Non-Programmed Decisions in Management - Techniques

Non-Programmed Decisions in Management

Non-programmed decisions are used for new, unstructured and badly defined problems, which are non-recurring. These decisions require subjective judgement. The top-level of management makes these decisions.

Modern Approaches / Techniques for making non-programmed decisions.

Figure 1. Non-Programmed Decision Making in Management.

1. Brainstorming Technique

The brainstorming technique was developed by Alex Faickney Osborn, who is called "The Father of Brainstorming."

The purpose of this technique is to improve problem solving by finding new or creative solutions. In a brainstorming session, five to ten persons sit together. The leader of the group tells them the problem. All possible ideas are invited to solve the problem. All the ideas are discussed and analysed. Finally, the best idea is selected.

2. Delphi Technique

Delphi technique is similar to brainstorming technique, except that the group members do not meet face to face. The group members are located at different places. That is, in different parts of the state or country or even in other countries.

The group members interact / communicate with each other through modern tools like video conferencing. Questionnaires (list of questions about the problem) are also used to collect information from the group members. Delphi technique gives very good solutions for the problems. This is because the group members are not influenced by one another, since they do not meet fact to face. The problems are solved quickly because this technique use all latest technology for the group members to interact with one another.

3. Nominal Group Technique

In Nominal Group Technique, the group members think independently. Each person comes up with his own ideas. This technique does not allow interaction among the group members at the early stage. Interaction takes place only after the ideas are presented by every single member of the group.

4. Quality Circles

Quality Circles was started in Japan in the early 1960s. Quality Circle is a small group of employees from the same department who volunteer to meet regularly in order to identify, analyse and to solve problems about their work.

5. Heuristic Technique

In Heuristic Technique, decisions are made based on experience, rule of thumb, common sense, etc. For e.g. Companies sell their products on an installment basis because they assume that people can pay product's price regularly in installments rather than in one lump sum amount.