Non-programmed and programmed decisions

1. Programmed and non-programmed decisions: Decisions are classified into programmed and non-programmed decisions. While the former deals with the routine and repetitive type of problems, the latter deals with problems which are not routine and non-repetitive.

Image describe non-programmed and programmed decisions

For example, an enterprise has a set of procedures to handle normal orders from the buyers and this matter need not be referred to the Board of Directors or any other higher authorities for decision. As this problem is repetitive, a standard procedure should be used for handling such problems. This is a case of programmed decision. On the other hand, if the enterprise receives unusually very large orders for its products in any particular year, it would constitute a problem involving non-programmed decision. For handling such large orders, the sales department may take the guidance of board of directors, since it has to deal with the problem which is non-repetitive and for which no definite procedure has been laid down.

Methods of Handling programmed and Non-programmed Decisions Traditional and Modern techniques.

Fig.8.1 Methods of Handling programmed and Non-programmed Decisions Traditional and Modern techniques.

(Source: Modern Management-Samuel C.Certo and others-PHI)

 
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