Programmed decisions : Programmed decisions refer to decisions made on

problems and situations by reference to a predetermined set of precedents,

procedures, techniques and rules. These are well-structured in advance and
are time tested for their validity. As a problem or issue for decision making
emerges, the relevant pre-decided rule or procedure is applied to arrive at
the decision. For example, in many organizations, there is a set procedure for
receipt of material, payment of bills, employment of clerical personnel,
release of budgeted funds, and so on.

Non-programmed decisions : are those, which are, made on situations and

problems which are novel and non-repetitive and about which not much
knowledge and information are available. They are non programmed in the
sense that they are made not by reference to any pre determined guidelines,
standard operating procedures, precedents and rules but by application of
managerial intelligence, experience,judgement and vision to tackling
problems and situations, which arise infrequently and about which not much
is known.