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Non-programmed Decision

These decisions are taken in unstructured situations which reflect novel, ill-defined and complex problems. The problems are non-recurring or exceptional in nature. Since they have not occurred before, they require extensive  brainstorming. Managers use skills and subjective judgment to solve the problems trough scientific analysis and logical reasoning. Subjective judgment is based on assessment of the stationing objective judgment (in case of programmed decisions), past experience forms the basis for decision-making. These decisions involve fair degree of uncertainty since outcomes of decisions are not always known. For example, increase in advertising expenditure, effective salesmanship  upgraded technology brand image and reasonable prices normally increase sales and profits. If despite all this, profits are declining, it requires immediate decision-making and such decisions are non-programmed decisions. These decisions are taken by top level manages. As we move up the organizational hierarchy, the need fore taking non-programmed decisions increases. Different types of non-programmed decision are: (1) Personal decisions, (2) strategic decisions, (3) crisis intuitive decisions, and (4) problem-solving decisions.

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