PRESENTED BYALI IMRANROLL NO:23233CLASS : BBASUBJECT : PRINCIPAL OF MANAGEMENTNature of Managerial Decision-making:•Decision making is the act of choosing one alternative from among a set of alternatives. There are two types of decisions.Programmed decisions:Programmed decisions are those made in routine,repetitive, well-structured situations through theuse of predetermined decision rules.Non-programmed:•Non-programmed decisions are those for which predetermined decision rules are impractical Because the situations are novel and/or ill structured.Types of Problems and Decisions:• Managers will be faced with different types ofproblems and will use different types of decisions.Another dimension of problem is its structure. Aproblem can be well-structured or poorly structured.Well-structured problems:• Well-structured problems are straightforward,familiar, and easily defined. In handling this situation, a manager can use a programmed decision, which is a repetitive decision that can be handled by a routine approach.There are three types of plans for programmeddecisions:• A). A procedure is a series of interrelated sequential steps that can be used to respond to a structured problem.B. Rule:• A rule is an explicit statement that tells managerswhat they ought or ought not to do.C). Policy:• A policy is a guide that establishes parameters formaking decisions rather than specifically stating what should or should not be done.2). Poorly structured problems:• Poorly structured problems are new or unusualproblems in which information is ambiguous orincomplete. These problems are best handled by anon-programmed decision that is a unique decisionthat requires a custom-made solution.General Organizational Situations:• 1. At the higher levels of the organization, managers are dealing with poorly structured problems and using non-programmed decisions.2. At lower levels, managers are dealing with well-structured problems by using programmed decisions.Assumptions of Rationality:• Managerial decision making is assumed to be rational; that is, choices that is consistent and value maximizing within specified constraints. The assumptions of rationality are summarized below.(A)• These assumptions are problem clarity (the problem is clear and unambiguous.