Decisions Programmed Decisions

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Dr. Mohamed Taher

Contemporary Management

MBA – E

Assignment 4

Program and non-programmed decisions

Prepared by:

Rehab Mohamed Abd El Rasoule

PROGRAMMED AND NONPROGRAMMED DECISIONS

Programmed decisions:

Programmed decision are decisions that have been made so many times in the past that managers have developed rules or guideline to be applied when certain situations are expected to occur in a certain situation. Another definition: It’s made in accordance with written or unwritten policies, procedures, or rules that simplify decision making in recurring situations by limiting or excluding alternatives. 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...
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