The decision making approach used to solve the structured problems is called as Programmed decision making.
Programmed decisions are normally repetitive decisions, being made by managers on usual bases, for making programmed decisions managers don't need to have much trouble. Normally in programmed decisions identifying the alternative stage is not used or used at a minor level; this is all because once a solution for the structured problem has been defined, the solution is self evident and usually reduced to a few alternatives according to the situation, that are familiar and have proved successful in the past.
Programmed decision making comprises on three different types, which are;
• Procedure
• Rule
• Policy
Procedure: A procedure is a series of interrelated sequential steps that a manager can use to resolve a structured problem. The main issue is only the identification of the problem, once it is done, the procedure is implemented.
For instance a software house has recruited new staff for the marketing purpose of some specified software. The manager marketing needs laptops to provide the newly recruited staff so that they could be able to present the software to particular clients, for this need he adopts the specified procedure of forwarding the application to higher managers to approve the purchasing of the laptops and after approval, will provide to the newly recruited staff.
Rule: A rule is an explicit statement that tells a manager what he or she cannot do. Rules are frequently used because they are simple to follow and ensure consistency.
For instance, company rules about promotion and salary increment.
Policy: A policy is a guideline for making decision. As compared to rule, a policy establishes general parameters for the decision maker rather specifically starting what should or should not be done.
A simple policy statement can be; "Customer satisfaction is our first priority."