Near about 6.36 billion people in the world and he can never take the same decision always different style to think or handle any situation. The part of determines one's mind upon an opinion or course of action. When any person choose alternative to solve a problem always innovative or news ideas. Totally take new decision or ideas. sometime when person take decision effects or outcomes bad on life and some decision has good effect on life due to fluctuation or change the government policy. He must receive market information like consumer needs, terms & condition of the market.
Types of decision making
- operative decision
- strategic decision
- Operative decision: when we take the decision in our daily or routine life is known as operative decision. This type of decision related to middle and lower management. This method is very simple approach. It is a recurring in nature. It takes decision related to short term investment. For operative decision, fewer amounts are required for investment. It doesn't affect with uncertainty. It is ill-structured. When change government policy, terms and conditions then for the operative’s decision less suffered from the problems as compared to the strategic decision.
- Strategic decision: these are those decisions which are taken some time like top management. It is a unique and non-recurring in nature. It is very difficult. It takes decision related to long term investment. They are thinking oriented, pros and cons properly studied. For strategic decision, huge amount is required for investment. It is always effect with uncertainty. It is well structured. When any change policy, terms and conditions then for the strategic decision suffered from the many problems as compared to the operative decision.
Tips for entrepreneur:
- Inexperienced person can't take decision. e.g.: when HRA (human resource accounting) person take decision related to finance then it is not possible.
- He is more knowledgeable.
- Decision maker is making sound, rational, irresponsible decision depends on his maturity and background of experiences decision are usually taken spontaneous, thoughtless and taken without thinking decision about its consequences seriously.