Answer to Question 1
TRUE
Answer to Question 2
Organizational decision-making is the process of responding to a problem by searching for and selecting a solution or course of action that will create the most value for organizational stakeholders. To make the best choices, managers must make two kinds of decisions: programmed and nonprogrammed.
Programmed decisions: Programmed decisions are repetitive and routine. Programmed decision-making involves selecting the most effectiveeasy, repetitive, and routineoperating procedures to handle an organization's ongoing value-creation activities. Typically, the routines and procedures that result in the most efficient way of operating are formalized in advance in an organization's written rules and standard operating procedures (SOPs) and are present in the values and norms of its culture.
Nonprogrammed decisions: Nonprogrammed decisions are novel and unstructured. Nonprogrammed decision-making involves managers making the most effectivecreative, novel, and unstructureddecisio ns that allow an organization to find solutions to changing and uncertain conditions. No rules, routines, or SOPs can be developed to handle nonroutine problems in advance because they are unique or unexpected. So solutions often have to be found after new problems have arisen.