These types of decisions often involve a high degree of freedom; many ways to try and solve the problem. They may require a lot of creativity and intuitions from the decision maker to tell what factors to include when making a decision.
These types of decisions are generally made by the domain of experts in the given field. This is why firms hire consulting engineers to assist their decision-making activities. Unstructured decisions requires an appreciation of individual approaches.
Generally, unstructured decisions are not made regularly. New product decisions may fit into this category for either of these reasons:
To support a decision like this requires a system that begins by focusing on the individual or team that will make the decision. These decision makers are usually entrusted with decisions that are unstructured because of their experience or expertise. Therefore, it is the individual’s ability that is of value. One approach to support systems in this area is to develop a program that simulates the process used by a particular individual. These have been called “expert systems.” An expert decision marker would not be replaced by such a system. However, it may offer support in terms of providing another perspective of the decision.
Another approach is to monitor and document the process that was used so that the decision maker(s) can readily review what has already been examined and concluded. Such include reviewing minutes of earlier meetings to make decisions on current discussions.
Example
Equity Bank’s decision to start agent banking. This was a new concept for banks to adopt. Therefore, an individual or a team of expertise in the field must have been consulted.
Characteristics of Unstructured Decisions
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It would be a new decision
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There will not be any rules to follow
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These decisions are made based on the available information.
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These decisions are based on the manger’s discretion, instinct, perception and judgment.
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High costs since experts are consulted
- Decisions cannot be delegated.
DSS MIS 