Programmed and Unprogrammed Decisions

Programmed and unprogrammed decisions are the two types of decision-making processes that are commonly used in business or organizational settings. The main difference between these two types of decisions is the level of complexity involved in making the decision. In this article, we will discuss in detail the difference between programmed and unprogrammed decisions.

Programmed Decisions

Programmed decisions are those decisions that are routine, repetitive, and can be made using established rules, policies, and procedures. These types of decisions are usually made in response to recurring situations that have already been encountered in the past. Some of the characteristics of programmed decisions include:

- They are made in response to recurring situations.
- They are routine and repetitive.
- They can be made using established rules, policies, and procedures.
- They are low-risk decisions.
- They are relatively easy to make.

Examples of programmed decisions include:

- A company's policy on how to handle customer complaints.
- A restaurant's standard operating procedures for food preparation.
- A bank's rule on the maximum amount of cash that can be withdrawn from an ATM.

Unprogrammed Decisions

Unprogrammed decisions, on the other hand, are those decisions that are complex, non-routine, and require a high level of decision-making skills. These types of decisions are usually made in response to new, unique, and unfamiliar situations that have not been encountered before. Some of the characteristics of unprogrammed decisions include:

- They are made in response to new, unique, and unfamiliar situations.
- They are complex and non-routine.
- They require a high level of decision-making skills.
- They are high-risk decisions.
- They are relatively difficult to make.

Examples of unprogrammed decisions include:

- A company's decision to launch a new product line.
- A restaurant's decision to change its menu.
- A bank's decision to merge with another bank.

Difference between Programmed and Unprogrammed Decisions

The main difference between programmed and unprogrammed decisions is the level of complexity involved in making the decision. Here are some of the key differences between programmed and unprogrammed decisions:

1. Level of Complexity

Programmed decisions are routine, repetitive and can be made using established rules, policies, and procedures. Unprogrammed decisions, on the other hand, are complex, non-routine and require a high level of decision-making skills.

2. Familiarity with the Situation

Programmed decisions are made in response to recurring situations that have already been encountered in the past. Unprogrammed decisions, on the other hand, are made in response to new, unique, and unfamiliar situations.

3. Risk Involved

Programmed decisions are low-risk decisions, while unprogrammed decisions are high-risk decisions.

4. Ease of Decision-Making

Programmed decisions are relatively easy to make, while unprogrammed decisions are relatively difficult to make.

Conclusion

In summary, programmed and unprogrammed decisions are two types of decision-making processes that are commonly used in business or organizational settings. Programmed decisions are routine, repetitive, and can be made using established rules, policies, and procedures, while unprogrammed decisions are complex, non-routine, and require a high level of decision-making skills. Understanding the difference between programmed and unprogrammed decisions can help managers and decision-makers to make better decisions and allocate their resources more effectively.