Types of Decision Making
The main types of decision making — strategic, tactical and operational; programmed and non-programmed; individual and group — each explained with a clear example so you can tell which kind of decision you are actually facing.
Not all decisions are the same, and knowing which kind you face tells you how much process it deserves. Decisions are usually classed three ways — by level, by routine, and by who decides — and a single decision can sit in more than one category.
By level: strategic, tactical, operational
| Type | What it is | Example |
|---|---|---|
| Strategic | Long-term, high-impact direction set by leaders. | Entering a new market. |
| Tactical | Medium-term choices that put strategy into practice. | Choosing a marketing channel for that market. |
| Operational | Day-to-day, routine running of the work. | Scheduling this week's shifts. |
By routine: programmed vs non-programmed
| Type | What it is | Example |
|---|---|---|
| Programmed | Routine and rule-based; handled by a standard procedure. | Reordering stock when it hits a threshold. |
| Non-programmed | Novel and unstructured; needs judgement. | Responding to a sudden competitor launch. |
By who decides: individual vs group
| Type | What it is | Example |
|---|---|---|
| Individual | One person decides — fast and clear, but narrower. | A manager approving a small expense. |
| Group | A team decides — more expertise and buy-in, but slower. | A committee choosing a new supplier. |
Why the type matters
A non-programmed strategic decision deserves the full process and a careful model; a programmed operational one just needs a good rule. Matching the effort to the type is itself a sign of good judgement. See real ones worked through in our decision-making examples.
Frequently asked questions
What are the main types of decision making?
Decisions are commonly classed three ways: by level (strategic, tactical, operational), by routine (programmed vs non-programmed), and by who decides (individual vs group). A single decision can sit in more than one category.
What is the difference between programmed and non-programmed decisions?
Programmed decisions are routine and rule-based — handled by a standard procedure (for example, reordering stock). Non-programmed decisions are novel and unstructured, needing judgement (for example, entering a new market).
When is group decision making better than individual?
Group decisions help when the problem is complex, needs diverse expertise, or requires buy-in to implement. Individual decisions are faster and avoid groupthink — better for routine or time-critical calls.