CFLM42 Prefinal
CFLM42 Prefinal
Problem-solving is a set of activities designed to analyze a situation and find, implement, and
evaluate solutions. Decision making is making choices at each step of the problem-solving
process.
Decision making and problem solving are ongoing processes of evaluating situations or
problems, considering alternatives, making choices, and following them up with the necessary
actions. Sometimes the decision-making process is extremely short, and mental reflection is
essentially instantaneous. In other situations, the process can drag for weeks or even months.
The entire decision-making process is dependent upon the right information being available to
the right people at the right times.
Steps of Decision Making Process: Following are the importance steps of the decision making
proved. Each step may be supported by different tools and techniques.
7 Steps of the Decision Making Process
Step 1: Identify the Decision
This is the very important step; it is where the manager realizes that he/she needs to decide.
He/she needs to clearly define the nature of the decision he/she must make.
In this step, the problem is thoroughly analyzed. There are a couple of questions one should ask
when it comes to identifying the purpose of the decision.
• What exactly is the problem?
• Why the problem should be solved?
• Who are the affected parties of the problem?
• Does the problem have a deadline or a specific time-line?
Step 2: Gather Relevant Information
Collect some pertinent information such as what information is needed, the best sources of
information, and how to get it; before he/she makes a decision. Some information is internal,
that needs to be sought through a process of self-assessment. Other information is external that
can be found online, in books, from other people, and from other sources.
Step 3: Identify the Alternatives
After the collection of information next is to identify several possible paths of action, or
alternatives. List all possible and desirable alternatives.
For this, you can make use of Cause-and-Effect diagrams and Pareto Chart tool. Cause-and-
Effect diagram helps you to identify all possible causes of the problem and Pareto chart helps
you to prioritize and identify the causes with highest effect.)
Step 4: Weigh the Evidence
Drawing on information and emotions to imagine what it would be like if each of the alternatives
is carried out. Evaluate whether the need identified in Step 1 would be met or resolved through
the use of each alternative. As the manager goes through this difficult internal process, he/she
will begin to favor certain alternatives: those that seem to have a higher potential for reaching
the organization’s goal. Finally, place the alternatives in a priority order, based upon the
manager’s personal value system.
Step 5: Choose among Alternatives
After weighing the evidence is the selection of the alternatives that seems to be the best. A
combination of alternatives may even be chosen.
Step 6: Take Action
This is where the manager will make some positive action by beginning to implement the
alternative he/she chose in Step 5.
Step 7: Review of the Decision and its Consequences
The final step is where the manager considers the results of his/her decision and evaluates
whether it has resolved the need identified in Step 1. If the decision has not met the identified
need, the manager may want to repeat certain steps of the process to make a new decision. For
example, the manager might want to gather more detailed or somewhat different information or
explore additional alternatives.
DECISION-MAKING TECHNIQUES
Decision-making techniques can be separated into two broad categories:
1. Group Decision-Making Techniques
2. Individual Decision-Making Techniques
Individual decision-making techniques can also often be applied by a group.
1. GROUP DECISION-MAKING
Also known as "Collaborative Decision- Making" = is a situation faced when individuals
collectively make a choice from the alternatives before them. The decision is no longer
attributed to any single individual who is a member of the group.
This is because the result applies to certain systems of individuals and social classes such as
social power.
Community decisions often vary from those taken by individuals.
Collaborative decision taking in workplace environments is one of the most effective models for
creating buy-in from other stakeholders, building trust and promoting innovation.
10 GROUP DECISION-MAKING TECHNIQUES
1 Brainstorming
A brainstorming session is a type of group decision making that can be really effective when you
need to raise potential ideas and solutions. This offers a free-flowing structure to the discussion
and allows the whole team an opportunity to share their ideas on how to approach a particular
situation. The main goal of brainstorming is to come up with as many suggestions as possible
and to then decipher which idea may be the best approach. These meetings are a little more
geared towards generating ideas than coming to a final decision but often, one idea stands out
from others and can be selected as the most effective solution.
2 The Delphi Method
The Delphi technique is a good option when you need to reach a group consensus for a major
decision. This group decision-making process takes all of the ideas generated by your team and
compiles them for the leader of the group to break down into a smaller list of possible
approaches. Those fewer options are then taken back to the group for further discussion and
collective consideration. Essentially, the choices are condensed until a majority decision can be
made. The idea is that when there are fewer options available a decision is reached with much
more ease and with collective agreement from you and your team members.
3 Weighted Scoring
Weighted scoring is ideal to use in a situation where your team has many ideas for possible
solutions but have not necessarily considered the implications of each decision thoroughly. The
weighted scoring technique is founded on the idea that certain ideas or approaches may be
riskier than others and therefore their implications need to be considered. Each item is
evaluated against criteria such as the business value, costs, risks, and adoption. Each of these
criteria is assigned a score based on the weighting (impact) of them. You’re looking for an
approach that will score high in business value, high in adoption, score low in cost, and low in
risk. After weighing each idea, you can tally up the scores to make an informed team decision.
4 Nominal Group Technique
The nominal group technique builds on the brainstorming discussion by including a voting
process at the end. Not only does each group member cast a vote, but each person is given the
opportunity to also give an explanation as to why they voted for whichever decision or option
and why they feel as if it’s the best choice. Depending on the topic of discussion, there are a few
different ways that you can use the nominal group technique. If the topic is more sensitive or
controversial, you may want to engage your team with a survey with the option to remain
anonymous. Otherwise, this technique can be used during your meeting in an open discussion.
