What are the three different types of decision making?

As an expert in the field of decision-making, I can provide an in-depth analysis of the three primary types of decisions that are commonly made in various contexts, including business. Decision-making is a critical process that involves identifying problems, evaluating options, and selecting the best course of action. Here's a detailed look at each type:

Strategic Decisions:
Strategic decisions are long-term decisions that shape the direction and scope of an organization. They are typically made by top management and involve setting goals, defining the company's mission, and determining the resources needed to achieve these goals. These decisions have a significant impact on the future of the organization and can include mergers and acquisitions, diversification, market entry, and exit strategies.

**Key aspects of strategic decisions include:**
- Long-term impact: They affect the organization for an extended period.
- Broad scope: They cover the entire organization or a significant part of it.
- Limited frequency: Strategic decisions are not made frequently due to their far-reaching effects.
- High risk: They involve a higher level of risk due to the potential for substantial change.

Tactical Decisions:
Tactical decisions are short-term decisions that support the execution of strategic plans. They are made by middle management and are concerned with the efficient allocation of resources to achieve strategic objectives. Tactical decisions might involve setting budgets, determining pricing strategies, or planning marketing campaigns. These decisions are more specific and are designed to implement the broader strategies set forth by strategic decisions.

**Key aspects of tactical decisions include:**
- Short-term focus: They are aimed at achieving immediate or near-future goals.
- Specific objectives: They have clear and concrete targets.
- More frequent: Tactical decisions are made more often than strategic decisions.
- Moderate risk: They carry less risk than strategic decisions since they are focused on the implementation of already-approved strategies.

Operational Decisions:
Operational decisions are the day-to-day decisions made by front-line managers and supervisors. These decisions are concerned with the routine activities of the organization and ensure that the company's operations run smoothly. Operational decisions might include scheduling, assigning tasks, or managing inventory. They are the most common type of decision and are typically made quickly and with less formality.

**Key aspects of operational decisions include:**
- Immediate action: They are made to address current issues or tasks.
- Routine nature: They are often repetitive and part of the regular workflow.
- High frequency: Operational decisions are made frequently throughout the organization.
- Low risk: They generally involve lower risk since they are focused on the day-to-day functioning of the organization.

In summary, strategic, tactical, and operational decisions form a hierarchy, with each level building upon the previous one. Strategic decisions set the overall direction, tactical decisions determine the best approach to achieve those goals, and operational decisions ensure that the day-to-day activities are aligned with the set strategies and tactics.

There are three types of decision in business: Strategic decisions. Tactical decisions. Operational decisions.