Please enable JavaScript.
Coggle requires JavaScript to display documents.
TYPES OF PROBLEMS AND DECISIONS - Coggle Diagram
TYPES OF PROBLEMS AND DECISIONS
WELL STRUCTURED PROBLEMS AND PROGRAMMED DECISIONS
WELL STRUCTURED PROBELM
problem is familiar, and information about the problem is easily defined and complete
straightforward, familiar, easily defined
Examples
a customer wanting to return a purchase to a retail store
a supplier being late with an important decision
university's handling of a student wanting to drop a class
PROGRAMMED DECISIONS
a repetitive decision that can be handled by a routine approach
the problem is unstructured, the manager does not have to go to the expense of going through an involved decision process
relatively simple and tends to rely heavily on previous solutions
Example
a server in a restaurant spills a drink on a customers cast, the manager has an upset customer and needs to do something. Because drinks are frequently spilled, there is probably some standardised routine for handling the problem (eg. offering to have the coat cleaned at the restaurants expense)
the spilled drink doesn't require the manager to identify and weight decision criteria or to develop a long list of possible solutions
once the structured problem is defined, its solution is usually self-evident or at least reduced to very few alternatives that are familiar and have been successful in the past
three types of programmed decisions
PROCEDURE
a series of sequential steps that a manager can use to respond to a structured problem
once problem is identified and clear so is the procedure
Example
a purchasing manager receives a request from a sales manager for 15 iPads for the company's sales reps. The purchasing manager knows how to make the decision - follow the established purchasing procedure
RULE
an explicit statement that tells a manager what they can or cannot do
frequently used because they are simple to follow and ensure consistency
Example
rules about lateness and absenteeism permit supervisors to make disciplinary decisions rapidly and fairly
POLICY
provides guidelines for making a decision
establishes general parameters for the decision rather than specifically stating what should or should not be done
Examples
the customer always comes first and should be satisfied
we promote from within, whenever possible
UNSTRUCTURED PROBLEMS AND NON-PROGRAMMED DECISIONS
UNSTRUCTURED PROBLEMS
problems that are new or unusual and for which information is ambiguous or incomplete
NON-PROGRAMMED DECISIONS
decisions that are unique and non-recurring and require custom-made solutions
when their is no cut-and-dried solution it requires a custom-made response though non-programmed decision making
INTEGRATION
lower-level managers confront familiar and repetitive problems
mostly rely on programmed decisions such as procedures, rules and organisational policies
WHY? ^
because lower-level managers handle the routine decisions themselves and turn over to upper-level managers the decisions they find unusual or difficult
higher-level managers turn over or delegate routine decisions to their subordinates so that they are free to deal with the more difficult issues