Des 10x: 8) Programmed and Non-Programmed Decisions: Hen Simon has grouped omgnizatonsl decisions ito two categories sed on the procedure alowed. They ') Programmed decisions: Programmed decisions are routine and repstitive and are ‘made within the famewor of erganiztional policies and rls, Test polices and ‘ule are enalished well in advance to solve recurring problems in the erganiaten Programmed decisions have short-run impact. They re. generally, taken a he lower level ofmaragement Non-Programmed Decions: Nomprogranmed desisions are dessins ten to meet nensepetitive prablens. Nonprogrammed decisions are relevant for saving ‘nig! unusual problems in which various alematives cannot be decided in advnee ‘common featie of om: programmed decisions i tat thy ave novel and non recurring ard therefore eadymae solutions ae nt availble, Sine thee Ueviions ae of high importance and have long-term consequences, they are made by top level ‘management bstrateste and Tactical Decisions: Orpinizatonal decisions may als be clasifid as strategie or tacts 4) Strategie Decisions Basic decisions or statepe dessins are decisions which ae of portance. Strategie evsions a major choice of actions concerning locaton “of resources and. contnbution to the achievement of organization] ‘objectives, Decisions like plant loeaton, pret dvenicaton, ening ite rhe sees of chants etsribtin apa epee ete ar xan of ae State econ fi) Tactical Decisions: Routine decisions or tactical decisions are deisons which are roitne and reptive. They are derived out of strazpie dsisions. The. saous Features ofa tatcal decison ae fallow + Tectial decision relates to day-o-day operation of the srganiation and bast be take very Fequeily 1+ Tectia decision is mostly programmed one. Therefore, the decision can Lbemade wih th content of thew varbles +The outcome of tata decision eof hort term nature nd afte 3 ow pat of the organization, ‘The autorty for making tetial decisions ean be delegsted to lower level managers because: Fist, the impact of taticl decision is meow and ht enn tue and Second, by delegating athonty for sich decisions tows level manager, higher. level manages ate fee to devote more tims on strategie decisions DECISION MAKING PROCESS “The decision making process is presented inthe figure bel SpeikeOGe]| [emit | Sache Eaton of tl ee ay fami ‘Coax ofakemes Specific Objective: The need for decison making arte in onder o achieve ces spose objectives ‘The starting point in any analysis of decision making involves the determination of whelke decision needs to bende on hich eth aan ne swords of Jongh L Mase" gual dion ie dependnt pen the recognition of the ght problem The objective of problem ideation tia ithe peclem precisely tnd Specify dest, it will provide a ee inning» possible ston A prblem canbe ieee. imanages go though diagnosis and analysis af probe. Diagnosis: Diagnosis ite process of idling » problem fom is sigs and symptoms {Agmplom it condion or tof ceoions ta indir the existence of 2 pebiem Diagnosing the rl problem ips knowing the gp teen wat sand what ough Yo be idening th reasons forthe ep and andertanding the problem in elation higher ajectives oftoanzaton Analysis: Diagnosis gives ise to analysis. Analysis ofa problem requires: + Who would make decison? + What information would be needed?jon making arises in order to achieve certain specific objectives. The starting point in any analysis of decision making involves the determination of whether a decision needs to be made. 1. Problem Identification: A problem is a felt need, a question which needs a solution. In the words of Joseph L Massie "A good decision is dependent upon the recognition of the right ". The objective of problem identification is that if the problem is precisely and fically identifies, it will provide a clue in finding a possible solution. A problem can be identified clearly, if managers zo through diagnosis and analysis of the problem. Diagnosis: Diagnosis is the process of identifying a problem from its signs and symptoms. A symptom is a condition or set of conditions that indicates the existence of a problem. Diagnosing the real problem implies knowing the gap between what is and what ought to be, identifying the reasons for the gap and understanding the problem in relation to higher objectives of theorganization. Analysis: Diagnosis gives rise to analysis. Analysis of a problem requires: + Who would make decision? * What information would be needed? + From where the information is available? Analysis helps managers to gain an insight into the problem. 2. Search for Alternatives: A problem can be solved in several ways; however, all the ways cannot be equally satisfying. Therefore, the decision maker must try to find out the various altematives available in order to get the most satisfactory result of a decision. A decision maker can use several sources for identifyingalternatives: © His own past experiences © Practices followed by others and © Using creative techniques. 3. Evaluation of Alternatives: Affer the various altematives are identified, the next step is to evaluate them and select the one that will meet the choice eriteria. ‘Athe decision maker must check proposed alternatives against limits, and if an alternative does not meet them, he can discard it. Having narrowed down the alternatives which require serious consideration, the decision maker will go for evaluating how each alternative may contribute towards the objective supposed to be achievedby implementing the decision. 4. Choice of Alternatives: The evaluation of various alten: how each one of them contribute to the objectives under qu the likely outcomes of various alternativi Ves presents a clear picture as to estion. A comparison is made among nd the best one is chosen, 5. Action: Once the altemative is selected, it is put into action. The actual process of decision making ends with the choice ofan altemative through which the objectives can be achieved. G, Results: When the decision is put into action, it brings certain results must correspond with objectives, the starting point of decision process, if good decision has been made and implemented properly. Thus, results provide indication whether decision making and its implementation is proper.