Wednesday, 10 July 2013

structured & unstructured decisions



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

CHARACTERISTICS      :-
§         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. 


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