In a very simple sense, the problems managers encounter can be classified as:
- routine and familiar;
- new and unusual.
In response, managers will use one of two different types of decisions:
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Structured Problems and Programmed Decisions;
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Unstructured Problems and Nonprogrammed Decisions.
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STRUCTURED PROBLEMS: Straightforward, familiar, and easily defined problems
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PROGRAMMED DECISION: A repetitive decision that can be handled by a routine approach.
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PROCEDURE: A series of sequential steps used to respond to a well-structured problem.
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RULE: An explicit statement that tells managers what can or cannot be done
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POLICY: A guideline for making decisions
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UNSTRUCTURED PROBLEMS: Problems that are new or unusual and for which information is incomplete and ambiguous.