sometimes advice from others because they can affect our future in profound ways....

Types of Decision-making – FAQs

What is decision making?...