Content pageQuestion 1 PageProgrammed decisions 2Non-programmed decisions 3Question 2Organisational control 4Examples 5Reference List 6Question 1Decision making is the process of identifying problems and opportunities and then resolving them.Management decision typically fall into one of two categories: programmed and non-programmed.Programmed decisionsProgrammed decisions are repetitive and could be handled by a routine approach and can be solved through clear-cut mechanical procedures, such as applying the rules to find the best solution. This type of decisions are made in response to recurring organisational problems, contributes to efficiency, reduces costs and is good for the organisation but not so engaging for the employee.Structured problems involve clear goals, are familiar and are easily and completely defined, information about problem is available and complete.For this type of decisions, there are usually laid down rules and procedures and are typically taken at operational level.
Types of programmed decisions involve:
A rule; an explicit statement that limits what a manager or employee can or cannot do in carrying out the steps involved in a procedure,
A policy; a general guideline that establishes parameters for making decisions, and
A procedure; a series of interrelated sequential steps that can be used to respond to a structured problem.
Examples of programmed decisions are scheduling, re-ordering or credit approval.
When a supervisor in a fast- food restaurant noticed the supply of fries or etc are below the standardised level, he/ she can determine supplies to be reordered.Computers have simplified making sophisticated programmed decision, when a person uses a credit card; the computer will makes a programmed decision about authorising the purchase.Non- programmed decisionsNon- programmed decisions are exceptional and generate unique responses, have a high degree of uncertainty and decisions are complex, therefore it involve strategic planning. This type of decision is made in response to unstructured situations that are unique and are poorly defined.These non-programmed decisions frequently pertain to rare and unique situations that have a potentially significant effect on the organisation.Major planning issues and problems are often the topic of such decision-making.These types of decisions afford the greatest opportunities for creativity. They are more difficult to make, frequently have significant impact on the firm and are most likely to be made during the course of the implementation of innovation and technical change.Conditions affecting the decision alternatives
In this decision situation, good and sufficient information is available to estimate the probability of successful outcomes for each alternative, but there is a possibility that a chosen action could lead to losses rather than intended results. The measure of risk captures the possibility that future events will render the...