What is programmed and non-programmed decision. Explain Administrative process as a decision-making process.
Programmed and Non-Programmed Decisions are two important polar types of decision-making process. The terms are obviously derived from computer language. A programme is a plan for the automatic solution of a problem. When decisions are repetitive and routine, these lend themselves to programming. Each situation need not be treated as a new one and no adhoc decision are called for.
Detailed procedures are worked out to deal with the recurrent and repetitive situations. Programmed decisions are firmly widely used in most organization for routine cases such as tenders and contracts, compensation policy and salary administration and so on.
Decisions are non-programmed to the extent they are constructed new of high consequence, involve major commitments or are elusive or complex. Established rules and procedures are inadequate to deal with the new kinds of situations and the organization has to innovate or improvise. Non-programmed decisions thus calls for more ingenuity consultations and a degree of risk taking.
Administrative process is a decision-making process.
Formal organizations are set to fulfill certain objectives. The purposiveness of the organization demands rationality in problem-solving. The concept of decision-making is thus control to any theory of administration. The two approaches followed in the analysis of decisions are derived from management science and behavioral science.
The former has formulated a number of techniques such as linear programming, queuing theory etc. which emphasizes maximization principles in arriving at choices among several alternatives.
The behavioral sciences concentrate basically on the individuals and the organization to bring out the social and psychological processes involved in decision-making.
Decisions have a sequential character and several decisions are taken over time or at different levels to fulfill organizational objectives. Secondly, at higher levels major decisions are taken known as policy decisions which set the pattern of sub-decision making at lower levels and which usually cover wider geographical areas.