What are Routine and Basic Decisions?
A decision that is made to continue an organization’s day-to-day operations smoothly is known as a routine decision.
And, a basic decision is related to the long-term performance of the organization and concerns about organizational growth and long-term prosperity.
Let’s discuss individually the routine and basic decisions.
What is a Routine Decision?
Decisions that affect an organization’s regular operations are referred to as routine decisions. These are the operational choices that lower-level management makes to carry out daily operations.
Throughout the course of the organization’s routine activities, numerous recurring issues may occur.
Such issues may hinder the organization’s ability to operate effectively. The manager has to address such issues at the appropriate time and solve them as soon as possible.
Routine decisions include things like assigning tasks to coworkers, fixing and maintaining machinery, managing raw materials for production, choosing what to buy for daily necessities, etc.
Routine choices are typically repeated and resemble programmed decisions.
As the programmed decisions are made by lower managers, the routine decisions also have a short-term impact on organizational performance.
What is a Basic Decision?
Basic decisions are also known as strategic decisions. Such choices are essential for the organization’s long-term survival and expansion of its commercial activity.
Top-level managers typically take the company’s long-term objectives into account when making these kinds of choices.
It is vital to do a thorough analysis of the topic’s effects on organizational performance and use creativity and analytical abilities before making such decisions.
Examples of basic decisions include expansion of the business, launching new products, new investment decisions, adoption of new technology, recruitment, selection of new staff, etc.
Basic decisions are comparable to non-programmed decisions in that they are made while taking the firms’ long-term goals into account.
Both non-programmed and basic decision types are made by top managers and both have a long-term impact on the company’s performance.
Difference between Routine and Basic Decisions
The following are the 7 key differences between routine and basic decisions in the workplace:
Definition
Routine Decision: These decisions focus on resolving everyday issues that arise during the organization’s daily operations. They aim to maintain a smooth workflow and ensure efficiency in minor but essential tasks.
Basic Decision: These are crucial strategic decisions that involve the organization’s core objectives and future growth plans. They guide the direction of the business and often serve as a foundation for achieving long-term success.
Nature
Routine Decision: They are structured and follow predetermined procedures, making them straightforward to execute. The outcomes are predictable, as they rely on established guidelines or rules.
Basic Decision: These are unstructured and demand creativity and analytical thinking. Since they address complex issues or new challenges, their implementation often requires innovative approaches.
Time Frame
Routine Decision: These decisions deal with immediate or short-term concerns. They are made to address problems that occur frequently and require instant solutions for operational continuity.
Basic Decision: They focus on long-term objectives and outcomes. These decisions are forward-looking, aiming to secure the organization’s future and sustainability.
Impact on the Organization
Routine Decision: Their impact is limited to daily operations and has a minimal effect on the organization’s overall performance or strategy. They primarily ensure operational stability.
Basic Decision: These decisions shape the organization’s future and have a profound and lasting impact. A right or wrong basic decision can determine the company’s success or failure.
Decision Maker
Routine Decision: Typically made by lower or middle-level managers, such as supervisors or department heads. Their role is to ensure the smooth execution of routine tasks.
Basic Decision: These are made by top-level executives, such as CEOs, directors, or board members, as they involve critical analysis and responsibility for the organization’s strategic direction.
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Reoccurrence
Routine Decision: These decisions occur frequently as they deal with recurring problems or activities that are part of daily operations. They often follow the same pattern repeatedly.
Basic Decision: Such decisions are rare, as they address unique situations or opportunities that do not arise regularly. They are often one-time decisions, like launching a new product or entering a new market.
Examples
Routine Decision: Examples of routine decisions include:
- Assigning daily tasks to employees.
- Restocking raw materials for production.
- Scheduling staff shifts or work hours.
- Resolving minor workplace disputes.
- Repairing malfunctioning equipment.
Basic Decision: Examples of basic decisions in the organization include:
- Deciding on a business expansion strategy.
- Launching a new product line.
- Adopting new technologies for competitive advantage.
- Mergers or acquisitions of other companies.
- Making significant investments or entering a new market.
Read More: Product Augmentation in Marketing
Similarities between Basic and Routine Decisions
Though differing in scope and impact, routine and basic decisions complement each other to ensure both the operational efficiency and strategic progression of an organization.
Essential for Organizational Functioning
Both routine and basic decisions are critical for an organization’s success.
While routine decisions ensure smooth daily operations, basic decisions are necessary for strategic planning and long-term growth.
Involve Decision-Making Processes
Both types of decisions require managers to analyze situations, consider options, and choose the best course of action.
Although the complexity varies, decision-making principles like identifying problems, evaluating alternatives, and implementing solutions apply to both.
Read More: Steps in Decision Making Process
Support Organizational Goals
Basic and routine decisions contribute to achieving organizational objectives.
Routine decisions address operational efficiency, while basic decisions focus on broader strategic goals, ensuring alignment with the company’s vision and mission.
Influenced by Resources and Environment
Both decisions depend on available resources (human, financial, technological) and are influenced by the external and internal environment.
For example, resource availability can limit routine purchases or determine the feasibility of a basic decision like expansion.
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Joshep Mahesh holds Bachelor in Management (BiM) Degree. He loves to share his business knowledge in his free time.