Accounting technicians scheme west africa
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- (ii) Non-programmed Decisions
| (i) Programmed Decisions Programmed decisions are those decisions made in routine, repetitive and well-structured situations through the use of predetermined decision rules. The decision rule maybe based on habit, computational techniques, or established policies and procedures. If a particular situation occurs often and in same form, a routine procedure, will usually be worked out for dealing with it. Decisions are programmed to the extent that they are repetitive and routine. Examples are procedures for opening a bank account reorder of inexpensive materials and admitting patients in hospitals. 124 (ii) Non-programmed Decisions Decisions are non-programmed when the problem is unstructured. There are no previously established routines or procedures that can be used as guides. Situations that require non-programmed decisions are poorly defined and unstructured, yet, they have important consequences for the organisation, Managers and professionals who have robust knowledge and experience make most non-programmed decisions. Such decisions deserve special attention/treatment of top level management. Non-programmed decisions must be properly identified as such, since they are of strategic importance and may involve large expenditure. Examples are diversification into new products and markets construction of new facilities and purchase of expensive equipment. B.4 The Rational Decision-Making Process Step 1: Diagnose and define problem or opportunities The origin of a problem is not always obvious. If managers are to remedy a situation, they must first find out what the real problem is. One way to do this is to ask what past action or lack of action might have caused this situation to arise In this way, managers can focus upon the events or circumstances that most likely led to the problem. An opportunity is a gap, an unsatisfied need or a need that is being inadequately satisfied by existing competitors and which can be profitably exploited. As part of the process of defining the problem, managers should also begin to determine which problems they should or would like to solve. Managers therefore, need to distinguish between their musts and their should so that they will have a basis for proposing and evaluating solutions. That is, managers should prioritise problems in order to determine the ones that must be attended to and those that should be attended to. Download 3.37 Mb. Share with your friends:
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