How do you categorize decision-making scenarios?

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As a supervisor, you have to make decisions every day that affect your team, your organization, and your customers. But not all decisions are the same. Some are simple and routine, while others are complex and uncertain. Some require immediate action, while others allow for more time and analysis. How do you categorize decision-making scenarios and apply the appropriate decision-making model and process? In this article, we will explore four common types of decision-making scenarios and how to approach them effectively.

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Aman Goel

Managing Director @ PwC India | Gen AI Products & Platform Leader

1 Programmed decisions

Programmed decisions are those that follow a predefined rule, policy, or procedure. They are usually based on past experience, logic, or best practices. They are often repetitive, low-risk, and easy to implement. For example, you may have a programmed decision to approve a leave request, assign a task, or order supplies. Programmed decisions do not require much creativity or judgment, but they can save you time and energy. To make programmed decisions, you can use a simple decision-making model, such as the rational model, which involves defining the problem, identifying the criteria, generating and evaluating alternatives, and choosing the best option.

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2 Non-programmed decisions

Non-programmed decisions are those that do not have a clear or established rule, policy, or procedure. They are usually based on new or unique situations, ambiguity, or uncertainty. They are often non-repetitive, high-risk, and difficult to implement. For example, you may have a non-programmed decision to deal with a crisis, launch a new product, or change a strategy. Non-programmed decisions require more creativity and judgment, but they can also lead to innovation and learning. To make non-programmed decisions, you can use a more complex decision-making model, such as the intuitive model, which involves relying on your intuition, emotions, values, and ethics.

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3 Structured decisions

Structured decisions are those that have a clear and well-defined problem, goal, and criteria. They are usually based on facts, data, and analysis. They are often objective, logical, and quantitative. For example, you may have a structured decision to optimize a process, calculate a budget, or measure a performance. Structured decisions do not require much ambiguity or uncertainty, but they can benefit from rationality and accuracy. To make structured decisions, you can use a systematic decision-making process, such as the analytical process, which involves collecting and analyzing information, applying tools and techniques, and making recommendations.

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4 Unstructured decisions

Unstructured decisions are those that have a vague or ill-defined problem, goal, and criteria. They are usually based on opinions, assumptions, and judgment. They are often subjective, intuitive, and qualitative. For example, you may have an unstructured decision to resolve a conflict, motivate a team, or negotiate a deal. Unstructured decisions require more ambiguity and uncertainty, but they can also leverage creativity and flexibility. To make unstructured decisions, you can use a dynamic decision-making process, such as the behavioral process, which involves interacting with stakeholders, seeking feedback, and adapting to changes.

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Aman Goel

Managing Director @ PwC India | Gen AI Products & Platform Leader
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As they say "nothing under the sun is new", one can also lean on advice from trusted mentors who might not fully know the situation but can share a framework of thinking which inspires one to take decisions

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5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Aman Goel

Managing Director @ PwC India | Gen AI Products & Platform Leader
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First essential step is to take a decision, very often leaders shy away from taking Unprogrammed or Unstructured decisions. Key to effective decision making is to learn from the impact of your previous decisions. Over a period of time as one starts taking and reviewing the impact, Unstructured and Unprogrammed decisions start shifting to Programmed and Structured decision and like muscle memory it becomes instinctive process

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How do you categorize decision-making scenarios?

1

2

3

4

5

1 Programmed decisions

2 Non-programmed decisions

3 Structured decisions

4 Unstructured decisions

5 Here’s what else to consider

Supervisory Skills

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How do you categorize decision-making scenarios?

1

2

3

4

5

1 Programmed decisions

2 Non-programmed decisions

3 Structured decisions

4 Unstructured decisions

5 Here’s what else to consider

Supervisory Skills

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