Decisions can be mainly of three types such as structured, semi-structured, and unstructured. Unstructured decisions can be defined in the following ways:
Definition (1):
These decisions are unique and non-repetitive in nature. Because they require intuition, experience, and judgment, there may be no one “best” solution, and solutions may differ from one decision-maker to the next.
For Example
- Developing a strategy to remain competitive in an ever-changing marketplace is an unstructured decision.
Definition (2):
These decisions need insight, judgment, and evaluation for solving the problems.
Unstructured means “decision processes that have not been encountered in quite the same form and for which no predetermined and explicit set of ordered responses exists in the organization”. (Mintzberg, et al., 1976, 246)
These are important, non-routine, and novel decisions. There is no better-understood method to make them. An example of this decision is when the management of business faces difficulty while deciding whether to enter a new market or just remain in their existing market. Information technology helps in making such decisions.
Use of the Term in Sentence:
- The management of a company needs to make unstructured decisions in different situations.