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Programmed vs. Non- Programmed
Programmed
- Highly routine decisions made by lower personnel following preestablished
organizational routnes and procedures
Non-Programmed
- Decisions made about a highly nove l problem for which there is a
n prespecified course of action
- Strategic non programmed decisions typically made by high level executives
regarding the direction their organization should take to achieve its mission
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Certain vs. Uncertain
- It is usually expressed as statement of risk.
- What makes an outcome risky is the probability of obtaining the desired outcome.
- Objective probabilities are based on concrete verifiable d ata
- Subjective probabilities are based on personal beliefs or hunches
- To make the best possible decisions in organizations people seek to "manage" the risk they take
- Efforst to reduce uncertainty include:
- Establishing linkages with other organization
- Increasing access to information
- Relying on pat experiences and expertise
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Top Down vs. Empowered
Top Down Decision Making
- The practice of vesting decision making power in the hands
of superiors as oppoosed to lower level employees.
Empowered Decision Making
- The practice of vesting power for making decision making is
in the hands of the employee themselves.
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