Report On Programmed Decisions

 

Report on Progra Programmed mmed Decisions

Prepared by: Samiyah Omer Roll No.

BR546640

Group:

M.Com (1 st  Semester)

Submitted Submitt ed to: Sir Zeeshan Ahmed  

 

 ACKN OWLE LEDG DGEM EME E N TS TS::  AC KNOW It is a great opportunity to prepare a report on “Programmed Decisions”. 

Firstly I am grateful to Almighty Allah for enabling me to complete this report. I acknowledge with gratitude my accounting teacher Sir Zeeshan Ahmed, who has always been sincere and helpful in guiding and letting me understand the main purpose of report writing in Management. I also place on record, my sense of gratitude, to my family and to one and all who, directly or indirectly, have lent their helping hand in this venture. I have worked hard and soul to gather all the relevant information that has been required; however, there might be some shortcoming which I will try to overcome in future.

Thank you Samiyah Omer

2 

 

 An Abstract This report helps in understanding the decision making process in general and the necessity of programmed decisions in particular. Decision making is the one truly distinctive characteristic of managers. Decisions made by top managers commit the total organization toward particular courses of action. However, decisions made by lower levels of management implement the strategic decisions of top managers in the operating areas of the organization .Programmed decisions are those that are of routine nature and once a system is formulated for such routine tasks, they become procedures followed by lower level of management. Programmed decisions are important for any organization as these are the procedure specific to your operation that describes the activities necessary to complete tasks in accordance with industry regulations, provincial laws or even even just organizations own standards for running business as implemented by top managers. An organization needs to implement some standard practices and procedures that are of routine nature that helps the organization to manage and perform its daily or redundant task smoothly. These tasks should be in consistent with the organizations policies that help the organization to perform the routine tasks effectively and efficiently.

3 

 

TABLE OF CONTENTS Title 

Page No. 

INTRODUCTION

………

TYPES/CATEGORIES OF DECISION

………

Similarities and Differences between Programmed and Non Programmed Decisions

………

Meaning of Programmed Decisions Importance of programmed Decisions

 

5

 

8

 

9

………

 

10

 

11

 

………

Case Study of Organization

………

12

SWOT ANALYSIS  ANALYSIS 

……..

21   21

CONCLUSION

………

RECOMMENDATION

………

 

22

 

22

4 

 

Introduction According to Drucker: “A decision is a judgment. It is a choice between alternatives. It is rarely a choice between right and wrong. It is at best a choice between “almost right” and “probably wrong”.  Hence, decision is a choice made from alternatives. In its simplest sense, decision-making is the act of choosing between two or more courses of action.

In the wider process of  problem-solving,  decision-making involves choosing between possible solutions to a problem. Decisions can be made

through

either

an intuitive or reasoned process,

or

a combination of the two. Decision making process can be regarded as check and balance system that keeps the organization growing both in vertical and linear directions. It means that decision making process seeks a goal. The goals are pre-set business objectives, company missions and its vision. To achieve these goals, company may face lot of obstacles in administrative, operational, marketing wings and operational domains. Such problems are sorted out through comprehensive decision making process. No decision comes as end in itself, since in may evolve new problems to solve. When one problem is solved another arises and so on, such that decision making process, as said earlier, is a continuous and dynamic.

5 

 

A lot of time is consumed while decisions are taken. In a management setting, decision cannot be taken abruptly. It should follow the steps such as

           

     

Defining the problem Gathering information and collecting data Developing and weighing the options Choosing best possible option Plan and execute Take follow up action

Since decision making process follows the above sequential steps, a lot of time is spent in this process. This is the case with every decision taken to solve management and administrative problems in a business setting. Though the whole process is time consuming, the result of such process in a professional organization is magnanimous.

6 

 

A decision making process can be understood by Following model:

7 

 

Types/Categories of Decisions Decisions can be categorized as Programmed or Non programmed decisions.

