BUSA8030 Chap.5 Decision Types and Types of Decision-Makers
Decision Types and Types of Decision-Makers
Not all decisions call for the same blend of data and judgment, and Week 3 offers two ways to classify them. By longevity and impact, following Ackoff, decisions are operational, tactical or strategic. Operational decisions are routine and well defined, rely on System 2 and are often automated. Tactical decisions concern medium-term efficiency and mix both systems.
Strategic decisions shape long-term goals; they draw on plenty of data but often end in executive experience and judgment.
By context, following Snowden and Boone, decisions may be simple, complicated, complex, chaotic or in disorder. Simple contexts suit established practice and automation. Complicated contexts need expert analysis.
Complex contexts call for probing and experiments that blend rational and non-rational thinking. Chaotic contexts first require establishing cause-and-effect relationships, and disorder first requires establishing order. Contexts can shift suddenly, which is when automated rules become dangerous.
The chapter then turns to people.
A taxonomy of four manager types describes how managers use analytics and judgment: Type A, analytics-bent; Type B, the all-rounder; Type C, uninformed or uncertain; and Type D, old-fashioned. Each needs different support, from data access and visualisation tools to training, success stories and peer guidance. Week 6 links these types to balanced, high-judgment and high-data decision styles.
A reading by de Langhe and Puntoni completes the picture: decision-driven analytics starts from the decision and collects the data it needs, rather than hunting for a purpose for data already held.
What this chapter covers
- 01
Operational, tactical and strategic decisions
- 02
Five decision contexts
- 03
When contexts shift
- 04
Four types of manager
- 05
Balanced, high-judgment and high-data styles
- 06
Decision-driven analytics
Worked example · free
AskSia practice weighting: matching support to manager type
- 1Classify Ward A's manager as Type A and Ward B's as Type D, with evidence.
- 1Type A support: reliable data access and help relaying forecasts to nursing staff.
- 1Type D support: peer champions, leadership signals and early success stories from similar wards.
- 1Check the decision context: routine bed allocation suits the tool; surges need judgment too.
Key terms
- Operational decision
- A routine, well-defined decision about the immediate future, often automated.
- Strategic decision
- A high-level, long-term decision that shapes an organisation's goals and objectives.
- Complex context
- An unpredictable decision setting that relies on probing, experiments and iteration.
- Chaotic context
- A turbulent setting with no visible cause-and-effect relationships.
- All-rounder manager
- A Type B decision-maker who balances analytics with domain experience.
- Decision-driven analytics
- An approach that defines the decision first and then gathers the data that decision requires.
Decision Types and Types of Decision-Makers FAQ
How do operational and strategic decisions differ in their use of data?
Operational decisions are routine and well defined, so data and automation can carry most of the load. Strategic decisions use plenty of data, but the final call often rests on senior executives' experience and judgment.
What are the five decision contexts in Week 3?
Following Snowden and Boone, decisions can be simple, complicated, complex, chaotic or in disorder. Each context changes what the decision-maker should do first and how much to rely on data.
What is a Type C decision-maker?
Type C managers are unsure about, or unfamiliar with, data-driven decisions, usually lacking analytics training and exposure. Such managers need leadership encouragement, shared analytics successes and training.
Which decision styles does Week 6 connect to manager types?
Balanced, high-judgment and high-data styles. The chosen style depends on the decision trigger and type, available data, organisational culture and capability, and the manager's knowledge, skills and abilities.
What is wrong with simply being data-driven?
The de Langhe and Puntoni reading argues that data-driven work often anchors on whatever data is available, which can answer the wrong question or reinforce existing beliefs. Starting from the decision avoids that trap.
Assessment move
For your case organisation, list three decisions it highlights and classify each by layer and context. Then ask whether its analytics investment matches the layer it claims to improve. This simple grid often reveals that a firm's analytics transforms operations while leaving strategy untouched.
When proposing change in the group plan, map the stakeholders onto the four manager types and write support actions for each.
Markers look for evidence that you understand people adopt analytics differently, and the taxonomy gives you a recognised way to show it.
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