Decisions are typically classified in management literature as strategic, tactical and operational, depending on the type of impact they make. Strategic decisions are considered irreversible and have long-term implications. To encourage better decision-making, the top management must lead by personal example. They must encourage people to take decisions without unduly worrying about failure. Important decisions should consume more time, and involve the top management, rather than less important ones. Unfortunately, in most Indian organizations, decision-making has little to do with their importance.

Decisions are typically classified in management literature as strategic, tactical and operational, depending on the type of impact they make. Strategic decisions are considered irreversible and have long-term implications. These decisions must be made after careful deliberation with the active involvement of the top management.

Tactical decisions have medium term implications. Operational decisions have a short-term impact and can be reversed with relative ease. Such decisions do not need the active involvement of senior management. In fact, top management should be freed of this burden, so that they can spend more time on strategic matters.