No:2 Non-programmed:•Non-programmed decisions arethose for which predetermineddecision rules are impracticalbecause the situations are noveland/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 arepetitive decision that can be handled by a routineapproach.There are three types of plans for programmeddecisions:• A). A procedure is a series of interrelated sequentialsteps that can be used to respond to a structuredproblem.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 maximizingwithin specified constraints. The assumptions ofRationality are summarized below.(A)• These assumptions are problem clarity (the problem isclear and unambiguous); goal orientation (a single,well-defined goal is to be achieved); known options(all alternatives and consequences are known); clear preferences; constant preferences (preferences are constant and stable); no time or cost constraints; and maximum pay off.(B)• The assumption of rationality is that decisions aremade in the best economic interests of theorganization, not in the manager’s interests.apply to actual decision aiming for tworeasons:• A). Perfect information is not available.