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Programmed Decisions

Decisions related to structured situations, where the problem is more or less routine and repetitive in nature are known as programmed decisions. The routine problems may not always be simple. There may be complex routine problems. For example, managers order for inventory when it reaches the re-order point. This is a routine which the production department follows. If there is sudden increase in demand for the product, managers cannot wait for inventory to reach the re-order point to make fresh orders. Orders are placed before this level is reached. Ordering inventory is, thus, a problem of routine nature but ordering inventory  before the re-order point is a routine but complex problem, In tether situation, managers depend on pr-established criteria for taking decision. Various policies, schedules and procedures guide these decisions and, therefore, policies and procedures should be as clear as possible. Since decisions are based on pre-set standards, they do not require much of brain storming and are taken normally but middle-level and lower-level manages. Manages do not think of novel ways to solve the routine problems. Therefore, then can concentrate on important and crucial activates. These decisions also involve some amount of certainty, i.e. outcomes of these decisions are, by and large, known. Various types of programmed decisions are: (1) organizational decisions, (2) operational decisions, (3) research decision, and (4) opportunity decisions.

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