The Nature of Decision Making

Managerial decisions generally fall into two categories: programmed and nonprogram med.

The following table provides several examples of decisions. Identify each as either a programmed decision or a nonprogram med decision.


Programmed Decision

Nonprogram med Decision

For the past 5 years, you and your best friend have gone for pizza at the same restaurant every Friday night. You just received a text message saying your friend is running late and to go ahead and order the pizza. Without fail, you always get a medium pizza, half with everything on it and half vegetarian, so that is what you tell the waiter. Your decision about what to order is a:



In 2020, Facebook announced plans to introduce a mobile gaming app designed for live gameplay. The app took several years to develop and was tested with users for 18 months before its release. The decision Facebook made to develop a mobile gaming app is a:



Your company typically increases each department’s budget by a certain percentage over the prior year’s budget. However, this year managers were asked to consider whether each budget item is still necessary and whether new budget items are needed to meet the department’s needs. As a result, this year’s budget process is a:



You and Greg go to several movies each month, and never see the same one twice. Both of you enjoy almost any type of movie, although Greg refuses to see horror films because they give him nightmares. You want to buy tickets for tonight’s movie in advance, but cannot reach Greg to ask which one to choose. However, the only new movies are a comedy and a horror film. Your decision to choose the comedy is a:



Choose the word or phrase that best completes each of the following sentences.

Imagine that your friend Debbie has applied to attend universities only located in New York, which means she will encounter cold weather and snow in the winter. Assuming she is accepted at those schools, Debbie will choose a school with astate of certainty   regarding the weather she can expect.

Russ’s coffee shop and three other mom-and-pop stores formed    to oppose plans for opening a large chain store on their street.