Programmed and Non Programmed Decision Making - 977 Words

1. Compare and contrast programmed and nonprogrammed decision-making in organizations and give two realistic business examples of each of these two types of decision-making. Programmed decision are decisions that have been made so many times in the past that managers have developed rules or guideline to be applied when certain situations are expected to occur. Programmed decision making is used when an inventory manager of mc Donalds decides to order beef patty stocks because the stocks are three-quarters empty. Programmed decisions making are a routine that you make every time so that the organization run smooth. Managers can develop rules and guidelines to regulate all routine organizational activities. Most decisions are related to†¦show more content†¦This will affect mc Donalds revenue and profit. If the error is caused by programmed decision making, the lost is not big compared to nonprogrammed decision making. Lets say that the big mac that mc Donalds cooked exceed the supposed number. That means extra big macs and they cant sell these big macs tomorrow morning. So there might be some lost there but the employees can still take it home after closing. Programmed decision making are always used in daily routine to keep the organization running smooth. That is why they have rules and guidelines to make a decision. Nonprogrammed decision making are not always used but it will give impact to an organizations effectiveness. This decision is made on reasonable judgment and the circumstances if we proceed with the decision. 2. There are two important techniques that managers can use to promote creativity in group decision-making situations As we discussed , we have decided to choose between three of these restaurants to open in a centrally located shopping center in Shah Alam. We have decided to open either a fast food franchise , an Italian fine dining restaurant or a family friendly restaurant that servers Kelantan cuisine. The pros for fast food franchise is kids love fast food. So these kids will drag their parents to our fast food restaurant for sure. But on the other hand the cons is , parents dont love fast food because it is unhealthy. For people that are onShow MoreRelatedHow an Effective Decision Making Process Could Have an Impact on an Organization’s Success1590 Words   |  7 PagesTopic: While Managers do not control many factors affecting the success of their decisions, they do have substantial control over the process they use to make decisions. Discuss how an effective decision making process could have an impact on an organization’s success. You need to evaluate the process and show how it relates to the success of an organization. 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