Arguably, decision making is very crucial to organizations, as well as individuals. As a matter of fact, decision making incorporates various skills, expertise, character and knowledge. The decisions made by individuals has various impacts, especially when the outcome is realized. Programmed decisions define the decisions which are made in situations that are routine, well-structured, and repetitive and predetermined decision rules. They may have a basis of established policies, habit, procedures or rules that stem from prior technical knowledge or experience concerning what can work or cannot work in given circumstances. For instance, firms usually have standard routines applicable in handling discipline of employees or complaints from customers. Notably, the problems or issued requiring programmed decisions are well-structured which imply that the manager does not face trouble or incur expenses in getting an involved process of decision making (Wagner, 2005).
Importantly, these decisions have been made severally in previous occasions making managers develop guidelines or rules for application when situations occur. Additionally, these decisions are made routinely for the firm to run smoothly. The majority of these decisions has a relationship with daily activities in the firm. Consequently, errors are rare in these decisions because of the guidelines and rules that create a routine and information needed to be followed by other people.
Non-programmed decisions define unique decisions that involve a solution that is custom-made. This occurs when a novel or ill-structured problem confronts a manager in a situation where the ‘cut and dried solution’ is not found. Notably, such decisions are non-recurring and unique; hence, requires a response that is custom-made (Ramalingam, 2006). For instance, a decision involving the creation of a marketing strategy in a firm is a non-programmed decision. Additionally, these decisions are a response to unusual threats and opportunities in the firm.
Notably, these decisions are non-routine and involve considerable decisions that have long-term effect on the firm. Furthermore, these decisions require no guidelines or rules because of the uncertain or unexpected situations. Crucial to note, making these decisions is likely to result to, errors and cause more problems due to new challenges and relying on intuition for quick response to these concerns.
Juliet is required to make a non-programmed decision in her firm. This is because she is supposed to decide on whether the graduate recruitment program that has operated for five years will be required next year due to the economic state (Sanderson, 2006). This decision is new at the firm because this is the first time the program is operating in the firm, in such state of the economy. This is an unusual situation involving a different decision because of the new condition or state of the economy in the firm. This implies that there are certain conditions that have changed in the firm in this case the state of the economy.
This decision is also long-term rather than related to daily activities of the organization. This is because the decision that Juliet will make will determine whether the firm will sustain the program on the long-term basis or not. This is because the state of the economy may not be predictable (Schultz, 1981). Additionally, this state of the economy is an unusual threat in the firm as it may result in an end of the graduate recruitment program which offers opportunities in the firm. Therefore, a non-programmed decision is required to provide a way ahead to make certain that the firm does not succumb to the threat. This implies that Juliet has to be extra careful due to likely errors and problems that may result.
The two models of decision making are classical and administrative. Classical model is an approach that is prescriptive outlining how managers should make their decisions. It is also known as rational model. This model has a basis of economic assumptions asserting that managers are rational, logical individuals making decisions in the best interest of the firm. On the other hand, behavioral model is a descriptive approach outlining how managers do make decisions. This is also known as organizational, or neo classical (Kolbin, 2003).
The classical or rational economic model focuses on how decisions should be made. The model has an assumption that the decision maker is ultimately rational. This implies that such an individual seeks to utilize a process that is planned, consistent, orderly and unbiased. Also, assumes that decision makers have all information they require in making decisions and considers all possible alternatives. The decision maker is expected to select the best or optimum choice (Emory, 2001). Notably, decision making progresses in the order of a sequence of steps. These are identifying the problem, developing criteria where alternative solutions are evaluated, identifying alternative courses of action, evaluating of alternatives, selecting the best alternative and implementing the best of all the options.
Behavioral or administrative model describes how decisions are made. Decision makers simplify problems making them less complex because their individual capabilities are limited by the conditions of the firm such as availability of resources. This model has assumptions that decision makers perform with bounded or limited rationality. This implies that decision makers become rational within a model that is simplified. This may which contain limited components such as options or criteria of decision making. They also assume that decision makers identify criteria of decision making that is limited, examine limited alternatives, which are highly visible and easy or those slightly different from the status quo. The decision makers do not possess all information required in making a decision. The decision makers select an alternative that is satisfactory and good enough to meet the minimum criteria required for a desired solution. Decision making is a sequential process where alternatives are examined, and the best is selected (Byrd, 1982).
Juliet will use behavioral model in making her decision. This is because her situation is unusual in the organization. This implies that she has limited options and criteria in making her decision. This is because this problem is new in the firm which means that there are no set rules and procedures to be applied in making this decision. Juliet will use this model because she does not have all information required to handle this issue and make decisions. This is simply because this problem has not been handled before in the organization thus there is no information to refer to and make this process easy. Notably, the firm does not have a sequence or procedure to be followed in making this decision because it is new at the firm (Lindley, 2005). Juliet has to apply this model in order to search for the best alternatives, examine and evaluate them well and choose the best option in making her decision. She should do this keenly as this will have a long-term effect on the future of the firm.
In this situation, Juliet may decide that the firm will need the graduate recruitment program next year on the basis of some factors. She has to make her decision by identifying all options and selecting the best of them all. Some crucial in this decision include availability of financial resources to support the program (Beerman, 2002). This implies that Juliet has to consider the resources required in running the program and the firm should cater for these costs. The firm should have strategies of ensuring that this program is sustained at all times of different states of the economy. This implies that the firm should not strain financially in supporting the program as this may drain the resources in the firm.
The decision has to be backed up by her boss and other administrators in charge. The decision Juliet will make has to be in agreement with the higher administrators in the firm. This implies that she should analyze her decision and provide support why she is making that decision. Her points should be well analyzed to ensure that they are easy to understand and present them to the other administrators. This is essential in determining whether her decision will be implemented or dismissed. The firm should also be in a position to implement this program without straining. This will ensure smooth running of the program at different economic status of the firm.
Additionally, the short-term and long-term benefit of the program to the firm is a factor that will play a role in her decision. Juliet should analyze the benefit of the program to the firm. This implies that the program will be needed if there are benefits attached to it. The program should have positive results both experienced and anticipated benefits such as improved process of recruitment and improved staff (Zey, 1992). The decisions have been made severally in previous occasions making managers develop guidelines or rules for application when situations occur. Juliet is required to make a non-programmed decision in her firm. This is because she is supposed to decide on whether the graduate recruitment program. Non-programmed decisions define unique decisions that involve a solution that is custom-made. In general perspective, it is clear that decision making should be made in a rational manner regardless of the type of managerial decision process. The model used in making decisions should focus on short term and long term effects.
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