Which type of decision involves a complex problem with significant consequences for the organization?

Study for the UofT MGT100 Fundamentals of Management Exam. Practice with quizzes and detailed study materials to excel. Prepare with clear explanations and valuable tips to ace your exam!

The type of decision that involves a complex problem with significant consequences for the organization is a nonprogrammed decision. Nonprogrammed decisions are typically made in situations that are unique or unusual, where the problems are not routine and the solutions are not predefined. These decisions often require substantial analysis, creativity, and judgment since they involve various factors and potential outcomes.

In contrast, programmed decisions are made in response to routine, repetitive situations that usually have established guidelines or procedures. Since these types of decisions follow a clear path due to their predictable nature, they do not carry the same level of complexity or consequence as nonprogrammed decisions.

Routine decisions also pertain to daily operational tasks that do not significantly impact the organization and usually follow well-established protocols. Structured decisions, while involving some level of analysis and information processing, are more straightforward and involve decisions that can typically be predetermined through a systematic approach.

Understanding the differences among these types of decisions helps managers navigate varying degrees of complexity and implications inherent in decision-making processes within organizations. Nonprogrammed decisions highlight the need for careful consideration and a tailored approach due to their potential impact.

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