Posted inPrinciple of Management
Types of Decisions
Decision making and problem solving is a continuous process of analyzing and considering various alternatives in various situations, choosing the most appropriate course of action and following them up with the necessary actions. There are two basic types of decisions Programmed Decisions Non-programmed Decisions Programmed Decisions Programmed decisions are those that are made using standard operating procedures or other well-defined methods. They are situations that are routine and occur frequently. Organizationscome up with specific ways to handle them. Programmed decisions are effective for day-to-day issues such as requests for leave or permissions by employees. Once the decision is taken, the program specifies processes or procedures to be followed when similar situationarises. Creating such programed routines lead to the formulation of rules, procedures and policies, which becomes a standard in the organization. Non-programmed Decisions Non-programmed decisions are unique and one-shot decisions. They are not as structured as programmed decisions and are usually tackled through judgment and creativity. They are innovative in essence, as newly created or unexpected problems are settled through unconventional and novel solutions.…