LOCUS OF DECISION MAKING

4.1 Programmed decision

Programmed decisions are repetitive or routine and structured decisions. Therefore, this type of
decision is something that is usually employees must do around the area owned by an
organization and needs to be followed well by employees in the organization. Managers will
only make the right rules and will ensure that everyone in the organization follows the structure
well. While working, there are situations or problems that often arise and sometimes make it
difficult for employees to make decisions. Therefore, TOYesz's manager has set a decision that
can keep employees solving routine problems and not making mistakes while at work.

4.1.1 Example of programmed decision

TOYesz's company presents rules such as etiquette for use in office centers and factories. In the
office center, the dress code must always be neat and formal and not conspicuous. At the factory,
the dress code is to wear closed shoes, safety hats and collared shirts that have been given by the
company before employees work at TOYesz. In addition, the time to enter work is before 8.30
am and finish work at 5.00 pm and must be followed well by every employee. If the employee
has a late arrival or not enough time work in a day without permission by manager more than 5
times in a month, then the employee will be given a warning letter and disciplinary action will be
imposed if the employee repeats the same mistake in the nearest period. This decision has makes
so that the employees are always disciplined and maintain the good name of the company as well
as the safety of the employees in company.
4.2 Non-Programme decision

Non-programmed decisions are non-routine decision-making that require higher level

management involvement and are unstructured. this type of decision making usually deals with
unusual, unique and does not follow a set of procedures to deal with the problem because the
decision is generally ambiguous. TOYesz's company only uses this type of decision when the
organization faces problems beyond the company's expectations that will affect the environment,
employee's safety or problems that are not in decision-making's organization that will harm the
company if not resolved it.

4.2.1 Example of Non-Programmed decision

The top-level manager in TOYesz has used this non-programmed decision while the world is
facing the outbreak of the Covid-19 disease which has caused many companies including
TOYesz to be temporarily closed and will reopen gradually. Because of that, there are many
unexpected problems and top-level managers need to change or make new decisions to solve the
problems so that the decisions made can re-stabilize the company's finances and maintain the
safety of all employees. Since during this pandemic there is an economic downturn that is
affecting all countries in the world, TOYesz's company needs to reduce the salary of employees
and lay off part-time employees and no allowances are given to employees until the country
recovers from the pandemic in order to reduce the financial problems that are affecting the
company and this is discussed together with the company's chief financial manager to ensure that
the decisions made are beneficial to the company. In addition, every employee must follow all
the procedures provided by the government so that this infectious disease does not spread around
the TOYesz company area and endanger employees.