Categories: Management

Types of Decisions

Decisions are very important part in life; we take decisions at every moment in daily routine. If we choose a TV program to watch among several programs it means we took decision about which program to watch.

Decision is a choice made from available alternatives.

There are two types of decision:
•    Programmed Decisions
•    Non-programmed Decisions

Programmed Decisions

It involves situations that have occurred often enough to enable decision rules to be developed and applied in the future. These decisions are those that have been made persistently in the earlier period that managers have developed rules or guideline to be applied when certain situations are expected to happen. Programmed decision making is used when an inventory manager of mc Donald’s decides to order beef patty stocks because the stocks are three-quarters empty. Programmed decisions making are a routine that you make every time so that the organization run smooth. Managers can develop rules and guidelines to regulate all routine organizational activities. Most decisions are related to daily activities.

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