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A. Driving to work on Monday morning, you quickly reviewed once again your day’s schedule, your
week’s tactical outline and the month’s scenario. You entered your office at 8:30 a.m., sat down behind
your desk for last-minute inspiration. Before you got down to your work you look, in the aphorism on the
opposite wall: "PLAN YOUR WORK, THEN WORK YOUR PLAN". You had already done the first
part: you were ready now to dive into the last part.
B. To illustrate this, let us imagine that you are a manager with a few years’ experience. You know
that the management process consists of planning, organizing, reading, coordinating and controlling.
C. First your mind went quickly through tomorrow’s (Monday’s) scenario. This was easy, because
you had spent the last hour before quitting time on Friday getting organized for Monday. What you
ended up with was not a plan but a very tight schedule.
D. One Sunday afternoon you were doing the planning part of the process in your living room with
the TV set tuned to a programme your were ignoring. Your spouse was down the street gossiping with
the neighbors, your youngsters were up the street "doing their thing", and you were making the most of
your solitude to do some planning.
E. Next your mind scanned the entire week. You knew better than to schedule that far ahead, for
Murphy’s three famous laws would have made a shambles of it. But you did have a tactical plan for get-
ting a number of issues squared away that had been hanging fire for too long. Finally, your mind, like a
radar beam, scanned the entire upcoming month. This you recognize, is long-range planning, in which
one can easily lose sight of both the forest and the trees.
T a s k 6. Read, translate and discuss the following texts. Make up a few questions on the basis of the
texts and answer them.
TYPES OF DECISIONS AND PROBLEMS
A decision
1
is a choice made from available alternatives. For example, an accounting manager's selection
among Bill, Nancy, and Joan for the position of junior auditor is a decision. Many people assume that making a
choice is the major part of decision making, but it is only a part. Decision-making
2
is the process of identifying
problems and opportunities and then resolving them. Decision-making involves effort both before and after the
actual choice. Thus, the decision as to whether to select Bill Nancy, or Joan requires the accounting manager to
ascertain whether a new junior auditor is needed, determine the availability of potential job candidates, inter-
view candidates to acquire necessary information, select one candidate, and follow up with the socialization of
the new employee into the organization to ensure the decision's success.
PROGRAMMED AND NONPROGRAMMED DECISIONS
Management decisions typically fall into one of two categories: programmed and nonprogrammed. Pro-
grammed decisions
3
involve situations that have occurred often enough to enable decision rules to be devel-
oped and applied in the future. Programmed decisions are made in response to recurring organizational prob-
lems. The decision to reorder paper and other office supplies when inventories drop to a certain level is a pro-
grammed decision. Other programmed decisions concern the types of skills required to fill certain jobs, the re-
order point for manufacturing inventory, exception reporting for expenditures 10 percent or more over budget,
and selection of freight routes for product deliveries. Once managers formulate decision rules, subordinates and
others can make the decision, freeing managers for other tasks.
Nonprogrammed decisions
4
are made in response to situations that are unique are poorly defined and
largely unstructured, and have important consequences for the organization. The question of how to deal with
charges of faulty Pentium chips was a nonprogrammed decision. Intel had never faced this type of problem and
1
Decision A choice made from available alternatives.
2
Decision-making The process of identifying problems and opportunities and then resolving them.
3
Programmed decision A decision made in response to a situation that has occurred often enough to enable decision rules to be develop and
applied in the future.
4
Nonprogrammed decision A decision made in response to a situation that is unique, is poorly define and largely unstructured, and has im-
portant consequences for the organization.
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