Programmed decisions are repetitive decisions that can be handled by a routine approach. In dealing with this type of decision, managers may utilize procedures, rules, or policies. A procedure is a series of interrelated sequential steps that can be used to respond to a structured problem. A rule is an explicit statement that tells managers what they ought or ought not to do. A policy is a guide that establishes parameters for making decisions.
Nonprogrammed decisions are unique decisions that require a custom-made solution.
Lower-level managers typically confront familiar and repetitive problems and rely on programmed decisions. As managers move up the levels of the organization, the problems tend to become more ill-structured. However, few managerial decisions in the real world are either fully programmed or nonprogrammed. Managers have different sytles when it comes to making a decision and solving problems. We want to look at two different views.