Question

Examples of nonprogrammed decisions would include the decision to: a. perform routine maintenance on one of the machines in manufacturing. b. fill a position. c. terminate an employee for violation of company rules. d. reorder supplies. e. develop a new product or service.

Answer 1

Correct option is (e)

Step-by-step explanation:

Programmed decisions are those that are planned decisions for routine situations. These decisions are made based on tried and tested methods or standardized procedures. These decisions are made once when situation arises, and subsequently becomes a procedure when similar situations arise in future. Some examples are dealing with labor absenteeism, terminating an employee or re-ordering supplies.

Non programmed decisions are distinctive. They are not based on any past situation. They are mostly taken by upper management using logic or intuition. They do not arise in normal course of business. One such decision is related to developing new product or service. It is not a routine situation. As, such it is an example of non programmed decision. Rest of the options are examples of programmed decision.