5 Possibility Ranking
Possibility ranking means determining the best option through using a voting system or creating
a list as a team to prioritize ideas and approaches. When you’re trying to make a collective
decision about a question or issue that has many different potential outcomes, this can be a
great group decision-making technique to engage. This technique can be used in an email, in a
survey, or in your live meeting. You can begin with asking everyone to make a personal list of
how they might rank different options or approaches and then combine lists to see if there are
common opinions amongst the group so that you can come to a consensus. After you determine
the average of the best option, you can take that approach knowing that the majority support it
and agree with it.
6 The Stepladder Technique
Similar to the Delphi method, the stepladder technique encourages each team member to give
their personal opinion on a matter, before anyone can be influenced by the rest of the group.
This prevents groupthink and encourages authenticity and honesty in your team members’
answers. There are a few steps required for this approach:
Step 1: Before meeting as a group, present the task to your team. Make sure to give enough
time to everyone to think about their opinion or decision on how to best accomplish the task at
hand.
Step 2: Create a core group of two members and have them discuss the task or issue.
Step 3: Add a third group member to the core group. This third member presents ideas to the
first two members before they hear the ideas that have already been spoken about. After all
three members have laid out their solutions and ideas, they discuss their options collectively.
Step 4: Repeat the same process by adding a fourth member, fifth, sixth and so on, to the
group. Make sure that there’s enough time for discussion after each added member has
presented their views.
Step 5: Make a final decision after everyone has been brought in and shared their ideas.
7 Pros and Cons list
In business, a pros and cons list is often referred to as Dialectical Inquiry and can actually be
quite effective. Dialectical inquiry is a group decision-making approach that tries to fight against
groupthink. Philosophical in nature said to have originated with Plato, this group decision-
making technique asks group members to consider both the thesis and antithesis to any idea.
When using this technique, split participants into two groups: those advocating for an idea and
those advocating against it. Each group has the chance to explain and highlight why they feel as
if their decision will produce the best business outcomes and why the alternative opinion may
not make as much sense.
8 Didactic Interaction
Didactic interaction is similar to your pros and cons list or do dialectical inquiry, but unfolds a
little differently. This approach is only applicable in certain situations but works very well when
the right opportunity arises. The type of problem should be such that it results in a “yes” or a
“no” solution. These are typically major decisions that will have a large impact on the way the
business operates and will affect each employee as well. Such types of decisions require
extensive and sometimes exhaustive discussions that can be time-consuming. Using this
approach, you can simplify the process of investigation, waste no time and get straight to the
point, without asking for any kind of elaboration.
9 Decision-trees
The decision tree technique is great for forecasting outcomes to different decisions. Decision
trees are highly visual and operate as a type of non-linear mind map so that you can predict
how certain approaches to a situation may turn out. Because this model of decision-making isn’t
linear, you and your team can come up with creative ideas and make multiple potential
decisions to understand which one has the most beneficial outcome. The decision tree starts
out with one question, which is the root of the tree, which then branches out into many different
possibilities. Branches will lead to nodes (outcomes) and subsequently, you can add a leaf,
marking a rule or final decision.
10 Consensus Mapping
Consensus mapping begins with your team generating and developing ideas. It then attempts to
arrive at a decision by pooling these ideas together, which have been generated by several task
subgroups. The ideas generated by the task sub-groups are further developed collectively and
then narrowed down into a smaller number of ideas, with a stronger focus. Subsequently, all the
ideas are again narrowed down into an even smaller number of ideas until the group is able to
come to a mutually acceptable solution to the problem or situation. This technique is best suited
for multi-dimensional problems, with interconnected relationships throughout the business, and
involves several steps to coming to a final decision.
2. INDIVIDUAL DECISION-MAKING
In general, a person makes prompt decisions. When in a group, keeping any one person
responsible for a wrong decision is not easy. Human decision taking usually saves time,
resources, and energy as individuals make timely and rational choices.
Although taking group decisions takes a lot of time, money and energy.
The Rule of Private Gain. If you are the only one personally gaining from the situation, is it at
the expense of another? If so, you may benefit from questioning your ethics in advance of the
decision.
If Everyone Does it. Who would be hurt? What would the world be like? (This questions can
help identify unethical behavior?
Benefits vs. Gain. If benefits do result, do they outweigh the burden?
Neutral vs. Prescriptive. Those who operate in a neutral mode are reluctant to tell students
what to do, preferring instead to let students discover the appropriate action with minimal
guidance. On the other end of this continuum, a prescriptive advisor uses the authority of the
position to express opinions and make recommendations.
Encouraging Vs. Discouraging. On one extreme, advisors look for ways to give positive
messages to students while withholding any criticisms.
Judgmental vs. Nonjudgmental. This continuum only exists within the advisor, not in the
advisor's interactions with students. Judgmental advisors scrutinize everything, accepting
nothing at face value.
Nonjudgmental advisors accept what students or colleagues tell them without criticism (Buck, et
al.,
2001).
(To be ethically successful, it is paramount that we understand and respect how values impact
our social environment. How we perceive ourselves and operate within our environment is so
important.
Without the emphasis on ethics, organizations can miss the opportunity to reinforce
responsibility for their internal and external environment. This failure can lead to an outcry of
negative public opinion, or even worse, legal issues. The measure of ethical success within
institutions of higher learning has always been important, but no more so than in today's
environment of regulatory and public scrutiny. Advisors, as a part of their institution, are
accountable to it in a legal and moral sense. It is important that advisors operate within the
constraints of ethical standards. We do a disservice to ourselves, our students, our institutions,
and our profession if we do not address these issues regularly.