For example, managers rarely have to worry about the salary range for a newly hired employee because organizations generally have a salary scale for all positions (Structured).
Routine procedures exist for dealing with routine problems. Programmed decisions are used for dealing with recurring problems, whether complex or uncomplicated. If a problem recurs, and if its component elements can be defined, predicted, and analyzed, then it may be a candidate for programmed decision making.
For example, decisions about how much inventory of a given product to maintain can involve a great deal of fact-finding and forecasting, but careful analysis of the elements in the problem may yield a series of routine, programmed decisions. For Nike, buying television advertising time is a programmed decision. To some extent, programmed decisions limit our freedom because the individual has less latitude in deciding what to do. However, programmed decisions are actually intended to be liberating.
The policies, rules, or procedures by which we make programmed decisions save time, allowing us to devote attention to other, more important activities. For example, deciding how to handle customer complaints on an individual basis would be time-consuming and costly, but a policy stating “exchanges will be permitted on all purchases within 14 days” simplifies matters considerably. The customer service representative is then freed to deal with thornier issues. Nonprogrammed : decisions deal with unusual or exceptional problems.
Many decision analysis problems can be viewed as having three variables: decision alternatives, states of nature, and payoffs. •Decision alternatives are the various choices or options available to the decision maker in any given problem situation. On most days, financial managers face the choices of whether to invest in blue chip stocks, bonds, commodities, certificates of deposit, money markets, ...
Another definition: non-programmed decisions are made in response to unusual opportunities and threats If a problem has not come up often enough to be covered by a policy or is so important that it deserves special treatment, it must be handled as a non programmed decision. Problems such as how to allocate an organization’s resources, what to do about a failing product line, how community relations should be improved-in fact, most of the significant problems a manager will face–usually require non programmed decisions (unstructured).
How to design and market newer, more advanced basketball shoes is an example of a nonprogrammed decision at Nike. Knight enters uncharted waters when it comes to creating the sequel to Air Jordans. A? one moves up the organizational hierarchy, the ability to make nonprogrammed decisions becomes more important. For this reason, most managementdevelopment programs try to improve managers’ abilities to make nonprogrammed decisions, usually by teaching them to analyze problems systematically and to make logical decisions.
More and more organizations have made their commitment to social responsibility a matter of policy involving both programmed and non programmed decisions. For example about (non programmed and unstructured decision) it was a private decision when I desided to travel to Japan in a program follow to the Cabinet office of Japan called SWY (Ship for world Youth program) as a young Egyptian ambassador although my parents refused because they were so worry about me to get this adventure specially that a part of this program contains sailing in the pacific ocean to another countries (New Zealand,Vanuatu and Tonga).
But really it was one of the more important decisions in my life. As I expect it was a marvelous opportunity and etc…. Another example, Lotus, the computer’ software company, has a policy of donating one percent of its profits to philanthropic events and organizations. Thus how much to spend on charity is a programmed decision. Exactly how the money is spent, however, is a non programmed decision ———————– [pic] ———————– [pic]