How Does a Manager Make Programmed Decisions?

Decisions are also divided into two categories: programmed and nonprogrammed (described in the next section). Programmed, or routine, decisions are the most efficient way to handle structured problems.

An auto mechanic damages a customer’s rim while changing a tire. What does the shop manager do? Because the company probably has a standardized method for handling this type of problem, it’s considered a programmed decision. For example, the manager may replace the rim at the company’s expense. Decisions are programmed to the extent that (1) they are repetitive and routine and (2) a specific approach has been worked out for handling them. Because the problem is well structured, the manager does not ...

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