The programmed technique of decision making is a systematic approach used by managers to make decisions that are routine and repetitive in nature. These decisions are based on established rules, procedures, and guidelines, and managers develop mental shortcuts or heuristics to help them reach a decision quickly and efficiently.
One common mental shortcut used in programmed decision making is the use of rules. Managers often create a set of rules or guidelines to govern certain types of decisions. For example, a manager may have a rule that specifies the maximum amount of money that can be spent on office supplies without seeking approval. By following this rule, the manager can quickly make a decision and proceed with the purchase without wasting time and resources.
Another mental shortcut used in programmed decision making is the use of procedures. Procedures are step-by-step instructions that outline how a particular task or decision should be performed. Managers can rely on procedures to guide their decision making process and ensure consistency and efficiency. For instance, a manager may have a procedure in place for handling customer complaints, which includes steps such as listening to the complaint, investigating the issue, and offering a resolution. By following this procedure, the manager can quickly address customer complaints and maintain customer satisfaction.
Managers also use heuristics or “rules of thumb” to simplify the decision making process in programmed decisions. Heuristics are mental shortcuts that allow managers to make decisions based on limited information or previous experiences. These heuristics can be based on personal experiences or general knowledge. For example, a manager may use the heuristic that if a supplier has consistently provided high-quality products in the past, it is likely that they will continue to do so in the future. This heuristic allows the manager to make a quick decision about whether to continue using that supplier or explore other options.
In addition to these mental shortcuts, managers may also rely on automated decision-making systems or computer algorithms to assist in programmed decision making. These systems can analyze data, apply predefined rules and procedures, and provide recommendations or even make decisions automatically. For example, a company may use an automated system to approve employee expense reports based on predefined rules and limits. This not only speeds up the decision making process but also reduces the potential for human error.
The programmed technique of decision making involves the use of mental shortcuts, rules, procedures, heuristics, and automated systems to streamline and expedite routine and repetitive decision making processes. By relying on these techniques, managers can make decisions quickly and efficiently, freeing up their time and resources to focus on more complex and strategic decisions.