Programmed and Non-Programmed Decisions

Programmed decisions are those that are made in accordance with some habit, rule or procedure. Every organization has written or unwritten policies that simplify decision making in recurring situations. Programmed decisions are used for dealing with complex as well as with uncomplicated issues.

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. Programmed decisions limit the decision makers freedom because the organization rather than the individual decides what to do.

However, the policies, rules and procedures of which we make decision trees, decision makers of the time needed to work out new solutions to every problem, then allow the decision maker to devote attention to other more important activities.

Non-Programmed decisions are those that deal with unusual or unique problems; problems which have not come up often enough to be covered by a policy or it is so important that it deserves special treatment, it must be handled by a non-programmed decision e.g. decisions on:

    • allocation of resources
    • society relations
    • falling product lines

Most management training programs try to improve a managers ability to make non-programmed decisions usually by trying to teach them to make decisions reasonably.