Programmed decisions . Programmed decisions are made in routine, repetitive, well-structured situations with predetermined decision rules PDF

Title Programmed decisions . Programmed decisions are made in routine, repetitive, well-structured situations with predetermined decision rules
Author Ding Mercado
Course BS Management Accounting
Institution Sultan Kudarat State University
Pages 2
File Size 74.3 KB
File Type PDF
Total Downloads 46
Total Views 128

Summary

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 wor...


Description

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. Nonprogrammed 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.--------------------------------------------------------------------------------------------------------------Decisions are non-programmed to the extent that they are novel, unstructured, and consequential. There is no cut.

What are examples of non-programmed decision making? Problems that lack clear definition or structure require non-programmed decision making, and examples of strategies that fit that definition include brainstorming, nominal groups, quality circles, heuristic choices and the Delphi technique. Many organizations run into serious difficulties when they encounter their first problem that is not formulaic in nature, and failure to respond in the proper way to those new problems is one of the hallmarks of an organization in major trouble. Brainstorming works by having a group of people sit together and contemplate a common problem. When the group leader identifies the problem, the group then throws out a list of ideas, with the rule that no idea is to be ignored. Each idea receives discussion and analysis until the group selects the best one. The Delphi technique is basically a combination of brainstorming and a conference call. The group leader identifies a problem, and technological tools like video conferencing or group instant messaging, along with questionnaires, gather the input of each person in the group about solving the problem. Nominal group technique allows each group member to think about the problem independently, developing a list of ideas without interaction.

Quality circles are small cadres of workers from one department who meet together on a regular basis to point out, analyze and solve challenges in the workplace. Heuristic choices refer to decisions made on the basis of rule of thumb, common sense or experience. This trusts the experience and motivation of the organization's most senior members. Reference: www.csupomona.edu, smallbusiness.chron.com, www.citeman.com

Examples of structured and unstructured decisions would be one planned and one not planned. Structured is planned and everyone knows what to expect. Unstructured is unplanned and can be changed if needed....


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