Programmed decisions and non-programmed decisions are two types of decision-making processes that organizations use to solve problems or make choices.
Programmed decisions are routine and repetitive decisions made according to a predetermined set of rules or procedures. Such decisions usually arise in response to standardized situations that occur frequently and can be resolved easily by applying established policies or procedures. For instance, routine budgeting decisions, order processing, and inventory management are examples of programmed decisions.
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Non-programmed decisions, on the other hand, are unique, complex, and require judgment, intuition, and creativity to resolve. These decisions arise in response to new or unfamiliar situations that cannot be easily solved by following established procedures. Examples of non-programmed decisions include launching a new product, responding to a crisis, or selecting a new supplier.
The primary difference between programmed and non-programmed decisions is the level of structure and routine involved in the decision-making process. Programmed decisions are standardized and can be automated, while non-programmed decisions require more human input and creativity. In summary, programmed decisions are predictable and can be easily addressed by following established protocols, while non-programmed decisions require more extensive analysis and human input to find a suitable solution.