improving decision making and problem solving skill

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IMPROVING DECISION MAKING AND PROBLEM SOLVING SKILL

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Importance of Decision Making 3  Whatever you do, you do through making decisions  No organisations can be run without making decisions  Carries long-term implications. Organisations grow or fail as a result of decisions made by its decision makers  The wellbeing of an organisation depends almost entirely on the quality of its decisions

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Page 1: IMPROVING DECISION MAKING AND PROBLEM SOLVING SKILL

IMPROVING DECISION MAKING

AND PROBLEM SOLVING SKILL

Page 2: IMPROVING DECISION MAKING AND PROBLEM SOLVING SKILL

Session Outline2

Problem /Problem Solving, Decision / Decision Making

Approaches / Styles and Process of Decision Making

Rational decision making process Ethical Decision Making Issues / Challenges / Problems in

Decision Making Approaches to improve ability to make

decisions and solve problems effectively

Page 3: IMPROVING DECISION MAKING AND PROBLEM SOLVING SKILL

Importance of Decision Making

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Whatever you do, you do through making decisions

No organisations can be run without making decisions

Carries long-term implications. Organisations grow or fail as a result of decisions made by its decision makers

The wellbeing of an organisation depends almost entirely on the quality of its decisions

Page 4: IMPROVING DECISION MAKING AND PROBLEM SOLVING SKILL

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Problem

“In a day, when you don’t come across any problems- you can be sure that you are traveling in a wrong path.”

-Swami Vivekananda

A problem is a situation or a state of affairs that causes difficulties for people. It is also a gap between a current and a desired state. The gap may be viewed as the difference between 'what is' and 'what should be' or 'where we are' and 'where we want to be'.

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Problem Solving

If a problem is a gap between two states, then problem solving is 'the process of closing that gap, i.e. changing the current state into the desired one.'

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Page 8: IMPROVING DECISION MAKING AND PROBLEM SOLVING SKILL

Krishna Seekh - Impact of decision making in our lives.mp4

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Page 9: IMPROVING DECISION MAKING AND PROBLEM SOLVING SKILL

Decision 9

“A Decision is a Judgment.”- Peter Drucker

- A decision is a Choice between or among various alternatives.

Page 10: IMPROVING DECISION MAKING AND PROBLEM SOLVING SKILL

Decision Making Decision making is a cognitive process leading

to the selection of a course of action among the alternatives, and enabling to act for producing desired results.

Decision making is a series of logical steps to reach at the agreement for moving forward.

Systematic response to a problem situation or forward moving through intelligence, understanding, analysis, rational logical selection, preparedness for implementation.

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Page 11: IMPROVING DECISION MAKING AND PROBLEM SOLVING SKILL

Classification of Decisions11

1. Personal decisions to achieve own objectives.

2. Organisational decisions to fulfill the obligations of own position in the organisation.

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Levels of Decisions Strategic Level

Vision Mission

Policy Level Goals Objectives

Tactical Level/Functional Level Operational Level

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Level of decision making - Scope

Structured Unstructured

Middle Level

Lower Level

Strategic

Managerial

Operational

Conceptual Skills

Human Skills

Technical skills

Top Level

Levels of …

Page 14: IMPROVING DECISION MAKING AND PROBLEM SOLVING SKILL

Organizational Decisions can be

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Programmed Decision A decision that is repetitive and routine and can be

made by using a definite, systematic procedure. Nonprogrammed Decision

A decision that is unique and novel.

Nine dots

Programmed Decisions

Nonprogrammed Decisions

Top

Level in Organization

Bottom

Ill-structuredType of Problem

Well-structured

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Let’s find ourselves on which approach we belong to:

Exercise

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Basic Styles in Decision Making

Autocratic Benevolent Exploitative-manipulative

Democratic Consultative Participative

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The Authoritarian Approach. Deciding independently seeking no contributions other than asking for necessary information and passing them down the line for implementation. Officers assume the authority to take decisions alone and to pass them down the line for implementation.

The Democratic Approach. Jointly, as a team, making a decision which has the support of the whole group. The responsibility for decision making is shared between the officer and members of a team.

