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Unit 3: Planning and Decision-making
It is important to be aware of having made a decision whether, since too often we assume Notes
that decision-making begins with the identification of alternatives, assuming that the
decision to choose one has already been made.
2. Decisions which: These decisions involve a choice of one or more alternatives from among
a set of possibilities, the choice being based on how well each alternative measures up to
a set of predefined criteria.
Example: Which is the best way of production - producing by self/outsourcing?
3. Contingent decisions: These are decisions that have been made but put on hold until some
condition is met.
Example: (a) I have decided to buy that car if I can get it for the right price.
(b) I have decided to write that article if I can work the necessary time for it
into my schedule.
(c) We'll take the route through the valley if we can control the ridge and if
we detect no enemy activity to the north.
Most managers carry around a set of already made, contingent decisions, just waiting for the
right conditions or opportunity to arise. Time, energy, price, availability, opportunity,
encouragement–all these factors can figure into the necessary conditions that need to be met
before we can act on our decision.
3.9.1 Different Types of Decisions
We will discuss the most common types of decisions that a manager or for that matter even a
common man might have to follow:
1. Irreversible: Such decisions are permanent. Once taken, they can't be undone. The effects of
these decisions can be felt for a long time to come. Such decisions are taken when there is
no other option.
2. Reversible: Such decisions are not final and binding. They can be changed entirely at any
point of time. It allows one to acknowledge mistakes and fresh decisions can be taken
depending upon the new circumstances.
3. Delayed: Such decisions are put on hold until the manager thinks that the right time has
come to implement them. The wait might make one miss the right opportunity that can
cause some loss, especially in the case of businesses. However, such decisions give one
enough time to collect all information required and to organize all the factors in the
correct way.
4. Quick Decisions: Such decisions enable the managers to make maximum of the opportunity
available at hand. However, only a good decision maker can take decisions that are
instantaneous as well as correct. In order to be able to take the right decision within a short
span of time, one should also take the long-term results into consideration.
5. Experimental: One of the different types of decision making is the experimental type in
which the final decision cannot be taken until the preliminary results appear and are
positive. This approach is used when one is sure of the final destination but is not convinced
of the course to be taken.
6. Trial and Error: This approach involves trying out a certain course of action. If the result
is positive it is followed further, if not, then a fresh course is adopted. Such a trial and error
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