Programmed decision-making can also be taught fairly easily to another person. The rules and criteria, and how they relate to outcomes, can be clearly laid out so that a good decision can be reached by the new decision maker.
High- and low-involvement decisions are illustrated in Figure. Nonprogrammed Decisions In contrast, nonprogrammed decisions are novel, unstructured decisions that are generally based on criteria that are not well-defined.
With nonprogrammed decisions, information is more likely to be ambiguous or incomplete, and the decision maker may need to exercise some thoughtful judgment and creative thinking to reach a good solution. These are also sometimes referred to as nonroutine decisions or as high-involvement decisions because they require greater involvement and thought on the part of the decision maker. For example, consider a manager trying to decide whether or not to adopt a new technology. There will always be unknowns in situations of this nature.
Will the new technology really be better than the existing technology? Will it become widely accepted over time, or will some other technology become the standard? The best the manager can do in this situation is to gather as much relevant information as possible and make an educated guess as to whether the new technology will be worthwhile. Clearly, nonprogrammed decisions present the greater challenge.
While decisions makers can use mental shortcuts with programmed decisions, they should use a systematic process with nonprogrammed decisions. The decision-making process is illustrated in Figure and can be broken down into a series of six steps, as follows:. While these steps may seem straightforward, individuals often skip steps or spend too little time on some steps.
You may notice similarities between the two systems of decision-making in our brains and the two types of decisions programmed and nonprogrammed. Nonprogrammed decisions will generally need to be processed via the reflective system in our brains in order for us to reach a good decision. But with programmed decisions, heuristics can allow decision makers to switch to the quick, reactive system and then move along quickly to other issues.
In routine situations, it is usually much more desirable for managers to use programmed decisions than to make a new decision for each similar situation. In programmed decisions, managers make a real decision only once, when the program is created.
Subsequently, the program itself specifies procedures to follow when similar circumstances arise. Programmed decisions do not necessarily remain confined to simple issues, such as vacation policies or similar such things; they are also used to deal with very complex issues, such as the types of tests that a doctor needs to conduct before performing major surgery on a patient with diabetes. Non-programmed decisions are unique. They are often ill-structured, one-shot decisions. There will be plenty of choices and alternatives available as you collect information.
You can even use the available information to come up with new alternatives. To make sound and logical decisions, you need to evaluate whether the information you gathered addresses the original purpose. Prioritize and rank the alternatives accordingly. Once you weigh the evidence and prioritize, select the best possible alternative.
You may even opt for a combination of alternatives, as long as it serves the purpose. Consider the results of your decision and evaluate the process by checking if it has fulfilled your expectations.
Monitoring will help you explore options. Effective decision-making is a much-needed fundamental skill in your personal and professional life. The Good Decision Process framework in particular will guide you in scrutinizing situations before arriving at smart decisions. Sharpen this leadership quality and win the confidence of your coworkers! Discover more from Harappa with a selection of trending blogs on the latest topics in online learning and career transformation. Stay ahead at work with smart stories, videos and podcasts delivered straight to your inbox.
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