Page 18: IMPROVING DECISION MAKING AND PROBLEM SOLVING SKILL

Range of Decision Making Styles

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Authoritarian Style

Democratic

Style

The officer makes decisions and announces them

The officer sells the decision to the team

The officer presents the idea and invites questions

The officer presents a tentative decision subject to change

The officer presents a problem, gets inputs from the team and then decides

The officer defines the limits and asks the group to make the decision

The officer permits the team to make decisions with predefined limits

The officer allows team members complete freedom of action

Page 19: IMPROVING DECISION MAKING AND PROBLEM SOLVING SKILL

Rational Decision Making Process

Pre-decision phase Issue or problem: agenda setting Analysis of issue or problem: Interpretation, identification

and understanding SWOT ANALYSIS PEST ANALYSIS STAKEHOLDER ANALYSIS SPOILER ANALYSIS

Designing alternatives Examination/assessment of alternatives

Decision phase Ranking the alternatives Determination Choice

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Post-decision phase Preparedness for implementation Action plan Monitoring Feedback evaluation

Re-decision phase Acknowledging the lessons learnt Reformed/improved decision making

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Problems in Decision Making

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Real life Decision Makers must cope with: Inadequate information about the nature

of the problem and its possible solutions, The lack of resources to acquire more

complete information, Distorted perceptions of the information

available, The inability of the human memory to

retain large amount of information, and The limits of their own intelligence to

determine correctly which alternative is best. - Herbert Simon

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Exercise - Assessment

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23 Score Interpretation 18-42 Your decision-making hasn't fully matured. You aren't objective enough, and you

rely too much on luck, instinct or timing to make reliable decisions. Start to improve your decision-making skills by focusing more on the process that leads to the decision, rather than on the decision itself. With a solid process, you can face any decision with confidence. We'll show you how.

43-66 Your decision-making process is OK. You have a good understanding of the basics,

but now you need to improve your process and be more proactive. Concentrate on finding lots of options and discovering as many risks and consequences as you can. The better your analysis, the better your decision will be in the long term. Focus specifically on the areas where you lost points, and develop a system that will work for you across a wide variety of situations.

67-90 You have an excellent approach to decision-making! You know how to set up the

process and generate lots of potential solutions. From there, you analyze the options carefully, and you make the best decisions possible based on what you know. As you gain more and more experience, use that information to evaluate your decisions, and continue to build on your decision-making success. Think about the areas where you lost points, and decide how you can include those areas in your process.

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Basic Approaches to Improve Decision Making Ability24

1. Improve analytical ability2. Adopt systematic approach3. Invite conflicting views4. Consider factors influencing

decision making5. Use imagination / Be creative6. Implementation and follow-up

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1. Improve Analytical Ability

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Opinions are perfectly good starting point. Ask questions starting with: What, Why, When, How, Where, and Who.

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2. Adopt Systematic Approach

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Analyse the situation Identify possible

courses of action Weigh them up Decide what to do

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3. Invite Conflicting Views

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One should not expect a bland consensus view

The best decisions emerge from a clash of conflicting points of view

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4. Consider Factors Influencing Decision Making

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Availability of resources Environment- internal / external (PEST) Capability, values, experience of

concerned people Knowledge Biasness / prejudice / interest Customs and habits of people Psychological factors- emotion, ethics,

values… Future as anticipated Superiors and subordinates

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5. Use Imagination 29

Use 'lateral thinking' and 'brain-storming'. You can develop your ability to think creatively by:Breaking away from any restrictions Opening up your mind to generate new ideasDelaying judgment until you have thoroughly explored the alternative ideas (for example, 'It won't work', 'It won't solve the problem')Nine Dots

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6. Implementation and Follow-up

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A problem is not solved until the decision is implemented. Think carefully not only about how a thing is to be done (who, what, when) but also about its impact on the people concerned and the extent to which they will co-operate.

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Some Tips for Effective Decision Making

31 It is not choice between right or wrong, rather

choosing from among alternatives What is right, not who is right Consider those affected by the decision (involve

if feasible) Mentally rehearse implementation of your choice View a ‘problem’ as an ‘opportunity’ Decision must meet the situation, and be

acceptable to as large number of people as possible

Choosing the right alternative at the wrong time is not any better than the wrong alternative at the right time, so make the decision while still have time

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“WE SELDOM HAVE TIMEFOR THE IMPORTANT

BECAUSE WE ARE WORKINGON THE IMMEDIATE

AND THE IMMEDIATE ISSELDOM THE IMPORTANT”

- Peter Drucker

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Lord Krishna introspects the basis on which we make our decisions.mp4

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“Think Laterally, and be Creative.”

Good luck