CMA Foundation · Fundamentals of Business Economics and Management · Decision-making - Types and Process
A manager at a Chennai software company must decide how to respond to a data breach of a kind never faced before, with no existing policy and little precedent. This decision is best classified as:
It is a non-programmed, unstructured decision. The problem is new, has no precedent or standing procedure, and so requires judgement, creativity and fresh analysis. Programmed decisions apply only to routine, recurring problems for which rules already exist.
- AProgrammed and routine
- BNon-programmed and unstructuredCorrect
- CProgrammed and tactical only
- DRoutine operating decision under standing rules
Explanation
A novel problem with no precedent or rule calls for judgement and creativity, which is characteristic of non-programmed decisions. Programmed decisions rely on set procedures, which do not exist here, so options with programmed or standing rules are wrong.
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