Introduction

Lesson 24 : Classification Of Decisions

Introduction

Not all decisions are alike. Nor is every decision made in the same manner. Although some actions undertaken derive their basis from newly made decisions, there are other instances when decision making does not really take place. The latter, according to Deacon and Firebaugh, may involve routine, programmed, impulsive or intuitive action.

In addition to the habitual behaviors or routines, we also have certain specific actions that we undertake in a given situation. These are called programmed decisions. Programmed decisions are different from routines. Routine plans or actions are patterns of behavioral actions repeatedly underĀ­taken on a consistent and regular basis. Programmed decisions, on the other hand, utilize our past experience in a similar situation.

Both routine and programmed decisions serve useful purposes. They act as resources by eliminating the need to make new decisions. They also evaluate managerial action. The success we achieve enable us to by-pass or minimize the use of the decision-making process.

There are, however, times when we undertake action without any real thought process, lacking prior experience as a base, or in the absence of conscious awareness. This action results from either impulse or intuition. In either case, the action taken is not necessarily a negative one.

According to Diesing a decision or action is substantially rational when it takes account of the possibilities and limitations of a given situation and recognizes it so as to produce, or increase, or preserve some good. Diesing's criteria for a decision are (1) "decisions must be an effective response to the situation in that it produces some possible good and (2) the effectiveness must be based on intelligent insight rather than luck.

Using this definition, Diesing developed the five categories of decision making. These categories are technical, economic, social, legal, and political.

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