1. Programmed vs.

Non-Programmed Decisions:
o Programmed Decisions:
 Definition: Programmed decisions are routine, repetitive, and well-
structured decisions that can be made using established procedures
and rules. These decisions are typically made in predictable and
stable environments.
 Characteristics: They are usually made in response to recurring
organizational problems or situations. The decision-making process
is straightforward and can be automated.
 Examples: Reordering office supplies when inventory is low,
processing routine customer service requests, or following
established protocols for quality control.
o Non-Programmed Decisions:
 Definition: Non-programmed decisions are unique, complex, and
unstructured decisions that arise in unfamiliar or unpredictable
situations. There are no predetermined rules or procedures to guide
decision-makers in such situations.
 Characteristics: They require creative thinking, analysis, and
problem-solving. Non-programmed decisions are often made by
top-level management and involve strategic planning.
 Examples: Choosing a new market for expansion, deciding on a
merger or acquisition, or responding to a sudden crisis.
o Implications for Decision Makers:
 Programmed decisions allow for efficiency and consistency, as they
can be automated and delegated.
 Non-programmed decisions demand higher cognitive abilities,
strategic thinking, and adaptability.
 Decision-makers need different skills for each type, and
organizations must have mechanisms to handle both routine and
exceptional decision-making processes.
2. Behavioral Nature of Decision Making:
o Political Forces:
 Decision-making in organizations often involves power struggles
and influence. Various stakeholders may have conflicting interests,
and decisions may be influenced by individuals or groups seeking
to advance their own agendas.
 Understanding and navigating organizational politics is crucial for
effective decision-making.
o Risk Propensity:
  Individuals and organizations vary in their tolerance for risk. Some
decision-makers may be risk-averse, preferring safe and
conservative choices, while others may be risk-seeking, embracing
uncertainty for potential rewards.
 Risk propensity influences decision-making strategies and the
willingness to take on challenges.
o Ethics:
 Ethical considerations play a vital role in decision-making. Decisions
should align with moral principles and values, and decision-makers
need to weigh the ethical implications of their choices.
 Unethical decisions can harm an organization's reputation and lead
to legal consequences.
o Commitment:
 Decision-makers need to be committed to the decisions they make.
This involves ensuring that the decision aligns with the
organization's goals and values and taking responsibility for the
outcomes.
 Lack of commitment can lead to poor implementation and negative
consequences for the organization.
o Implications:
 Decision-makers must be aware of and manage political dynamics,
considering the interests of various stakeholders.
 Understanding one's and the organization's risk propensity is
crucial for making decisions that align with overall goals.
 Ethical considerations should be integrated into the decision-
making process to ensure responsible and sustainable choices.
 Commitment ensures effective implementation and the successful
execution of decisions.