The Head Of Research For A Pharmaceutical Company Has To Decide What Kind Of Lab Equipment To Buy For The Development Of A New Anticancer Drug. Which Of The Following Types Of Decisions Is Illustrated In This Scenario?
Answer of MCQ | What Is Nonprogrammed Decision?
Characteristics of NPD
(i) There is no clear structure to start from.
(ii) There is not so much information available to take the right decisions
(iii) These are risky and uncertain.
Advantages of Nonprogrammed Decisions
(i) Innovation And Creativity
Managers need to adopt a creative approach in solving the unfamiliar and
uncertain situation which leads to innovation i.e., create something new to
address this unique challenge. It also helps in gaining competitive advantage
in the market. For example, in case of crisis such as economy recession,
floods, etc., the manager needs to make strategic decision i.e., adding a new
product-line as it has huge market demands due to the current crisis i.e.,
people need more foods in the specific affected area so supply ready-made food
in the local market.
(ii) Flexibility
This is flexible as the situation is complex and outcome is not known, so
the manager analyzes various approaches to choose the best one to take the
decision. For example, a manager may adopt different strategies for old and new
projects, i.e., different scheduling time for new and old projects to complete
tasks and see the results at the end that what scheduling time works well?
(iii) Improving Skills
The top manager has to make comprehensive analytics of the situation and reach
to a final decision. He uses his knowledge, expertise, experience to select the
best choice in order to get the target results. In this way, his managerial
skills are improved to manage the business in difficult situations. For
example, for recruiting and hiring new employees for new department, the uses
his past experiences to select the skilled employees to achieve organizational
objectives & goals.
(iv) Increase in Performance
By facing difficult situations, the skill level of top manager increases to
solve problems which ultimately increases the performance of manager to handle
the challenge and carry on the business in crisis.
Disadvantages of Nonprogrammed Decisions
(i) Time Consuming And Risky
Such decision may require lots of time as the situation is difficult and
the outcomes are not certain, so it is very risky. May be after spending time in
analytical thinking, the results are not achieved. So, there is a chance of
failure which resulted in the wastage of resources such as time, efforts, money,
etc. That is why, it is a risky decision.
(ii) Biasness
It is based on one manager's judgements and personal opinions which may be biased and unfair for the people working in an organization.
The other options A and C of this mcq are incorrect choices here.
Comments
Post a Comment