What is unstructured or non-programmed decision?

The response to a problem is generally based upon the nature of the problem. The method of response can generally be characterized as follows:

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What are Programmed Decisions? 

Programmed decisions are repetitive and routine in nature. That is, this type of decision or response to a situation is common within the organization and largely automated. Programmed decisions are generally documented as Procedures, Policies, or Rules. As such, this type of decision does not require a high degree of analysis and evaluation. They certainly do not require managers to go through each step of the decision-making process.

What are Unprogrammed Decisions?

These are novel, ambitious, and often incomplete in nature. Because they are unique and non-recurring, managers must generally undertake the various steps in the decision making process to address these decisions. Particularly, managers must analyze the problem, identify alternatives, and choose among the best alternative.

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Like many small-business owners, you probably view time as your most valuable commodity. And what you wouldn't do for more of it. Until a genie appears at your door with a magic lantern, you can free up more time in your day by learning to delegate programmed decisions to middle- and lower-level managers, while you handle the thornier unprogrammed decisions that require more creativity and strategic thinking. Technically, this management technique contains no magic, even though it may feel this way.

Programmed decisions are those you've encountered many times before and so know how to handle with ease. They often involve routine, straightforward matters that are addressed in your company's rules and procedures manual. By now, these are so familiar that you may know them by heart, too.

Programmed decisions also may share other characteristics:

• They are often structured and automated (or capable of being automated). They tend to have successful outcomes, because of their rote nature. Once they're made the first time, they set the bar for formulating new rules and procedures that should be simple for others to follow.

You don't have to run a small business for long, before you're confronted with programmed decisions such as:

• Reordering office supplies.* Dealing with time off and vacation requests from employees.
• Addressing power outages and service interruptions to your customers.

No one ever said that programmed decisions aren't time consuming. They can be. And the fact that you're considering delegating some business decisions to your colleagues suggests that you already know how you can spend an entire day moving from one programmed decision to another.

It's not necessarily the time element that makes unprogrammed decisions different; it's their quality since they often:

• Defy easy answers, involving nuances and complexities. You won't find the answer in a rules and procedures manual. Contain an element of novelty that may give you pause and say, Not so fast. Require evaluation, brainstorming, contemplation and, perhaps, some trial and error.

As your business grows, you hire new employees and gain new customers, so it stands to reason that the number of unprogrammed decisions you encounter will grow exponentially. These decisions often involve personal, strategic or crisis situations – the type you know in your gut that you had better get right or the consequences will reverberate through your business. Perhaps you've already seen some of them in the form of:

• Altering your marketing plan to address a new market niche. Dealing with a competitor who is chipping away at your customer base by seemingly copying some of your best tactics. Confronting a threatened work strike from one of your vendors.* Addressing a customer complaint on social media (although for some small-business owners, this occurrence is happening with such regularity that it is moving into the programmed decision category).

You may be thinking of a similar problem in your business that traverses both categories. But you should be able to place every decision you face into one of the two categories – if you think of programmed decisions as involving structured problems – and unprogrammed decisions as involving unstructured problems. Put another way, unprogrammed decisions do not require creativity and innovation because they involve routine problems.

Vesting your middle- and lower-level managers with the authority to make programmed decisions will do more than free your time; it will empower them (and will flatter them) and will also help them grow in the roles.

They may never say it out loud, but your employees and customers need your creative thinking and problem solving skills. They need your ingenuity. And they need the leadership that flows from unprogrammed decisions. It's not magic; a genie might say that it's just good business.

Definition, similarities, and differences of Programmed Decision and non-programmed Decision are explained below;

Programmed Decision

Programmed decisions are those that are traditionally made using standard operating procedures or other well-defined methods. These are routines that deal with frequently occurring situations, such as requests for leaves of absence by employees.

In routine situations, it is usually much more desirable for managers to use programmed decisions than to make a new decision for each similar situation.

In programmed decisions, managers make a real decision only once, when the program is created. Subsequently, the program itself specifies procedures to follow when similar circumstances arise.

The creation of these routines results in the formulation of rules, procedures, and policies.

Programmed decisions do not necessarily remain confined to simple issues, such as vacation policies or similar such things; they are also used to deal with very complex issues, such as the types of tests that a doctor needs to conduct before performing major surgery on a patient with diabetes.

To summarize; programmed decisions features are;

• Programmed decisions made using standard operating procedures.
• Deals with frequently occurring situations. (Such as requests for leaves of absence by employees)
• Much more appropriate for managers to use programmed decisions for similar and frequent situations.
• In programmed decisions, managers make a real decision only once and the program itself specifies procedures to follow when similar circumstances arise.
• This leads to the formulation of rules, procedures, and policies.

Non-Programmed Decision

Non-programmed decisions are unique. They are often ill-structured, one-shot decisions. Traditionally they have been handled by techniques such as judgment, intuition, and creativity.

More recently decision-makers have turned to heuristic problem-solving approaches in which logic; common sense and trial and error are used to deal with problems that are too large or too complex to be solved through quantitative or computerized approaches.

In fact, many management training programs on decision-making are designed to help managers think through problems using a logical, non-programmed approach.

In this way, they learn how to deal with extraordinary, unexpected, and unique problems.

Non-programmed decision features are;

• Situations for Non-programmed decisions are unique, ill-structured.
• Non-programmed decisions are one-shot decisions.
• Handled by techniques such as judgment, intuition, and creativity.
• A logical approach to deal with extraordinary, unexpected, and unique problems.
• Managers take heuristic problem-solving approaches in which logic; common sense and trial and error are used.

Similarities of Programmed Decision & Non-Programmed Decision

Differences between Programmed Decision & Non-Programmed Decision

Programmed decisions usually relate to structured problems while non-programmed decisions are taken to solve unstructured problems.

It is also to be noted that the programmed decisions are taken at the lowest level whereas the non-programmed decisions are taken at the highest level of the organization hierarchy.