Which of the following is an example of a nonroutine managerial decision?

A nonroutine managerial decision is characterized by its infrequency and the necessity for careful consideration or analysis due to its potential impact on the organization. Make-or-buy analysis exemplifies such a decision because it involves determining whether it is more cost-effective to produce a product internally or purchase it from an external supplier. This type of decision often requires thorough analysis of various factors, including costs, quality, time, and strategic implications, and it is not something managers deal with regularly.

In contrast, setting a budget, hiring new staff, and conducting performance reviews are usually part of regular management processes. Setting a budget typically occurs annually and follows established guidelines, while hiring staff is often a routine HR function guided by existing policies. Similarly, performance reviews are commonly scheduled activities, allowing managers to assess employee performance regularly. These activities may involve important considerations, but they do not typically require the same depth of analysis or infrequency associated with nonroutine decisions like make-or-buy analysis.