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. 

Exp. Produce scheduling, capital budgeting.

Features of unstructured decision:-

§         These decisions can not be delegated.

The cost of taking such decisions is quite high. Compared to structured decisions.