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Decision-Making & Problem Solving

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Decision-Making & Problem Solving

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LABORATORY MANAGEMENT

Lesson 2 | Midterm | 1st Semester | Davao Doctor’s College, Inc. | Ashley Lao
➢ Judgemental
DECISION MAKING & PROBLEM SOLVING - objective analysis and rational procedures (rational
DECISION decisions).
◼ Conscious choice. ⚫ POLICY VS. OPERATING
◼ Process of choosing one alternative from among a set of ➢ Policy
alternatives. - important as they are taken by the top management/whole
◼ Made after evaluating different alternatives or solutions organization.
for the purpose of achieving a certain result. - affect the entire enterprise.
➢ Operating
CHARACTERTISTICS OF A GOOD DECISION - taken by the lower management in order to put into action
the policy decisions or not affect entire organization.
◼ Based on a complete investigation.
◼ Identify and evaluate alternatives. DECISION-MAKING DIFFERENCES BETWEEN LEADERS
◼ Select best solution. & MANAGERS
◼ Effective strategy for implementation.
Characteristics Leader Manager
⚫ STRATEGIC VS. TACTICAL Vision Search for long- Maximize current
➢ Strategic term opportunities. opportunities.
- decisions involving the external environment (you Communication Tell people why Tell people what
are influenced). we are doing to do; listen to
- relate to policy matters and so require a thorough something. have an effect;
fact finding and analysis of the possible listen for
alternative/long term decision. understanding.
➢ Tactical / Routine Question(s) Why? How? What?
- decision involving the internal structure (no Asked
influence; the decision is yours). Planning Opportunity to A path to follow.
- made repetitively following a certain established excite, educate,
rules, procedures and policies/higher. prepare for the
⚫ ADMINISTRATIVE VS. OPERATIONAL future.
➢ Administrative Power Something to
- deals with authority, responsibility, and have and use.
accountability relationships. Problem-solving Something to learn Something to
➢ Operational from, opportunity solve, to fix.
- deals with day-to-day activities. for growth.
⚫ PROGRAMMED VS. NON-PROGRAMMED Perceived Role Integrator; maker Controller or
➢ Programmed of decision decision maker.
- structured rules, policies, procedures; recurring. makers.
- of a routine and repetitive nature which are to be
dealt with according to specific procedures, structured DIAGRAM OF DECISION-MAKING STYLES
problem; expected. ◼ Continuum of decision styles.
➢ Non-programmed
- unstructured; infrequent (decision always change).
- arise because of unstructured problems or no
specific program or procedure; eg. group of people
become absent.
⚫ ORGANIZATIONAL VS. PERSONAL
➢ Organizational
- a manager takes in his official capacity or for the
organization/job description; eg. decision to transfer
or deploy employee.
➢ Personal
- relate to the manager as an individual and not as a
member of the organization; eg. resigning. A COLUMN
⚫ INDIVIDUAL VS. GROUP
◼ Manager solves the problem and makes decisions.
➢ Individual
◼ Subordinates are not included in decision-making.
- decision is taken by an individual in the organization.
➢ Group / Collective ⚫ AI
- decisions which are taken by a group of - you solve the problem or make the decision yourself,
organizational members. using information available to you.
⚫ INTUITIVE VS. JUDGEMENTAL ⚫ AII
➢ Intuitive - solve the problem or make the decision yourself,
- hunches, subjective values, and personal or using information from subordinates.
emotional factors (more on emotions). - may or may not be aware of the decision-making
process and their role in it.
LABORATORY MANAGEMENT
Lesson 2 | Midterm | 1st Semester | Davao Doctor’s College, Inc. | Ashley Lao
C COLUMN - bias toward information and judgment that supports
an existing predilection.
◼ Sharing of problem to your subordinates.
- seek out information just to support your point of
◼ The decision making is the responsibility of the manager.
view.
⚫ CI
⚫ FRAMING TRAP
- sharing problem with relevant subordinates
- misstating the problem, focusing on a symptom.
individually, getting their ideas.
- connected to identifying problem or determining
- make the decision yourself, accepting or rejecting
objectives.
subordinate advice.
- the way you frame your understanding to the
⚫ CII
problem, there will be error in your initial frame of the
- sharing problem with relevant subordinates at a
problem.
group meeting; getting their ideas.
⚫ OVERCONFIDENCE TRAP
- make the decision yourself, accepting or rejecting
- overestimation of accuracy of information.
subordinate advice.
- when a person is used to being successful, they
⚫ GI
become overconfident to their abilities.
- sharing problem with subordinates individually, and
⚫ PRUDENCE TRAP
together analyze the problem and arrive at a mutual
- prudence means being careful, being overcautious
solution.
about the degree of risk.
- both contribute.
- thinks of the worst case scenario.
⚫ GII
⚫ RECALLABILITY TRAP
- share the problem with relevant subordinates at a
- placing undue weight on recent, dramatic
group meeting; analyze the problem and arrive at a
experiences.
group decision.
- decisions based on past events or based on past
- does not try to influence the group; willing to accept
events that left a great impression on the decision
and implement what the group recommends.
maker.
⚫ HUMAN ELEMENT
- can cloud the decision-making process. PROBABILITY ANALYSIS
⚫ DISCLOSURE ◼ Certain individual analyzes what is the probability of a
- make information known. certain event.
⚫ A PRIORI PROBABILITY
DECISION-MAKING PROCESS
- predictions obtained by deductions based on
assumed conditions.
⚫ EMPIRICAL PROBABILITY
- determined from the recording of actual events over
a specific period of time.
⚫ SUBJECTIVE PROBABILITY
- based on the knowledge and experience of the
decision maker.

DECISION-MAKING TECHNIQUES
⚫ GROUP DISCUSSION
- similar to brainstorming, however, there is topic and
there will be someone that keep tracks of the
discussion.
⚫ BRAINSTORMING
RISKS & TRAPS
- even if the idea is out of topic it will still be noted.
◼ Some elements of risk lie in the behavioral factors of risk - idea will be evaluated later.
takers. Hammond et al. identify these as psychological ⚫ SYNECTICS
traps: - like a group discussion; individuals in the discussion
⚫ ANCHORING TRAP are with diverse experience and skills.
- placing disproportionate weight on first or more - people are chosen to be the problem solving team.
superficial information found during information ⚫ NOMINAL METHOD
gathering. - highly structured meeting.
- whenever you make a decision, you receive - every individual in the meeting are to write original
information (initial impression). ideas in
- based on initial impression. private and submit it to the facilitator.
⚫ STATUS-QUO TRAP - facilitator will present the ideas anonymously.
- status-quo means current situation (standard). - ideas will be voted out by the participants.
- bias toward doing what you’ve always done despite ⚫ DELPHI METHOD
better alternatives. - modified nominal method.
⚫ SUNK-COST TRAP - ideas are solicited through questionnaires.
- tendency to perpetuate mistakes of the past. - present to the meeting and voted out by the
- make a choice just to justify your past choices. participants.
⚫ CONFIRMING EVIDENCE TRAP

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