The application of non-programmed decisions and evidence-based management varies depending on the circumstances and characteristics of the environment. Evidence-based management means the application of factual information to decision-making in business organizations. Rather than relying on intuition or belief, managers use scientific research to drive their organizations and improve efficiency and productivity.
According to Daft, evidence-based management is applicable when the leadership should solve problems with multiple variables. Management science can address issues quickly through sophisticated computer technology and software. As an example, Efficient Frontier uses evidence-based management in optimizing online advertising. By analyzing data and discussing obtained results, the company can calculate return on investment and response rates for each ad.
Furthermore, research in evidence-based management can use retrospective reviews of management styles and performance to see how different approaches work in this area. The application of evidence-based management could be prioritized by organizations that promote education. For example, some professional bodies may publish publications with the latest research. It is also a subject of interest in management and business schools, where students can discuss their studies and learn about implementing scientific thinking in a business environment.
Non-programmed decisions are characterized by a lack of information about the problem and transparent criteria for the solution’s effectiveness. This approach is required in situations that are new, not internally structured, or involve unknown factors. Since it is impossible to draw up a specific sequence of necessary steps in advance, the manager must develop a procedure for making a decision. An example is the case of the Dallas-Fort Worth regional Ebola emergency response when leaders faced uncertainty and should have made decisions promptly. In such circumstances, the non-programmed decision approach was considered the best. Therefore, non-programmed decisions play a significant role in developing and implementing a strategy, for example, the reorganization of units or the bonus system.
Thus, strategic thinking is the crucial factor in the correct decision. The programmable and non-programmable decisions are not mutually exclusive. Decisions about investing in a new production, developing a new product or service, or entering a new geographic market can be examples of non-programmable situations. It also includes such steps as defining ways to improve outcomes and increasing the motivation of subordinates. However, evidence-based management and non-programmed actions are mixed so that the manager can find a solution considering completely programmable and completely non-programmable choices.