What Is Programmed And Non-programmed Decision Making?

3 Answers

Ellie Hoe Profile
Ellie Hoe answered
Programmed decision making is a repetitive decision that can be handled by a routine approach and is not new. In this decision making process you have set procedure, rules and policies to follow. Where as, In Non-programmed decision making: It is a unique decision that needs a custom made solution. In this you mostly deals with unstructured problem which are new or unusual and for which information is incomplete.

Rational decision making: Describe the choices that are consistent and value-maximizing with in specified constraints. Whereas, bounded rationality is a decision making behavior that is rational, but limited/bounded by an individual's ability to process information.
varun upadhyay Profile
varun upadhyay answered
Decision Marking
Programmed decisions are best in highly structured environments with established goals and channels of information. Because of the high structure, it’s possible to set up a rule that states an action will take place once a certain condition has been reached. This streamlines general, repetitive, and frequent decisions.

Programmed decisions enable upper management to dictate the decisions of middle management by establishing the rules. It also enables a small business owner to make quick and consistent decisions by setting a rule and applying it to all similar decisions.

After establishing the rules across a series of decisions, the rules guide future decisions to make decision making more efficient and effective.

Programmed decisions are proactive. They anticipate future problems and establish decision making to resolve the problems

Decision Marking
Non-programmed decision making occurs in opposite conditions than programmed decision making. The environment most appropriate for non-programed decision making is one with poor structure, vague goals or ambiguous information. Usually decision making in such environments requires information and analysis specific to each decision.

Non-programmed decision making applies to specific concerns and infrequent decisions so that no rule can guide decisions.

Non-programmed decision making is reactive rather than proactive. Because the problems are more difficult to anticipate, each problem has to be dealt with as it occurs.

Decision Marking:
Programmed Vs. Non-Programmed
A good analogy for the differences between programmed and non-programmed decisions is a custom designed and produced product compared to a mass-produced one.

When you custom design and produce a new product, you’ll run into concerns that you have to resolve. These concerns require far more resources to produce the prototype than to produce copies.

The more copies that you produce, the more you learn to streamline the process. So by the time a product is put into mass production, most decisions have been made. The rest are frequent decisions usually made by lower-echelon personnel, with rules for making the decisions made by management.
Anonymous Profile
Anonymous answered
Programmed decision are well-defined. The decision makers are aware of the extent of the decision and has a clear set of option to make his/her choice. All is require is the decision rule which he /she can choose the ideal alternatives at his/her disposal..
Un-programmed decision is unique and not routine. In this type of decision the probability of occurrence of different states of natures are not known to the decision makers.

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