Programmed Decisions (routine, almost automatic process) Programmed decisions are the decisions that are taken commonly for well defined, structured problems as; Situations occurred often enough to enable decision rules to be developed and applied in the future (There are rules or guidelines to follow). Made in response to recurring organizational problems (managers have made decision may times before). Example: deciding to reorder office supplies OR Registering a complain

Non-programmed Decisions   (Unusual situations that have not been often addressed) –

Non program decisions are taken in response to unique, poorly defined and largely unstructured, and have important consequences to the organization here; No rules to follow, since the decision is new. These decisions are made based on information, and a managers intuition and judgment Example: should the firm invest in a new technology? 8 

 

Similarities Between Programmed Decision & Non-Programmed Decisions There are certain similarities in both programmed and Non Programmed decisions as; Both are Required to run operations of Business effectively and efficiently. Complements each other in setting in setting goals and managing resources of the organization.

Differences Between Programmed and Non Programmed Decisions Characteristics •Nature of problem

Programmed decisions

•Managerial level •Recurrence of problem. •Information. •Method of solving

•Structured, routine,welldefined •Middle or Lower level. •Repetitive /Routine. •Readily Available. •Procedures,rules,standards,

•Probability of outcomes •Time frame for solution

•Clear, Specific •Short

Non programmed decisions •Unstructured, Novel, ill defined. •Top level •New/ unusual •Ambiguous or incomplete. •Managerial initiative, creativity •Vague(uncertain) •Relatively long

 

9 

 

Meaning of Programmed Decisions Programmed decisions are those that are traditionally made using standard operating procedures  or other well-defined methods. These are routines  that deal with frequently occurring situations, such as requests for leaves of absence by employees. In routine situations, it is usually much more desirable for managers to use programmed decision than to make a new decision for each similar situation. In programmed decisions, managers make a real decision only once, when the program is created. Subsequently, the program itself specifies procedures to follow when similar circumstances arise. The creation of these routines results in the formulation of rules, procedures, and policies. Programmed decisions do not necessarily remain confined to simple issues, such as vacation policies or similar such things; they are also used to deal with very complex issues, such as the types of tests that a doctor needs to conduct before performing a major surgery on a patient with diabetes.

 

 

Hence, Programmed decisions or The standard Operating Procedures

explains

the

practices

of

each

and

every

department in the organization. They play a very vital role in every business. SOPs is a set of policies, standards, and procedures the organization needs in the management and operations of the entire organization to ensure success.

Importance of Programmed Decisions: Programmed decisions that are more commonly known as standard operating procedures in organizations are the threshold as they help organization in following manners

  A defined path to solve problems at middle or low level Managers   Provides efficiency in work and profitability   Consistent and reliable products and service   Reduction in errors in every department   A healthy and safe environment    protect the employers employers in areas of hidden lliabilities iabilities and pe personnel rsonnel

     

matters allowing needed focus on solving the problem Helps in auditing and inspection of a regulatory body, partner,   client or a firm directing alertness alertness for a possible purchase   It adds value to the organization and the business if the owner ever





wants to sell it. Hence, each and every business has its own different SOPs, every businessman has his/her own way of leadership style, and every industry has its own best practices. Developing SOPs is essential for the growth and sustainability of the organization.

 

 

Case Study of the Organization PTCL Pakistan Telecommunication Company Limited, commonly known as PTCL, is the national telecommunication company in Pakistan Headquarters:  Islamabad Headquarters:

Number of employees: over 18000 Owner: Government of Pakistan(62%) Pakistan(62%) Etisalat Telecommunications(26%) Telecommunications(26%) Revenue: Rs.117billion Corporate Vision 

To be the leading and most admired Telecom and ICT provider in and for Pakistan. Mission 

To be the partner of choice for our customers, to develop our people and to deliver value to our shareholders. Core Values 

 2  

 

Definition: We treat everyone with respect, r espect, dignity and responsibility. Desirable Behaviors:

We respect everyone. We treat others the way we want to t o be treated. We maintain safe and enabling environment. We fulfill our commitments. We care for our communities and society. We safeguard company assets & information.

Definition: We are passionate about serving our customers. Their

satisfaction is a key measure of our success. Desirable Behaviors:

We look at everything through the eyes of the customer. We build trust through our open and transparent communications. We create ease of use by making things simple. We anticipate customer needs and resolve proactively. We go out of our way to build customer relation. We take pride in making our customer experience delightful.

