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?

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? A. Programmed Decisions B. Nonprogrammed Decisions C. Easy Decisions

Answer of MCQ | What Is Nonprogrammed Decision?

The correct options of this multiple choice question is B, as Nonprogrammed Decisions (NPD) are very difficult to take because the possible or desired outcomes are not known. There are lots of choices to choose from them, the one of the best decisions to solve the problem. For example, reorganization, rebuilding process of team management and restructuring of organization are challenges in which difficult decisions are needed to be taken to get the possible results by choosing the best choice from alternatives. The top-management take such decisions as the situations require more analytical skills, knowledge, abilities to make strategic decisions to cope with difficult situations.

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.

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