SIMON HERBERT in his book ‘The New
Science of Management Decision’, page 40, 1960 has indicated as under:
An
organization can be pictured as a three layered cake. In the bottom layer, we
have the basic work processes. In the case of a manufacturing organization, the
processes are as under:
Layer 3:
The non-programmed (unstructured) decision making processes are found here that
are required to design and redesign the entire system, to provide it with its
basic goals and objectives and to monitor its performance.
Layer 2:
We have the programmed (structured) decision-making processes; the processes
that govern the day to day operations of the manufacturing and distribution
system.
Layer 1:
Here, the processes procure raw materials, manufacture the physical product,
store them in warehouses and ship it.
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