 3  

 

Definition: We seek and value everyone’s contribution. Together we

are strong. Desirable Behaviors:

We trust each other. We set realistic expectations. We listen and share candid feedback. We recognize contributions, celebrate success and learn from failures. We exhibit patience and tolerance. We go extra mile to support others.

Definition: We shape our own destiny by being proactive and open to

new ideas.  4  

 

Desirable Behaviors:

We pursue excellence. We encourage diverse perspectives. We are empowered and accountable. We exhibit entrepreneurial mindset. We are ready to unlearn and relearn. We take risks for meaningful change.

 5  

 

Departments in PTCL Every organization is divided into different departments. Each department performs different kind of jobs and requires staff with specialized skills to handle particular job. This increases the efficiency of workers

and

makes.

There

are

several

aspects

on

which

departmentalization in an organization can be based. The division can be

done

on

the basis

of

function,

product,

customers

or

geographical locations The PTCL Head Quarters is comprised of several departments. The division is made on the basis of function they perform. Hence it can be concluded that PTCL has adopted the policy of functional departmentalization. The main departments of PTCL are mentioned below.

1.  2.  3.  4.  5.  6.  7. 

Human Resource Management Department Finance Department Commercial Department Operational Department Technical Department I.T Department Corporate affairs Department

8.  Special Project Department 9.  Marketing Department 10. Customer Care Department 11. Revenue Department 12. H.R Department

 6  

 

Every department has its own working papers and Standard operating Procedures. As mentioned above, the Mission and Vision statement of PTCL is its fundamental guideline and keeping in view these guide lines every department sets its own standard procedures that help the overall organization. As P PTCL TCL serves the largest telecommunication network in Pakistan, there are procedures that are of routine nature and SOPs for such routine tasks are developed that are helpful for both the organization and clients. Below are certain programmed or standard procedures for PTCL department

Operational /Technical: • Technical line steps • Equipment maintenance, inspection procedures • New employee training

Finance and Administration: • Accounts receivable – billing and collections process • accounts payable process – maximizing cash flow while meeting all payment deadlines

Marketing, Sales and Customer Services: • Approval of external communications: press releases, social media, advert, etc. • Preparation of sales quotes • Service delivery process, including response times • Warranty, guarantee, refund/exchange policies • Acknowledgment/resolution of complaints, customer comments and suggestions

Human Resource Management: • Job description • Employee orientation and training • Corrective action and discipline • Performance reviews  7  

 

As PTCL is a telecommunication company it has dealings with clients on every day basis, in order to help its clients it even have formulated a procedure in a form of helpline. Here are some helpline numbers that a client need to follow in case of following discrepancies;

             

    

 

New service requirement or purchase assistance 1218  To Update Directory Inquiry 0800 0 1217  OSS Helpline 111 28 28 28  Corporate Helpline 1260 & 111 20 20 20   Billing information 1200  Inquiry or directory services 1217  Complaint registration or help on any fault 1218



  Assistance on all services 1218    By calling the above mentioned services, assistance is provided by



the operational staff accordingly.

 8  

 

A flow chart of a Procedure followed in case a client needs a change in package

 9  

 

A flow chart of a Procedure followed in case a client needs activation/Deactivation of value added services

2

 

SWOT ANALYSIS 

STRENGTH Easy to follow procedures , decisions can be atta attained ined by low level managers

WEAKNESSES Low level manager cannot take decision in ambiguous situations

OPPOURTUNITIES Growth in telecommunica telecommunication tion industry and advance in technology provide low level staff to grow and provide opportunity to establish brand loyalty

THREATS Competitors like Nayatel ,Warid and Zong have well trained Low level staff

2

 

Conclusion To summarize; programmed decisions features are; Programmed decisions made using standard operating procedures. Deals with frequently occurring situations. Such as requests for leaves of absence by employees. Much more appropriate for managers to use programmed decision for similar and frequent situations. In programmed decisions managers make a real decision only once and program

itself

specifies

procedures

to

follow

when

similar

circumstances arise. Leads to the formulation of rules, procedures, and policies.

Recommendations Organizations like PTCL needs to continuously review their working papers and standard operating procedures in order to pace up with new technology as growing competition demands better and appropriate customer service.

22