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CMA Foundation · Fundamentals of Business Economics and Management · Decision-making - Types and Process

A shop-floor supervisor at a Pune auto-parts firm reorders packaging material every time stock falls to a fixed level, using a standard procedure laid down in the manual. In the classification of managerial decisions, this is best described as a:

It is a programmed decision, because the problem is routine and repetitive and is handled by a standard procedure or rule already laid down in the manual. No fresh judgement or analysis is needed, unlike non-programmed decisions, which deal with new and unstructured problems.

  1. AProgrammed decisionCorrect
  2. BNon-programmed decision
  3. CStrategic decision
  4. DCrisis decision

Explanation

Programmed decisions are routine and repetitive, handled by established rules or procedures. Reordering at a fixed level by a manual is exactly this. A non-programmed decision would be needed only for novel, unstructured problems with no set procedure.

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