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Programmed and non-programmed decisions
i) Programmed decisions refers to those decisions on which the quality standards and
guidelines are already established. These decisions are mainly routine in nature and can be
made by reference to previously established standards. They are usually made by the
lower level management, say a junior officer or a clerk. Examples of such decisions
include; credit granting decisions to a customer based on order value credit worthiness or
credit limit.
Non programmed or unstructured decisions are those decisions that deal with problems
or applications that cannot be clearly defined or identified. They are characterised with
uncertainty and mainly concern the future operation containing variables or data where
impact cannot be estimated. Such decisions thus require high and qualified managers who
are able to make correct judgement based on environment understanding as there is no
precedence or reference to guide the decision making. Unstructured decisions require
managers to use their intuition or intelligence and skills to make decisions.
ii) Type of decision to which it may apply:
? Computer program – programmed or structured decisions
? Stock ordering – programmed or structured decisions
? Judgement – unprogrammed or unstructured decisions
? Regulation – programmed or structured decisions
gregorymasila answered the question on November 30, 2017 at 13:32
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