PROBLEM SOLVING AND DESION MAKING

INTRODUCTION TO PROBLEM SOLVING AND DECISION MAKING

PROBLEM SOLVING AND DECISION MAKING

Decision MakingHow to Make Good

DecisionsProblem SolvingBuilding Decision

Making Skills

Elements in Managerial Decisions

Decision: A conscious choice among alternative courses of action.

Therefore the 3 elements are:A conscious choice among alternatives

A specific purposeA course of action

Approaches to Decision Making

Rational (Logical Approach)

Intuitive ApproachUnable to decide

(Indecisive Approach)Impulsive Approach

Kinds of Decisions a Supervisor Makes

Routine data based decisions

Serious decisions having important consequences

Emergency decisions requiring distinctiveness

Problem- SolvingDecisions beyond

your authority* It is essential to recognize which decisions need to be made now and are most important

A Simple Version of Decision Making (The Logical Approach)

Define the problem (conditions and limitations) and the set of objectives

Analyze the problem: fact finding

Develop alternative solutions: brainstorming

Decide on the best solutionConvert the decision into

actionFollow up

Pattern of Problem Solving

Describe the problemSearch out the cause,

get the factsDefine the real problem

and set objectivesDevelop alternative

solutionsDecide on the best

solutionImplement the decisionFollow up

Participative Problem Solving

Argument for Group Decision Making :You get more info. And expertise

relevant to the decision You get more good ideas and can

generate more and better alternatives

People thinking together can arrive at better decisions because of the stimulation and interplay of different points of view

Participants are more committed to carrying out

Coordination and communication are simpler and better because everyone understands

Participative Problem Solving

Criticism of group decision making:It takes longer in a groupThere is usually a

dominator in a groupGroup participants get

involved in winning arguments and showing off

If consensus is required people may conform to get the meeting over

Consensus leads to mediocre decisions

Group Decision Making Works Best When:

Members are accustom to working together as a team and having differing expertise and point of view but common goals

The leader is skillful at keeping the meeting on target

The group is rewarded for making good decisions

Solving Peoples ProblemsPersonal problems

are not yours to resolve but LISTENING can help.

Keep your own emotions out of it.

Try to identify the real problem.

If possible eliminate friction (ex. Food Expeditor).

Win-Win Problem SolvingWin-Lose: You win, worker

losesLose-Win: You lose, worker

wins (retreat and appeasement, no stand)

Lose-Lose: The compromiseWin-Win problem solving

means you find a decision that satisfies both of you.Include worker from the

beginning: From defining the problem to carrying out an agreement

Guidelines for Building Decision Making Skills

Be sure of your authority for making decisions

Accept responsibility fullyDistinguish what's

importantMake the decision at the

time it is neededBe alert to signs of

problems needing solutionsKeep an open mind

Guidelines for Building Decision Making Skills

Don’t solicit advise but do consult your supervisor when a problem is beyond your ability to solve

Make sure that you are not part of the problem

Learn from your mistakesEvaluate your decisions

when carried out

PARAMETERS TABLESNO PARAMETERS RANKINGS ST-1 ST-2 ST-3 ST-4 ST-5

1 Problem identification

2 problem solutions

3 Solutions alternatives

4 Collection of facts and figures

5 Analysis of facts and figures

6 Finding the best alternatives solutions