The Unstructured Problem Usually Faced by the Upper Level Manager
The unstructured problem usually faced by the upper level manager. This happen because the lower level manager handle the routine decision themselves and let the upper level manager deal with the decision they find unusual or difficult. The table below will shows us the different between programmed and non-programmed decisions.
Characteristic Programmed Decision Nonprogrammed Decision
Type of problem Structured Unstructured
Managerial level Lower level Upper level
Frequency Repetitive, routine New, unusual
Information Readily available Ambiguous or incomplete
Goals Clear, specific Vague
Time frame for solution Short Relatively long
Solution relies on Procedures, rules, policies Judgment and creativity
Decision – Making Conditions
They are three characteristic of decision that will faced by the managers
1. Certainty
Certainty means the situation when a manager can make accurate decision because the outcome of every alternative is known.
2. Risk
Risk means the situation when manager is able to estimate the likelihood of certain outcomes. The ability to assign probabilities may be the result of past personal experiences or secondary information.
3. Uncertainty
Uncertainty means the situation when manager has neither certainty nor reasonable probability estimates available.
Decision – Making Styles
Decision making styles are differ along two dimensions. The first is an individual’s way of thinking. The other dimensions is describes an individual’s tolerance for ambiguity. When we diagram these two dimensions, we get four decision- making styles. They are directive, analytic, conceptual, and behavioral.
Analytic
Conceptual
Directive
Behavioral
1. Directive style
A decision- making style characterized by low tolerance for ambiguity and a rational way of thinking.
This type is making fast decision and focus on short run because they are efficient and logical.
2. Analytic style
A decision- making style characterized by
Characteristic Programmed Decision Nonprogrammed Decision
Type of problem Structured Unstructured
Managerial level Lower level Upper level
Frequency Repetitive, routine New, unusual
Information Readily available Ambiguous or incomplete
Goals Clear, specific Vague
Time frame for solution Short Relatively long
Solution relies on Procedures, rules, policies Judgment and creativity
Decision – Making Conditions
They are three characteristic of decision that will faced by the managers
1. Certainty
Certainty means the situation when a manager can make accurate decision because the outcome of every alternative is known.
2. Risk
Risk means the situation when manager is able to estimate the likelihood of certain outcomes. The ability to assign probabilities may be the result of past personal experiences or secondary information.
3. Uncertainty
Uncertainty means the situation when manager has neither certainty nor reasonable probability estimates available.
Decision – Making Styles
Decision making styles are differ along two dimensions. The first is an individual’s way of thinking. The other dimensions is describes an individual’s tolerance for ambiguity. When we diagram these two dimensions, we get four decision- making styles. They are directive, analytic, conceptual, and behavioral.
Analytic
Conceptual
Directive
Behavioral
1. Directive style
A decision- making style characterized by low tolerance for ambiguity and a rational way of thinking.
This type is making fast decision and focus on short run because they are efficient and logical.
2. Analytic style
A decision- making style characterized by