structured and unstructured decisions
STRUCTURED DECISION -
ü These decisions are these that can be programmed and well defined.
ü They are essentially repetitive, routine and involve a defined.
ü They are essentially repetitive, routine and involve a definite procedure for handling them so that they do not have to be treated each as if they were new.
ü Structured decisions are also called programmable decisions involve situations where the procedures decisions involve situations where the procedures to follow when a decisions are structured or programmed by the decisions procedures or decision rules developed for them.
ü A structured decision could possibly involve what is known as a deterministic decision or an algorithmic decision. Exp. Decision making of students results. decision about the payroll systems etc
§ Structured decisions can be delegated.
§ The cost of taking such decisions is not as high as that of unstructured ones.
§ These decisions can be made with the help of computer systems.
UNSTRUCTURED DECISION -
ü These types of decisions are occasional and unique in nature.
ü There are no predefined procedures available to solve these problems and a new analysis is required for each occurrence.
ü In top level managers are usually faced with more such unstructured decision making situations.
ü They the strategic decision are non-repetitive vital and important and aim of determining or changing the ends or means of the enterprise.
ü Unstructured decisions are not simple.
ü They are usually quite complex in nature. So, there is no tried and true method of handling them.
ü Unstructured decisions are those in which the decision makes must provide judgment evaluation and insight into the problem definition.
ü The risk involved in taking decisions to solve the problems in this is usually high.