Management Notes

Reference Notes for Management

Types of Decisions – Programmed and Non Programmed Decisions | Organizational Behavior

Decision and Decision Making

Making a choice from among the available alternatives can be defined as making a decision. Making a decision implies the availability of alternatives. The alternatives are analyzed and then a particular alternative is selected, i.e. a decision is reached. In the absence of alternatives, no choice is available. Following certain steps is required to arrive at a decision. The first step is to examine the problem in detail, and the next is to choose the best alternative. In addition to reviewing the decision, it is important to confirm if it satisfies the decision-making circumstances. The process of making a decision is called decision-making.

It is the selection of a particular course of action. Making the best decision is a mental activity that requires weighing different factors. When there is a problem or an opportunity, a decision needs to be made. A clear statement of the nature of the problem or the opportunity is essential in the decision-making process. By doing so, one can discover the possible solutions to the problem or the means to take advantage of the opportunity.We make many decisions in our lives. These may be a part of our day-to-day activities that don’t require too much thought.

For example, attending class or meeting a friend. In contrast, some decisions are made only once in a lifetime. Such decisions require considerable thought. You may have spent a lot of time contemplating your decision before taking admission in this university’s B.Com program.Furthermore, in an organizational context, the decision makers have to make various decisions related to day-to-day operations as well as those involving massive investments in a new project, the construction of a factory, etc.

Types of Decisions

Types of Decisions

The various types of decision may be classified as under

Programmed Decisions

  • These decisions are repeated over time. Organizational policies determine these decisions. Programmed decisions are taken based on these policies, which are pre-established. Following the predetermined procedure, these decisions are made at the lower levels of the management.
  • For example, purchasing inventory for the production department, releasing materials from the godown, etc.

Non- programmed decisions

  • These decisions are not repeated. They are based on unusual situations for which there is no predetermined organizational policy. Prior to making a non-programmed decision, the decision makers must consider different alternatives. The top level of management makes these decisions because they have a long-term impact on the organization.
  • For example, taking control of an existing company, launching a new product, etc.

Difference between Programmed and Non Programmed Decisions

Difference between Programmed and Non Programmed Decisions

Programmed decisions Non programmed decisions
1. These decisions are recurring in nature.

2. These decisions are guided by organizational policies, procedures etc.

3. These decisions are taken by the lower level management.

4. Here, the problems are structured.

1. These decisions are non-recurring in nature.

2. These decisions are guided by the factors of the particular situation.

3. These decisions are taken by the top level management.

4. Here, the problems are unstructured.

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Organizational Behavior | All of the Basic Concepts


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