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1. Managers Making Decision

2. Types of Decisions and Decision-Making Conditions Types of Decisions: Managers in all kinds of organizations face different types of problems and decisions as they do their jobs. Depending on the nature of the problem, a manager can use one of two different types of decisions. PROGRAMMED DECISIONS: The decision maker’s goal is clear, the problem is familiar, and information about the problem is easily defined and complete. Programmed decisions are repetitive decisions that can be handled by a routine approach and are used when the problem being resolved is straightforward, familiar, and easily defined (structured). Routine and repetitive. Based on established rules, procedures, or policies. Designed for structured problems with clear solutions. Often made by lower-level managers. Examples: Approving employee leave, reordering inventory, processing payroll.

3. Non-Programmed Decision: When problems are unstructured, managers must rely on nonprogrammed decision making in order to develop unique solutions. Nonprogrammed decisions are unique and nonrecurring and involve custom-made solutions. Nonprogrammed decisions are unique decisions that require a custom-made solution and are used when the problems are new or unusual (unstructured) and for which information is ambiguous or incomplete. Unique and nonrecurring decisions. No pre-determined procedures exist. Designed for unstructured problems requiring creativity and judgment. Typically made by top management . Examples: Developing a new business strategy, launching a new product. Types of Decisions and Decision-Making Conditions

4. Structured Problem: Clear and straightforward issues. Information is available and goals are defined. Solved using programmed decisions. Example: Handling routine customer complaints. Unstructured Problem: New, unusual, and complex situations. No clear solution path or precedent. Require nonprogrammed decisions. Example: Entering a new global market or responding to a crisis. Structured and Unstructured Problem

5. Programmed Versus Nonprogrammed

6. Decision-making Condition Managers make decisions under three key conditions: Certainty Risk Uncertainty Certainty is a situation in which a manager can make accurate decisions because all outcomes are known. Example: Buying raw materials from a reliable supplier with a fixed price. Risk is a situation in which a manager can estimate the likelihood of certain outcomes. Example: Investing in a new advertising campaign based on consumer data . Uncertainty is a situation in which a manager is not certain about the outcomes and can’t even make reasonable probability estimates. Example: Launching a product in a new, unfamiliar market.

7. Decision-Making Styles: Managers make decisions differently based on their thinking style. Thinking style shows how a person gathers and processes information. It depends on two things: Source of information – from facts and data (external) or from feelings and intuition (internal). Way of processing – logical and step-by-step (linear) or creative and intuitive (nonlinear). These create two main styles: Linear Thinking Style Nonlinear Thinking Style

8. Linear and Non-linear

9. Managers face: Fast-changing environments Risk and incomplete information Time pressure and global diversity Poor decisions can cost companies millions, so managers need strong decision-making skills. Decision Making in Today’s Business World

10. Understand Cultural Differences: No single “best” way to decide; effective decisions reflect local values and beliefs. Know When to Quit: Recognize when a decision fails _ don’t be afraid to stop or change course. Use an Effective process: An effective process should: Focus on key issues. Blend logic and intuition. Use enough—but not too much—information. Be simple, flexible, and consistent. Guidelines for Effective Decision Making

11. Build an Adaptive Organization (HROs) Highly reliable organizations: Stay alert to small errors and fix them early before they grow bigger. Value expert input. HROs trust their employees’ knowledge Adapt quickly to the unexpected. When something unexpected happens, they don’t panic. Embrace complexity instead of avoiding it. HROs study them deeply to find real causes. Learn by acting, not just planning. Taking small steps, testing, and learning what works through experience. Guidelines for Effective Decision Making

12. Conclusion “Good decisions are not just logical—they are adaptive, timely, and human.” — Robbins & Coulter, Management (14th Edition)