Programmed decisions . Programmed decisions are made in routine, repetitive, well-structured situations with predetermined decision rules. These may be based on habit, or established policies, rules and procedures and stem from prior experience or technical knowledge about what works or does not work in a given situation. For example, organisations often have standardised routines for handling customer complaints or employee discipline. Decisions are programmed to the extent that they are repetitive and routine and that a definite approach has been worked out for handling them. Because the problem is well-structured, the manager does not have to go to the trouble and expense of working through an involved decision making process. Non-programmed decisions. Non-programmed decisions are unique decisions that require a 'custom made' solution. This is when a manager is confronted with an ill-structured or novel problem and there is no 'cut and dried solution'. The creation of a marketing strategy for a new service represents an example of a non-programmed decision. IBM Australia's introduction of a personal computer in the 1980s was unlike any other decision the company had previously made.
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Non programmed and programmed decisions
by V S RAMA RAO on JANUARY 20, 2010
Examples of non programmed decisions include deciding whether to acquire another organization, deciding which global markets offer the most potential, or deciding whether to sell off an unprofitable vision. Such decisions are unique and non-recurring. When a manager confronts an ill-structured problem no cut and dried solution is available. A custom made non programmed response is required. Non-programmed decisions: Decisions that must be custom made to solve unique and nonrecurring problems. The creation of a new organizational strategy is a non programmed decision. This decision is...
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